Rural Banking - Paradigm Shift

Ajay Kumar

Risk Manager (New Delhi) HDFC Bank

Rural Economy is biggest economy in India. it will be biggest market in 21st Century. Now, Particularly Pvt Banks focused only in Urban and Metro Cities at major level because people are Financial literate and feel free to handle. New Financial experiment  easy to implement. Pvt Banks show only Presence in Rural Area but still they did not understand the capacity of Rural Economy.  Their is many challenges like Technical,Financial, Capital, Infrastructure but Positive thing is that Govt show political will in Rural area, so, Need to cash this opportunity.  IDFC using Micro ATM it will enhance power to face  Technical Challenge. Their is High Capital which is to enhance capital strength. i think Asset Quality will be good as comparative to Metro Asset Quality.

Rural Economy will play big Role in 21st Century.  Growth of Bank depend on How many Accounts, How many Branches in Rural Area  as comparative to other Banks. 

Banks need to Understand Capacity of Rural Economy with Help of Technology, Rural Institution Like NABARD, National Payment Corporation, Telecom Companies.