CANARA BANK AS A FINANCING AGENCY FOR RURAL DEVELOPMENT OF ALIGARH DISTRICT
DISSERTATION SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE OF Mnittv of ^l)iIo2iOp]^p IN COMMERCE
BY RAIS AHMAD
I'nder the Supervision of Professor Sami Uddin Chairman M. A, M. Com., Ph. D., D. Litt.
DEPARTMENT OF COMMERCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 1989 •k( Ace c V I' ?' ^>J /6 3 I ,'J %l (s,*- \
DS1631 COWTETJTS
P^g* NTo.
ACK !»OVLEDGEME NT ( 1)
INTFODUCTIOV (iv)
CH^tfTER I
CONCEPT OF PURAL DBVELOPMENT AND 1 - kS ECONOMIC CONDITION OF ALIGAHH DISTRICT
CHAPTER II
THE LEAD BA** SCHEME - AIMS AND OBJECTIVES - 65
CHAPTER III
CANARA BAItC - A HISTORICAL SCETCH, 66 - 89 PERFORMANCE AND PROGRESS OF CANARA BA^if. ALIGARH.
CHAPTER IV
ROLE OF CANARA BAWC AND OTHER NATIONALISED - 111 BANKS IV PROVTDINS FINANCE FOR RURAL DEVELOPWFNT IN ALIGARH DISTRICT
OHAPTEP V
PROBLEMS FACED BY BA!«S IN PROVIDING ll2 - I30 FINANCE FOR RURAL DEVELOPMENT OF ALIGARH DISTRICT
CHAPTER VI
SUMMARY, CONCLUSION AND SUGGESTIONS 131 - U7
BIBLIOGRAPHY US - I50
APPENDIXES 151 . 162 ACK NOWLBDOIMIHTS
This study has hmen coinpl«»ted utjder the •upenrlslon and able ^Idanc* of Dr« Bmm± Uddln, Prof«s»or «nd
Chmirtemr.t ?^ttpartiii*nt of Conw^rott, All^farh Mu-liw tfnlv«>r«ltyt
Alifrarh. Tt is r^mlly a matter of prld» to worV undor such n iir»9it scholrtr of Intornational r«put« In th* flald of Rntr«pr«n«Mr«hips Cooperation and Rural Dwralopwcn*.
*re vordv would aufflea to axproaa ny doop ••»§• of «rr«tl- tudo to him, bocaut** hla inraluablo fruldancaf valuable
Bu#r«ra«tiona and •nooara^aMant at aTary etaira of tha vorV hava anablad ma to oonplata thia projaet* Ha provldad oa tha opportunity and llbarty of ancroachin^ upon his praci- ous tlma and alao allowad ma to uea his pergonal library.
Tha tralninp which T wa» provldad by hl» duri iig tha eouraa of study will eontlnua to ba a aourca of Inapiratlon to aa in ^y Itfm* I feel proud In axprasaini^ «y profound frratl- tuda to hiai.
Prof« I.H. Farooqi, Prof* Hablbur Rahnan,
Prof. Vafia Baifr and Prof. Abdul Farooq Khan, Dapartaant of Commarca hava baan a g^raat aourca of ancoura^anant to ma. T owa my f^ratitudas to than. ( li )
I mm gr«sitly obllff«d to T)r* M«hfo»sur lt«lMian who alwajre •jrt«nd*d hla h*lplnir taftnd* vhmixfrmT T fao«d mnf difficulty in th« oonpl«tion of thl* project.
*" an hl*hly thankful to 'Or. ''^atjdrlli F hP.lriowala,
P»8v?«r, ^«»T«»rtine'r!t of Coreni©rc#», *WT, Allpnrh fnr c^nK- tjjntlv frnoiifBeinp m« end ff|Mt-nd1n^ hlf* vtlup'^ ^0 tim# to
(pii1.-*» w^ and helT>f»j1 sufr*r«»tii^n« mad« bv Mw In coirpl^t-
Inr Bry wnrV,
T^ take thiB op;-)©!"^unity to ©xpreefc my profound fr^titudef" to T»rof. Mehmudl Haquw, Bean, Faculty oi Social fci*nc«»s ftr»i Chairman, Cetitra of Vest Aaian Studias, AMU,
Allrarh and Prof. M.A. SalermKhan, (Ex-Chairman) Cantr* of Veiit Asian Gt«dia», who w«r«> kirKl «cou(irh In |rrantin# leav«^ to i»« from th0 Cantra to parsua this couraa.
I vould alao Ilka to axpraas ny fealin^ of ^reat fulnasa to all of my taaehare and staff of tha dapartisant who always ancourajrad as durin# tha work. T would Ilka to plaea on racord aiy Sanaa of appraolatloQ to all thosa who axtandad th»ir cooperation to sa*
T am fn*aatly thankful to Mr. Prabhu, Divisional Mana^far,
Wr. Var^hnay, Lend Partk Officer, Canara "Pank, All|rarh,
Mr. Prav«an Kumar Sin^h, Asstt. Stntif^tical Offlcar, P.I^.D.A., Allfrarh and Mr. Kwdar Nfath Varwa, Af'nlstant Economic and ( 111 )
Statlstioc Officer, Allifarh (tf, P. ) for prorldlnir data nec«««®r^ in the comp1«tie?> of' thl» v»>rit,
'* esa aluo t ^lankiYil to Prof. '*?oorul Hnmfkr*^ Vn±-¥^rvity
Ll'brar:?an vtio pr''Vid«»d aa« f gr^at help la coiaplotl^lc ray
res.-*®'irc' work, i mu ind©bt«ed no Mr. S, Icaufsid Flusaln,
LibrJar-^aji a.-Kl 'Jr. Ail ^lasan 7, ht*n, I--j."brary Attu.ido?3t, I)«ptt.
t 041 .;!.•<' t "isn.M't,'I to Mr. fiia'isz'icl J*, la, 'Ax, r*iajf-s*'mS Al' ti^:- -'»t ^cr non-tsac' i rjf st'iff ajos'bcrP of the repartrnsr.t »ho in -ft t^ay- oi f, ?i© ot*^Pr helped ra*-' in cr»»nf1et1cg BBJ
i Bimll b© ;tailing in (wy dutl»» if T ff>rjr«t t-*> rnxjifiit my »«nfru ot c(ratitud*e to ay parents vhoea bl«»»lnK* hav® b«0ti a aourcv of inspiration to aa*
My thanks sre alao du*» to a oumljer of asy fHanda and
f«llov res*arrh*>r#- especially Dr« Fh«hwar &law, Mr. w,?,|r.
Sherwani, Mr. ^ehfi, HaaffabKlian, Mr. Mohd. »4a» Fhan,
Wr» Wohd. Moh«lr firhan, Mr. Shamaaw Akhtsar and Wr. S. K ha lid
Alt l?isrvi.
( RAIS AHMAD ) ( !• )
IWPSOOtJCTIOlf
Fural d^TttlopoMnt has aseuBcd Kr««t«r import ane* In th« irrowth of th« country today than avar befora. It la a atratagy paeka|r*t aaaklni? to aehlava anhancad rural production and productivity, i^raatar aocio-aco- nomlc aqulty, a apatlal balanca In aoelal and aconoaiie daralopai^nt.
Airrlcultura oeouplaa a kay poaltlon in tha Indian aoonony and aora particularly in aeoalaratiniir ^ba procasa of rural davalopment. Tta rola in atiaiulatinir rural davalopaiant ie unlqua* Tt oontrlbutaa to ovarall acononlc frovth tbroufb auppliaa of food for auatananoa, raw
•atarialR for Induatrlaa, and axporta aarnlnir valuabla foralern axchanga* Tt i» a aourca of llrallhood for a majority of tkf rural population and providaa a larro markat for non-ai^rlcultural ftooda and aarvlcaa.
Agrloultura and rural davalopaiant ara intarvovan. Papid davalopmant in airrlcultura and alllad actlvltlaa vill iflnprova tha quality of Ufa of tha rural paopla.
1. Dasai, Vaaant, Bur*l DaTalopmant, Hlmalya Publlahlnit Houae, Vol. VI, 1988, p.lAI i ^)
A close lnt«|^«tion betv««n airricultur* and Industry holds botter proapoeta for rural dav^lofMiant and advanea- Biant of forcaa of production for akill fomatloa and po8ltiv« attitudes to dsT*lopnant. This may also accsn<» tuat« rural inaqualltias. But this incraasad inaquality vitbin rural eraas aay ba prafarabla to tha stats of rural under davelepsiant obtaining under conditions of industrial davelopaiant oonfioad to metropolitan centres vhose onl^' link with the rural economy is by way of receiTing raw metarials and other marketed including edible oil and keroe«»ne, but contributing little by vay of providing employment and redueinip poverty.
Till about 1967t the official policy emphasised and relied upon the development of cooperative credit structure as a oompreheiwive agency to tackle the prol lem of agricultural finance. Cooperative credit societies vers expected to meet short term and medium ter» needs and Land ftortjraire Development Faidcs V9V astabltehed to meet lon|^ term needs of agricultural sector in India. Till 19^7* it may be said that eonsmer- cial banks vere not involved in providing, at say rate, dir*»ct finance to agriculture. Since 19^8, there was a radical cbangs in the approach of commercial banks towards afrricultural finance,
1, Desai, Vasant, Bural Deyalopment. ffinalya Publlshinir House, Vol. VT, 1988, p.1*1. ( vl )
On th« r»commmrfimt±t>n of th« Rural Cr»dit Surv«y
Comnittee, a nll^l^er of naaeuras vara takan to atreniirt>i«n
th« cooparatlv© or^Kilt structure is» the country. Thora
WIS* corns-d*rat la ijxjpaiisloa in l^rKHTvP *?F cooperntlva
c-radit «nctatl«J* «nfS "by th® and of 1«>68, Primary Apr3-
ewltural Tooperat^va Credit Snolatla?* had lant t«r» •srri-
C'jli "jriatf* mo'T-r' thaa 500 croraa which !«• about 30 i>«r
c^o* of tota^ borrovinir* of ^'Ha airrieultural aaetor.
A Commlttaa of Banltar« vaa appointad by l?e«?anra
Bank of Tndla in August 1^69 undar tha Chalraianahlp of
Mr. r.K.r. 'Var'Bian. Tbi* Cosgnlttaa vaa antruetad with
a-rolTlnir a coordinatad prof^raMoa for branch axpanaion to
ensure adaquata banking faellitlae in undar-bankad dlstrieta
of tha country*
the aboV4» mcnticnad CooMsittea axamlnad tha posi
tion of banking faoilltia* In tha country and racomsendad
tha introduction of Laad Bank !hche«a for all tha di»«trtct«
of country, "^hua, on tha ba^l* of racoBwnandations of
farlBian '^otaimlttaa for Laad Hank Schewa, tha w©f«arva ^nrtk
of "•'ai^a m'>dif±od and f1 nails'^ the ?.aad F^nk Pchof*f» for
State Bnt&i of Tndla and its aubaidiarias, 1*» nati onalitsad
1. liaaaiy S.S.^., Bural Bankinf in Tndja, ^Inalya ( Til )
baoka and thr«* prlv«t« sector bank* 1B th« Bonth of Ootobvr 1969 and Inplanantad thin sohaaia throuKbout th» country in tha month of Paeamb«ri. l96o. This ectaana haa eoirarad all tha diatriets in tha country vith tha axcap-> tion of Graatar Bonbay, Calcutta, Hadraa, Union Tarritory of Pal hi, Chandlirarh and Ooa«
Ttta aiain function of Laad I^ahk is to prepara a Surray Raport of ita allotted district and naoroh out tUoaa ar«as vhioh aro potential for baiid^ln^ facilitioa, but bankinie m9Tyr±c»a ara not available* Thua, on tha b&ala of Surrey report submitted by tha Laad Bat* of a particular district, tha Wesarira Panic of India irranta tha liaanoaa tor opaninc: new branch«a to provida bankinir faciiltiaa In potential areas.
At the and of Bacaaibar 1987, the Lead Bardr Scheaie covered '•'^8 dlatricto in tha country. Aocordinf to availabia data, tha achiavenent under Annual Action Plan for 19P7 was Fa.tO,9liO orores againat Rs.10,110 croras under similar plan for 1986,
^n tha light of tha above nt>t«*i facts it was felt nace*4aary to atudy theiCatMra Barft (Lead Bank of Ali|rarh District) in providing finance for rural devclopatant of Ali^arh ^iatrlot. i •ill )
OBJECTrVKS OF THE &TUpt i
Th« obj*etiT** of thm atudy aro aa follow t-
1. To T**-ri0\i tho ootMBOpt of rural deTOlopuont and Boonoaic condition of All^arh Dietrict,
2. To roTlow tho aiai and obJoctlTO of tho Load Bank
3. To rcvi^cw- the historical background of Caaara Fank.
'i. To ovaluata tiio parfomanco and progroos of Canara Faak, Allr^rh.
5. To ©xaroino th® role of Canara Fank of Alinarh undor Tntaffratad Kural Davalopmont Proirraamo.
6. To ovaluata thta rola of Canara Batik and othar "fationalisod and non-national is ad banka in financinir tha roQUJraaianta of A^ricultura, Snail Scala and Cottago Tnduatrlaa and Tartiary Sactora in Allirarh Diotrlct.
7. To idantify ti-»« problaaa faoad by tha banka 1« financing for A^rloultura, Small Soala TtidUBtri*»a eifr! Tortlary Soctor and to aufrftaat appropriate aaaauraa to ovarcoaia tha problona.
tfBTHODOLOOT I
A datailod atudy haa ba«n mada on the avnllabl* litaratura, vhicb coaipri«ea books, raport* from Govern ment of Tndlia, Monthly* Quarterly and Annual Reports of RoB^rve Bank of India and roaoaroh output of Individual ( tx )
r*««arcli*r« conn«et«d vlth different Bch«M«a of this
• tudy» Yarloue infomationB have been taken from the report of District Statistical and Econonlcs Bepartnent of AliiTarh, U. P« C overiment • Inteneive ufc was nade f>f the report* of the Canara Bank which is the Lead TftiV of Aligarh Dietrict, The informatlone which were not aveilal lu in euch publications were collected by nenns of p<*rffr»na1 risite to banks, TUstrlct Rural TJpvelopment
Agency and other concerned agencies.
The researcher held dii" cuss ions with the senior officials and execuMves of different banks re^ardlnj? probleJTs faced by the banks in pro-vidinir credit to their cust oi»ers«
For completion of this study a few local banks wei surveyed with a view to analyse the workin«^ of the ban^ refar
Lead Bank's Annual Action Plans,
SCHEME or THE CHAPTER?SATTON J
The entire study tms been divided ni
The chapter first hiirhligrhte the concept i 'j . cent and economic conditions of Allf^arh > "^; - ' . ( »)
attcond d*ale vith th«» ftjnc mvd obj9Ctlve» of Load Fanft
Sch»ia« «nd tb« Rol« of Canara IRank in AUgarh as I^aci
Bartk oi t na ClBtrict and objactlves of rietrict '^r©dit
Plan ot Caruxra Fari, Aligarh. Third chapter •^©als wlfH tti® »iui of aatabllahinj^ Canara Bank which was quite dll'fera.it from otlmr C0Bi»arcJa3 banke. Tn the sam* chapter t a* p«if i.Ttja'Jrifttic* and progr»8is of C»n»r». FanV r>t
Altg&r \ Tis'trtct has t««n d^!«cu»!•©c!• Chapter ff»«r fexamiiJ6(f thm pole of Canara FanV and other national!sad bnrkfr in providing; financa for 'Jural Pav^lopwwnt in
Aliir«rh VAmtrict, Chaptar fiv« daal^ with tha probl*>fl«s
fac«^ by th« banks in providing finance for niral dev^-
lopTR^nt in Ali«ar^» Di»triot» Tha last chaptar d«a1s with
the Sufcwer, Co/!Clu»lon and Su^5ta»tiona. PHAyrgR I
CONCEPT OF RURAL DSVELOPMENT AND ECONOMIC CONDITION OF ALIGARH DISTRICT CHAPTER I
COBCEPT or HURAL DgVELOPMBlfT ANDKCOWDIilC COWDITION OF ALIQAHH DISTRICT
Rural D«vt(lopM«nt haw assumed Kr«at«r inportanca in the growth of tha country today than every before* It la sk strategy package seeking to achieve enhanced ruz*al production and productivity, greater Bocio<^eonoailc equltyt a spaclal balance in social and economic development*
The rural development should aim at s
1- The removal of unemployment{
-the reduction In under-employment{
- the rise in the standard of living}
-the adequate income for nutritious f ood |
- the adequate clothf
- the availability of drihklng vaterf
- the hygienic living conditions}
•> the adequate educational facility for learning!
1, Dasai, Vasant, Rural Develonment, Vol, TT, Hlmalaira Publishing Hcuse, T9SW, p.3. - 2 -
> the adoqiuate ••dieal facllltlas for treatment | -the clean house to live in| -the adequate sooloocultural activities to develop oneself! and - the adequate all-weather approach roads for easy mobility.
Thus, the working definition of Rural Development may be summed up a» belovi
Strategies, policies and programmes for the development of rural areas and the promotion of activi ties carried out in such areas (agriculture, forestxTr, fishing, rural crafts and industries, the building of the social and economic infrastructure) with the ultimate aim of achieving a full utilisation of available physical and human resources and thereby achieving higher income and better living conditions for the rural population as a whole, particularly the rural poor, and effective particlpatl or of the latter in the development process. There is an increasing awareness now among the planner* and researchers that the development problems, perspectives and requirements of rural areas are different than those of urban areas and conseoruently a special attention to rural develoi>ment has to be given In all the future de-relopmental strategies.
T. Sadhu, A«N. and Singh, Amarjit, Rural Economy of India^ Light and Life Publishers, New Delhi, 1982, p.1. - 3 -
PROGRAMMES FOR RURAL DEyELOPMEWT I
Ge-rernmant orfaniaatlons, finanelal Institution* and voluntary a^eneiaa, ineliKlinif eerporata bodias, hara iaiplaiiiantad varioua aohamaa for tha davalopoiant of rural paopla in India, Tha Cantral Govarnaiient atriTee to aehieva this objeetiva by inplaaiantin^ varioua progrunaas dovatailad to tha spaoifie raquiramanta of tha targat groupa. During tha apan of four daeadaa of plannad dara-
lopaiantf tha Govarnnant haa foronilatad aa nany aa sixty six prograwaae for rural davalopnant. On an javaraga,
Govarnaioiit has introduoad thraa progranmas arary two yaara.
Tha CoBUBunity Davalopaiant Programna waa launehad by Govarn- mant in 1952* Tha objaetiva of this prograsna vas to bring about ohangas in tha aoononie, aoeial aa wall as cultural
lifa of tha Tillagaa. During tha fourth, fifth and aixth plan parioda, Tarloua naw programmaa vv undartakan to
provida aaployaant opportunitiaa to tha rural poor and to
aaialiorata thair aeononio condition.
In tha po8t»indapandanoa parlod, aa nany aa aixty six rural dayalopaiant progrannnaB for tha waakar saetiona of tha rural population, auoh as small and
1. Dasai, Tasant, Op.Cit. p«11. - k .
•arsenal farmers, landlass agricultural labourars, artisans atxl shara-Hsroppars as wall as schadulad castas and schadulad trlbas wara initlatad on a national soalo. All thasa propraranas and projaots vara spocifloally dlraetad at banafittlni; tha rural poor. Tha datalls of thasa proipramoias nay ba sasn from Annaxura I.
A raviaw of the Tarious on-going progrannas •ada during tha lata 7O8 ravaaled that tha Impact of these programmes was minimal. All these progranses could not achiaTO anjr significant success in the doTelopment of the rural poor. These programmes did not oorer the vhole country* (Though a number of blocks had been covered by more than one of these programmes, none of these programmes were based on practical expe rience as the programmes were drafted in air-conditioned rooms by the effielals. AH this had resulted in o-rer- lapping and duplication of different programmes in certain areas while some other areas were not given an opportunity to get benefit of even one of these programmes. It created a lat of confusion and frustration. Further, most of these programmes were temporary in nature and were viewed as an extra work by the official where they were introduced. On
1. Desal, Vasant, Op.Cit, p. 11. - 5 -
th« other hani, th« benefit of the economic growth to rural areas, especially to the backward areas, Scheduled Castes an) Scheduled Tribes were not taken up to the desired extent* The econonie in'ovth has benefitted the rich people that nay be able to raise per-capita Incone but nay not be able to aoeonpany by mitigation of po-rerty and elimination of unemployment and under'>employment. The outcome was the rich reaping the benefit and the poor beooning much poorer in rural areas.
To avoid such situation in planned economic devf'lopnient experienced in the past revealed that there was a need for a new eomprehensire programme for rura3 upliftnent, i.e., direct assault on poveity within the context of the general soeio'-eoonomic development of the country should be made*
Hence, an attempt on poverty was made in the sixth •Five Year Plan* by introducing an IMTEGRATKD RURAL DEVBLOnfENT PROGRAMME for the upliftment of the 2 rural folk.
Integrated Rura.1 Development Prograsmie is an assault on rural poverty* It may be regarded as filip
1* Kumar, Anil, M.Phil Dissertation on ^Economic Impact of IRDP in Marh block of Jammu District, University of Jammu, 19^7, p*6. 2* Ibid, p.?. - 6 -
to th« rural •eonomj undor which dir«ot aseistano* is provldad to rural folk in ordor to oliainato unomploy-
••nt, undor-onploynont and to improTO thoir vtandard of
lirinf:. It ia a singla largaat antiporarty pro^raaona which inrolvaa an intagratad doTalopmant of agrloultura,
induatry and ralatad activitiaa to aooalarata tha growth rata of rural davalopnant ao that lirin^: atandard of tha rural folk rlae. It ia eoneerned with darelopmant of rural aaotor aa a whola, i.a., aconemio, aocial, cultural, ate.
Kaeping in view tha abova givan eoneapt of
Rural DaTolapaant it ia nacaaeary to atudy tha rola of
CANARA BANK in tha Rural Davalopnent of Aligarh Diatriot.
To atudy thia in ita right perapactlva it ia necaaaary to reTiaw tha phyaieal faaturaa, Adninistrati-ra eat up, and other important aapeots of Aligarh District.
A L I O A R H
GBOGRAPtgCAL LOCATION t
Aligarh District is located at the axtreaa northern part of Agra Diviaion at a diatanoa of 86 kna.
1, rbid, p. 7. - 7 -
froB Agra. The total geographical area of the
district is 5,019 aq. kns.
