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FINANCE |
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INTRODUCTION.
IN THIS CHAPTER ARE DESCRIBED THE VARIOUS FINANCIAL
INSTITUTIONS that operate in the district. The successful
functioning of these institutions largely helps the progress of
agriculture, trade and industry.
Lack of adequate finance has been an important
factor responsible for the slow development of trade and industry in
the past. The village money-lender and the indigenous banker in the
rural and urban areas respectively were the only sources of supply
of credit. Prohibitive rates of interests charged by them were not
conducive to economic progress. With the establishment of
co-operative credit societies, co-operative banks and modern joint
stock banks, economy of the district is undergoing a change.
Money-lenders are being gradually replaced by agricultural credit
co-operative societies, while the indigenous bankers are being
relegated to the background by the modern joint stock banks. At the
same time, the malpractices followed by the non-institutional
private agencies like money-lenders and indigenous bankers are being
regulated by progressive legislation. Besides, the district is now
being served by insurance companies, post office savings banks,
public limited and private limited companies, which collect surplus
funds from the public and mobilise them into some productive
activities.
It is not possible to give a complete account of the
part which each one of these agencies plays in the financial affairs
of the district in the absence of necessary data. An attempt has,
however, been made to estimate and evaluate their role on the basis
of material that is available.
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