AGRICULTURAL CREDIT COOPERATIVES SOLVING THE PROBLEMS OF ACCESS TO FINANCIAL SERVICES IN RURAL AREAS

2018 ◽  
pp. 116-121
Author(s):  
Anatoly Fedorovich Maximov
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Agricultural Credit ◽  
Credit Cooperatives

scholarly journals Construction of Rural Financial Organization Spatial Structure and Service Management Model Based on Deep Convolutional Neural Network

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Yan Liu
Keyword(s):  
Neural Network ◽  
Data Mining ◽  
Convolutional Neural Network ◽  
Rural Areas ◽  
Financial Services ◽  
Financial Management ◽  
Service Management ◽  
Threshold Value ◽  
Deep Convolutional Neural Network ◽  
Credit Cooperatives

Local credit cooperatives have long played an important role in local financial services. It has made a significant contribution to agricultural production, farmers’ incomes, and the economic development of rural areas. In particular, as a financial instrument serving farmers, microfinance management by local credit cooperatives plays a key role in pursuing profits and fulfilling social responsibility. It was therefore important to obtain effective instruments for combating poverty in rural areas from all walks of society. This paper first outlines the development of microfinance loans in Germany and other countries and describes the current situation and some of the challenges facing local credit cooperatives in financial management. Next, we present the basic concepts of data mining, describe the common methods and key techniques of data mining, analyze and compare the properties of the individual data, and show how the associated mining can actually be performed. Next, we will explain the basic model of microfinance for farmers and some risks in detail and analyze and evaluate the characteristics of these risks in the context of local credit cooperatives. As a result, this paper proposes an improved deep convolutional neural network. The optimized algorithm selects the optimal weight threshold value and different iteration times. The results are fewer errors, the results are closer to the correct data, and the efficiency is better than before. The algorithm is more efficient because errors have been greatly reduced and the time spent on them has been slightly reduced.

scholarly journals PERFORMANCE OF PRIMARY AGRICULTURAL CREDIT COOPERATIVES IN KARNATAKA

2019 ◽  
pp. 1-3
Author(s):  
Manjuprasad C ◽  
S. Mahendrakumar
Keyword(s):  
Data Analysis ◽  
Growth Model ◽  
Exponential Growth ◽  
Rural Areas ◽  
Agricultural Development ◽  
Agricultural Credit ◽  
Agricultural Cooperative ◽  
Credit Cooperatives ◽  
Exponential Growth Model ◽  
Broad Objective

Agricultural credit is one of the most essential inputs in all agricultural development programmes. The source of agriculture nance can be divided into two categories such as: Institutional nance and noninstitutional nance. Particularly the primary Agricultural cooperative credit societies plays very important role in agricultural development it is considered to be the pillars of the entire cooperative edice. The Primary Agricultural Co-operative Credit societies continue to be the main source of agricultural credit to the farmers in rural areas. This paper is carried out with a broad objective to examine the performance of primary agricultural credit co-operative societies in Karnataka for the year from 2005-06 to 2016-17 and the data analysis is carried out by the exponential growth model which has used to test the average annual growth of PACS.

scholarly journals Agricultural credit consumer cooperation in the Ural region: current state, development measures

2020 ◽  
Vol 200 (9) ◽  
pp. 83-91
Author(s):  
Aleksandr Mokronosov ◽  
Anton Anisimov ◽  
Marina Anisimova
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Ural Region ◽  
Practical Significance ◽  
Regional Government ◽  
Agricultural Credit ◽  
Market Strategy ◽  
Current State ◽  
Industrial Complexes ◽  
Consumer Cooperatives