The district Aligarh ia a plain of remarkable
fertility, sloping generally from the north to south
or south-east* The lerel surface is -raried by sereral
depressions formed by the riTer Talleys natural drainage
lines vhile the eloTations consist merely of slight
ridges. The most prominent of these ridges ars to be
found in Khair tehsil to the north-vest. These lines
continue through the upper portions of the Iglas tehsil
and Mursan Pargana. In other parts of the district
similar ridges also occur but are not so important. Tho
general slope of the district is quite regular. The
greatest height of the ground surface is about 6^0 feet
above the sea level at Chandaus and Tappal in north-vest»
I^ND AND SOIL I
The surface of the district is like a plate. A*
a result of it, the rain vaters from nearby districts Of
M»thura and Bulandshahr flov in the district causing floixls
during rainy season. Soil of the district is *Domat and
light Domat*. (i.e. loamy ft sandy loamy). The district
T. Canara Bank, Dietrict Credit Plan I988-90, Aligarh, p.1. 1«, Sami Uddin, Lead Bank Surrey Report on Aligarh District, Canara Bank, Head Office, Bangalore, p.1. . 8 .
emn be diTid*d into fir* part* on tho basis of soil and eXlniato.
1. Worthorn P*rti
Atrouli, Bijouli and Ganiriri blocks fall vithin this part. Tho soil is light Doaat*
2. gastern Parti
This part is eoniprising of Akrabad, Sikandra Rao and Hassayan blocks. Th© soil Is Domat and Matiyar Domat (clay loamy soil) Vator Is-ral in this part is high with tho result there Is problem of alValinity in the soil.
3» Oontral parti
The soil in this part is *Donat* and Light Donat* , Some part is affooted vith the problem of *Usar Land* to vater loging* Dhanipuri Jawan and Lodha Blocks fall within this part.
*• Western Parti
Gonda, Chandaus, Tappal and Khair blocks fall within this part and is affected by excess salt in the soil.
T, Canara Bank, Annual Action Plan 1983, Aligarh, p.1« - 9 -
5. Sguth»rn Pfcrtt
Igl&s, Muraan, Hathras and Sasnl blocks fall within this part. The soil is •Domat*. Oround wator is arailabl* in abnndanca in this p«rt.
Th* district doas not offsr auch soopa, worth
••ntioninc: in rospoot of ninAral waalth. *1leh* found in certain parts of tho district is used for glass work*
CLIMATE AND RAINFALL I
The district experiences the extremes of both hot and cold weather which is normally prevailing in northern part of the country. During the year 1986-S7 the highest A O 1 temprature recorded was k'^.Z C and tniniraum at ?«4 C •
However, it can bo said that the clinate of this district is neither very hot nor very cold due to which this district has not only luxuriant crop but other districts of U.P,
The suBHner is usually prolonged* In winter the temperature goes down even below freesing point for a day or two* The cold wave damageb potato, pea and Arhar crops* The hot weather is usually characterised by an intensive dry heat and dust stoxins which are quite frequent* 1, Canara Bank, Difftrict Credit Plan 1983-85, Aligarh, p*2. 2* Sami Uddin, Op.Cit, p.2. - 10 -
Th« nomal rainfall in the dletrlct is 773 mm.
About 80 p«r oant of tho rainfall is •xperiencad during th« month of July, Aufuet and Saptanbar. Soma ralna ara alao vitnasaad in tha month of Dacambar and Jamiarr*
Dapandanoa 9n natural rains for agricultural epcrationa
is risky. The maxinmm rain fall in th^ yaar 19^3 was
753 •»»• and normal 663 •»»•
FOREST AND VILP LITB I
The ar«a undar for*st is najp^lin^lbla as copparad to total arc-a of tha District. At thr ond of tha yaar 2 I9P6-87, total arpa undor forest was 800 haotaras. Tha m^ioT pr<»ductP of the forests are timber and fuel wood.
The main t-rpes of trees are sheeehatn, Babul, Manuro,
Amaltae etc. The wild animals found in the district
rare wolves, jackals, fox, pif^, leopards, blue-bulls
etc. The common birds are peacocks, pl|f«ons, duoka, sniples, peafowls and patridgas. Due to India criminate
hunting and clearing off the Jungles, the wild-Ufa is thinning gradually;
1. Canara Bank, District Credit Plan 1983"85, Altgarh, p.2.
2. Canara Bank, District Credit Plan 1988-90, Aligarh, p.?, 3. Sanii Uddin, Op.Clt. p.3. - 11 -
ADMINISTRATIVE SET UP t
For the purpose of AdnlnlBtration the dietriet ha> been divided into six Tehails and 1? bloeks. They 1 are as fellevai
Tehaila B loeka
1. Koil 1. Lodha 2. Javan 3. Dhanipur
2. Khair 1. Khair 2. Chand&us 3. Tappal
3. Tglas 1. Oonda 2. Iglaa
k. Hat bras 1. Hat hras 2. Mure an 3• Sae nl
5. Si'k'STKlra Itao 1. Sikandra Rao 2. Hateeayan 3. Akrabad
6. Atrouli 1. Atrouli 2. Bijouli 3. 6an(^iri
1, Canara Bank, District Credit Plan 1988-90, Alierarh, p.1. - 12 -
Ther« «r© I?"* *Mjray* panohayatB*. Total numbar of vlllagae in th© district ara 17^9 of which 1717 ara inhabited and remaining 52 uninhabited. Total nunbar of town areas are 15 vhila Nagarpalikas are h.
POPULATION I
Total population of the Dietriot during 1971 vas 21.12 laea vhieh incroaaed to 25*75 laes during
1981?
Occupational classification of the population is as belowi-
Famera 3,29 l*cs
Lab ourers 1,29 laos
Industries 0,25 Iocs
Others - 20*92 lacs
Total 25*75 loos
Further blookwise and according to z>oligion the population of the district can be seen from the table No. 1 and 1(A). 1. Canara Bank, Annual Aotion Plan I983t Aligarh, p.3* 2, Canara Bank, Annual Aotion Plan 19^8, Aligarh, p.9* - 13 -
T»bl» Wo. 1
Shwin^ thr total bloekviso population of tho Diatrlet as nor eensus loftl.
Nane of th#> POPULATION ^loek Total Mdi Vomon Rural Urban 1 2 3 '^ 5 6
1. Atrauli 129517 69302 6C215 2. Ganirirl 159057 85851 73206 3. Bijoli 10761»3 58860 48783 *». Iglas 103756 57178 46578 5. Gonda 115389 63161 52228 6. Jawan 130263 69914 60349 7. Dhanlpur 125058 62223 55835 8. Led ha 110436 60226 50258 9. K hair 117502 64216 53286 10. C handaua 121004 65576 55428 11. Tappal 123503 66918 56585 12, Alirabatd 100058 54784 45274 13. Slkandra Rao 96164 52306 43858 U. Has Sayan 102443 55889 46554 15. Mursan 109454 60749 48705 16. Sasnl 125380 68752 56628 17. Hathras 106104 58018 48086
Total Rural 1982781 1080925 901856 1982781 —
Total Urban 592144 3«051 274093 — 592144 Total Diatt. 2574925 1398976 1175949 1982781 592144 Sourcei Statistloal Bullatin for the year I987, publlshod by Statistics Officor, Aligarh (U. P. ) , p. 22, - I'l -
T*bl« Wo. 1(A)
(Census I98I)
Total Total Sural Urban ll[ Religion population in percentage 1 2 __ 3 T| 5 5
1, Hindu 2225531 1791095 "•3 ^^36 86.i»3
2. Muallms 3390i*7 I89OI5 150032 13.17
3. Chrl»^tian 2282 li9i» 1788 0.09 h, Sikh 35*»0 1060 2880 o,^k
«J, Poddh 700 32M 371 0.03
6. JRITI ?751 7'»2 3009 G.^k
7. Othfr reH gion 65 37 28 0.00
8, Those vho did not diseloa* their religion 9 9 - 0.00
Total 257^925 I98278I 5921** *• 100.00
Sources Statistical Patrika for the year 198$, published by Xconomle and Statistics Officer, Aligarh (iJ. P, ) p.31. - 15 - iNTRASTRUCTURg s
Railway and Roadsi
The district is served by rails as well as roads.
The railway traek in the district runs to a total length
of 168 kms, having 21 railways stations includin^^ halts.
Out of this, metre e»ugm covers only 62 kms. in the district. The district is served by s total lenp^h of
1,257 kms. of metal 1«d roads. Ho national hig*iways pass through the district wheroas state highways account
207.3 kms, and main district roads for 170,5 kms. Other
local roads raanagc>d by local bodies make 879«2 kms.
Metalled roadt* connect Aligarh with P«!jhi, Moerut,
Agra, hathura, Etah^ Dehradun, Lucknow. Roads play an
important role in the economy of the di«tr-'ct, Tho Grartt
Trunk Road rune through Aligarh and connects it with 2 Delai on the one liand and Kanpur on the other. State
Road Transport Corporation runs buses on major routes
of the district.
COMMUICOATION
yost and Telegraph t
Total nurfber of po'st offices in th« district are
U85, In addition to this, there are 89 Telephone Offices
in the district, Plockwise details are shown in table Ho,2,
1, Census of India, Series 22, p.^, 2, S«ni Uddin, Op,Cit, p.3. 3, Canara Bank, District Credit Plan 1988~oo, Aligarh, p, 10, - 16 -
Tab la No., 2
Shovizifc th« blockwlee position of eoBUBunlcatlon (1986-87)
Poet Tol, Tola- Public Call Block Offices Offieas ohonoa Officae
1. Atraull Zk 1 3 2 2. Gan^lrl 31 3 3 3 3. Bijoli 23 2 4 2 k, Igla* 19 3 - 5 5* Gonda 23 2 7 2 6. Javan 26 2 5 1 7. Dhanipur 27 i» 30 k 8. Lodha 28 3 6 3 9. Khair 38 2 2 5 10* Chandaus 36 3 10 3 It. Tappal 22 2 - 2 12, Akrabad 27 U 5 3 13, Slkandra Rao 23 2 23 3 ^k, Haesayan 19 M 3 5 15. Mursan 19 3 - 1 16. mt hras 16 2 21 2 17. Sasni ^ r X k Total Rural h25 *7 124 50
Total Urban 60 1|2 6035 146
Total Distrlet 1*85 89 6159 96
Souroat Statistioa Bullatin for the yaar I987t publishad by District Scononie and Statistics Officer, Aligarh (U.P.) p.95. - 17 -
POWERI
Th« district gets its powsr supply through U.P.
Stats Slsotrioitjr Board. Thors ar« tvo povsr genera ting plants which supply power to the district.
£!££• Type Generating Capacity
Suranera Hydel 12000 KV
Kaslmpur Themal 50000 XV
There are kz Sub Stations in the district of th*se 7 sub stations are of 33/11 KV capacity. The consumption of Electricity in the district for the last three years is shown in the table 17o.3« The a-railability of electricity in Tillages and Harijan
Colonies is shown in table No. M.
1 . Canara Baxik, District Credit Plan 1988-90 and Annual Action Plan. IfBB. Aligarh, P. 10. . 18 .
Tabl« Wo. 3
Shovlni^ tb* eonsunption of the Elootrloity In dlfforont Kforko in fligi^rh Dl«trlct,
OOP K.V.H. 81. 198^^5 1985^6 1986-87
1« Domestic and Small Soalo Industries 27613 33801 29368 2* Conneroial aind Small Scale Unite 21368 21857 23282 3* Consumption of Elec tricity in InduBtries 61009 106715 U2307 k. Public Lightin|^ Consumption 1229 152I1 1225 5. Railway Conauraption 892'»8 11859^ 130025 6. Agricultural Electri city Consumption 129363 1315^9 122193 7. Consumption of Elec tricity in supplying running vater etc* to the public. 606 2678 690
TOTAL 330^36 k^6^hB 3^3690
Per capita consumption of Bleetrieity K.V.H, 128 162 133
Sources Statistical Bulletin for the year 1987* published by District Economic and Statistics Officer, Aligarh (U.P. ), p. 91. - 19 -
T«bl« No. k
Showlnir blookvls* •leetrifieation of rlllaffos and Harljan
Elactlfiod Vii:laffa a Energi- Elaotrl- Blook Accordlncr to tho Vhora «ad par- fiad daflnltlon of L.T. sonal Colonlaa Contral Elootrl- Mans ara Tubowall/ clty Authority aval lab le Punplnif • ate.
1. Atroull 113 38 1935 18 2. Oan|;lrl 89 16 1756 16 3. Bijoli 78 9 805 5 k, Iplaa 98 2k 1582 21 3. Gonda 6k 16 739 16 6. Javan 108 3h 97U 2k 7• D hanipur 92 25 775 25 8. Lodha 13^ ^5 2062 35 9, Khalr 90 28 1585 28 10. Chandaus 92 28 231'* 25 11, Tappal 87 17 1233 17 12. Akrabad 7« 21 688 17 13, Slkandra Sao 62 k^ 99Jt 39 ^k, Hasaayan 73 15 666 11 15. Mursan 126 21 927 17 16. Saanl 113 ^7 2327 1*0 17. Hathraa 88 31 1025 ^0
Total District I583 k56 22387 3U8
Sourcai Statlatloal Bulletin for the year 1987» publiahad by District Economic and Statistics Officer* Aligarh (U.P.) P.92. - 20 -
M«dleal Paod lltles i
Th« district •njoyo th» benefit of the reputed Gandhi Bye Hospital vhieh takes care of the Eye patients of the District and outside places. In addition to this, Medical College under Aligarh Muslii ITnivorsity and Malkhan Sin^^h Hospital under Uttar Pradesh Governnient control provide medical facilities to the patients at Aligarh.
Medical facilities in rural area require further inprovenent• The blockwise details are shown in the follovincr three tablei 5, 6 and 7.
1, Canara Bank, Annual Action Plan, I98B, Aligarh, p,10. • • o j; £ •H 0 « wrMr\«^0\cw . iryir^r\M>o•4'Ovcv(00-sr NO 00 JT H JC a 4* ^ •P E O f- CM « • •P U e H (f h C « •H .0 ? o a eo CM e g "fi: ITi t- C^ o 9 «( M ON c H (^ 4* vc 0 « « « o li (V, 0 h o tt u M •rt 0 •P +> 10 u \ON00r\(nv> iMCy(\OM^Mi4'NO<4-N£i ir> f" NC 0 vo CM 00 Q o CM CM
43 a n V • , •s^H k ^» r-1 9 ^ C4^ 00 •«- 00 CNi 00 CM CM CM •4- Tt B -H r- J» »- |»^, I I T- vo ^ O 00 « tl -P «" CM c^ CM ^ • « CoM CM < Xi a I « •8 TI •> • txil 00 « ^ h • 00 B rt +, o o "H •H X! O u 4» I I I i I I I I I I I I i I i I 1 1 « J* 00 •H « O g •H c 0 Q o » +» K o •H 0. p. T) H I" bJ lllllliNllllllt-v-l •ar NO e vc' O XI « 0 o o \C l^lllllliillill*-! M CM e fi-M CO • I • I t^ul y4 l^lllillllldTll ^^ I e C ^ H ^ QD B ON 8 D e 04 •H I" i,>tiiiiiiiii-ai<-*-i i« *r\ t: • CO >s • •f Oil 0 0 r p>»- Ir- I Ic^lr-WW IjrWCMN O u • CM 4* Q +» C • i • •H p 0 ••»'•-' M CMOOJT-d^ I IM f«ar0O0O Iv-QOOOflOOO 9^ o ^x: o H h e t 3 ft o H H •H « <« ••» rNWr-^ I Ic^lr-WN I^M^MM 0\ O Tabl» Wo. J Bloekvla* Maternity and Child Valfara Cantras in tha Diatriot Till tha and of 1986-87. Bloek Maternity and Branches of Maternity Chi eld Valfara and Child Valfara Centres Centre^ 1. Atrauli 2 23 2. Oan^lri 2 22 3. Bijoli 2 18 k. Tlf^laa 2 19 5. Gonda 2 21 6. Jawan 2 25 7. Dhanipur 2 26 8. Led ha 2 20 5. Khair 2 21 10. Chandaua 2 21 11. Tappal 2 18 12. Akrabad 2 20 1>. Sikandra Rao 2 20 U. Haaaayan 2 21 15. Muraan 2 19 1#. Saani 2 20 17. Hathras 2 19 Total Rural 3h 351 Total Urban 10 — Total District hh 351 Souroet Statistical Bulletin for the year 1987 published by District Beonosiie and Statistics Offioert Aligarh (U.P.) P. 90. - t*» - BDUCATIOy I •ligarta Is eon0id«red to be an important centra for Eduoation. Aligarh Muslloi UnlTerslty provides •duoational opportunities to Imrgo nunber of students eenini; from different places and countries for higher studies. In addition to Muslin UnlTersity, there are about six Decree, 1^1 Xnternedlate and 1798 other schools in the district.q The bloekvise position is shovn Ih the table No. 8. About 17 languages hare been reported as mother tongue of the people liring in this district (excluding Unlrersity Students). 1. Oanara Bank, Annual Action Plan I988t Aligarh, p.10 2, Saral Uddin, Op.Clt, P. 15. B 0) o • I I I I I I I i i I I I I I I I I •rl 1 • O • 0) •H •^ I I I I I I I I I I I I I I I I I NOVC t- IfiH • 0 c O P U o 00 H ••» o TI • l4 \ Its 5 4» •H H • (4 i«-i i«-*-i«-i I i I i<-i i«- v« oo|^ h 0 H •H 0 H O i3 0 •0 43 H • JS Q) « X3 ••» ^f^^r^«^«oosolr^r^^-^-•- irtrt>e««'Ne •^ 0> M 4* TI B 0 « H • e h "H ft H • 00 H 0 J-r\^ N w « lA-*"* c^«\o N *- I iTiin t • "H •H 1 p •*» 00 K 9 0 o «f\ ••» •H M • •H H 4* a Ik 8 « •H e 0 H H •H 0 « ^ r\ «^ ©< r» N « if>>« ir\»- 00 iTMfN«- \0ve tr\\o c ^ ••» t- g • o 0 0 O 9 •rt c^ •% 8H 4* U « 0 • 0 1-1 8 •£5 Q O 9 ^1 •H >i 4^ i Airrlcultur* s Acrioultur* ooouplas th* pronln*nt plac* In th« •oonony of the district. In fact, Aligarh district has got tha distinction of having a Tory high productivity in agrioultura in tha Stat04 Naarby 82 par cant of tha vork forca in tha district is angagad in agricultural activitias, Nat sovn araa in tha district is about 3*90 lacs hectaras of vhich about $0 par cant is irrigated. Total agricultural production of main crops in tha district for lOn- years are shovn in table No. 9« 1. Canara Bank, District Credit Plan 1988-80 aana d Annual Action Plan 1988, Aligarh, pp. n-1l(« . 27 - T»bl< yo. 9 Shoving Aicrioultuyal Prodwctlon of «»ln it«w in four y>r»« (Matrlo Ton.) li: ='•' 1983-81* 198U-85 1985-86 1986-87 1 2 3 • % 5 6 Food Kraliw 1. Paddy I6i»9l 15715 23331 11958 2. Vh«at 58i»l»02 5^6177 532528 571672 3, Barloy 96338 92363 \okiok 9*551 k, Juar 735 1835 5l»2 332 5. Nalsa 35383 90177 6l2l»7 88968 6* Bajra 13^655 121738 692'»8 97691 7, Othara 1 36 - 1 Total Product lioi^68lK) 5 868135 791330 865173 Pulaaa 8. Urd 359 515 352 31*7 9* Moong I0U92 6511 15082 11592 10* Maaoor I658 1818 2935 2158 11* Oram 10907 13877 23387 173 «*5 12» Paaa 29395 23161 351*51 2986 13. Arhar 9398 17995 12liOl» 13099 ^k* Othar Pulaaa 5 5 3 2 Total Pulaoa 62U 63882 89611* 71*1*12 Total KhaAhan 930619 932017 88091*1* 939585 Contd* on nazt pa| > 28 - 1 2 3 k 5 6 Oil S««da 13* Mustard 11933 297kk 42236 23183 16. Alsl «•«* 1 1 •» 17. Til 17 90 3»» 39 18* Castar 1 2 1 - 19* Ground nut 150 U 6 3 Total Oilseeds 12101 29881 1(2298 2329'^ 20* Sugarcane 726160 3^828 3853 9** 6016 20 21. Potato 93228 96U20 62200 62015 22* Tobaco 133 161 172 76 23. Jute 12 - 2 - 2'l« Cotton 386 985 1880 1U16 25* Sanal 17 20 k^ 7 26. Turmeric «M> - - - 27* SoyaTeen ^ 1 1 3 Souset Statistical Bulletlon for the year I987 and I988 isubllahed by District Soononilo and Statistics Officer* Allsarh (U.P.) p. 50 and 3I. . 29 - Majority of ta.rm»re ar» havlnip snail holdio^^ of loss than 1 hoctaro. k'v•rt^g;m holding is 1.6^ hoetaro. Snaall holdings haro got an adrorsa offoet on aiprleultural production* Xinpleinontation of Intoneive Area Dovolopnent pro^rrannio has holpod tho farmers in adopting nodorn toohniquoe of orop oultl-ration* Undor this prograimno, fannsre ara proTidod vith training for tlmoly uso of fortilisorSf soods and plant protftOtion measuros. Soma parts of tho district am affeotod by th« probloa of soil orosion* Soil oonsorvation noasuras haro boon initiated by tho Governnont to roclain tho existing •USAR* land* It is expected that a corporation for reclaimation of *U&AR* land in Slkanlra Rao Tehsil at Gopi vill ooaie up during the plan period* Cropping Pattern t There are three aialn agricultural seasons in the district* During Kharif season, Bajra, Paddy, Maiae and Arhar, Wheat, Parley, gram, peas and mustard during Rabl mmmmon fodder crops and •egetables are grovn in the - 30 - dlstrlot* Among th* emmh eropa, sugar-oan*, cotton and potato aro ooawonly grown* Total aroa of tho district ia 502570 hoctaroa. Not aown aroa during tho agricultural yoar 1986-87 waa 390237 tiootaroa* Tho doublo croppod aroa during tho aano period vas 2kk7kk hietaroa. Irrigation t The District snioya tho bonofit of all tho throo aourcea of irrigation rix« Rivora, Canals and ground vater. Total length of canals in tho diatriet ia 130^^ kna. In addition to thia, 701 GoTormont Tubowolla, 30^3^^ pri-rato tubowolla, 2666 pumpaots otc, aro in uao. Following major Irrigation projoets aro undor various atagoa of isiploBontation in tho district* (a) Parallel Lowor Ganga Canal Project (b) Madhya Ganga Canal Project (e) Ram Ganga Canal Project Diatribution of yortillgoro t Tho sources of distribution of fort Hirers - 31 - in Allgarh dlatrlot ar* Agricultural D»partn«nt (through fartilizar storaa), Coop«ratl-ra Dapartnant (through CooparatlTa fartlllBara atoraa), Cana Union Fadaration Dapartmant and Affro-lnduatrii^l Corporation and Prirata Daalara, Horticultura i MtLngo, Guara, Lanon and Papaya ara inportant fruit crop* in tha district. In addition to this, Bar orchards ara also arailabla in tha antira district. Sasni Block finds tha proninant placa in growing fruits* During harraet saason Bar, Mango and Gua-ra ara sant to diffarant parts of tha country* Hassayan Block finds a proninant placa in Commarcial Ro8« Cultivation in nap of India* Stata GoTornsant has takan up a progranna to incraasa tha araa undar rosa cultiTation and increasing production by providing tach- nlcal asslstanca to tha famars* In tha fiald of ragatabla cultiT*tion potato, Oabbaga, Oauliflovar, paas and Tinda and inportant crops* During tha harrast saason, thasa eonmoditias ara sant to diff arant parts of tha country* - 31 - Anii>l mwbmndry t A> p«r 1981 o*ziaus, total eattl* wealth of tho dlatrlot la 11.80 laca. Of vhloh thoro aro 5.9^ l»os of nlloh oattla* A-rarago «ilk production la Tory lov« Thera ara adaquata aiadloal faellltlaa available at Block Haad Quartara but thla aarrloa naada axtanalon In ranota araaa ao that adaquata nadleal facility la aiada available to anlnala. Moat of tha rlllagara hava adoptad dairying aa thalr aubaldlary occupation and Allgarh I>ugdha Utpadan Sahakarl Sangh (DUSS) la angagad In organlalng aillk oollactlon aoclatlaa for collection and tranaportatlon of allk. GLIKDDIA la engaged In nanufactura of milk povder and other allied produeta, therefore, thara are vaat avanuea for thla venture In the dlatrlct* Qobariraa yianta/Bloiyaa Plant a 1 The Dlatrlet Adnlnlatratlon haa taken atapa to popularlae thla alternative aourca of energy for rural maaaea. During 1986«87* Allgarh dlatrlet vaa aelected for extenalve Blogaa Progranna In the dlatrlet and atood flrat In the atata by aucoesaful Inatallatlon of 1260 blogaa planta* - 33 - A r*Tl«v of th* prograom* >hov*d that aom* of tho planta havo boowno dofunet and not functioning on aooount of lack of oduoation and avaronoaa aaon^ tho famora/bonofioiarloa to Maintain tho planta« INDUSTRY Alii^arh ia fanoua in the induatrial fiold« It ia fanoua for look induatry* oloetrioal oquipnont, building fittinif natorial, aarpat, cl No doubt, agrioultura ia tha primary ooeupation of tho poopla in the aauntry aida, the urban population ia •oatly engaged in the nanufaoturing industriea. The aain Centre of look induatry ia in Aligarh city, while Sikandra Rao, Atrauli, Khair and Bijai^garh *3P« the oentrea of handlooa weaTing. Saani ia veil knovn for glaas induatry, Rathrao for ootton ginning and ghee induatriaa, All typea of industries hare been establiehod in Aligarh district e.g. hand loon, oottage, anall aoale 1, Sani Uddin, Op.Oit. p. 33 - 3* - and large seal* Induatrias. «Th« industrial d«Tslopn«nt started with the sstablislniant of a small look-making unit by Mr. Hira Lai Jha in 188? and follovod by a number of small seal* and eottage industries, Mr. E. Keventer was another pioneer who started a small dairy in I899 vhioh later developed due to rising military and oirilian needs. It Is now run by the GoTornment of Uttar Pradesh*. In fact, the first World Var created eoiditions favourable for the develoiment of industries in Aligarh* In 191^, the Das Cotton Mill was started in li&thras by Mr. Kam Chandra Hardeo and later, an oil mill came into existenoe under the name of Messrs* Harmukh Rai Govind Kam* The year 1918 gave birth to the glass factory at Shan near Hathras. The first power driven Kolhu was started by Mr. Babu Lai Singhal which is now known as •Prag Oil Mill*. The first pulses mill was started in 1936 by Messrs, Panna Lai Satya Narain of Hathras. The period 1961-66 is important in the history of Aligarh as the building fitting materials and eleetrie goods industry, as well as small-eeale looks industry made good progress. Quality marking scale was introduced in 1961, The most important development during this period was the coming up of three industrial estates at Aligarh, Hathras and 1, Sami Uddin, Op.Cit. p, 33 - 35 - Atraull. During I966-70 th« aovernnent laid •nphasls on the deralopaant of 8m«ll-«cal« units In this district* As a result, many nav hand-loom units cane Into exlstenoa. The oil ghanies, pottery, rope and basket naklnc leather tanning and carpentry industries are flourlshlni; in the district* The ai^ro-based industries like oil nills, dal mills, khandsarl and some fruit and vegetable proeesslng units are also funetioning* All this can be called as a good started at an opportune time but still the district has to make steady progress to become s eIf-sufficient. As per latest data available, the number of Industries in the district are shown in the following three tables No* 10, 11 and 12. 