We should try to regulate interest rates prevailing among farmers, weaker sections of society and poor villagers. How can we control it?
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- A government and monetary authorities fix the rate of interest which is based on bank rate fixed by the RBI and consequent interest rates are charged by the commercial banks.
- In this regard we have regional rural banks being set up in rural areas to benefit the rural artisans, small and marginal labourers and weaker sections of the society.
- They provide credit assistance at concessional lending rates.
- However, weaker sections of society including poor farmers and villagers pay very high rate of interest which they pay to the moneylenders or zamindars.
- Therefore, for reducing rate of interest for such people, some necessary steps should be taken such as promoting cooperative societies etc.
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