Financial Institutions and Support Credit Schemes of Priority Sector (A case Study of Rajouri district in J&K State)

Financial sector plays an important role in the overall development of a country like India. The most important constituent of this sector is the financial institutions. These institutions have traditionally been the major source of funds for the economy. The financial institutions provide a variety of financial products and services to fulfil the varied needs of the society. Besides, they provide assistance to new enterprises, small and medium firms as well as to the industries established in backward areas. Thus, they are helping in reducing regional disparities by inducing widespread industrial development through various support credit schemes of priority sector.

The Government of India, in order to provide adequate supply of credit to various sectors of the economy, have evolved a well-developed structure of financial institutions in the country. The Financial Institutions act as a booming force for the development of medium and small scale enterprises by providing them financial assistance.

It is in this context, an attempt has been made to examine and evaluate the role of financial institution in providing small credit through various support schemes in district Rajouri of J&K state. The study also highlights the various problems being faced by the people and further suggests few recommendations to bring further improvement in the credit delivery system of the financial institutions.