1. Sanl Uddin, Op.Cit, pp. 33-3^. - 36 - Tabl» No. 10 Shoylnf th» Rur*! and Urban industries in thg Dietriot No. of Snail 5i7 Block No. of parsons Scalo Industrios omffloYO*^ 1. Atrauli ?68 2586 2. Gancirl 61 53*» 3« Bijoli kz 256 1». Iglas 38 1(26 3a Oonda 88 526 6• Jawan 22 178 7. Dhanipur 50 296 8. Lodha 2k 166 9. Khair 37 U16 10. Chandaua 13 lit 11* Tappal 21 151 12, Akrabad 57 331 13« Sikandra Rao 102 556 ^k^ Hassay-an k6 506 15* Mursan 39 2U6 16. Sasni 60 6k6 17. Hathras kJB it36l Total Rural 1398 12292 Total Urban 1527 17382 Total District 2925 2967^ Sourooi District Plan I989-9O publishod by District Seononio and Statistics Officer, Alifrarh (U.P.) p. 20. - 37 - TabU No, 11 Shoving the production of cloth through Handloow in all tho blocks • No. of •o. of Production of HandlooM C eop*rat iro cloth by BLOCK t hrough Woarora Handlooraa C oopora- Socletios Lac Motors tivoa 1• Atrauli 350 7 10.00 2. Gangiri 200 1 0,50 3. Bijoli 50 1 0.50 k, IglM 300 5 4, 00 5• Gonda 300 3 2.00 6• Javan 150 2 1,00 7, Dhanipur 500 7 10.00 8. Lodha 250 h 5.00 9. Khair 100 2 0.30 10* Chandaua 200 k 2.00 11, Tappal 150 2 0,50 12* Akr&bad 200 2 1.50 13« Sikandra Rao ^00 k 3.00 \k» Hassayan 15C 1 1.50 ^3• Nuraan 300 k 3.00 16 • Sasni 50 1 0.20 17, Hathraa 400 3 2,00 Total Hathraa 3555 21 175.00 CitT Total Aligarh 2060 15 98,00 City Total 9615 89 320.00 Sources District Plan 1989*90 published by District Soonomlc and Statlatica Officer* Aligarh (U,P. ) P. 21, - 38 - T>bl« Wo. 12 Larif/Madlui Sole Indu»trl«» in th« District* BLOCK No. of No* of Indus •- Kan* of th* Industry poraona awfleyad 1 • Lodha Darahan Oil P. Ltd« 150 G.T. Road, Aligarh. 2. Javan Glindia 600 U*P« GoTt. Central Mil Dairy Fara 300 (3) Kisan Sahkari Chini Mill 250 Satha. 3. Aligarh City 6 1 T±g»T Look ?• Ltd. Maris Road Closed 2 ^i»ar Products P. Ltd, 2^7 Tigor Hardvar and Tools 225 Prai: Yanaspati Products, O.T. Road. 200 (5) Ghee A Oil Mill, Ranghat Road, Aligarh. 600 (6) Central Govt. Press 5000 k, Rathras Vijli Cotton Mill, Modu Road. 1550 Source* District Plan I989-9O published by District Econoaiio axxl Statistics Officer, Alisa^rh (U.P.) p. 22. - 39 - Trade and Cotwrc* i Tranaportatloni Du* to InadaquAoy of puooa roads in the Tilla(reB, the faraiers uae bullock eartSf buggies, tractor* etc, for the transportation of agricultural products to the nearby narketing centres. The railways are facing acute conpetition frosi road transport* Goods are being sent from Aligarh to distant places like Calcutta and Boabay by road transport* Aligarh is oonreniently connected by road with Kanpur, Lucknow, Agra, Ifeerut t Delhi, Bareilly, Moradabad and therefore, goods are easily sent out by road. For reason* of comparatiTO safety, door delivery and proapt serrice, the road transport has taken a lead OTor railway goods transport. Many trucks coning from Delhi, Kanpur, Meerut, Moradabad, Lucknow also carry 2 goods fron Aligarh and unload goods at Aligarh, The position of pucoa roads in the district is shown in the table No. 13 on page kp. 1. Canara Bank, Annual Action Plan I988, Aligarh, p.lO 2. Sani Uddin, Op.Cit. p. 33* * 4o - T>bl> Wo. 13 fthovixuc bleokvdL** l*nitth of pucca roads In All^arh DlBtriot (1985-86). Lenirth of Ro«d For thousand Sq. K.M. BLOCK Total F.V.D, lon^h of pucca roads Total P.W.D. U Atrauli 65 53 229 187 2* Gmng±T± 59 56 171 162 3. Bijoll 56 51 223 20^ k. Iglas 67 60 261 23^ 5. Gonda '•9 kB 171 168 6. J a van 53 kz 181 IU3 7. Dhanlpur 59 50 205 17^ 8. Lodha 82 79 306 295 9. Khalr 73 68 228 212 10. C handaus 63 51 191 155 1U Tappal 36 32 98 87 12» Akrabad 75 72 270 259 13. Slkandra Rao 68 65 26 k 252 ^k. Hassayan 45 kk 158 155 15. Mursan k6 ke 212 212 16. Sasnl 76 57 283 212 17. Hat bras 63 58 265 2kk Total Rural 1037 93^ 2^k 193 Total Urban U70 32 2657 181 Total District I507 966 300 192 Sourcoi Statistical Bullotin for the y«ar 1987t published by District Scononio and Statistics Officer, Aligarh (U.P.) • ill . Marketing t To r«gul«ris« th« marketin^ of af^ioultural produces, the Kris hi Utpadan Mandl Sanltl la located at the follew- ing centrest I^Allgarh 2«Hathras 3. Atroull k, Khalr 5a Slkandra Rao Over and above these a nuunber of fairs» hats and nelas are organised In the rural areas for the sale of foodgralns, cereals, TOf^etables, fruits, catties etc. The nandl Sanities are also engagec^ In the construetIon of link roads. During: the harvest season Governsient sponsored agencies such as Food Corporation of India, U.P. Cooperative Federation and Cooperative Departaent purchase the agricultural produce frost the famers directly as per the price fixed by- the Governsient* In general it can be said that narketing arrangeaients are not adequate and requires strengthening* In ease of sugarcane crop the cane is purchased by the Sat ha Sugar factory at the nill*s gate and through purchase points in the various parts of the district* 1* Canara Bank, Annual Action Plan 1983* Aligarh, p.l4. « 42 - Th«re la n*o«8sity of another narkatln^ aganor to organlaa tha aala of Industrial produo* so that tho •axmfaottirars can ir*t tha ranunaratlra prica« Storagai Tha dapartnants Ilka Agricultural Dapartnant, Cooparetlva, F.C.X. and It.F.C« haTa atoraga faollltlaa haTlng a limited eapaoity vhleh ara not adaquata for tha dlatriet, Steraga faeilitiaa ahould ba strang- thanad adaquataly. Kaaplng in riaw tha abova not ad facts into considaration an attampt haa baan nada to study tha Pole of Canara Bank as a Financing Agancy for Rural Davalopnant of Aligarh District. In short Aligarh District has potantials of dareloping its eeonony for vhioh a fauga capital is naedad. This need of capital is pro-rided by all tha nationalised banks including Canara Bank, non-nationalisad banks, CooparatiTa Bank and Land DaTelopaant Bank in tha fans of abort, nedium and long term loans for tha alround davalopHant of the economy of Aligarh District* CHAPTER II THE LEAD EAJiC SCHEMX-#• illMS AND OBJECTIVES CHAPTER-II THB LEAD BAm. SCHEMg - AIMS AND QBJlCTryES BACKGROUND t Tb« National Credit Council appointod a Study Group on *Organlaational Framework tor Implenentation of Social ObJecti-re«* in October I968 under the Chairmanahlp of Prof. Gadgll. •This group examined in detail the 'gap* in the supply of credit for the •oonony and the manner in vhich they might be bridged" • The Report which was published in October 19^9 observed that the State sector (the State Bank, its subsidiaries and the nationalised banks supplied 83 per cent and private sector supplied 1? per cent of the to^al credit. It further observed that bank credit vas unevenly distributed between different states, as well as between different sectors and was vertually unavailable to certain types of borrowers particularly small borrowers 2 and weaker sections of the community* Apart from the uneven distribution of credit to major sector of the economy, studies undertaken by the Study Group showed that credit extended by the banks was not widely dispersed and there were credit gaps particularly in the case of 1* Govt, of India, Report of the Banking Conmiission, 1972, p. 77. 2. Ibid, p.77. .1(4. •••11 borrowers* Th* rlllag* and siBall aeal* Industrias vhloh ara a sourea of anploynant, wara not adaquataly • arrad by oonoiarcial banka* Tha •odarniaation of aiprl- eultura raquirad, aoeording to tha Study Group, a bl^gar imrastnant of capital inputs to aohlava growth in both ralativa and abaoluta tarns, Tha incraasad usa of capital is assoelatad with tha ohanir* in tha ralativa shara pt rariouB inputs* Lack of finanea prarantad usa of 'capital intansiTS mat hod** JUisistanoa fron baxiks was not aval lab la for nodarnisation of agrieultura* As a raault, tha dara. lopaant prosranwa launehad undar oesdaunity doTalopsiaiifc projaets and Intansira Aiprioultural Daralopnant proftraasias did not shov tha high aohiairaaant that was axpaotad* AREA APPROjyPH t *Tha Study Group raooonaadad that banks could with adyantaifa adopt an araa approach towards branch expansion* Tha idaa was that individual banks should salaot particular aroas for intansiTS davalopnant. Bona banks, classifiod as all India banks, had haary oonoantration of daposits and credit in particular areas of oparations > say 3 or 5 States, Large regional banks could concentrate on nore intensive developsient of such areas Jointly with the Cooperative baidcs %, Governsent of India, Report of the Banking Coawission, 1972, pp.77-78* . *I5 - ftinctionlng In that area* The large bahka and medium- Bleed banke are well placed to * ad opt* areaa In their evn or oontlguoua territories with a view to Inereaslnip banklaf faellitlea* In each dletrlat one or tvo natlonallaed eoRHBereial banks In addition to the State Bank of India ahould take a leading part In banking doTelopment. The close InvolTenent of a bank with a particular area, the Stwly Group felt, vas calculated not only to expand its efferts at deposit mobilisation but equally alao to expand Ita area of finance to agriculture and small industries. Sach bank should take the lead bank-role, l*e. undertake the res pons Iblllty for intensively deireloplng certain areas chosen with regard to their existing branch locatlonal pattern* Indiridual banks, the Study Qreup suggested, could make a detailed surrey of the area of their operation and the potential in that area for economic growth with a riev to evolring schemes to accelerate their involToment in their respective areas* In the course of time, the whole country, aceox A Connitt** of Bankers was appoint ad by Rasarra Bank of India In August 19^9 undar tha Chalmanahlp of F.K.F. Narlnan* This Conmlttaa vaa antrustad with a-rolT- ing a coordlnatad prograoBsa far branch axpanalon to ansura adaquata banking facllltlaa In tha undar-bankad dlstrleis of tha country* It ganarally adoptad tha *araa approach* advocatad by tha Study Group rafarrad to aarllar and raoomnandad a Laad Bank Sohana undar vhlch banks could ba allottad apaclfle districts, vhara thay vould taka tha laad In aurraylng tha potential for banking daralopnant, In axtandlng branch banking aftar Idantlfylng growth cantraa and in axtandlng credit facllltlas aftar locating Tlabla and potantially riabla prepoaltiona and mobilising deposits out rising laTol of income. On the basis of recommendations of the Study Group appointed by the National Credit Council and the recommen dations made by the Nariman Committee for Lead Bank Scheme» the Reserve Bank of India modified and finalised in the month of October 19^9, the Lead Bank Scheme for State Bank of India and its subsidiaries, \k natlonaliaad banks and three private aactor banks. This scheme haa covered all the district in the country with the exception of Greater Bombay, Calcutta, Madraa, Union Territary of Delhi, Chandigarh and Goa« - ^7 - Under th* Lead Sole, the banks ware expected to act as eonsortltun leaders to bring about a coordination of cooperative and cornmercial banking as veil as ether financial institutions in their respecti-re districts in the interest of lead district develojxaent. The Lead banks vere asked to conduct * quick and impressionist* survey of the lead district with a view to identifying unbatdced centres where bank branches could be located and to prc» pare a phased progranuie for branch expansion in the dis trict. A eonunon proforma was devised for collecting basic econonic data about the district. On the basis of t these surveys, Lead banks are expected to estimate the deposit potential and the credit gaps, so that steps could be taken to tape the deposit potential and fill the credit gaps so that by preparing a phase programae to meet these by supplanting the non-institutional money~ lender type of oredit-purveyors, The unbanked centres selected in the course of lead bank surveys were allotted among banks (including the concerned Lead Bank) operating in the region, at meetings of baxiks specially convened for the purpose. The emphasis for branch location shifted •from the suitability of the Centre' approach to need of the economy of the district as a whole. The main . i»8 - purpose was to gear banking dorelopnient to the needs of the local eeonomy. Jk Lead Bark would be r**pon»ible for taklni; a leading; role In Burreying the credit needs, development of branch banking and etennlon of credit facilities In the district allotted to lt« More specifically a Lead Bank in a district veuld be required } (1) to 'urrey the resouroes and potential for banking doTelopnent In its district} (2) to Surrey the number of industrial and commercial unit and other establishments and farms vhioh do not haTO banking accounts or which depend primarily on money*lenders| (3) to examine the faoilities for marketing of agricul tural produce and industrial production, storage and warehousing space and the linking of credit with marketing in the district | {U) to study the faoilities for stocking of fertilisers and other agricultural inputs and for the repair and servicing of equipment{ 1 . Government of India, Report of Bankiijg Commission, 1972 pp. 79-80. " k9 » (5) to credit and train atmtt for offoring adTico to •mall borrovora and faraars and for the follov up and inapeotion of end-uae of loana | (6) to aaeiat other prinary lending agenciea| and (7) to maintain eontaota and liaaon residually vith Gevernnent and quaBi-<}evernnent ai^enoiea* 1 While the ether eonaercial banks are net preclude. Immediately after the allotment of district to the oommereial banks it became necessary for the Lead banks to obtain basie information about the district allotted to then so as to enable them to finalise suit able schemes of aetlen* "For this purpose oommereial bahka were direoted to oarry out quick and impressionistic initial surveys of resources and potentials of the 2 districts allotted to them". At the end of December I987, the Lead Bank Scheme covered ^38 districts in the country* According to guide lines, preparation of District Credit Plana for I988-9O (fourth round) and Annual Action Plans for I988 have been completed and the plans are under implementation in all the districts• According to available data, the achievement 1, Desai, S.S.M., Rural Banking in India, Himalyi Publishing House, 1983» p.277. 2. Ibid, p. 277. - 50 - undar th« Annual Action Plans for I987 was Rs«10,9^0 for*s against Ss. 10,110 ororss undsr similar plans for 1986J Th« number of branches of commercial banks at the time of nationalisation vas 8,292* "Nov the total number of banks offices stood at 55»015 at the eivl of March I988, Rural branches at the end of March I986 constituted to j}6*8 per cent of the total as compared to 22 per cent in June 1969** CANARA BAIK t AS LXAD BAIK OF ALIOARH DISTRICT The Canara Baidc started functioninc: in Ali|r*irh District by opening its 1st branch on 2U«9,1971. Under Lead Bank Sehome this Bank was allotted 18 district throughout the country including three districts in Uttar Pradesh -ris., Agra, Stah and Aligarh. 1. R«6.I« Bulletin, Annual Report 1987-88, June I988, p. 80« 2, Ibid, p. 77. - 51 - On thtt r«qu«Bt of Canara Bank (Haad Offio* Banffalora) th» Laad Bank Stirray Rapart vaa praparad by FROrSSSOR EAMI UDDIN an •minvat scholar and Chaiman, Dopartmant of Comoroa, Aliffarh Mualiai iTnlTarBlty, Allffarh. Thia Roport vas pabllahad by tha Haad Of flea of tha Bank. Tho Soeond and Third round of diatrlot orodit piano woro formulatod for 1980-1982 and 1983-1985. Tho fourth round of district orodit piano (DCPO) in progrooo, vhlch ooToro tho romaining tvo years of 7th Plan TIB,, I989 and 1990« Tho District Ma^istrata and Chiaf Doirolopmont Officer havo praisod tho working of Canara Bank as Load Baidc of Aligarh District. RESERVE BANK OF INDIA'S RULES AND REGULATION FOR LFAD BANK SCHEME t (i) Roserro Bank of India has appointed Lead District Officer to ensure that the District Consultative nootlng/StandiniT CoMsittoo Mootinirs etc. are conducted at a rofpilar intervals. One Lead District Officer has boon allotted to 3 or ^ districts. (ii) Load District Officer should ensure his participation in all the D.C.C./Standinir Conaittoe •eotings. This creates a sense of awareness aaionc participating agencies under Load Bank Scheno* - 52 - (ill) hmmd District Officer should ensure that all the policies/guidelines issued hy Reserve Bank of India are properly understood and followed by rarious participating agencies* (iv) Should ensure that rarious returns introduced by Reserve Baxdc of India on implenentation of District Credit Plan are submitted by participating banks well in time to Reserve Bank of India with copy to Lead Bank* (•) Keep a liaison with banks and Ooverianent functionaries 1 in the district* RESPONSIBILITIES OF CAKARA BAWC AS LEAD BAtK OF THE DISTT. Canara Bank has to shoulder the following responsibilities as Lead Bank of the districtf 1, Shall be responoible for carrying out all the responsibilities entrusted to the bank under the Lead Batik Scheme* 2* Vill function as a pivotal point between the baxdc branches functioning in the district on ne hand aad Government officials in the district and blocks on the ether* Lead Bank should integrate the activities 1* Canara Barik, District Credit Plan 1983-851 Aligarh.p»117» 2* Ibid, pp. 117-111; - 53 - of dlffersztt; aganeies •ngagad in the d«T«lopiB«nt«l task of the dietriot* 3« To eonvono District Conaultativo Coomittoo and Standing Commit to* maotings* To raeord ainutas of thosa mnatlngs and taka propar follow up action on tha docioions takan in tha maatinga* k» To prapara periodically a raviow of performanoa of Tariaua participating institutions and prasant tho sama l)afora D .CO*/Standing Commit tea meetings. This roTiew vill provide information en implementation of D*C*P«t deposit, adTanoes, priority sector adranoas, D«K*I* advance and details of performance under various Government sponsored scheme* 5, ¥ill effectively monitor the implementation of District Credit Flan and taka auch steps as nece ssary to cellaot the required information fk'om participating aganeiea* To resolve the problems in implementation af Diatrict Credit Plan by taking up !.ot the matter first at district level and if/solved then at the state level/regional level etc. 6* To formulate district credit plan/annual action plans etc* as per the guidelines issued by SBX. . 5^ - To eonduot •Talumtlon atudl** ft>oB time to tin* on progroaa of various sohonoa eperatinc in tho district whsn dirsotsd to do so* DI&TIICT CONSULTATIVE COMMITTEE/STANDINS COMMTTTIE I The funetione of tho Standing Coimnittee vould interalia cover tho followinj^t i) Idontifying tho feasibility formulating nov bankable schemes and assisting in the reviev of the D*C«P« ii) Looking into the question of availability of necessary infrastructural facilities aiKi supply of inputs etc. for the schemes. iii) Examining the factors impeding the flov of credit under any of the schemes* iv) Making suggestions for rationalisation of loaning policies and procedures of financial institutions* v) Looking into the problems concerned vith end use of credit and recovery of dues. 1. Canara Bank, District Credit Plan 1^8*^-8!^. 