Abstract. The study of regional aspects of the development of agricultural credit consumer cooperatives (ACCC) is an urgent agenda for the growth of the agricultural economy, ensuring the availability of financial services in rural areas. The purpose of the study is to assess the current state of agricultural credit consumer cooperatives in the Ural region. Methods. A systematic approach was applied using economic, statistical and analytical methods. The theoretical basis of the study was the publications of modern domestic and foreign scientists on the economic, institutional aspects of the formation, functioning and development of agricultural credit consumer cooperatives. Results. The dynamics of development of the Ural regional sector of the agricultural credit consumer cooperation industry is considered. The peculiarities of the ACCC of the Urals are noted, the constituent entities of the Russian Federation are identified, in which the highest rates of reduction in the number of ACCC are observed. Barriers to the development of the cooperation industry in the Ural region are outlined. The role of regional government bodies in supporting the Ural ACCC in the framework of the implementation of state programs for the development of agro-industrial complexes is revealed, the areas of concentration of the largest ACCC are identified. The assessment of the market strategy of the Ural ACCC in the modern conditions of activity restrictions is given. The paper notes that the determining factor in the formation of a single mechanism for the implementation of the state policy of the industry in the regions is the development of regional target programs for the development of cooperation, representing a set of planned activities, interrelated in terms of tasks, timing of implementation, executors and resources. The directions for supporting the industry were noted, including measures to deregulate the activities of the ACCC. The theoretical significance of the study is the development of approaches to a set of measures for the development of the ACCC. The practical significance of the study lies in the formation of possible future studies of the management of the ACCC in the conditions of remote channels for the provision of financial services, expanding their range. Scientific novelty. Substantiated measures that allow to form a modern system of agricultural consumer credit cooperation in the regions.

An Analysis of Restraints on Effective Demand for Loans in Rural China

2018 ◽  
Vol 6 (8) ◽  
pp. 107
Author(s):  
Wenjie Ma ◽  
Minxin He ◽  
Xinyu Zhong ◽  
Shengsong Huang
Keyword(s):  
Economic Growth ◽  
Migrant Workers ◽  
Rural Areas ◽  
Financial Services ◽  
Rural China ◽  
Strong Support ◽  
Effective Demand ◽  
Second Child ◽  
Factors Influencing ◽  
First Choice

China’s overall economic growth is, to a great extent, hindered by the lack of economic growth in rural areas. Based on data from the Thousand-Village Survey (2015) of 31 provinces conducted by Shanghai University of Finance and Economics, we conduct this empirical study to analyze the current state of rural financial services and the factors influencing effective demand for loans in rural China. Looking at the demand side, in 2014, only 13.91% farmers had loans, and only 15.53% of them made financial institutions their first choice when they needed loans. Clearly, there is still much to do with regard to inclusive finance. From the perspective of the supply side, only 43.86% of dispersed loans can be categorized as productive loans, further reflecting that the financial services industry does not provide strong support for rural economic growth. Further study shows that the main factors influencing effective demand for productive loans are the population age structure and the rate at which migrant workers return home. Therefore, the "Second-Child" policy and policies that encourage migrant workers to go back home to start businesses are of vital importance in order to raise effective financial demand in rural China.

scholarly journals The value of in-person banking: evidence from U.S. small businesses

2021 ◽  
Author(s):  
Song Zhang ◽  
Liang Han ◽  
Konstantinos Kallias ◽  
Antonios Kallias
Keyword(s):  
Interest Rates ◽  
Interpersonal Communication ◽  
Rural Areas ◽  
Financial Services ◽  
Small Businesses ◽  
Business Owners ◽  
Soft Information ◽  
Face To Face ◽  
Treatment Effect Models ◽  
The U.S

AbstractWe produce the first systematic study of the determinants and implications of in-person banking. Using survey data from the U.S., we show that firms which are informationally opaque or operate in rural areas are liable to contact their primary bank in-person. This tendency extends to older, less educated, and female business owners. We find that a relationship based on face-to-face communication, on average, lasts 17.88 months longer, spans a wider range of financial services, and is more likely to be exclusive. The associated loans mature 3.37 months later and bear interest rates which are 11 basis points lower. For good quality firms, in-person communication also relates to less discouraged borrowing. These results are robust to multiple approaches for endogeneity, including recursive bivariate probits, treatment effect models, and instrumental variables regressions. Overall, our findings offer empirical grounding to soft information theory and a note of caution to banks against suppressing channels of interpersonal communication.

scholarly journals Information Asymmetry and Trust: A Framework for Studying Microfinance in India

