Banking finance in Agricultural Activities-A Bird View from Indian Farmenrs

The present study aimed to know the influence of banking finance in agricultural activities of farmers in Erode District. Agriculture remains the main economic activity and employs the majority of the people in most low income countries. Globally, there are approximately 450 million households whose main activity is agriculture. Agricultural producers in developing countries, particularly those in low income countries, face a number of hurdles including low productivity, limited access to markets for their products, lack of adequate risk management products and services and limited access to finance. Access to financial services, while not a means to an end, is critical to provide funds for farm investments in productivity, improve post harvest practices, smooth household cash flow, enable better access to markets and promote better management of risks. Most rural households lack access to reliable and affordable finance for agriculture and other livelihood activities. Many small farmers live in remote areas where retail banking is limited and production risks are high.