41igarh, p. 118. - 55 - vt) DeTlslng ways and mean* to ensura proper coordi nation among all tha concernad agenoiaa* •ii) Pollovlnc up olosaly tha daelaiona takan at tha D»C.C» ansuring prompt submisoion of data atc« In shortt i* i» urged that tha Standing Committea should function as a Cammitteo of the District ConeviltatiTO Committee to look after the details of preparation and Implementation of tha District Credit Plana• It ahenld meet as frequently aa required, preferable once in a month with Lead Bank aa the convener* The reports of the Coimnittee should be considered at the District Consultatire Committee meetings* OBJECTIVES OF DISTRICT CRBDIT PLANS (DCP)I The objectives of DCP are the same as those of the National plan with its emphasis on elimination of poverty, creating conditions for full employment and satisfaction of basic needs through economic expansion, technological development and adoption of affective pro motional measures to raica productivity and incomes of tha poorer sections* In order to achieve these, it is necessary -56 . to further inpro-rc coordination betveon Governnont Dovclopmont Prograanoa and Baidc landing and link institutional credit aasiatanca with infraatruotural and othar atapa takan by GoTarnnant for pronotinc balanoad daTalepaiant of diffarant district* • Tha fourth round of DCPa is tharefora, oxpootad to anaura adaquate flov of eradit aasiatanca undar Araa spaeific Bankabla Schames fomnilatad tharaunder aspacially for capital deficit araaa. DIRECTIVES or RESERVE BAHC OF INDIA I Tha banks have to observe various directives and noma laid dovn by the GOI/RBX vhile planning development of their funds* The directives nov in operation are aa 2 undert i) A level of kO per cent of total landing to Priority Sector ahould be maintained• ii) Direct Finance to Agriculture and Allied Activities should continue to be naintained at the level of 16 per cent of total advance* 1. District Credit Plan, 1988-90 and Annual Action Plan» 1988 of Oanara Bank, Aligarh, p.15* 2* Ibid, pp. 15-17. - 57 - lit) Advances to Weaker Sections (i.e.) Small and Marfrinal Farmers, Share Croppers, Tenant Faraers, Landless Labourers, Artisans, Yilla^e and Cottage Industries, IRDP Beneflelaries «nd borrovers belonglni; to (SC/ST) should be maintained at a level of 10 per cent of net Bank Credit, IT) Advances granted under the Differential Rate of Interest (DRi) scheme should form 1 per cent of the total advances outstanding as at the end of the previous year! atleast ko per cent of such advances should go to SC/ST borrovers and at least tvo-third of DRI advances should be provided through rural and semi-urban branches, v) A credit- Vithin the framework of these directives, the activities listed in the 20<-point economic programme I986 . 58 - announead by th« 6oTerniii«nt of India should bo takan into aocount for according to priority vhilc preparing achnias for inclusion in DCP (1988-90). All Public Sector Bank» are required to aet up separate cells for monitoring credit flov to Minorities* The Oovernnent ef Xndia have identified certain districts in the country having concentration of Minority cennnini- ties and the Lead Banks in these districts have been advised to publicise among the monority communities vari ous programmes of Bank credit and also to prepare suitable schemes for financing thera and appoint an Officer exclu sively look after problems relating to credit flov to them. In particular assistance to be provided under certain special programmes i*e« IRDP, Self Smployment Prograame for Urban Peer (SEPUP) have to be taken note of in the DCPs. 1* SCOPE I During the Seventh Five Tear Plan emphasie has been laid on the balanced development of the State for increaeod production higher productivity and employment. Priority is l^l Canara ^ank. District Credit Plan T9giB-90t Aligarh, pp. 17-18. - 35 - also plren to eradicate poverty, to solve th« problem ot •eonomlcally weaker persorB partieularly to scheduled oaetee, scheduled tribes, laivHeas labourers and marginal and small farmers* The main thrust is given on the eleva tion of rural masses above the poverty line and provldini; them vith i>ocio->eeonomic Justice, l^mphasie is also laid oil the hif^her production from agriculture and allied acti vities and ether priority sectors whioh form the basis of development of the area which is predominently having an agricultural base* For the development of any activity, the supply of credit is one of the foremost component which plays a decisive role in accomplishing the task. The banks have, therefore, a very Important role to play in the development of various sectors of economy by providing necessary financial assistance for various economic activities In the rural areas in particular . Banks have been conscious to play thoir p&rt actively tovardr financing various rural development activitlos by providing orodlt for economieally viable schemes which generate additional omployaent in the rural areas and create extra Income. The Lead Bank of the Allgarh District as also other Banks are conscious of their responsibilities in this respect. - 60 - Hov«vert w* find that dsvelopnent uzid«r th« Tarloua • •otors of •oonoay, oonald«ring th* potantial of tho aroa, natural rasouroas, infrastruotural faollltlaa, hiunan rasoureaa, atc« hara not baan fully- oonealirad with tha raault that tha orodit nada arallabla for varloua aohaataa under priority aaator haa net yielded the dasirad raaulta« Many of the schamaa amrisa^ad under the poverty eradication prograimnps for the benefioiariee were not viable to generate auffioient ineome to raise the beneficiaries above tha poverty line. The loan recovery ratio was net ifood in certain oases which is net desirable for the proper economic development* These observations of the Banks have baan substantiated by different evaluation studies nada by various Government and Semi-Governnent Afranoias and National Organisations like KBX, NABARD, etc. Finanoinip aganolas have, therefore, considered that financial investments made by tham, on development schemes can yield better results, only if these are backed by a sound plan formulations baaed an land resouz>ces, human akills, local needs and supported by affective infrast ructure facilities and administering it with periodical monitoring on continuing basis* The Community Development Block ±B the Unit for develox>ment in the district* Th« priorities for programmes - 61 - under different aeotore vary from one Block to another. A* such, plan formulation at the district level have to be taken into account all priority sector schemes based on sectoral priorities for each Block apart from suggestini; suitable and economically- viable activities for the benefit of the veaker sections of the society, SCOPE or THE DISTRICT CREDIT PLAN I Thus the scope of the district credit plan can be elucidated in short as belovi a) The plan aims at pz>eparing development-cumoinveatment projects to be financed by commercial banks and other financial institutions based on available local resources and himal skills. The plan takes into account the present infrastructural facilities available in the district and other ongoing prograimnes« b) The plan endeavours to deal with all agricultural and allied activities and non>farm schemes as well as Govemnent prof^ammes for veaker sections cf the society and alao identifies those activities vhich can 1. Oanara Baxdt, District Credit Plan 1988-901 Aligarh, pp. 18-20. - 62 . b« finanoMl by Banks with supporting backward and forward linkai^oa. It also atlpulatoa tho toohnloal, physioal and flnanolal noma adopt ad for fomulatlon of various schanas kaaplng In Tlaw thosa prsscrlbad by OoTarnmant of India, Stata GoTarnmant RBI and NABARD* Schonas which ara vlabla and bankabla for davalopnant on araa basis hara baan foxnulatad, kaaplng In vlaw tha local neads, raqulronants and oarrylni; capacity of ths araa. c) A blaokwlaa Imrantary oorarlng land, watar, forest, and llTestoak raaoureas and Infrastruotural faollltlaa and sanrloos has baan proparsd for ths dlatrlot to assass tha potential which would be helpful in preparation of tha various schemes matching with the aTallablllty of tha resouroea. d) A review of oncroinir programnaa has also been nada and constraints, if any, found in the Inplenentation of those proframmea have been aialntalned together with the sugirestions in regard to the renedial neasures wherever possible* The plan document which gives all data as indicated above has to be neoessarlly large and is, therefore, likely to be critical as too large for everjrbody to read and put - 63 - Into operation* It tms, howoror, to be appreelated that an operatlTe plan oannot be propeaed without knowing rarious reeoureea aTailable* their liatiiiationa, abaerptiTe eapaoity of thoae vho are to participate in its inplenen- tation and ao on* The full plan doeuaient ia, therefore, neoesaarr for thoae who would like to take a full Tiew of the propoaal aade, particularly thoae at the National or State level and to aome extent at the diatrict le-rel. For the field le-rel funetionarieaf however, it ia not neoeseary to have a view of the full plan and the Block level eati- nation would aerve their purpeae. Similarly at the diatrict level, particularly thoae concerned with particular aeetora only the narrative and in the tab lea appended* Similarly, for the benefit of the participatinir financial inatitutiona, bankwiae eatlnatlon on the areaa and unite to be uaed and reaourcea to be deployed have been indicated* In doinir ao, cooperative banka have not been treated aeparately fron the comercial banka and the Refional Rural Banka have been aaauMed that the reaponaibility for raiaing reaourcea, aa for exaaple for crop loan, will be taken up by then Jointly with the flnanoinc inatitutiona like NABilRD and that the latter will - 6M - • •• to it that th« fara«r is oapabl* of raising th« r«quir«d r««ouro«a vith ita own support* PCP (1988.^) VIS-A-VIS aO'-POIOT PROGRAMME^ Consiatont vith the social objactires plaoad bafnra tha Banking Systam, tha 20-point programaia I986 haa a epaeial rala-ranca to povarty aradication in rural araaa* Tha Bankinif ayatam in Aligarh Distriat ie to play an affeetiva rola in this diraetion, by so oriantin^ its oradit policy aa to provida the requiaita credit for ita aueeaaaful iBplanient at ion. Accordingly ( tha 20-point prograaaia which was at art ad in 1975 had already undertone two changes i.e. once in I982 and again in 1986. The incluaion of providing a reapons ire administration is an innoratian under 20-point prograaaia in 1986, Out of the 20-point8 introduaed in 1986« tha following hare direct bearing on the Banking ayataai. They are aa be law t- 1, Canara Bank, District Credit Plan, 1988-90, Aligarh, p. 2t» .65 - Point No. 1 - Attach on Rural Povorty Poixt iro, 2 - Stratoirr 'or Rainfad Agricultura Point No, 3 - Bat tar us a of Irri^tion Vatar Point No« i» - Biggar harvasts Point No. 11 - Justioa for 8C/ST Point No. 12 «• Equality for Voaan Point No. U - Houainir for paopla Point NO. 16 - Naw Stratagy for Faraetry Point No. 18 - Conoarn for Conauaar Point NO. 19 - Snargy for tho Yillagora. Tha Annual Action plan I988 and DCP (I988-90) ha-ra nada auffioiant proTiaion for eoraring tha aboTO mantionad point*. In tha foragoing pagaa Aina and Objoctivaa of Load Bank, Canara Bank aa Laad Bank of Aligarh District and ita raaponaibilitiaa and objaotiraa of DCP 1988-90 havo bean dlaouaaad. In this context tha nazt chapter daala with hiatorioal background of Canara Bank and Performance and Prograaa of Canara Bank, Aligarh. CHAPTER III CANARA BAm 4 A HISTORICAL SKSTOH, PERFORMANCE AND PROGRESS OF CANARA BAfK, ALI6ARR« - 66 . CHAPTER-m CANARA BA« - • HISTORICAL SKETc Fl, PERFORMANCE AND PROGRESS OF CANARA. BAI«. ALIGARH« The Conniier«l*l Banks •xo«pt Canara Bank were promoted by th« businass olass to obtain finanoaa requirad for running thair buainaaa, Hewarer, tha aim of aatabllsh' Ing Canara Bank vaa to promota tha valfara of naglaotad areas and negleeted paaple of our aountry* There vas an anlnant lav7«r, educationalist and social reformer, Mr. A* Subba Rao Pal vho got together a band of public spirited people to start tha 'CANARA HINDU PERMANENT FUND LIMITED* at Manga lore on 1st July, I906. <*The main aim of the fund vas to make loans available to deserring people like small traders and artisans at moderate rate of Interest and to serre as a repository of people's savings. This fund was renamed as * CANARA 6AW LIMITED' In I9I0I Through Its prudent policies, the Bank was able to gain steadily the trust and confidence of tha people, and Its business expanded* Its policy of 'wait and watch' 1. Varshneya, T.K., A Ph.D. Thesis on «A Compaj^atlTO Study of Cooperative and nationalised financing Institutions of AllgarW 1983. Deptt. of Oonsierce.AMU. Allgarh, p.211 . 67 - • iiAbl«d thtt Bank to mmmrgm un«oath«d fron th* banklni; crisis that sw«pt th« country in 1913-1I* and a^ain in 1922-23. Its cautious handling of business and the public ffoodvill, it had sarnad, could sss ths Bank through th« great depression of the thirties and the crisis of confidence caused by the failure of one of the leading banks in the South in 1938« After 1926 the first branch outside Kani^alere was opened in Karkala, to be followed by ethers in the Taluka towns in the South Kanara District* Soon came the branches in two principal port towns on the Vest Coast - Cochin and Bombay, Thereafter gradually nany branches were opened in the rural areas, neighbouring States, District Head- 2 quarter towns and other capital cities* PROGRESS or CANAKA BA!« DURIt« POST INDEPENDENCE ERA I The period of late fifty was of strain for the banking institutions. The failure of two fairly large banks, one of then with a wide branch network had consi derably Shaken public confidence* This posed difficul ties for several small banks in the country* At that time, a process of consolidation of the banking structure 1, Tarshneya, Y.K*, Ph.D* Thesis on *A ComparatiTO Study Study of Cooperative and Nationalised Financing Iiytitutions of Allgarh, 1985* P» 211. 2. ibid, p. 212. > 68 . had been lnltiat«»d by the Reserve Baiik of India fer safe guarding the interest of the depositors of such banks* Particularly, those whose capital base had been subject to erosion vere advised to go in fer a nerir^r with er for transfer of assets and liabilities to the bigfrer banks. In thie procees of consolidation of the baziklng structure, Canara Bank was called upon to play its part. Nine smaller banks came into its fold during the early sixties. Some of these batiks were of long standing and enjoyed a measure of influence and popula rity in their respective areas. Of these, the takeover of Pandyan Bank Limited, Madurai, with 83 branches and nearly 8OO staff members stood out as the biggest in the South during the decade. The procedure adopted by the Canara Bank for takeover was commanded even by the leserve Bank of India* The deposits and general business of the taken over banks had increased several times after their coming into Canara Bank fold. With this, the phase of rapid expansion started, on the eve of its Golden Jublee in 195^, the Canara Bank had a net work of 51 branches. By I96I, the number crossed 100. By 1966, which marked the Diamond Jubilee of the 1, Tarshneya, Y.K., Ph.D. Thesis on «A Comparative Study of Cooperative and Nationalised yinancinn Institutions of Aligarh. 1985. PP. 2l2-g13. . 69 - bank, th* network of Its branch had axpandlad to 2^0 and dopoalts and crodlt stood at R8.114 croros and Rs,66 ororos roepootlTOly. Tho Bank had tfrfd as tho largost bank In tho South* MSW DIAMENSIONS OF DgVELOPMEWT AFTER IWTIOWALISATION I On July ^9f I969 tho Bank was natlonallsod along with 13 othor aajor banks of tho country* Nationalisation changed tho ontlro comploxion of oomaoroial banking in India* Financing of agrieulturo (which waa outside tho purriow of comsoroial bank land ing), small scalo industries, solf onploymont, otc. wero assigned priority and tho baidcs were called upon to provide need based credit to these sectors in largest •easuro. Banks were also entrusted with the new respon sibility of opening branches in hitherto unbanked/rural areas and extending financial assistai^o to weaker section of society in their productive ondoaTOurs. To achieve this objective, the traditional insistence en security was to be replaced by the concept of viability as to the Criterion for bazflc lending* A scheme known as the Lead Bank Scheme, requiring batiks to lead the process of dve- lopment into District specifically assigned to them, was 1. Ibid, p. 213. - 70 - lntroduo*d[. Canara Baiik was nanad as tha Laad Bank for • Ifhtaan dlatriota ineludlnir thraa In t7«P, •!». Alisarh, 1 Affra and Etah. MASSITB BRANCH IXPAWSION I W To Canara Bank, vhioh had all alon^ boon oatorlng to the crodit no ode of tho snail nan and whoso doposits voro larcraly drawn fron small and nlddlo class saTors, nationalisation a^in affordod an opportunity to onlarj|0 its serrioos, A nassiro branch oxpanslon progrMmo was launched with a najor thrust of tho country* Tho nunbor of branches which woro Just 10 on tho ovo of silver jubilee in I93I increased to 36O in the year of nationa* lisation and to ^ ,2Bh in I98O en the OTO of its platimw Jubilee, The pace of branch expansion durinf; I98I was rather slow as compared to the performance in 1980* The bank opened 38 new branches out of which 32 were in rural and semi-urban areas. The number of branches in I982 and 1983 were 1,392 and ^^kkj respectively and at the end of 198^4, it had 1,525 branches including London Branch* Thus, there has been four fold Increase in the number of 2 branches during the post nationalisation period* 1, Yarshneya, T.K., Ph.D* Thoeis on *A Comparative Study of Cooperative and nationalised Financinjr Institutions of Aligarh. 1985. P. 21». 2, Ibid, pp» 21U-215. - 71 Tta« proipramntt of branch •xpanslon is pr«par«d under the dlreotlves of Rosorro Bank of India vhieh iasuea from timo to tin*. Mostly contros idontiflod by tho St at* GOTorimont vould bo tho basia for a o loot ion of bankable oentrea* Main concentration haa been in the Lead diatriota and underbaiiked and unbahked areaa. The pace of the busineaa development directly dependa upon the apread of branchea, therefore the Canara Bank ia glvini; more enphaaia on identifying potential areas •» metropolitan oentrea, rural areaa and aemi->urban areaa. Thus there are expectations that by the end of December 1989 the branch network vould be more than 2000* PERFOHMAMDE AND PROGRESS OF CANARA BAWK. ALIQARH. Canara Baxik opened its Tst branch in Aligarh in 1971 f but within a short period of 18 years this bank has opened I9 branches in the district including three branches of Laxni Oomaiercial Bank which were merged into Canara Bank in 1985* Xt has highest number of branches with the exception of the State Bank of India. In business performance also Canara Bank is second - 72 - after Stat« Bank of India. Ther© ar« other nationalised banks In the district which opened their branches la Alifrarh onioh earlier than Canara Baxdc but even today their branches are less as compared to the Canara Bank. In business also the Canara Bank has proved its superiority over others except the State Bank of India. The progress of Canara Bank nay be sumnarlsed under the following headst- BRANCH EXPANSION I After the nationalisation of 1U oonmieroial banks in July, 1969 the pace of banking expamiion was accele rated by "the lisencing policy of the Reserve Bank of India, in conformity with the objective of bank nationa lisation, naturally favoured opening of comnerclal banks branches in rural centres, mostly in uhbanked axxi under- banked areas* . A very large number of branches cause to be opened with the objective of meeting the financial needs of the small and marginal farmers. the rur«l arti sans and self-employed and the other weaker sections in rural areas of the country. Considering the figure of large number of commercial bank branches opened in rural areas and because of the fact that they are public banks 1. Desai, 6.S.M., Rural Banking in India, Hlmalya Publish ing House, 1983, p. 190. - 73 - not obses«iKi with the consideration of running their bu«in»P» for m»x±m±m±ng profit, on» is likely to get the impression that these rursl oommercial bank offio.e must be Bieetlnp to «n increasing extent the credit nt^eds of the weaker sections of the rural community? The Canara Bank opened its let branch in Aligerh on ?.kth September 1971 vith the responsibility to woiOr as Lead Bank of Aligarh District, As disouseed above or after the nationalisationycommercial banks the expansion of branches into urban and rural areas was rapid and same was the situation in Aligarh District, Canara Bank branch expension may be seen from the table No, lU. 2, Desai, S.S.M,, Rural Banking in India, Hisialya Publish' ing House, 1983, ip. 228, . 74 - Tlbl« No. 14 Shoving th* yemr of oponing of branohoa of Canara Baidc in Aliicarh District. * Name of the branch Date of opening 1. Aligarh Main Branch 24.9.1971 2. Vijaygarh Branch 21.1.1972 3. Hat bras Main Branch 25.8.1972 h. Gonda Branch 16.3.1973 5. Kachora Branch 19.12.1974 6. Akrabad Branch 27.12.1974 7. Sikandra Rao Branch 5.11.1976 8. Purdilnagar Branch 14.02.1979 9. Aligarh II Branch 27.01.1980 10. Vaya^anJ Hathras II Branch 24.11.1980 11. Dhanipur Branch 24.12.1980 12. Bijouli Branch 14,08.1981 13. Atrauli Branch 25.04.1984 u. Hathras Mandi Branch 09.05.1984 15, Kanchka Vagla (Hathras) Branch 12.12.1984 16. i>ragla Tajana August, 1985 I7t Aliffarh City 1985 18». Hathras 1985 19». jalali 1985 Sourcei Information oelleeted from Di-risional Office, Canara Bank, Ali^parh. •, Last three branches originally belonged to Lazmi Commercial Bank which were merged into Canara Bank in I985. - 75 - C«nar« Bank waB tha 8th Commaroial bank of All^arh District whan it opaned its first branch on Sapt. 2^^, 1971. Within a short period of four yaars, the Canara Bank opened its sixth branch In Aligarh District. Out of thpse branches four branches were opened in rural areas. As such the average vas more than one branch in a year. The emergency was imposed in the country in 1P75, therefore no fresh llsanca was issued to the bank for opening new branches. The seventh branch was opened on November 5» 1976 in Sikandra Pao, After that again Canara Bank could not gat fresh lisences for opening new branches. But in 1979 Bank opened its branch In Purdilnagar, Therefore the Bank was successful in opening branches ats in 1980 it has opaned three branches. These branches were opened at the places where the Canara Bank branch was already functioning, namely, Aligarh second branch, NayaganJ Hathras second branch and Dhanipur branch which is only four kilometers away from Aligarh City, Tt is expected that Dhanipur will be included in the Aligarh agglomeration in the near future. The bank opened its t .branch in the year ^^6'\ in Bijouli Block. The Bijouli was the only unbanked block . 