2005 ◽  
Vol 30 (4) ◽  
pp. 77-86 ◽  
Author(s):  
M S Sriram
Keyword(s):  
Social Networks ◽  
Transaction Costs ◽  
Rural Areas ◽  
Financial Services ◽  
Imperfect Information ◽  
Informal Networks ◽  
The Poor ◽  
The People ◽  
Financial Transactions

In recent times, microfinance has emerged as a major innovation in the rural financial marketplace. Microfinance largely addresses the issue of access to financial services. In trying to understand the innovation of microfinance and how it has proved to be effective, the author looks at certain design features of microfinance. He first starts by identifying the need for financial service institutions which is basically to bridge the gap between the need for financial services across time, geographies, and risk profiles. In providing services that bridge this gap, formal institutions have limited access to authentic information both in terms of transaction history and expected behaviour and, therefore, resort to seeking excessive information thereby adding to the transaction costs. The innovation in microfinance has been largely to bridge this gap through a series of trustbased surrogates that take the transaction-related risks to the people who have the information — the community through measures of social collateral. In this paper, the author attempts to examine the trajectory of institutional intermediation in the rural areas, particularly with the poor and how it has evolved over a period of time. It identifies a systematic breach of trust as one of the major problems with the institutional interventions in the area of providing financial services to the poor and argues that microfinance uses trust as an effective mechanism to address one of the issues of imperfect information in financial transactions. The paper also distinguishes between the different models of microfinance and identifies which of these models use trust in a positivist frame and as a coercive mechanism. The specific objectives of the paper are to: Superimpose the role of trust in various types of exchanges and see how it impacts the effectiveness of repeated transactions. While greater access to information fosters trust and thus helps social networks to reduce transaction costs, there could be limits to which exchanges could solely depend on networks and trust. Look at the frontiers where mutual trust cannot work as a surrogate for lower appraisal costs. Use an example in the Canadian context and see how an entity that started on the basis of social networks and trust had to morph into using the techniques used by other formal nonneighbourhood institutions as it grew in size and went beyond a threshold. Using the Canadian example, the author argues that as the transactions get sophisticated, it is possible to achieve what informal networks have achieved through the creative use of information technology. While we find that the role of trust both in the positivist and the coercive frame does provide some interesting insights into how exchanges with the poor could be managed, there still could be breaches in the assumptions. This paper identifies the conditions under which the breaches could possibly happen and also speculates on the effect of such breaches.

scholarly journals A Study on the Impact of Schemes and Programmes of Government of India on Agriculture to Increase Productivity, Profitability, Financial Inclusion, and Welfare of Farmers to Transform them into Modern Society

2021 ◽  
pp. 231-243
Author(s):  
Mahesh K. M. ◽  
P. S. Aithal ◽  
Sharma K. R. S.
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Modern Society ◽  
Modern Technology ◽  
Mobile App ◽  
Financial Inclusion ◽  
Agricultural Products ◽  
Theoretical Concepts ◽  
The Government ◽  
The Impact

Purpose: The foremost intent of this research article is to create awareness about various schemes for the productive sector of agriculture. Through this study, the level of performance of these agricultural schemes and programmes were analysed that will be helpful for the attainment of financial inclusion. Hence it is necessary to know about various schemes and their making to connect the beneficiaries. Agriculture is the basic source of food supply, production, processing, promotion and distribution. Agricultural products contribute to Gross Domestic Product (G.D.P.) and generate employment in rural areas. They transform the lives of the farmers in modern society. The government of India has introduced Minimum Support Price (MPS), MIF, PMKSY, PMFBY, e-NAM, PM-KISAN, PMJDY, PM-KUSUM, PKVY, NAMS, and MGNREGS. The mobile app KisanSuvidha and innovative programmes like Kisan Rail, KrishiUdaan double the farmers’ Income (DFI). These help in transforming village economy, coverage of irrigation, crop insurance, and stabilizing the income. They also ensure financial support, flow of credit and Direct Benefit transfer of subsidies and funds to beneficiaries. Adopting modern technology, farm-based activity, poultry, dairy, forestry, beekeeping and with the support of SHGs which will directly impact productivity, profitability, financial inclusion, and the welfare of farmers in the 21st century and development of the country’s economy. Design/ methodology/approaches: This study is all about the theoretical concepts based on analysis of various schemes and interconnect. Findings and results: This study reveals that the effectiveness of various agricultural programs and also identifies the benefits and beneficiaries of these schemes. Under this research, various financial services, subsidies, funds released, online platform for agricultural products, funds for micro-irrigation, and so on benefits provided by the government of India were studied. Originality/value: Analysed the various schemes and compelled its beneficiaries and develop a modern to achieve financial inclusion and economic growth through the study. Type of Paper: Research Analysis.

