BANKING, TRADE AND COMMERCE

section i- BANKING AND FINANCE

THIS CHAPTER IS DIVIDED INTO TWO PARTS. The first part, viz Banking and Finance, describes the banking and financial institutions in Satara district in their historical and structural aspects. As such, this section gives narration of indigenous banking, joint stock banking, co-operative finance and the state of indebtedness in this district. The second part, viz., Trade and Commerce, is devoted to the analysis of the historical and structural aspects of trade and commerce in the district. It also describes the extent and volume of import and export trade, wholesale trade, regulation of agricultural marketing, co-operative marketing and the various agencies engaged in trade and commerce.

The present section gives a brief account of the functional aspects of the various economic and credit institutions obtaining in the field of finance. The latter include the money-lender, the co-operative societies, the commercial banks, the joint-stock companies, the Life Insurance Corporation and many other agencies directly undertaken, controlled or regulated by the Government. These institutions are important in the sense that to a very large extent the material prosperity and economic advance of the district depend upon the successful operation of these institutions or agencies.

The recent years have witnessed some remarkable changes in the field of finance of the district largely affecting its economy. The age-old institution of money-lenders which was the prominent source of credit to a large section of the people—especially the agricultural population, is fast losing ground and is being replaced by the modern organised banking system. Many governmental agencies are coming forth to extend financial assistance in the agricultural and industrial spheres of the district. Co-operative movement, too, has spread far and wide and has touched most of the economic activities of the people. Mention must be made especially of the Large-Sized Multipurpose Societies formed by the amalgamation of the small units or societies, which have made possible the organisation of co-operative movement on a sound footing and a great expansion of its activities. No study of finance would be complete without the analysis of these major changes which have taken place in the financial institutions of the district.

With Independence, the Government began to take active interest in public affairs. New policies were chalked out. new laws were administered, and new schemes were brought out—all with a view to enhance public welfare. This sort of increasing intervention of the Government into public life resulted in a gradual expansion of the public sector and a simultaneous shrinkage of activities in the private sector. These manifold changes, significant as they are, not only affected the size and structure of the credit institutions functioning in the district but also affected and regulated the conditions of their working.

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