76 . of the district. Now it appears that there is no unbanked area in Aligarh District, Again during the period of two years the bank could not get any chance to open a nev branch in the District* The responsibility of opening nev branch vas taken by Aligarh Granin Bank sponsored by Canara Bank, But in the year 198^ the bank got success in obtaining three lisenoes and these branches were opened in Atrauli, Mandi Samiti Hathras and Kaneh Ka Vagla, Hathras, Out of these three branches two were opened in Hathras block. The last branch was opened in Nagla Tajana in August 1985. In the year 1985* three branches of Laxmi Commercial Bank were merged into Canara Bank which are working successfully in Allgarh City, Hathras a'ld Jalali, The Aligarh Gramin Bank was sponsored by the Canara Bank in 1982. At present there are B9 branches of Allgarh Gramin 'Rank functioning in all the 17 blocks of the District, Deposits of the Canara Bank in the District 1 After the nationalisation of eommeroial banks in 1969, there has been a considerable increase in deposit resources of eominereial banks In India, "Conmitroial banks in Tndda have devised a larpe number of Rchemes for attracting deposits and mobilising deposits from rich, medium and small savers in the communitjr*, As repositories of savings, the bank provides to its customers a range of financial investments to ohooee from current deposits rspayable on demand and saving deposits for individuals, fixed deposits for various terms, apart from a variaty of deposits taiiorod to 2 the individual depositors needs. The trend of deposit of the bank from the year 1979 onwaards can be seen from table No. 15. Table Wo. 15 Showing the Deposit s of the Canara Bank in Allgarh District during the period 1979 to 196^ % (RS. in lacs) Tear Amount of 9^ of Growth (At the end of Deposits December^ 1079 5'<^.'*3 IQ80 7*»8.56 ?7.5 I08I 956.23 27.7 198? 1319.33 38.0 ^oB3 1t481.68 12.3 \9B^ 1913.72 29.2 1085 1996,65 ^.3 1986 2Bhk,6B kz,k 1987 it312.71 51.6 1988 1^1*73.82 3.73 Source! Divisiorla l Office, Canara I3ank , Aligarh. 1. Desal, SSM, Op.Cit. p*2hk, 2. Varshney, T.K, , Op.Cit, p.23^. - 78 - The table No. 15 shows that the daposits of th« bank in the year 1979 wsre R8.5^**.^3 l^cs vhleh increased to RB.7^8.56 lacs In 1980 showing a signifleant iprovth vas that of opening of three new branches In the sane year. The deposits in the year 1981 rosed to Rs,936.?5 lacs which is 27.7 l»<*r cent higher over precedio In the year 1982 the deposits of the bank were increased very high to Rs.1319,33 laos, 38 per cent higher than the year I98I. In 1^83 the denos-'ts of baUc were hl|?h«r than 19B? i.e. 1^81,68 lacs but the grwoth was Just 12,3 per cent, which was3 lower than the deposits of 1982. The growth in the year 1<^8'» was satisfactory and the deposits were increatad to Rs.1913,72 laos which were 25.2 per cent higher than the deposits of I983. The deposits for the year IS85 wer 1979. In the year I986 the deposits were raised to new heights of Rs.28'4l|.68 lacs which were U!?,k per cent higher that! the depofitu of 1985. In the year I987 ag^l n the deposits were quite satisfactory I.e. ^312.71 lacs which were 56.6 per cent higher than the deposits of I986. - 79 - Tn th« year 1988 th« d«po8ltB w«r« ^U73,82 lace vhloh were only 3,73 p»r cent hifrher than 1987, Tf v« clasBlfy th« daposits of the Canara Bank It can be said that the Current Accounts share was in the ran^e of 13 to 20 per cent, the Saving Accounts share vas in the rani^e of 25 to 30 per cent and the remaining share belongs to tem deposit. It is clear that the term deposit played very Important role in the total deposits of the bank. Progress of Advances «- Dominated by the Priority Sector i The second but the most important function of the bank la hov to utilise available funds by way of granting loans to different sectors of the economy. It is observed that Canara Bank utilises its funds by distributing loans and advances to all the three sector vi«. Agriculture, Small Scale Industries and Tertiary Sector, in the district according to their requirements* The major portion of loans and advances granted by Canara Baiik goes to the Priority Sector* The loans and advances distributed by the Canara Bank from 1979 to I988 can be seen from the table Hfo, I6. e •I•H* O u « 1 00 ON 9s o CM T- H •c • < TI *- NO r M Cv CVi CM © ^ 00 •n v« 4» • o •»» c « a- c C\ *- t- t* ON O CVi «^ b- O cy ^ vo C |« C • • • • • • u r^ Q 'T' O 00 O t- -4- 00 •H •H g * O^ irir\ o h c m en r\ r\ tC\ NO < 4> P« (£ N ^ ^ ^ o •I* 0 •H g +> (B •H (0 O C ^ X3 w en V4 . « O C4 en a o en o\ u • • r>- 00 O • +i * VO • • CO NO 00 • • o « NO 00 NO NO t- P 00 t^ NO is. l^ NO V c 9 *» 4» O ON o 00 o • 0^ CM ON CM CM I O NO cn ITi • • NO out «n en ITN CM o o cn r- NO eo en CM ^ o ^ TI U Ov r- 00 OS O en «- CM T) P » CM 00 »" •" <- CM CM c < P< (A (M « 00 « .0 ON O % o o CM 00 O 00 o o en NO en X! NO *- • • 3 • « « • • • • c^ T- c CM \0 CM en ^ c^ 00 o 9 TS O fn r- SO vo COM NO 00 •H r. ri 00 NO NO *- r» ^ CM CM Ot 4» CO • 4» I « H •o » o H u » E -< m « u 9 £ • O U o ^ w en NO 00 u « -p ^ 00 00 00 00 00 00 oo 8> 0\ 00 ON 00 ON ON 9 • ^ o ON o\ ON ON 0 TI CO * o X! - 81 - The above numbered table shows that the major part of advances distributed by the bank goes to the priority- sector and neglected sector i.e. to agriculture, snail scale industries, transport operator*, retail tradex*s, professionale and self employed persons and education. In the year 1979 the total advances distributed by the bank were Rs.332.62 lacs. The advances given to priority sector vers Rs.253f09 lacs which is 76,08 per cent of the total advances and remaining 23.92 per cent went to non-priority sector. In the year I98O the total advances given by the bank were Rs.^36.18 lacs and share of priorltys sector was F8,29U.97 lacs which is 67.62 per cent, lower than of 1979 *nd the remaining part of advances i.e. 32.38 per cent went to non-priority sector. In the year I98I, the total advances given by the bank were Rs.602.19 l«cs and the share of priority sector was 68,35 per cent which is higher than of I980 and the remaining 31.65 per cent went to non-priority sector* In the year 1982 the total advances granted by the bank were R8,637.78 lacs and the share of priority sector - 81 . was P8,i»86,32 lac« which is 7^•25 p«r cent and hifrher than of 1981» The remaining part of the advances i.e. 2?.75 per cent went to non-prlorlty sector* In the year I983 the advances distributed by the bank were Rs.11^1.90 laos and advances given to the priority sector were PB,89''.51 lacs which is 78.07 per cent and higher than of 1982, The remaining part of mdvances i.e. 21,93 psr cent were given to non- priority sector. In the year I98U the total advances given by the bank were Re.16^7.80 lacs and the share of priority sector was Rs, 1208,99 lacs which is 73•37 per cent and low^r than of 1 In the year I985 the total advances of the bank were R8.1863.3'4 lacs and the share of priority sector was PS.1^33.27 lacs which is 76.91 psr cent and higher than of 1984. The remaining part of advances i.e. 23.09 P®r cent went to non-priority sector. Tn the year I986 the total advances of the bank were R».?206,67 lacs and advances given to priority sector were Rs,1733»40 laos which is 78.55 per cent - 83 . and hlg^her than of 1985« Th« remaining 21.'•5 p»r cent ndvances were given to non-priority sector. In the year 198? the total advancee given by the bank were R».2699.77 lacs and the share of priority sector was Fs,2l25»28 lacs which is 78,72 p»T cent and sliphtly higher than of 1987# The remaining part of 2l.?3 per cent advances were given to non-priority sector. In the year I988 the total advances were Ps,2881,314 lacffi and the share of priority sector was Rs. 22^2.60 lacs which is 77«83 per cent and slightly lower than of 1988. The remaining part of advances of 22.17 P»r cent were given to non-priority sector. From the foregoing discussion it can be concluded tha that totals advances of Canara Bank in Aligarh District continuously increased every year. The Canara Bank especially played a significant role in granting advances to the priority sector. PERFORMANCE OF CANARA BAIV AND GRAMIN BA7K OF ALIGARH UNDER THE lOTEORATED RURAL DEVELOPMEWT PROGRAMME. Th« Int«irrat*d Rural DttveloiNB«nt Programm* (IRDP) vas introdue«d In th« year 1978«-79« In tha \»mg±nn±ng It was working only in 12 blocks of Aligarh District. But after October 1980, tha IRDP eairarad all tha I7 blooks of Aligarh District, During tha yaar 1978-79 assistanca under IRDP was providad to ^262 banafioiarias against the target of ^265. In the year I987-88 total minber of beneficiaries wore 15^21 against the target of I506U beaefi claries. OBJECTIVES OF IRDP I The main objective of the programme is to rais>e the standard of living of thos© rural families who are livinit below the poverty line by providing then finan cial assistance by way of loaiui and subsidy so that they may acquire productive and ineone generating assets. It gives a chads of hope and light to rural artisans, snail famers, narginal farmers, and self-enployed persons such as tailors, barbers, small shops keepers, hawkers etc. Tt should be ensured that the families 1. Information has been collected from District Rural Development Agency, Aligarh, - 83 - who have be«n benefitted under this programme ara pro vided adoquate training and other neoessary support to make the In-restments truely effect ITS and it prevents the families from slipping back into poverty. Under the objective of Seventh Plant supplementary dose of assistance is also given to those families vho were aRsisted during sixth plan and could not cross the poverty lino. The population living below the poverty line in Aligar'i District is about 932750 which is 31 per cent of the total rural population* This population is to be covered under the progranmo stagewise which was started in Sixth Plan. The norms fixed by the Rural Development Agency is that the poorest among poor shall be assisted first within a selected target group. During Sixth Plan period families with five members having an annual income of Rs.3,500/- or less were eligible to |^et assistance under this scheme. According to Seventh Five Tear Plan this limit was raised, femilies living in rural areas and having an ann 1. Information collected from DItDA, Aligarh. - 86 « asslatano* to Soh«dul« Castas and Soh«dula Trlbss the basis for asslstanca will ba 73 par cant of this Incoma i.a. Ra«U,800/- par annum. As it is tha first ain of tha progranma to hslp first poorest among tha poor, therefore, families vith income less than Rs.3*500/- will ba considered first for assistance. After covering this group, the second group i.e. families with an annual income of Rs*3t500/* to Rs.'tfBOO/- will be considered for assistance* The Plan of block is prepared on the line of above factors. Tha Integrated Rural Daveloimient Programme is vorking in all the blocks throughout the country. Usually under this prograpma, 6OO poor families per block per year are proposed to be assisted, vhich may fluctuate according to tha size of the block and popu lation. Usually all tha blocks are not equal in eiaea and population. Thus during a plan of Five Tears period 3000 poor families have to be assisted in a block. Subsidy under Integrated Rural Development Prograwe t The aubsidy provided by the Government under IRDP is Rs,35 lacs per block during the period of 1. Information collected from DRDA, Aligarh. 2. Ibid. - 87 . 8«venth Plan. Th« subsidy proTldsd to th« snail farasr is 25 psr osnt, 334- P«r csnt for marginal farnsrs, agricultural labourers and rCiral artisans rsspsotiTsly and 50 par cant for tha nambars of sohsdulad tribas. Tha BSxlnuB subsidy for a fanlly may ba givan in a plan pariod is Rs.3000/- in ganaral araas, Rs*V000/- for Drought and Prona Araas and Rs«3000/- for tribals. Tha bank oradit grantsd is tha doubla amount of tha subsidy* Thus tha rastriotion of subsidy upto Rs«3000/«> vill maka the amount of oradit which could ba drawn would bo Rs«6000/'> making tha total investment package worth Rs,9000/-, The following problems were identified for the 2 progranmet 1* Selection of all oases should be properly done by the Block DoTolopment Officer* 2* The applications should be disposed off by the bankers within one month and monthly disposal of loans should be taken up on a regular basis* 3, Since the beneficiaries under this scheme are the persons below the poverty line two substantial surities often demanded by the banks should be dispensed with as per the directive of the Reserve Bank of India* k, NTeed based credit be given to generate sufficient income and under financing should be avoided* 5« Undue pressure should not be exerted by the Block authorities or others for granting of loans* 6* Delay in adjusting subsidy should be avoided by all the participating agencies* 1 * Information collected from DRDAf Aligarh. 2. Canara Batdc, District Credit Plan 1983-83* Aligarh, p.37. ON ir\ -? 00 NO 00 I«- NO • 00 ON • r\ 00 00 o t- r\ ON ^ ir\ M 00 00 11 r- o\ -«r Jt o• 00 r\ • 00 00 00 00 o CM r* Jt 00 CM ^~ £ Jt ^ CM « VD -a- 0^ ir • 00 •a- • '^ t- •rl ON h- o o\ 00 t C* t- >o «" H r\ 0 IfN est r" PBRFORMANCE OF CAtURA BANK AND ALIGARH GRAMIN BAUt I The table No. 1? shows that Canara Bank and its sponsersd Ali^arh Gramin Bank are making rapi<| profrress in proTidlnc credit under Xnteiprated Rural Development Prograinne. It Is so because Central Government and Reserve Bank of India are emphasising for fulfilling the targets under IRDP, The Canara Bank and Aligarh Gramin Bank during the period of 1989-90 will assist 8000 poor families under TRDP by providing them loans. The auneunt ear marked to be distributed among 8000 families of bene-> flclaries will be about 2«25 crores. Thus one can say that the responsibilities of the Canara Bank as Lead Bank are very wide and it has been performing a very successful service for the economic development of Aligarh district especially those sectors and sections which have so far remained backward and under developed* After diecufslng the historical background of ths Canara Bank and performance and progress of Canara Bank Aligarh It became necessary to study the role of Canara Bank and other natlonalil!i»ad banks in providing finance for rural development in Aligarh District which have been discussed in the next chapter* CHAPTER lY ROL£ OP CANARA BAfK AND OTHER NATIONALISED BAIiCS IN PROVIDING TINANCE TOR RURAL DIYELOPMENT IN ALIGARH DISTIICT - 90 - OHAPTIR IV ROLE or CANARA BAfK ATO OTHER WATIONALISED BA1«S IN PROVIDING IT NANCE TOR RURAL DBVELOPMENT IN ALIOARH DISTRICT After the nationallaatlon ot ^k ooRmerolal banks in 1969t th« branohea of eommerolal banks war* spraad throughout the country* In tha sana year tha Rasar^a Eank of Indie introducad tha Laad Bank Sehansa vhleh aoceleratad tha paoa of branch axpanaion in tha oountzT and particularly in rural araaa and a larga nunbar of schemes w«ra also introduced to provids credit for rural davalopment* During tha same period the comnaroial banks have opened their branches in Ali^arh and spread to all the potential areas for banking facilities. Under the Act of 1976 for Regional Rural Bank vho has 89 branches functioning in the district covering all the I7 blocks. At present there are as nany as 211 branches of all the nationalised and non-nationalised baidcs in Aligarh district. (Blockwiae number of branches can be seen from Appendix II), - 9t - A^rleultuxe Is th« oiain aetlTitr In Allffarh District* Th« flnanol*! ne«d for agrloultura and allied aetlvltiea is aetinated on the basia of unit cost whleh changes wltb the paeaage of time* The method o* ostlmating financial need of different sector may be seen in the Appendix XTX. The Canara Bank formulates the tentative credit plan for the families belonging to weaker section of the soeiety Such as Small farmers, marginal farmers landless labourere and accordingly loans are provided for Agriculture development and allied activities for istalllng Tubewells, Borewells, Electric Pumpsets, Oil engine Pumpsets and for purchasing Farm equipments. Tractor*, Pever threshers, Tyrecarts, Plough Animals, dairy, inland fisheries, piggery, goatry, gobur gas plants and miiles . .-. The targets and aehiavements of credit for Agriculture and Allied Activities can be seen from the table NTo. 18. 00 \c \o >r\ 0\ e* 0\ 00 CM *• •- i* 0\ 00 •« m NC r- Jt 00 J- w •- +» 00 ^ «- W ON c • ON 00 cn r- «r» w I 9s B « u ON r- t- \c JT CO c •rt +» « »r( f»% >n -St c p-i i N£> (Tt r- « o x: c < 4» •0 o 0) •r4 i3 cv «»^Ovpr^. oo.wo oo t Tt H O to t^ iH V^ its I Jt *' )f\ <*! ve JT 9\ N M *- *- o s o 00 trj4i \0 • a COOC^^©^-VOOOO . O 4* Id v£r\lr^oc^«oOJrtf^ loo h 00 cj •ar 00 O r ^ r\ *- r\ - h o n 3 o o '- 00 ve »- r\ r -H o: Ti V6 «0 u m o OCiAOOOOO OL CM O t-cc ewooOiTNiri »f^ V© jr if\ t- •• ir> *" •" ON «*" »r> .» Jt W •- J' W *- w o •rl "rt •H h C^lTiOv^ cnNJrvo O CM <4» U u\ e\ tr\ y* fr\ •- CM •- e* t^. ^ tr\ ^ t' 00 c^o M o CM 00 xo tC\ ^" 00 •4- IF- r- l^ 8 o r\ »- b- •» • *^ 1 1 CM en r\ ^ M « ON m ir\ •4- NO ^ t- CM • ITN 4 m r- «r» JT C^, o\ ON i^ t- M CM t- r> ou 1 to \c ^ 1 1 1 1 f» «n IT ^ NC NO t- CM 5CM • « CM ON VC V- t-^, 9\ r" 00 f «o flO r\ ^ 00 00 t- m t~ 1 CM i VC VC 1 1 Jt 1 en m i» >r. ^ evi CM c o CM t« en tr\ •3- t- r> o a. CM ^ M 00 NC 1 \c ^ o m fvi CO t r- r\ M oc 1 1 1 1 CM •4- en f- r\ CM O NO • CM NO 00 lf\ CM t»- o o o o o - « 8 00 8 o 8 CM t ir, 1 vo 1 1 CM 1 ^ m \o o 00 <^ C^i ^ NO CM i 1C\ •4- ^ m ir» 00 o ^• 00 ON 1 Jt ^» o ir* t- «" NC »" Jt ti c^, 1 NO t- £» 1 tr\ 1 CM O >ri 1~ irv o m NO o N4» ^ • « CM ^ O O ir> o o O Q O «n o IT CM CM I « i P 1 %o h- o CM CM en o ON m CM H g O r\ ON t- 00 c^ VO O ON 00 1 1 1 1 1 1 Jt oo NO en CM en »» CM • t- Q ON >« N 00 o CM r\ CM 00 00 n >0 ON v« f" CM 8 IS m i >r\ 1 ON CM 4- 1 Jt r>- U I 1^ en 00 en tl CM +» PCI 01 c fl H ^ i •8 o n c n m n o £ %* « ^ t• e n h < PQ H « o e •s ^ • « n 61 h (H o H • • • • CO « •rt i s P. P. P. ••» I t-( A4 n «M « e 0 +> »4 u • i 0 m o (tf o 0) 0 fl •0 •s ^ • g o o •H » 4 « H 0 c CO i o .0 « ^ •H M >s • •** O +» M H u 0 t B 4 •. i ^ m H • H M i« « -n • S I f* 6 H •n > 0 •r\ 1 • • +» «) N S H •H .$ h 1« 6 1 (4 s • H 4 • SE £ O •^ o •H « « « <•H • IB n PQ PQ •J O ^ N r\ ^ ir> >e r- o o cn »- CM en * ITN |H << (0 - Th» profrr«ss of the flnanees for Agricultural and Allied Aotiritles for the laet five years aeene to b» quite a at is f act ory« The total credit outlay far the year 198ii| was Rs,3302,45 lacs, out of this the target for agri culture and alliec! activities was Rs,23B7«58 lacs i.e. 7^*29 per cent respectively. Against the ^rget of Rs.2387,75 lac>i In the case of other activities, the achievenent was Ss.233'i«86 lacs which was 97*8 per cent. The targets fixed for Canara Bank and its sponsored Regional Rural Bank were Rs«1983.04 lacs and Rs*355.22 lacs respectively. The achievements for Canara Bank and its sponsored Regional Rural Bank were RB,230.59 lacs and Hm.kjk^^iB lacs which are 119.5 psr cent and M2uk per cent higher than the required target. This shows that C .^nara Bank perforaed its duties sincerely* per the year 1985 the total credit plan was Rs.3763.25 lacs, cut of which Rs,2337.25 lacs is to be provided for agriculture and allied activities which is 67,*«2 per cent of the total credit plan. The aohieve- lacnt was Rs.2450.49 lacs against the target of Rs.2537.25 lacs i.e., 96.6 per cent, which is quite s at is f act ojry. The target for Canara Bank vas Rs,238.00 lacs and achieve- - 95 - ment was R«,^ 12.32 laes vhlch is 173.3 p*r cent, 73.3 per cent higher than required target. The achlevenent for Allgarh Graaln Bank was Fa.655«38 lace against the target of Rs.395,20 lacs which Is 165.8 per cent. This shows that achlevenient Is 65.8 per cent higher than the required target. In the year I986 the total credit outlay for Allgarh district was Rs.'il.lO t r. o"* ot which the credit plan for agriculture and allied activities was Rs«2695«20 lacs i.e. 65.56 per cent. The achleTenent was Rs.286^.52 lacs against the target of Rs.2695«20 lacs which is IO6.3 per cent. This shows that the achievement was higher by 6.3 per cent. The target fixed for Canara Bank was Rs.246.00 lacs and the achievenent was Rs.380.72 lacs which is 154*7 per cent. This reveals that the achievenent was higher by 54.7 per cent. The achievement of the Allgarh Granin Bank was Rs.5l8«6l lacs against the target of Rs,455.25 lacs which is 113*9 per cent slightly higher than the fixed target. For the year I987 the total credit outlay was Rs.48l2.04 lacs, out of this Rs.3225*71 lacs was fixed for agriculture and allied activities which is 67*03 per cent of the total credit plan. The actual achieve ment was Rs.?248.79 lacs which is 69*7 par cent. The total - P6 - achl0T*n*nt of credit plan for 1987 v«a 68 por cent and for agrioulturo and alliod actlvltlaa It vas 69.7 p«r oont, vhleh was higher than of total aehlevenent of Credit Plan. Thus it ean be said that orerall progress for the year I987 was not satisfactory which requires nere attention of the district Adninistration. The target fixed for Canara Bank was Rs.3'^3«8l lacs and achieveBient was Rs,2<»3.02 lacs which is 70«7 P«r cent. This shows that the achieTement is 29»3 P«r cent lower than the re<|uired target* The achievement of the Aligsrh Graain Bank was Ss«368,38 lacs against the target of Ps.'»86,00 lacs which is 73*8 per cent. Thus the achioTe- nent is 2^*2 per cent lower than the required target. For the year 1988 the total credit plan was RS.U887.88 lacs, out of this, the target for Agriculture and Allied Activities was R«.3351*58 lacs and achleve- Bient was Rs.2653.01 lacs which is 79*15 P«r cent. It is lower than the required target by 20.85 psr cent. The target for Canara Bank was Rs.337.3^ lacs and achieveaent wa was Rs,266.l6 laes which is 78.89 per cent. It reveals that the aehievemcnt is lower than the required target by 21.11 per cent. The target for Aligarh Oramin Bank was Rs•657*88 lacs and achieveaent was Rs.'»05.l6 lacs which is 61.58 per cent i.e. 38.