Repayment Performance of Institutional Agricultural Credit in Jaipur District of Rajasthan

Sharma, B. D.; Kumawat, Raju

doi:10.5958/j.0976-4666.59.2.024

“…Rahman (2011) finds that farm credit in Bangladesh may be inefficiently and insufficiently allocated, especially in the context of a positive correlation between the credit and output. Studies for India (e.g., Sharma and Kumawat, 2014) and Pakistan (e.g., Mehmood et al, 2012) also document similar situations: loans are made and monitored inefficiently, so even though credit is rationed, increasing its supply may not be welfare improving in the absence of institutional improvements such as better targeting and monitoring.…”

Section: Agricultural Creditmentioning

confidence: 97%

Financial Inclusion: Concepts, Issues and Policies for India

Singh

¹

2017

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This paper lays out some of the basic concepts surrounding financial inclusion, including access to banking, digital payments and financial literacy, as well as markets for health insurance, crop insurance, agricultural credit, small firm finance, and microcredit/ microfinance. It goes on to discuss various empirical and institutional studies of these dimensions of financial inclusion in the context of developing countries. The paper then outlines several recent studies for India sponsored by the International Growth Centre, which pertain to these specific aspects of financial inclusion. Finally, the paper draws lessons for policy-making and future research directions. Important considerations that emerge from the overview are the significance of social and economic context, the need to consider behavioral biases connected to situations involving time and risk, the interaction of different dimensions of financial inclusion, the importance of details of policy design, and the limited understanding we still have of many of the factors underlying the functioning of financial markets.. * I am grateful to Eilin Francis and Arshad Mirza for valuable research assistance, and to Dilip Mookherjee for incisive comments on an earlier draft. Sole responsibility for shortcomings is mine.

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“…While a large number of studies have analysed the impact of microcredit on the poor in India, a few recent ones found a modest positive effect of microfinance with no transformative effect (Banerjee et al, 2015b). Sharma and Kumawat (2014) document the inefficient targeting and monitoring of credit in India due to absence of institutional improvements, which has prevented the welfare improvement even with enhanced credit. Thus, the efficacy of banks and MFIs in reaching out and benefitting the poor is still an open question in India.…”

Section: Jfep 124mentioning

confidence: 99%

Channels of financial sector development and the inequality widening (narrowing) hypothesis – evidence from India

Mehta

¹

,

Bhattacharya

²

2020

JFEP

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Purpose The study aims to understand how various channels of financial sector development affect the income inequality across Indian states and whether the inequality widening or narrowing hypothesis of financial development may be confirmed at a sub-national level. Design/methodology/approach Using state-wise annual data for the period from 1999-2000 to 2011-2012, a panel data analysis using generalised method of moments (GMM) estimator is conducted for a sample of 15 major Indian states. Findings The results confirm the inequality widening hypothesis of financial sector development in India. While each channel affects different section of the population in a different way, their overall effect on the income inequality remains unfavourable. Originality/value This paper is the first ever study to provide a comparative empirical evidence for the effect of each channel of financial development on the income inequality in India. The results provide significant insights to the policymakers, practitioners and academia in the financial sector with respect to the efficiency of each channel of financial development in bridging the gap between the poor and rich.

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Financial Inclusion: Concepts, Issues and Policies for India

Singh

¹

2018

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This paper lays out some of the basic concepts surrounding financial inclusion, including access to banking, digital payments and financial literacy, as well as markets for health insurance, crop insurance, agricultural credit, small firm finance, and microcredit/ microfinance. It goes on to discuss various empirical and institutional studies of these dimensions of financial inclusion in the context of developing countries. The paper then outlines several recent studies for India sponsored by the International Growth Centre, which pertain to these specific aspects of financial inclusion. Finally, the paper draws lessons for policy-making and future research directions. Important considerations that emerge from the overview are the significance of social and economic context, the need to consider behavioral biases connected to situations involving time and risk, the interaction of different dimensions of financial inclusion, the importance of details of policy design, and the limited understanding we still have of many of the factors underlying the functioning of financial markets.. * I am grateful to Eilin Francis and Arshad Mirza for valuable research assistance, and to Dilip Mookherjee for incisive comments on an earlier draft. Sole responsibility for shortcomings is mine.

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Repayment Performance of Institutional Agricultural Credit in Jaipur District of Rajasthan

Cited by 3 publications

References 1 publication

Financial Inclusion: Concepts, Issues and Policies for India

Financial Inclusion: Concepts, Issues and Policies for India

Channels of financial sector development and the inequality widening (narrowing) hypothesis – evidence from India

Financial Inclusion: Concepts, Issues and Policies for India

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