Drawbacks of rural banking..atleast 5 points

Dear student.

The drawbacks of rural banking are:

1) There is capital inadequacy in rural banks and they are facing huge losses.
2) There is lack of training facility to Regional bank staff.
3) Rural banks are directly or indirectly controlled by various agencies which delay decision making process.
4) The objective of Rural bank is to provide credit facilities to weaker sections of society but they have limited funds to invest.
5) Their pace of growth in loan business is slow. They have limited scope of direct lending for business operations.


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Not popular because of illteracy.
People have no collateral.
Dont trust on banks.
Blind faith on moneylenders and then fell into debt trap.
Lots of legal formalities.
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