scholarly journals Postal Bank in Ukraine: The Need and Risks of Creation

2021 ◽  
Vol 6 (521) ◽  
pp. 228-234
Author(s):  
D. M. Hladkykh ◽  
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
The State ◽  
Resource Base ◽  
Banking Services ◽  
Post Offices ◽  
Banking Market ◽  
Target Segment ◽  
Banking Institutions ◽  
Financial Monitoring

The article is aimed at substantiating the feasibility of creating a specialized postal bank in Ukraine, to define the list of related risks and possible directions for their reduction. The following key risks that hinder the establishment of a postal bank in Ukraine are identified: risk of lack of full control over the directions of investment of accumulated deposits of the population on the part of the NBU; liquidity risk; risk of non-compliance by the postal operator with economic standards that are mandatory for banking institutions; risk of capital deficit; risk of inability to support the postal operator with refinancing; risk of mass withdrawal of deposits by customers; risk of insufficient competence of «Ukrposhta» employees to comply with the requirements of financial monitoring; risks associated with the collection of large amounts of cash; risk of further growth of the share of the State-owned institutions in the banking market; risk of shortage of funds to close the agreement on the purchase of «Ukrposhta» by an already operating bank. Possible directions of minimization of these risks are proposed, in particular: implementation of key elements of successful experience in the banking services market of JSPPB «Aval»; defining as the target segment of clients of the new postal bank of the pensioners, who are currently customers of post offices, and as the basis of its resource base – the future pension and current accounts of individuals; use by «Ukrposhta» of the so-called «agency» model of financial services provision; association of «Ukrposhta» and «Oschadbank» into the State-owned Postal Bank; development of a list of key performance indicators for employees and branches of the new postal bank; development of a list of measures directed towards significantly improving the level of qualification of personnel of «Ukrposhta» branches; installation of POS-terminals and payment terminals in all post offices located in rural areas; establishment of individual economic standards for the new postal bank for the period of its full adaptation to activities in the banking market.

scholarly journals ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION IN INDIA

2021 ◽  
pp. 1-5
Author(s):  
Arun.K.V
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Business Models ◽  
Formal System ◽  
Financial Inclusion ◽  
Handheld Devices ◽  
Mobile Banking ◽  
Major Step ◽  
Banking Business

Technology and financial inclusion are the popular coinage in banking parleys in the country. While technological upgradation and mobile banking are catching up so fast, financial inclusion is tardy. Financial inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion, banks cannot reach the un-banked. It is also a major step towards increasing savings and achieving balanced growth. The reach the country is having with technological progress mobile banking has the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge. However, the banking industry’s penetration to un-banked areas is still found sluggish. The role of the Indian banker is challenging. At one end of this spectrum lies the demand to achieve financial inclusion as nearly 50 per cent of the population is yet to be covered under the formal system of banking and at the other end lies the task to fulfil the needs of the existing customers. The first priority for banks is to adopt core banking solution (CBS), including all regional rural banks (RRBs). Next, a multi-channel approach using handheld devices, mobiles, cards, micro-ATMs, branches and kiosks can be used. However, it should be ensured that the transactions put through such front-end devices should be seamlessly integrated with the banks’ CBS. In rural areas, where accessibility is a problem, banks are using the microfinance network and business correspondents and facilitators to bring more people under the ambit of banking services. Capitalising on the huge untapped potential in smaller towns and cities and rendering financial services to this segment of people poses a big challenge. Few banks have explored technology solutions to increase the scale of their microfinance portfolios, with the use of smart cards and core banking solutions. KEYWORDS- Technology, Financial Inclusion, Core Banking, Business Correspondents

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

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