^2 per cent lower than the required target. - 97 - Trom th« forgoing discussion it can bs oonoludsd that tho Csnars Bank as Lssd Batik of tho district func- tionsd quit* satisfactorily sxcspt for th* ysars I987 and 1988* Th* progrsss in laat two y*ars was not satis factory It was bweaus* of poor rscovory of loans, How*Ter» th* Canara Bank as Load Bank playad a dynanic and pivotal role in the doTolopnont of th* rural *oonoMy of Allgrsrh District* ROLE or CANARA BANK AND OTHER NATIONALISED BA«S IW FINANCING RURAL INDUSTRIES OF ALIGARH DISTRICT. Th* traditional industries arc g*n*rally located in rural and s*iBi-urban araas, inrolr* low l*vels of invostwent in naohin*ry and provid* invariably part- tim* *Bployv*nt« Th*y hav* b**n cat*gorie*d as rillag* and cottag* industrios und*r 26 heads* Th* annual survsy of industries shows that not all these groups are e Planning Conmissioa has identified fix ixxlustries which absorb about 69 per cent of those eaaployed in cottage and village industries, vis* food products, beverages, tobacco, end tobacco products, cotton textile, products - 9P - including wearing apparal, vood and vood products, furniture and fIxturaa, and leather and fur products. Benefits ef Rural Induetrlee i The Rural Industries provides the following benefits t- (l) Rural industries provide additional employnent opportunities, raise production and improve economic conditions in rural areas* (ii) Rural Industries are labour intensive. They provide additional employment to men and women, ensure decentralisation of economic power and elimination of monopolistic exploitation* (ill) Decentralised production through a network of well-knit rural industries obviates the necessity of complicated managerial and competitive marketing teohniaues and reduces the costs of overheads* (iv) Rural industrialisation leads to the development of rural areas, lessons the disproportionate growth ef large eities and reduces the growth of slums social tensions, exploitation and atmospheric pollution* 1, Desal, Yasant, Rural Development, Vol. VT, Himalya Publishing House, I986, p*196. - 9S - (r) Rural induotrles build up villages rapublie and assist in human rasourees dairelopmaat* (•i) Rural industrialisation providas ampla seops for th« promotion of tho artistic aehioYonant and of CroatIrity vhioh has been suppressed in rural areas,1 After tha nationalisation of tho lU major commercial banks and rapid expansion of baiikinif faci lities in rural areas since then banking has emerged as effectire instrument of rural reconstruction. It reconstruct rural economy by modernising agriculture, and developing agro-based and other rural industries 2 utilising local raw materials. About RO per cent of the population of Allgarh District live in the rural areas. Therefore, the oredit plan formulated by the Cannra Bank during the last fire years vern based on rural small seals and eottage indus tries. Bxcept a f«v «ity areas like Aligarh, Hathras, where most of the large scale industries are there, most of the areas of Aligarh district are predominently covered by rural and cottage industries like weaving, leather works, metal works, eoir works, bamboo works, 1. Desai, Vasant, Op.Cit. p. 197 2. Desai, 8.8.M., Op.Cit. P.338 - ICO • locksmith, plass beads etc. Th«s« activities ars ttia traditional activltias of ths soms of the families in the rural areas. To encourage these rural artisans a sleable targets were fixed in the last five years to eoTsr all types of beneficiaries, Looksmiths and flass beads are main aetlTltiea coming under rural and oottafre industries. Tin the end of 1986-87 the number of rural nmall scale and cottage industries vere 1398 and the number of worV«»r8 employed in these industries were 1?292« The handloom Industry is working in the district quite success* fully. By the end of the 1986-8^ the total number of handlooms In the district were 96l5« The Hathras City is well equipped for the handloom industry, 3555 hand- looms were In Hathras city and remaining 6o60 were in all tha parts of the district* The total production of handloom Industry for the year 1986-8? was 320 lakh metres of cloth. The credit have been provided for alround development of small scale and cottage industries in the rural areas and the progress of the credit supply can hi seen from the table Tfo,19» cc ON^Qo«peootf>OM^ iTi r\ ON ^ j^ W «- ^ 1F- *- r\ ir> ^ w tic mOO-St' C4 V4 irir-»-oo • E « •H n ce •a i3 •0 ^ •a O ft H pa « « PQ •H H H H i-l C 0 « « •rt Vi (3 M •0 %^ •a s 0 0 •rt 0 0 « O TI u PQ B C4 •a n H •a 0 « PQ +» n •a PQ 0 o n 0 s (4 • •8 C • «0 !1 0 s X! li ^ e « ^ g o •H 1 « -»» H •M • « « • C •. O •« (0 & Q B D (0 t • o u n n H O (0 fc *• CM r- CM en Jt m NO t- 00 0\ o 00 o\ r\ ^ r" o< r\ en 1* r\ r\ t- ir\ c^ M fV C\4 Ov M CM .'Mil m 0e0n «• t» 0\ t- vc • Ov t- 00 w c> c ^ o h- •? C^ JT o «r\ •4- I t- CM I in CM .a- CM ^ O a b- C^ 00 vo r- (M »» t» w 4- t- ^ ffN m -sr •sr ir- c^ o «~ r» r> o% f" W u^ »ri o o cc ^ O rn CM M i^ I I r\ *" r- Cii tJT CM ^ m ir lO (y>. u o tis I' 00 00 »r> •a- o t- 00 ve I 00 m 1 •- a\ Jt ^ vc t- t VO ir\ I ^ r^ I CM Jt 1— « ^ »- 00 X t- u « VC O r^ t-" vc c- 00 *" vc en •H Os o o 1 1 00 i i I i r r- M !» r\ Cv o o Os o o 00 . r^ m 00 r" o Jt t~ m m m •" ! •- m VC 00 c~ ^- 1 t- en 00 ^ o r^ •ri ^ »~ o o o -, o O O o o o . o «n ITl o o o I m o \Co o o 0o0 CM CoO m en vc • *- 8 o> •a- ^ m Th«» table l?o.19 shows that all the commercial banks and cooperatlv* baaka supply credit for tha development of rural and cottage industries in tha district, Tn the year 198** tha total target fixed v»-s R8.^38«57 lacs and achievement was Ks.ii55,11 lacs which 103 per cent. It shows that tha progress for the year 1<^'8A is satisfactory* The cradit supply made by tha Canara Bank wae Rs. 128*69 lacs agaiivst the target of Ke.f6.12 lacs which is 193.13 per cent, i.e. 93»13 per cent higher thnn the required target. Tha Allgarh Gramin Ponk sponsored by Canara Bank, supplied credit of Re.7.07 lacs against the target of R8,65«13 lacs which 1« only 10,85 par cent, a>»out 90 per cent lower than the reqjirod target. The tarret for credit S'jpply for the year 1^85 was R8.6?5,00 lacii and the achievement was R8.837.55 lacs which is 13^ per cent, 3'' p«r cent higher than tha required target. During the same period credit supply made bj' the Canara Bank wa? Rs.250.59 lacs against the target of PS, 122.00 lacs which is 205.*^0 per cent, 105*^0 per cent higher than the required target. - 10^ - In the year 1986 the aehleYement vas Rs.96l,37 lacs afftinEt the target of Rs.65^.85 lacs which !• 1^6 TpcT cent 1,e» W per cent higher than the required target* The tarpet for «upply of credit by the Canara Bank vaa R»»,12O,00 lacs and actual supply vae Us,62,98 lacs vhlch is i»R,R2 per cent, lower than the required target* Th» progre^s of Canara Bank In supply of credit for rural development in 198^ hae not been aat1Bfactory. In the year 1r87» the target of credit nupply fixad v,at> Fa.T'lS.OS lacs and the achievement was RB,4O6,01 lacs which is only 52 per cent, kB per cent lower than the required target. The achievement made by the Canara Bank WUB rt6»130»l6 lacs against tha target of R»,190.26 lace which is 6B*h^ per cent. Thus, the tofsA.i. prngres6 and the Performance of Canara Bank has not been satisfactory* The tarf^et for the yoar I988 was Rs.17i»8.20 lacs and achievemont vas Rs* 1187,53 lacs which is 65,6? per oont and 7.ower than the required tar|r*»t by 32.31 pf»r cent. The- target for C nar* PanV was Rs, 138,11 lacs and achievement was RB*U9.68 laos which is 35.97 per cent» lower than the required target by 6k»0J i>er cent* - 103 - The target for Aligarh Granln Bank was Ra.61.35 laca and achievement was Ra,11.9l| laos which i« ^^»k6 per cent. The performance of Canara Bank and Aligarh Graain Bank has been very poor during the period of I988, One can say that the credit provided to the rural small aemle and cottage Industries by the Banks ±m quite satisfactory* The credit plan for each successive year is increasing according to its demand. It shows that all the loanees of rural areas and weaker sections of the society are being encouraged by providing sufficient credit for the development of their industries. Thus it can be said that the banks are strengthening the economy of the Aligarh district and people are earning more than their. , .,,nwith the help of these banks. TBRTIARY SECTOR I Under tertiary sector loans are provided to weaker sections for transport operators for example taxi, trucks, buses, autoriekshow and tempo, cycle rickshaws, horse-carts* Besides credit is also - 106 - •ad* available to Retail traders, amall business, professional and self-employsd persons such as Doctors, En«rlneers, Shoe Heparins Unit, Tailoring Units and others. In this way all type of weaker sections In the society are getting financial help from coonerclal banks, cooperative banks and Land Developsient Banks to earn their bread* Supply of Credit for Tertiary Sector i The following table No. 20 shove the target and achievements of Canara Bank and other nationalised banks during the last five years* • X! ^ ^cnv-o^flOflO-Tmoo 0 OfO r\0»-N • ON >«• NO CO JB 00 0 ^ CM GO ON ••> «r « r> O O O O Q Q Q O O o Iv O Jt VO >A O O O Q m en ON (n ON n_, -N- t- h- b- O •- el o ve •«• o\ (n *" H o • '^oowcnmOOONT-m -•'I X! vo>r\(V4'flOir\NNOONiri 0 O t- i*-jrvooo«-^ ir\0{n SI •I »- 00 VO W '^ *- VS >•» •ar sOoN «ri O o • N O o o o o o o o i o ID O O O iTt O O t- « •H i 1 • « S H (Q B n •H H *H H H H • 5 «i « g « V4 •g M 0 •H 0 0e »4 « I •H S +» •a H n •a • 0 n X! r-l 4H •a 4 O « a h S • R « e • n n fl s • jy li "S ? •s « s o 0 1 1 « 4> H ••» « • « •. o o < CQ u A PQ n p B D 09 • • CO• »e •" •" N CM en -* •n vo r- CO ON O t- O »- r\ O r\ •" •0 CM CM 00 00 CO Jt f» F- f- o\ ve CM »r\ Jt 00 -* ry «- in JT -a- « 1 CM t 00 CO t» ..9 O CM O O o o\ o CM N 00 O oi n r\ »- ON •4- ir> r\ ON en -* o 00 r- 00 1 CM »r> 1 ON '- rs "^ r» ON 00 NO ^ ON vc C^ ON «rt 00 ON en NO «^ r\ ^ •If* c«* t- 00 ^ 00 >4J ir> w O NO ^ \C 1 i 1 ON O o CM NO NO N trt ^ O 00 «^ ON O CM trs « ^^ •" fN o o yj 00 CM ON NO en iTi -a- ^ m ve \o 0\ • en en I X! § o 00 jar ON ON t- tr\, 01 .St N CM N CM <- VO M NO en i i I I 00 CVt VO ^ ON 00 r~ CO CM W 1- m o o o o g o o o m Q r\ o •- o o ir o o 00 ^ O >'^ (^ \6 N£ ON i 00 1 00 O •- m »- CM en NrO- s o\ f- a •- t* *- rN ON o\ ir\ NO CM t~ t- O en V« CM 1 i en CM VC CM r- CM ir> t>- 00 en en CM o 1- »- t- CM en •r* O O O iTi o O o o O o o po 6 p if\ «n t- o o 5 ^ O -V NO CM M-\ CM 1 o 00 ITi o o o ^r^ ON r- O ^ i* o en CM r» 00 CM ir> O . ON 00 1 1 en O *- ON >0 i CM CU CM CM »- m N 00 ^- flo ON r- CM O CM o IT) ON o ON t- ir» O CM ir» en 00 NO en CM ON en l4 n JT CM O 00 t« CM ^ NO %4 0) o u ^ •g o to • H (d 0 H H 1 0 ^ « o «> o o O •s h c •rt £ Vl u n o Tl « • ".8 • •H (0 • (B. isc; VH* « H 0i •p 0 « 0> o « c « 0 I c •f* O 0 o E « 5 H 0 c (Q ^ o o « •H « •. 4» •§ « I •M •p H Tf O «cH « e s H (Ni T4 £ 9 :;5 1 B •rs 1 "S "S 5 Tt "S s « ^ •H • <1 f Tl tt O H H -^ » K n i4 « n o 3 »- CM e^, J* if\ SO t- o o o en •" CM en •* m (0 - 109 - FroBi the toT«go±ng table it can b© inferred that in "598^ the target for supply of credit waa fixed for Ri«.*t76.30 lacs and actual credit supply waa Ra,524.12 laca which is 110 per cont, 10 per cent higher than the reouired tar For the year 1985, target for tertiary sector was Rs.601*00 lacs and achierenent was RB*733.10 lacs which is 122 per cent, 22 per cent higher than the required target. The aehieveaent nade by Canara Bank was Rs*170.5'» lacs against the target of Rs.89.OO lacs which is 191.6I per cent, 91*61 per cent higher than the required target* The target for Aligarh Qrausin Bank was Rs.lU7*25 lacs and achiereraent was Rs.211*61 laes which is 1^3»70 per cent, it3.70 par cent higher than ths required target* Thuc, the progress for the year 1985 %f*c quite satisfactory* In the year 1986 the target was Rs*760.85 li^os and aohieTeaent was Rs*588*67 lacs which is 77*37 P*r cent, 22,67 per cent lower than the required target* The targot for Canara Bahk was Rs* 103*50 lacs and achisTe- •ent wae F8*67,89 lacs which is 65*59 P«r cent, 3U.41 - 110 - p«r o«nt lower than th« rmqutrmd tmrgmt, Th» tarr*t for AliiTiirh Gramln Baidc wa« R«* 169,75 laca and achloTo- nant was Rs.92.48 lacs whioh Is 5^»^8 p«r cant, k^^^Z per cant lowar than tha raqulrad tari^at* Tha prograss for tha yaar I986 was not satisfactory* Tha targat for the yaar 1987 was Rs.801.35 *nd tha aohlsvanant was Rs,6lO#89 lacs which is 76*23 par cant, 23*77 P*r cent lowar than tha required target* The targr^t for Canara Bank waa Rs* 122*78 lacs and achie-renent was 130*81 lao« which is 106*5'» par cent, 6,!ik per cent higher than the required target. The target for Aligarh Granin B«nk was Ra*162*50 lacs and achioTenent was Rs*97*^3 l»o» which is 59«95 P«r cent, U0.5 per cent lower than tha required target* The target for the year I988 was Rs*895*32 lacs and achioTenent was Rs*726*88 lacs which is 81*18 per cent, 18,82 per cent lower than the required target* The target for Canara Bank was Ra. 170.13 lacs and achie-renent was Rs* 161*76 l*cs which is 95*08 per cent. The target for Aligarh Grasiin Bank was Rs.i»3*86 lacs and achievement was Rs.260«73 lacs which is 59^*^5 P«r cent, H95.'»5 par cent highar than tha required target* This la the highest aohlevanant nada by any bank in last five yeare* - Ill - A» a whole th* credit pro-rided by the banks to tertiary sector is satisfactory. The progress for the years I9B6, I987 and 19^8 vas not satisfactory, because of poor reoo-rery of loans. Thus it can be said that the Canara Bank played a significant role in improving the economic development of Aligarh district* After exaninin^; the role of Canara Bank, other nationalisod and non-nationalised banks in finenolrg the requirement6 of Agriculture sector* Small Scale Industries sector and Tertiary sector. It was felt necessary to study the problems faced by the banks in providing finance. Therefore, it has been discussed in the next chapter* CHAPTIR V PROBISMS PACED BT BAIiCS IN PROYXDINO ri NUANCE FOR RURAL DBVELOPMEOT OT ALIGARH DISTRICT - 112 - CHAPTER V PKOBLEMS FACED BY THB BAIKS IN PROVIDINS FINAlCg FOR RURAL DEVELOPMENT IW ALI6ARH DISTRICT Th» following are th« rarioua problena which usually arise in providing? financial aseistenca for tha d«ve]opniunt of Agriculture and Allied AotiiritieB Sector. These problena were identified and suggestions were made by the members of District Level Review Meeting in 1982, 1. Crop Lo*n The following problems were identified under crop 1 loansi (a) Inadeuate staff in the branches was a major constraint identified in District Level Review Meeting, The rural branches are facing problesis in respect ot quick disposal of loans* Therefore the following staff were suggested. 1. One branch manager 2. Two Cashler-cum-Clerks 3. One technical-hand having the intensive knowledge 1. Canara Bank, District Credit Flan 1Q81-8S. Aligarh, pp. 27-28. - 113 - •bout agricultural operations as field officer. k, Tf ther« are more than 1000 accounts one additional officer and one clerk should be provided, (b) Conveyance should be provided to the field staff for the better movement. (c) Airricultural and cooperative departments should ensure proper quality and quantity of inputs at thf'lr depot. (d) Farmers should be provided with pass bookfc of their land holdings (Jot-Bahi) to avoid delay and multiple f^ nanolng* (e) Due to opening of number of branches of Qramin Bank, T>roblem of multiple financing has oroppad up. Better understanding between banks be arrived at by reallo cation of villages, ( f) Cooperative Societies/Banks should promptly ISMU* the no dues certificate, A» an alternative, bank* should accept affidavit upto loans amounting to Rs,5000, (g) During the harvest season adequate arrangements should be made to purchase agricultural produce to avoid middleman, i^emunerative prices for the agricultural produce should be ensured. - ^^k - (h) Sone cultlvatore take loan fron oonaerGlal banks and than gat loans from oooparatlva a octet las also. Hence non-membership certificate is to be given at the time of issuing no dues certificates by coope rative societies and the record of such persons is to be maintained by commercial banks and cooperative batdcs to avoid multiple financing. Preferably a register of non-members be maintained at society level and it should be recorded therein at the time of issuing such certificates and no loans be given to them by societies. (1) U,P. Agricultural Credit Act proved very helpful in recovery of over dues but delay in execution of the recover certificates be avoided and final reply be given within one year from the date of filing recovery certificates. In case of crop failure, conversion facility into term loans be provided. ( j) Recovery certificates are pending for more than last 7 years. It was suggested that Amins be appointed on commission basis. Regular Amins for bank's dues should be appointed and they should be attached to each bank depending upon the dues (recovery amount). Recovery meeting in every month should be regularly held. - 115 - (k) R«oov«ry povera Just llk» Coop«ratlT«a should also be flvon to tho bahkors* (l) Sonetlnes GoTortuont as:onole8 ara roquestlng tha bankars to prorida Jaap for oollaotlon of thalr duaa* Thay should be dispansad vith slnoa 10 par cant is balnir oharfr* (n) At prasent subsidy to tha small and narginal faraers Is allovad vhan thay pure has a fartillsars from tha Goirernmant storas, Tha sama should ba applicable to tha private agencies also. (o) Onerally In AUgarh District cultivators demand Crop loans during Rabl season. T^ay should be encouraged for Kharlf and Jayd crop loans also* 2. Minor Irrigation For minor Irrigation the following problems vere Identified I (a) Generally there are no difficulties In obtaining loans from oonmerclal banks. Block DsTalopmant Officer should forward application to the commercial banks also* 1. Canara Bank, PlstrlciTcredlt Plan 1983-85. Allgarh, p. 29. - 116 - (b) D«l«y In •n*rglalzic th« punps«t8 occur in cas* of •loctrlo pumpaot duo to non-availability of olootrio connootlon in timo. Minor irrigation dopartmont and Load Bank should tako up tho nattor with oloc- trioity doparta*nt for tho onorglaation of punpaota grant ad through b&nk loana, (c) Ganeration of electrioity ahould be further ateppad up for the inatallation of More tubewalla. Un>inta- rrupted aupply of electricity ia desired for increas ing the area under irrigation. (d) Targets for construction of tubevells or pumpsots should be fixed by the State Governnent with the conau< it at Ion of electricity Board and Minor Irrigation department, (e) There are ahortage of aerrice centres for not or repairs etc, in rural areas. It ahould be developed tnrough the help of TRTSIM trained peraona. Traineea ahould be encouraged to atart aervice oentrea in rural areas and proper training ahould be given to then. (f) Generally the technical report of A.D.O. (M.I.) not accompanied with loan application. NABARD haa laid down certain technical eonditiona for installation of immpsets. Hence the technical report must be taken before the sanction of loans for this purpose. - 117 - (g) Priority should be givttn for allocation of caaont for th» construction of tubawalla* 3» Bquipaant Loanai Tha folloving problana vara idantifiad undar equipmant loanSt {m) The NAPARD should ba raquastad and contactad for extending all poasibla halp to branches in extending credit for farn mechanisation* (b) There are huge OTerdues under tractor finance. The tractor finance ia to be provided to needy and genuine farmers as they normally approach for the finance for their statua rather than need* (c) There are shortage of tractor service centres in rural areas* TRTSIM trc ineea may fill up this gap* Trainf^es should be encouraged to start service centres in rural areas and proper training be given* k. Land Development t AS there is no more problem tor land development in the district the scope for loaning under above scheme i. Canara Bank, District Credit Plan 1983-85, Aligarh,p.29. - t18 - i« rery much limited, Hov«ir«r 8t*ps mv hmtng tak«n by GoYernm«nt to reclaln the existing 'tJSAR' land. No Bpmeitte problems for horticultural •ohem* voro id«ntlfi»d« 5. Dairy i 2 Tha following problana vara Idantlflad undar dalryi (a) Under Xntagratad Rural Davelopment Programme mltch animals are to be purchased fron the good markets outside the district where a-vallability of good milch anlmala Is ensured* (b) At present health cards are not Issued for the cattle which hare been financed under IRDP, Project Direc tor should issue necessary health cards for proper check up of health* (o) Veterinary doctor should be asked to issue certi ficate of health to the animal on the spot. Without certificate no purchase should be made* (d) Health certificate, insurance and ear tagging should be done in the cattle fair itself* (a) Insurance, transport and cost of the niloh animals should be Included in the project ooBt. 1. Canara Bank, District Credit Plan 198*^-85, Aligarh, p,30. 