What are the limitations of rural credit in India?
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The RBI has observed four major weaknesses of rural Credit:
They give three reasons for such a performance which are:
- Weak recycling of credit.
- Poor deposit mobilization.
- Ineffective lending.
- Poor loan recovery.
They give three reasons for such a performance which are:
- Low absorptive capacity in rural areas.
- High transaction costs.
- Greater risks.
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