| ID | 083050 |
| Title Proper | Informal finance and rural finance policy in India |
| Other Title Information | historical and contemporary perspectives |
| Language | ENG |
| Author | Jones, J Howard M |
| Publication | 2008. |
| Summary / Abstract (Note) | From the 1950s up to the early 1990s the All-India data show an ever-declining share of informal credit in the total outstanding debt of rural households. Contemporaneous micro-level studies, using more qualitative research methodologies, provide evidence that questions the strength of this trend, and more recent All-India credit surveys show, first, a levelling, and then a rise, in the share of rural informal credit in 1990/91 and 2000/01, respectively. By reference to findings of a study of village moneylenders in Rajasthan, the paper notes lessons to be drawn. First, informal financial agents have not disappeared from the rural financial landscape in India. Second, formal-sector financial institutions can learn much about rural financial service needs from the financial products and processes of their informal counterparts. Third, a national survey of informal agents, similar to that of the 1921 Census survey of indigenous bankers and moneylenders, would provide valuable pointers towards policy options for the sector. A recent Reserve Bank of India Report on Moneylender Legislation not only explores incentive mechanisms to better ensure fair practice, but also proposes provision for a new category of loan providers that would explicitly link the rural informal and formal financial sectors |
| `In' analytical Note | Contemporary South Asia Vol. 16, No.3; Sep 2008: p269-285 |
| Journal Source | Contemporary South Asia Vol. 16, No.3; Sep 2008: p269-285 |
| Key Words | India ; Financial Systems ; Financial Policy ; Economy |