2* Tbid. —^^^_^_^_^-^^-^—^— - 119 - (f) renefnciary ehould b© selected on the milk routt only, (g) Diftitrict LiA'eatock Department should make arrang©- rnentt for Inputs like fodder, concentrates etc, ( h) More chilling units/nilk collection centres should ho started at Nyaya Fanehaymt level. (i) Certain problems have been identified in settlement of in&urance claim* It vas felt necessary that the veterinary doctors should issue necessary certifi cates immediately* (j) It was observed at present that banks are financing only for purchase of one milch cattle, but it wa« suggested that finance should be permitted for purchase of two nlleh cattle, the second one being purchased when first goes dry* Financing to d»iry should be restricted on milk routes only* This also coxifirns the guidelines of NABARD. 6, Poultry i The following problems were identified for poultryi (a) Ppr>«fi clary should be provided training at Govern ment poultry fsrm Aligarh* 1, CanRia "arfc, Djsstrict Credit Plan.> Ali&arh, p, T1 - 120 - (b) Poultry feeds b* nad« arllable manufactured by firms like TATA's, Hindustan Lever etc, (c) There is no problem reg^arding marketing of products since thnre is sufficient demand in the district aikl at present poultry products are being imported from the nearby distructs. (d) The scheme can be popularised in the cluster of vi llages near the urban centres, (e) Motivation to poultry farming should be initiated by Livestock department and extension agencies, (f) Necessary veterinary facilities should be provided by Livestock department. SMALL SCALK INDUSTRIES t Rural and Cottage Industries The fnl loving problems were identified under Rural and Cottage Industriesi (a) Loan sanctioning powers vaxr from bank to bank| should be uniform and adequate. (b) Entrepreneurs with adequate technical skill be recommended to avoid large rejections by Banks. 1, Cansra Bank, District Credit Plan 198^-85, Allgarh,p.32. - 121 - (d) In certain actJTlties auoh aa nanufactura of glaaa beads, locks etc. the rav materials and machines etc* are pro-rided by the big manufacturers and finished gooda taken back by then paying the nominal labour charges. To avoid such exploitation marketing can be organised by the GoTernsent and a fair price offered to producers. Banks can finance under tripartite arrangements* (e) Government should also arrange raw materials for the Small manufacturers, OTHER SMALL SCALB INDUSTRIES i The following problems ware identified in the smooth implementation of the various schemest (a) Sanctioning powers vary from baiik to bankf should be uniform and adequate* (b) The neoessaxT technical repoi*t8 in case of the existing units should be provided by the District Industries Centre to Banks* By and large the applications of the S.8*I. should be routed through District Industries Centre with the technical feasibility report recommending the need based finance. 1. Canara Bank, District Credit Plan. Allgarh, ( 1983-8?), p. 32, - 12J - (c) Adequate eerrices of the teehnloal fled staff be provided at all possible branches, (d) The irural industries be given priority in making available of pover* Pover restoration nust be timely and subsidy be alloved on generating sets. (e) There is shortage of raw materials, M.M.T,C, be requested to open its brsneh for supply of non-ferrous materials. The U. P, Brass ware Corporation and similar institutions may be requested to assist likewise, (f) Tempo for financing can be increased if recovery of advances are made under public Recovery Act* (g) A study should be mauie by District State authorities for promotion and development of industries engaged in export. Technology should be developed and increased incentive be allowed to expoirters, to generate more employment. The industries indenti* fied are Brasswares, Hardwares, glass beads, Carpets etc, (h) Survey of sick units should be conducted by DIG and information should be circulated amongst banks highlighting causes of sickness to enable other banks to be more cautious about them* - 123 - TBRTIART SECTOR t Th«r« w«r« no spcollTlo problmas under Road Tramport Oporators and Retail Trad* in Snail Businass* The following euf^paations were nade for Housing, Er^uoation and Conaunption 1 Loans I The»s schemes require publicity so that prospeotlre beneficiaries may approach the banks in large numbers, Genersl Problems t 2 The follovlng general problems were identlfledt (a) Selection of all cases should be properly done by the Block Derelepment Officer* (b) The applications should be disposed of within one month's time by the bankers and monthly disposal of loans should be taken up on a reipilar basis, (c) Sometimes two substantial surities are demanded by the bankers, should be dispensed with as per RBI directive since the beneficiaries under this scheme are the persons below the poTerty line* (d) Need based credit be given to generate sufficient income* Under financing to be avoided* (e) Undue pressure should not be exerted by the Block authorities or othez*s for granting of loans* 1, Canara ^ank, District Credit Plan 1983-^5# Aligarh, p,33. 2. Ibid, pp. 33-30. - 124 « (f) Oft«n •xtract of Imndholdlng {61 K!U) ±« not mad* a-rallablo by tho Toluiil authorltloa proolpitatin^ tho proco«8 of BoloQtlon of b«nofloiari«>» {g) Sone banks do net g±v noro than ona chort-nedlunt tarni loan affeotlng package financing under IROF* (h) Delay In adjusting subsidy should be aToided by all the participating agencies* (i) Under the Reserven Bank of India selective credit control, loans for purchase of cloth and provision store can V>e granted upto a limit of Rs•2,000/- whereas the scale of finance fixed under the schenie is RS.5,00G/-« The interest rate on such commodi ties be lowered keeping in view the target group* ( j) There are some difficulties in purchasing the assets particularly under trading sector* It is suggested that approved dealers be appointed for effecting the purchaser* Recovery of Loans i Recovery of loans from borrowexii has become a very serious problem* Becuase of poor recovery the credit supplied by the banks for last two years was not satis factory. Therefore to overcome this problem the follow ing suggestions are raadet I.Canara Bank, District Credit Plan 1983-85. Aligarh, p*36* - 125 - (i) Bank* should rvsort to lagal action for r«covary- only- vh«n all other means of recovery etc. are exhausted and have failed to produce the required result. In fact, use of legal action has becoae counter-productive in respect of many borrowers, resulting in unpleasant consequences, (ii) The general feeling aaiong the bankers is that Government machinary- is taking too much time in recovery of bank dues* It is suggested that a time limit be fixed. (iii) Another suggestion made was that, when recovery cases are quite old and involve a very high sum, the District Authorities be requested to lend the services of Amins to banks which require the same. (iv) It is desirable to invite representatives of commercial banks alao to the monthly staff meeting of the revenue officials when recovery of bank dues ±8 discussed, (v) Another main reason for the poor recovery of loan is the regular occurrence of natural calamities in one form or the other resulting in destxniotion of standing crops* Every year there is at least one disi ster caused by nature which invariably deprives the - 126 BP borrov«re of hie Inoon* and henc« non-paynent of loan. The accent must be on taking adequat safeguards on receipt of warning about such disasters. (vl) Mlu8«> of loans granted* for other purposes is another nenc> r < contributing to a great extent In poor recovery performance! and use, for good recovery be ensured otherwise it will defeat the veirjr purpose of loaning, (vll) Lrok of close follow up Is another reason attributable to poor recovery. Tn the absence of close follow up borrowers g«t the impression that they can dra^-on without paying the dues for a long time. Since some of the borrowers are wllfu? defaulters baiiks hesitate to grant loans without surety. The Borrowers should never be alloved to gain the feeling that defaults in the pajrnent of instalment will not be taken note of by the bankers. Therefore, it is desirable that the banks should be provided with sufficient staff to keep vigilance over the loans in general and wilful defaulters in particulaz*s« (vlii)l7neoonomie land holdings is also a reason for the poor recovery of loans, as the small income generated is used for coneumption and the borrowers are left with nothing to repay. - 127 - (iat) Twproper aBB©BBinent of credit needa reBulting In short financing, drives th« borrower to outside borrowings at epurieus rates and ultimately becan?ln|f a def»»ilter» GENERAL SUGGESTIONS TO STREAMLINE THE WORKING or CAMRA BAM. No doubt the Canara Bank ie working very veil in th*' diftrict but to further atreamline the working of Canara Bank and to enable it to render better service to its customers t the following sufri^estions nay be i^ivent 1« The bank should remove all constraints and ensure prompt collection of cheques which will eiMible it to maintain larger balances in current and saving account. At the same time, the complaints and grievances of the cuEtomers should be removed as early as posBlble so as to keep them attracted towards t hm bank* 2* Vigorous deposit oompaings should be launched and extension counters should be opened at various centres. Incentives like higher commission should 1. Varslmeya, Y»K. , Op.Cit, p,ZBk^ - 128 - hm glT«n to thoB« who attract largor dopoaits towards the bank« Gift artlelos liko oalonders, diarloa, fountain pons, oto. should bo liborally distributod among tho customors. 3» ¥lth a vlow to sooure fullest cooperation of tho staff It is necessary that tho privances of the staff should be removed ox-ppditiously and a sense of imrolremeafc may be created amon^ thorr by InvitinfT their opinions and sugpeetJon on eeypral matters from time to time, U. For etifijuring Internsl control, a rogister should bo naiittalned, listing out the irregularities and rosponsi- bllltiefi that are fixed and on tho departmental heads should he checked from time to time, 5, The bank should so eonduot its operations that thoy are in alignment vith the national polities and objectivss » for increasing production, diffusion of ooononlo power, reduction of their irregularities, removal of poverty, etc. 6, Bank should consider all application for credit facilities on merit, preeautlono should be taken that such facilities are not ©xtendad to an unworthy customer and they are not denied, under any circumstances, to a worthy customer for produetioti jntrpoaea and viable so hemes/units* - 129 - SUGGESTION FOR NATIONALISBD iiAiViS IN GENERAL I Th« main aim of the nationalisation of eonnereial banki; vas expanalon of banking faolllties in rural areaat financing of agriculturo, small scale and eottai^o industry and development of priority ssctor. To aohiavd succsss in th»S6» objective?', the folloving suggs&tions may bs 1 kept in mind» 1, In the caf^o of cottaf^o and email scale industries, there may be unite which do not operate to their optimum capacity due to shortafre of funds^ Bshks should make a special study of these industrial units vlth a view to find out the reasons on account of which they are not in a position to work to their optimum capacity. Xf there are *ny hurdle in the way of their working, the same should be removed by these batdcs* 2« Banks are not merely financing institutions* They have a role to play in the non-financial spheres also. In other words, they should discharge their social responsibilities. For example, they should help the affected people in times of floods, droug^hts famines, cyclones, ete. 1. Varshneya, Y.K. , Op.Cit, p. 285. - 130 - 3. Th« banks should provid* b«tt«r and greater facili ties to their oustoners vith a view to attract then for larger amounts of deposits, 4« Banks should dsTote greater attention in providing financial facilities to the weaker sections of the society and to the hitherto unbanked areas of the district* If the above suggestions are sincerely followed by the Canara Bank and all other nationalised banks, they will be ablo to render better service to the society, Ip the foregoing pAges problem of crop loan, minor irrigation, equipment loan, land development, dairy, poultry. Small Scale Industries and Tertiary Sector were discussed and to over cone these problems Suggestions were made. Now the next chapter deals with the Sunnaryt conclusion and suggestions* CHAPTER VI SUMMARY, CONCLUSION AND SUGGBSTIONS - 131 - CHAPTBR n SUMMARY. CONCLPSIOW AND SUGGESIONS CHAPTKR I Conc«pt of Rural D«v»lopwnt andEco lomi r Condition of Aligarh Diatrict ~ Tho ontiro Btudy hmm boon dlTidod into flro ohaptoro oxeludlni; tho ohaptor oumvaryt oonolualon and •uggoBtiono* Tho finding* of tho study havo boon sumaarisod in tho following pagoa* Rural devolox)n)ont has aeouned groat or inportanoo in tho growth of tho country today than evor before. It 18 a strategy paokago, aooklng to aohlevo onhancod rural production and productivity, greater oooio-ooonoBiic equity, a spatial balance in social and econoBiio developments Therefore the rural development should aim ati •> The removal of unemployment! -the reduction in under-employment t - the rise in the standard of Jlvingt - the adequate Income for nutritious foodf ~ 132 - > th« adequate olothf - th« availability of drinking watert - tho hyifianio living eondltlon«| -the adequate educational facility for learning! - the adequate medical facilities for treatnent} - the clean house to live in| - the adequate eocio-cultural activities to develop oneself} and •> the adequate all-veather approach roads for easy nobility. In the light of the above noted facts the working definition of Rural Development may be summed up as belovt Strategies, policies and programmes for the deve lopment of zoiral areas and the promotion of activities carried out in such areas (agriculture, forestry, fishing, rural crafts and industries, the building of the social and economic infrastructure) with the ultimate aim of achieving a full utilisation of available physical and human resources and thereby achieving higher incomes and better living conditions for the rural population as a whole, particu larly the rural poor* and effective paarticipation of the later in the development prooesa. There is an increasing awareness now among the planners and researchers that tke - TJ^ - dev«lopn«nt problems, persp«etiT«s and requlraaetxts of rural areas are different than those of urban areas and consequently a special attention to rural derelopaient has to be i^lven in all the future de-relopnental strategies, Eoonomio condtion of Aligarh District t Aitrieulture oocupios a prominent place in the economy of the country. In fact, Aligarh district has got the distinction of having a very high productivity in agriculture in Uttar Pradesh, Nearly 82 per cent of the work force in the district i6 engaged in agricultural activities* Besides, Aligarh is also famous in the industrial field. Aligarh ie> the horn© of lock industry. All types of locks are produced in Aligarh and supplied throughout the country and also to foreign countries. Apart from this, Aligarh is also famous for producing electrical equipment, building fitting material, glass beads, light engineering. Hcndloom weaving and cotton carpets. Thus, different types of industries generates employment oppor tunities for it larg« number of people in Aligarh District. - 13^ - CHAPTER II Th« Lead B*nk Sch»«» « Aii» and Obj»otlT«8 A Committee of Banker* waa appointed by Reeoirve Bank cf India in August I969 under the Chalrmanehip of Mr. F.K.r. Nariman, This CoBimittee was entrusted with evol-riig a coordinated prcgrrammo for branch expansion to ensure adecjuate banking faoilitiea in under-banked districts of the eountxTr, The abo-ve mentioned Connittee examined the position of brnking- facilities in the country and recommended the introduction of Lead Bank Scheme for all the districts of country. Thus, on the basis of recomreendations of »^ariman Committee for Lead Bank Scheme, the ReB^rve Bank of Tndia modified and finali«ed the Lead Bank Scheme for State Bank of Tndla and its Si»bsidi«rie», ^k nationalised banks and three private sector banks in the month of October I969 and implemented this scheme throughout the country in the month of December, 19^9» This scheme has covered all the districts in the country with the excep tion of Groat''i Foffloay, Calcutta, Madras, Union Territory of Delhi, Chandigarh and Goa* - •!35 - The main function of Lead Barik is to prepare a Survey Report of its allocated district and search out those areas which are potential for banking facilities, bwt banking serrices «»r» not available* Thus, on the basis of survey report submitted by the Lead Bank of a particular dietrlct, the Ressrve Bazdc of India grants the lisonces for openinfr new branches to provide banking facilities in potential areas* At the end of December 19B7t ^^* Lead Bank Scheme covered kjB districts in the country, According to available data, the achievement under Annual Action Plan for 1P87 was Rs«10,94o crores against Rs,10,1lO orores under similar plan for 1986. Canara Bank as Lead BaiA of the District The Aligarh district was Allotted to Cftnara £ank, Can&ra Baiik opened its first branch in the District in September 1971. Under Lead Bank Scheme Canara Bank was allotted If district throughout ths countxTr including three districts in Uttar Pradesh vis. Agra, Stah and Aligarh. - 136 - On the reque&t of Canara Bank, Bangalor«» the Lead Bank Survey Report waa prepared by PROFESSOR SAMI UDDIN, an eminent scholar and Chalrnan, Department of Commerce, Alxgarti MTJS Hm Unl>*r8lty, Allrarh* Thle Report was published by the Head Office of the Canara Bank, Ban|ra}ore« The 2nd and ^rd round of district Credit Plan vae formulated for 1Q80-8? and 19P?-85 respectively. Now the fourth round of district credit plan la in operation which covers remaining two years of 7th Plan vis. 19^9 *nd 1990, The district Maiiristrate and Chief Development Officer have praised the worklnir of Canara Bank aa Lead Bank of All^arh District, 0>-jectlv<'S of TVth round of District Credit Plan of Canara Bank, Aligarh. The objective of District Credit Plan would continaa to be the same aa thoae of the National Plan with its emphasis on elimination of poverty, creating conditions for full employment and satisfaction of baaic needs through economic expanalon, technological development and adoption of effective promotional measures to raise productivity i*nd to raise income of the poorer sect lone. In order to achieve these. It is necessary to further Improve coordination between Government Development - 137 " VTOgrnmfm and Pank l«ndln^, Th« fourth round of District Credit Flan is th«r«for«, oxpoctod to onsuro adoquate flew of cfadit aesiatanoa undar Araa apeclfle Bankable Schemes for&ulated eepeoially for capital deficit areas« CHAPTER III Canara Bank - A qiatorical Sketch. Performance and Progress ef Canara Bank, Aligarh. The Comni€»rcial Banlts except Canara Bank were promoted by the business ola08 to obtain finance rpquired for runn ing t leir business. But the aim of eetablishlnir Canara Barik vas to promote the welfare of neglected areas and nee;3ectod people of our ootintry. There was en eminent lawyer, educatioAist and social reformer, Fr. A. Subba Tao Pai vho got together a build of public spirited people to st^rt the 'CANARA HINDU PBRMAXEJT/ FUND LIMITED* at Mangalore on 1st July, 1906, The main aim of the fund was to make loans available to defeerving people like small trader* and artieann at mr.^r.itw rate of interest and to serve as a repository of people's saving* This fund was renamed as * CANARA BAPK LIMITED* in 1910. Now, there are more than 2000 branches of Canara Bank working in the country* - 1-^8 - pTfor«*no» »ad proi^r««e of CatMir* Bank. Allg>rh« Branch Expanalont Th« p«rforBii«no« of Canara Bazdc in Ali|r*X'h Diatrict Is quite satisfactory* Canara Baiik opanad its first branch in Aliffarh on Saptanber 2k, 1971• Within a short parlod of 18 years this bank has opanad 19 branches in te the district. Banking facilities are available in all the 17 blocks of the district* The business of the Canara Bank is increasini: year after year and najor advances of the Canara Bahk are going to priority sector and Differential Intrest Rata Soheaa. Under the Act of 1976 for Regional Rural Banks, Canara Bank sponsored Aligarh Granin Bank in the year 1982, By the end of December, I988 there were 89 branches of Aligarh Oramin Bank in Aligarh District* Deposits and Advancea of Canara Bank in Aligarh District during 1979 to I988. The deposits of Ca/:»ra Bank in 1979 vara ll»»5kk»k3 lacs which were increased to Rs«4473.82 lacs in I988 showing an over all rise of 821*74 per cent* The total - 139 - advances er^'^^n by Canara Bank in 1979 vara R8.332,62 lac8 vhlch rose to R».2881,3^ lacs in I988 raprasantin^ an incraase of 866.25 par oant* This shovs the aotiva involvement of Canara Bank in the development of Ali^arh District. yarf oraanca of Canara Bank and Gramin Bank of Aliiyarh under tha Integrated Rural Dayalopment Progr« In the field of Integrated Rural Development Prof'ramme the share of Canara Bank has also been satis factory. In the year 1980«81 the number of beneficiaries who received financial assistanoe from Canara Bank were 218 and their number increased to 989 in I988, indicating an increase of ^^53.66 per oent. The amount distributed among the beneficiaries was R8.6.66 lacs which rose to R8,U0.78 lacs in 1988-89, showing an overall rise of 612.31 per cent. This leads to a conclusion that Canara Bank is playing an important role in improving the econo mic conditions of Aligarh District by providing necessary finance required for Agricultural sector, Small Scale Industries Sector and Tertiary Sector, - 1^30 - CIUPTKR IV ol« of Can>r> Bank and othT nationalised banks f n providinjt financa for Rural Davlopiont in Aligarh District. Agricultural Tha raquiranant of finance for agriculture and allied activities in the district is supplied by the nationalised banks and non-nationalised banks under the Lead Bahkis Annual Action Plan, The target for Bupplyinf finance under Lead Bank's Annual Action Plan in 1984 was estimated at Rs.2387.85 l»cs while the actual supply of finance was Rs.233''»,86 lacs during the sane period which is 97*1 P^r cent* In 1988 the target of supplying finance was of the order of R*.3351.58 lacs while the actual supply of finance was cf Rs,Z653«01 lacs which is 79«1'' per cent. The actual supply of finance cane down from 97*1 par cent in 198't to 79,15 per cent in I9S8, this decline has been due to poor performance in the recovery of loans« Small Scale Industries t The target for supply of credit to small scale U1 - Tndust*-!