The priority sector is the most neglected sector is the ground reality if one were to go by the contribution of agriculture to the GDP which has been falling year after year.This is one area which enjoys lot of discussion and is always talked about but the fact remains that after the setting up of NABARD,niether theRBI nor theNABARD has given undivided attention to the development of the rural sector which include agriculture, micro enterprises and all rural linked activities.Financial Inclusion is way behind the target.The role of RBI in developing the rural segment needs to be reexamined in the context of an exclusive set up available in NABARD for this purpose. The times have changed and the rural scenario has also changed after the reforms since 1991 and it is high time a total review of the rural segment and the financial system is undertaken to clearly define the role of NABARD, RRBs,Cooperative banks, Micro Finance money lenders,etc.. EARLIER THE RBI is relieved the better. The Central Bank should worry about the growth of the economy and controlling inflation keeping the financial system in tact. Development of agriculture and rural sector should be made the exclusive prerogative oF NABARD. RBI should only be overseeing the progress.
Dr.T.V.Gopalakrishnan
( This comment appeared in Business line dated 9/11/12 in response to an Article on Redefine Priority Sector Lending)