** In ^9Bk vas »8,ii38,57 laos mnd aohieTein*nt was R8,li55.11 lac* whloh is 103 par cant, higher than the targattad flgura. Tha targat for supply of cradlt for the year I988 was of Rs.l7l»8.20 lacs whila tha actual cradlt supply cana down to R»»1183»53 lacs whloh is 67*^9 P«r cant, lower than tha targattad flgura, Tha cradlt supply cana down from 103 P»r cant in 198*t to 67.69 per cant in I988* This daclinad has bean due to poor recovery of loans. Tertiary Sector 1 The amount of credit supply for Tertiary Sector by the banks under Lead Baiik*8 Annual Action Plan was Fs,52A.12 lacs in 198J^ which is 110 par cent, hi|^her than tha target ted amount of Rs,ll76.30 lacs. The t ar retted supply of credit for 1988 was R8«895,32 lacs and the actual credit supply was Rs.726«88 lacs which is 81*18 per cent, lower than the required target. CHAPTER Y Probleais faced br the barika in proridlng financ< for Rural Developaent In Aliiearh District* Tha following are the main problems faced by the banks while providing finance for rtiral developmentt - u." - (1) liequat© staff In the rural araa branches is a blp problam. As « result ot this the banks and its customers have to face lot of problems in their business dealing's. To overoone these problems the following minlmura staff should be provided to the banket- 1• One branch manager r. Tvo Cass hrf er-oum-C Jerks •^. One technical hand having the intensive knowledge about agricultural operations as field officer 4* If there are more than 1000 accounts one additional Officer and one clerk should be provided. (2) Lean sanctioning powers vary from bank to bank, it should bp undfcrm and adequate, (3) Recovery of loans from borrowers has become a very serious problem, Therefor^t to overcome this problem the iollewint, suggeetions ara wadei (i) Banks should resort to legal action for recovery only when all other means of recovery etc. are exausted and have failed to produce the required result. In fact, use of legal action has beoome counter-productive in respect of many borrowers, resulting in unpleasant cone equences , (ii) The general feeling *mong the bankers is that Government machinary is taking too much time in recovery of bank dues. It is suggested that a time limit should be fixed. - 1i*3 - (ill) Another suggestion nads was that, whsn reooirsry caeep are quite old and Inrolvs a very high sum, ths District Authorities be requested to lend the serTlces of Anlns to banks which require the sua. (IT) It is desirable to invite representatives of comnerclal banks in the nonthly staff neeting of the revenue officials when the matter of recovery of batik dv-fB i£ discussed* (v) Another main reason for the poor recovery of loan is the regular occurrence of natural calamities in one form or the other resulting in destruction of standing crops, Svery year there is at least one disaster caused by nature which invariably deprives the borrowers of his inoom(> and hence onopayment of loan* The accent must be on taking adequate safeguards on receipt of warning about such disasters, (vi) Misuse of loans for other purposes is another menace contributing to a great extent in poor recovery of loans. Therefore good recovery be ensured otherwise it will defeat the very purpose of loaning. (vii) Lack of close follow up is another reason attributable to poor recovery* In the absence of close follow up borrowers get the Impression that they can - Itj'l - dra|f-on without paying the dues for a lon^r tine* Sine* some of the borrovora ara wilful dafaultara banka has it at a to |?rant loana without suraty. Tha Borrowara ahould noTor be allowed to gain tha feeling that defaults in the payment of instalment will not be taken note of by the bankera. Thereforp it is desirable that the bahka ahould be provided with sufficient staff to keep Tigilanoe over the loana in genferaj nnd wilful defaulters in particulars, (riii) Uneconomic land holdinga ia alao a reaaon for the poor reuoirery of loana, ae the amall income generated ic uaed for oonauraption and the borrowera are left with nothing to repay. f ±y) ^TPriroper assessment of Credit needs resulting in short ti •nnnei ng, drives the borrowers to outside borrow- irv^^" ^+ ppurJ ons rates and ultimately becoicing a dafaultara. (i» ) General Suggest iona to Streamline the Working of Canara Bank Vo doubt the Canara Bank is working very wall in the district but to further atreanllna the working of Canara Bank and to enable it to render better aervlca to its Customers, the following suggestione may be giveni 1* The bank should remove all constraints and ensure prompt collection of chequea which will enable - U5 - it to maintain larger balances in current and savings account. At the same time, the complaints and grievances of the oustoners should be removed as early as possible so as to keep them attracted t owards t he bank* 2* Vigorous deposit campaigns should bo launched and extension eountors should be opened at various centres. Incentives like higher oommlseion should be given to those vho attract larger deposits towards the batik. Gift articles like calenders« diaries, fountain pons, etc. should be liberally distributed among the customers. 3. Vith a view to secure fullest oo-oporation of the staff it is necessary that the griovaneos of the staff should be removed oxpedltious ly and a sense of involvement may be created among them by inviting their opinions and suggestion on several matters from time to time* ^f. For ensuring internal control, a register should be maintained, listinp out the irregularities and responsibilities that ar«» fixed and on the depart>• mental heads should be chocked from time to time. 5, The bank should so conduct its operations that thoy are in alignment with the national policies and - 146 - objectives for increasing production, diffusion of •eonomic povor, reduction of thoir irregularities, removal of poverty, etc, 6, Bank should consider all apnlieation for credit faci lities on merit, precautions should be taken that such facJ lit lee are not extended to an unworthy customer and they are not denied, under any circumstances, to a worthy custoBi<^r for prociaction purposes and viable !>c hemes/units* Suggestiont for other nationalised banks in frenpral t The ma.in aim of the nationalisation of ooipmercial banks was pxpptnslon of bsnklnr facilities in rural areas, finaneing of arr-^cultiiTe, small scale pnd cottage industry and develop ment of prln-ritv sector. To achieve success in thesa objec tives, thf tnlXovf n^ BUf^gestlons may be kept in mindl 1, Tn the case of cottage and email scale industries, there may be units which da not operate to their optimum capacity due to shortage of funds. Banks should make « special study of these industrial units with a viewto find out the reasons on aeeount of which they are not in a position to work to their optimum capacity. If there are any hurdle in the way of their working, the same should be removed by these banks* '• 1fe7 - 2. Banks are not merely financing instltutlone, Th«y have a role to play In the non-flnanoial spharos also* Tn othpr words, th«y should discharge their social rospc-tniblllties. For axampla, they should help the affected people In tines of floods, droughts famines, cyclones, etc. 3» The hanVs should provide better and greater faci- Ixtles to their customers with a view to attract there for largwr amounts of deposits, h. Banks should devote greater attention in providing financial facilities to the weaker section of the society and to tile hitherto unbanked areas of the district. Tf the above suggestions are sincerely followed by the Canara Pahk and all other nationalised banks, they will be able to render better service to the society. BIBLIOGRAPHY - 1i;8 - BIBLIOGRAPHY I 1, D«sai, 8.8.8, I Rur*l Pftnklny in India, Hiaialy* Publlahinf Houea, Bombay, icsp?. 2* Desal, Vaeant I Riaral Pev^lomnent, Vol. I, Hioialra Publishiivf Hous*, I9B8. 3* Desal, YaBant* t Rural DaTttlopnont, Tol. Tl, HikiiilfA PuMilHlilg Housa, I988, k, D*s«i, ymmatnt. * Itmral Devlopwnt, Vol. XTT, Hlnalya Publlshinir Heusa, I988. 5* Desai, Vasant, t Rural Davalopoiant, Vol. IV, Hinalya Publishing Houaa, 1f>88. 6. Tiasai, Vaaant, • Rural Davelopmant, Vol. V, Himalya Publiahing Houea, I9B8. 7. Pesai, Vaeant. I Rural Devalopaont, Vol. VI, Hiaalya Publishing House, I988 8. Go-r«rnnont of India « Banking Enquiry CoMJaaion Raport 1972. Govt, of India. 9. T?c>hman M. A Rahman, H. I Cooparatiye Banking in India, Accounting for Agrieultura, Grown Publlahara, Hav Balhi, 1977. 10. Radhaavaul, M. tr I A Taxi Book of Banking, Vaaudavan, S.V. 8. Chand «^ Co. Ltd., NOw T>alhl, 198^. 1 1. Sadhu, A.M. A I Rural Economy of India, Light It Staght Aaarjit. Llfa Publiahera, Nav Dalhi, 1982. 12. Ganl Uddin I Load Bank Suryay Raport on ^iigarh Diatriot, Canara Bank, Haad Offioa, Bangalera. 13. Sami Uddin I Soopa and Frob lama of Cooparatirai in India. Aligarh Mualim Univar- aity, Aligarh. - H»o - 1l», Saral Uddin I CoepTativ Farwlng aad lt> l^ffct on Pur«l Indu«trlali»>tion^ Allfarh Muslim University, Allgarh. 15. Sa«i ITddln * i CoonTtitlv Sector In India. Rehroan, M. S. Chand * Co. Ttd., V, D»lhl, I983 16. Srivaatava, R.M, I Mana*—nt ot Indian Finnncia^ l^natitutlona. *Timalya PubllshlniT Houao, Br>Mbfty, 1€*8*». FUnLTriAT^ONS OF C4NARA BkM t 1. District Credit Flan, Alicarh, 1983>85 2. Annual Action Plan, Alifarh, 198'(. 3. Annual Action Plan, Aliffarh, I985. k. Annual Action Plan, Alicarh, I986. 5« Annual Action Plan, Alifarh, 1987* 6. District Credit Plan, Ali|r*rb, 1988-90. 7. Annual Action Plan, Aliffarh, 1989* JOUHflALS Am MEifSPAPERS 1 1. The Cooperator, W.C.U.I. , New Delhi, Fortnightly, 2. Indian Cooperative Reviev, <^arterly, WUI, H. Delhi. 3. Kurukshotra, Monthly, Nev Delhi. 4. Banker, Monthly, Hev Delhi, 5. Rural India, Monthly, Boabay, 6. Yojna, Fortnightly, Delhi, 7. Rosonre Bank of India Bulletin, Quarterly, - 150 « WKVS PAPrRS I 1, PinanelAl Vxpr*< 3, The Tfinduatan Tines, Nav Dalhi City Edition, Daily k. The Economic* Tlmaa, Hmyt Delhi, Dally 5. Indian Expraaa, Dalhi, Daily. A.PPKNDIXSS - 151 - (APFliPIX I) KURAL DlVgLOPMEWr PROGRAMMES ly IHDIA SI!C1 IWDBFEWPBICB} (i??i.i?8;>) Ife* o 1* Bheodan MoT«a»nt 1951 2* GrMwIan Mov«H«nt 1952 3. Coanunitr D«v«lopa«iit ProcrMw* (CD) 1992 ii. mtional Extvnilon 8«rrie«« (HES) 1952 5. Applied NUtrltiea ProffrWMi* 1958 6. Panchayatl R»J (PR) 1959 7. IntmimiTm A«rleultur«l District Ppograiiw« (lADP) i960 8. Hill Armm D*T«lopn*iit ¥rogrmmmm (HADP) I962 9« Tribal Armm Dwralopoieat Pro|;r«iHMi(TADP) 19^2 10. Jntmmtyrm Agricultural Arc* ProirrciMic(lAAP)l96M 11. Hiffh Ticldlnir Tcrictr ProffrMoic (HYV^P) I965 12. Intcnciirc Arc* DcTclopmciit Sehcac (XAD) I965 13. 8M1II Fcraicrc* Dc-rclopacat Agency (SPDA) I969 1M. A«cnc7 for the DcTclepncnt of Marginal TmTWfTB and Agricultural Labourers (MPAL) I969 15. Drought Prone Area Prograane (DPAP) 1970 16. Rural Vorke Prograane (RWP) 1971 17. Crash Scheoie for Rural Baploraeat (CSRB) I971 18. Pilot Intoneire Rural SMployMont Projects (PIREP) 1972 19* EnployBont Guarantee Scheve (BGS) I972 20. MiniiMui Neede ProgranBo (MNP) 197'* 21. Tventy Point Pregre— 1975 22. Habitat MoTenent (»4) 1976 23. Rural Functional Literacy PrcgraaHie (RPLP) I976 2k. Pood For Work PrograMee (FFV) 1977 25. Antyodaya 1977 26. Deeert DoTolopeient Prograauoo (DDP) 1977 27* Operation Barga (OB) 1978 28. CoMoand Area Develepaent Prograane (CADP) I978 29. Comprehenai-re Area DcYolopeient PrograaMO (CADP) 1978 30. Tntofrrated Rural DoTolopaient j^IRDP) I978 1. Deeai Vaaant* Rural Developient, Vol.TI, Hiaalya Publishing House, 1988, pp. ?2»?3* - 132 . Ms - coiwi»no—at 31. fMtlonal Adult Education Fro^raaan* 1979 32* National Rural Baployaant ProffraaMia (NREP) I98O 33* Training of Rural Touth for Solf-SnploTnont (TRTSBM) 1980 3k» : o-Gaa PrograaMo (BGP) I98I 35• Solf'-Saployaont to Sdueatod Unaaployod Touth Procrawo (SEUYP) 1983 36. Rural landloaa Enployaont Ouarantoo Prorramo (RXJEGP) I983 37. 1 r.'bal Dovolopaiont PrograMno (TDP) 38. RvTlaod Mlninun Hoods Profrrawno (RVNP) 39. Hill Aroa Dovolopnont Affoney (RADA) kO, Rural l^anpover Ewploymont (RME) - Ml. Pooplo'o Action for DoTolopmo«t (lndia)(PADl) ^2. Tnduetries Servleea ond Buainooa Component(lSB) « U3, Special LlToatook Production Pro^ramno (8LPP) *»*•• Rural »lutritlon Progra»MBO (RNP) k3» Rural VoMon'o ProsraiMBO (RVP) i»6. Vholo TillAi^o DftTOlopmont Profrramao (WVPP) ^7. Special Pro|r>**aaios for Voaon and Childron(8PVC) - kB» ProcrranBoe for Doprooaed Aroa (PDA) '»9. Tribal DoTolopaont Aconey (TDA) 50. !fatlonal Sooda ProgravMO (NBP) 31, Sohoao for Dovolopaioat of Voaon and Chlldron in Rural Aroaa (DVCRA) 52, Intonelvo Pulooa Sovolopoiont Profrramoio (TPDP) 53, SuHBior Mooai; Production Proirx*'^'""* (SMPP) 5%. Xntonsivo Cotton DoTolopaiont Proirranw^ (ICDP) 55. Villago Siaall Induatrioa (VST) 5^. Khadl and Vllloffo Induatrloa Programo (KVTP) 57. Dairy P^volopaiont Pro (APPINDIX II) Blockvis* branohos of Wationallsfld ComBarclal p*nlM and oth«r bnriks vorklne: In^Aliearh District till D«OMib«r 1987 w«r« mm und*ri- Allr«rh City Al's.iaabad Bank Rallvay ROIMI, AUffarH Sanad Baod, Allgarh AMTJ, Allgarh Maharlr OanJ, Allgarh. ''iand 1) i Pai k , V I i f Cantral Bank of India Baradvarl, Allgarh Dodhpur, Allirarh Sub si Mandl, Allirarh Dana Bank Shah Kamal Road, Allgarh ClTll Llnas, Allirarh. Indian Bank Parao Duboy, Allirarh* Indian OT«r«aa8 Bank 0pp. Roadways Bua Stand, All«arh« Mev Fank of India Railway Road, Allffarh Or^iontal Bank of Coimarco nandhi Kar^, All^arh. Punjab National Fank Railway Road, Allgarh Marrla Road, All4r*rh Gandhi Marfr, Allcarh 1. Canara Bank, District Cradlt Plan 1988'-90. Allirarh. - 15^ - Punjab * Slnd Pank Apaara Coaplex, Aligarh 8tnt» Bank of India Sanad Soad, All|r«rh Baradvarl, Allirarh n.6. Collego, Allgarh Madar Oata, Allgarh A.M.U., Aligarh Madical Colleir* Road, All^arh Tnduatrial Katata, Allfmrh Delhi Oata, Alirarh. Railvay Road, Alifrarh. Syndicate Bank Gandhi Park, Allr*rh« ANTJ, Ali^arh. Union Fttrtk of India Patthar Bazar, Aligr*rh Madical Collaga Road, Alisarh, UCO ixm Itallimy Road, All^arh, VI.lay Bank 0pp. Roadvaya Bus Stand, Alifrarh. Aligarh Granln Bank Raa^rhat Road, Alir^rh. !• I.Q'rltia t Dana Bank Lodha Aligarh Graain Bank Alvnadpur Falva Akbarpur Madrak A 11 far*! 71 la Sahakarl Barik Railway Road, Ali^rh. I.and TtAvelotMiient Partk Ali^arh ?. Javan i Stat* Bank of Tnrlla KMimpur C hhax*at trOO Bank Jawan Allirarh Zila Sahakarl Bank K aa iapur Allgarh Granin Bank Barauli Aarftuli Talib Na^ar - 155 - 3» Dhanlpur i Canara Bank Dhanipur Jalali Cantral Bank of India Hardua«anJ Stat* Bank of India (ADB) HarduairanJ Allffarh Oraniln Bank Palirajpur Kalai Gadrana Jallupur Jalali Alhadpur Bfaurasi k, Mursan i Stata Bank of India Huraan Aliirarh Graailn Bank C handapa Maatai Tuksan Bannoi T^tLgmXti Gajua Rathiaa Muraan Karaal patakhaa 5. Hathraa i Allahabad Baidc Hathraa Dmyri-rukgwir, Hathraa Barailly Corpn. Bank Mthras Canara Baidc Agrm Road, Hathraa Tfaya^an J, Hat hraa Mandi Sanit i Hat hraa Subhaah Markat, Hathraa Mairla Tajna Cantral Bank of India Hathraa Indian Bank Hathraa Punjab National Bank Hathraa Subhaah Markat, Hathraa Stata Bank of India Gandhi Chovk, mthras Mandi Saniti, Hathraa - 156 - Allgarh Granln Bank Ladpur Ma how Lakhnoo BaiMin Mandu A11garh fila Sahakari Bank Hathraa Land DaTalopaant Bank Hathraa 6. Saanl i Cantral Baidc of India 8aani Alifrarh Graaln Bank Salanpur Bijaharl Rudaymn Ruhari Bandhanoo Menri Lutaan Chhanda Cadua Allgarh Zila Sahakarl Bank Saani Land Daralopaiattt Bank Saani 7. Atraull t Oriential Bank of CoMaarea Kasinbad 8tata Baxik of India Atraull Canara Bank Atraull Allfrarh Graain Bank Jiroll yarona Oahtoli Kalyanpur Aliirarh Zila Sahakari Bank Atraull Land Da-valopaant Bank Atraull 8, Bijauli t Canara Bank Bijauli - 157 - Alif^Arh Graaln Banlc Pall Mukhinpur Dadon Tavatu Tlardoi Aamot SauHaaa Alljrorh Zlla SahaVarl Batik Dadon. ^^ Qapgtrl t Cantral Bank of India C hharra State Bank of India (ADB) Chharra Oriental Bank of ConiBarea Rub hot a Aligarh Graain Bardc Ganifirl Barla Dattavall Alampur Fatahpur Kahmapur Ali(rarh Zlla Sahakari Batik C hharra 10. Khair I Punjab National Batik Sofa Contra] Bank of India ^'^hair State Bank of India (ADB) Khalr Palla Sallu Allirorh Oraaln Batik Andala Gonat Shivala UMiyola Allfrex'^ Zlla Sahakarl Batik Khair Land DaTolOTWont Bank Khair - 158 - 11. C tmndaua t State Bank of India C hand aua Piaawa Gabhana Alie«rh Gr^nin Bank Vaarpura Barka Daurau Chandpur Ararltpur Hagla Padaa All#r*rh Zlla Sahakarl Baidc C hand aua 12. Tappal i Allahabad BaAk Tappal Central Bank of India Jattari Aligarh Granin Bank Takipur Pa Is era Turana Jaldpura Jartaull Syarol Allffftrh Zlla Sahakarl Bank Jattari 13, Slkandra Rao j Canara Baifle Slkandra Rao Kachora Punjab National Batdc Slkandra R»o Vaaidpur Allr^rh Graaln Bank Jigmmult Baral Sahapur A mot AlifTArh Zlla Sahakarl Bank Slkandra Rao Land D<»v«lopMant Banik Slkandra Rao \k, ffaBBayan t Stata Bazdc of India Hasaayan Canara Banik Purdllnagrar Kanoh ka l^a^la - 159 - Allgarh Cramln Bank Pura Jarera Bastol Kanau Ali«arh Zlla Sahakarl Bank Purdil Na^ar 15. Akrnbad i Canara Baiflr Akrabad Bljalparh Fun jab ifational Baidc KodlaganJ Orlantal Bank of Cea»«ro« KodlaiiranJ Ali^arh Graain Bank Shahirarh Oopl Baanol Pllakhrnia All«;arh Zlla Sahakarl Bank Akrabad 16. Iglaa t Cantral Bank of India Ifilas Stato Bank of India (ADB) I«laa Aligarh Grawln Bank Hatpur Sathlni Karaa Tochhl^arh Mofakaapur Allfrarh Zlla SahaVarl Bank Tirlaa Land Davalepaairt Bank I«laa 17* Qonda t Canara Bank Gonda Stata Bank of India Baavan All«arh Graaln Bank Ooral Tiaifala Jujhar Nairala Blrkhu Rajaval Dlfraarl Allgarh Zlla Sahakarl Baiik Gonda. - ilio - (APPE^IX III) The frinanefal n««ds rv«r« •stimated on th* basis of Unit Cost as givsn bsllov undsr different sehSMSS for District Crsdlt Plan 198B-90. Thsy have bssn comprohsndsd for the purposs of unifonalty and easy understanding of tha plan outlays^ DISTRICT CREDIT PLAN 1988-90 - Alirarh ^y^^ ^^ ^' Z B-4- Sl. No. Activity Composition of Cost Unit , (Pa.) 1 I - ACRICULTUKE t 1 • Crup Loans Par hact. 2000 2. Oilsaads 2000 3. Pulses 2000 k. Rainfad A^rleultura 2000 5. Latid Davalopnant Sohamas 6500 (Usar Land Raolasation) 6. Afrletiltural Tmplesiants Par Unit Avt. 1000 7. Pair of Bullocks par paid anlnal 3000 8. Punock/He-Euffalo Cart nil 3000 9. Dlaaal/Elact. Punpsats 10000 10. Tractors 80000 IT, Horticultura t (Plantation of Orchard par 0,k met) I IT HI IV V VI VIT Total Guava 3030 750 790 1243 1375 7190 3000 par yaar Citrus "^090 925 1100 12ii*0 1795 8195 3000 Par yaar 12. Farm/Social Forestry Par Hact. planta tion of Eucalyptus 12000 II - AlOMAL HPSBANDAHY SCHEMES I 13. Milcli Aninals 2 Units per 2 animals 8000 1^, Mini Dairy Unit 10 animals par unit 50000 15. CrosB-Jbraading fansa of ^ eninala units. h animals per farm 20000 1. Canara Bank. Diatrict Cradit Plan 1988-90. Aliffarh. - 161 - (APPENDIX III) 1 16. POfTLTRT DEV. PROGRAMME I (a) Conmerolal Para Unit of 500 layara or 5»1000 brollor* form por unit *I5000 (b) Small PariB Unit of 500 layers or ix2k0 brollar Units 8000 17* Goat r>c-volopinont Pro^ramna Unit of ^ ^oats • 1 Buck par unit 2500 18« Goat DeTolopnant Proirranma Snail Farm of 30 ffoats 4- 1 buck par unit 15000 19» Pigpery Dovolopniont Unit of '• »ovs 4. Profrranma Bear unit 6000 (Also under Tl?DP) 20, Pi^r^ry Derelopment Programaa Units of 20 «ovs 4 2 Boar 30000 2l» Pheop DoveloTiraent Unit of 20 sheeps Prorrarama 4 1 ran at21 5000 22. Rnall Shaap Para 30 Eva • 1 rami. 31 8000 23. Fisharlaa DaTalopnant Programme a) Unit of 1 haet. 15000 araa/pond (On lease) ls.15000 •» b) ¥ith Tubevell and Punpnet •^0000 2k, Consumption loans to Yaaker Sections Per Unit 500 25. Srnisll f Tiny TnduBtrlas Vorking Capital Rs. 15000 per unit only oofflpoBlte loan yC4TL per unit 35000 26. Village & Cottage Tndufl tries Conposite Loan yCVFL to. 2500 • Rs.2500 per unit 5000 - 16. (APPENDIX III) Par Peneflclary 5000 28. Transport Operators Haary Vahlclea par unit 200000 Ll^ht & MediuB vahlclea 80000 Animal Drlvan Cart 7000 29. Fatal 1 Trad* Par b«naflclary Snail unita 5000 Conai<^rcial Unite 15000 30* Snail Pualnese Par Bonoflciary Snail Unita 5000 Coimnarcial Units 25000 31. Prof«eatonal & SoIf Profaaaionals par Employed parson* banaficlary 25000 Tradaanan/Craftsnan 5000 32. Bdtucatlon (Par banaficlary) Par Trncficlary 5000