The Regional Rural Banks were established “with a view to developing the rural economy by providing, forthe purpose of development of agriculture, trade, commerce, industry and other productive activities in therural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers,artisans, and small entrepreneurs and for matters connected there with and incidental thereto”.
Thenecessity of rural finance was felt to provide protection & reliance to rural people who rely highly oninformal source of finance like moneylenders, landlords & traders etc. but they exploit farmers and smallentrepreneurs by charging exorbitant rate of interest & force farmers to sell their product at low price tothem. Rural people also face the risk of unpredictable production of crops due to high dependency onmonsoon.
The problems of finance suffer from lack of seeds, fertilizers, water supply and other facilitieswhich lead to rural ineptness. Rural bank are providing finance to the weaker sections of society like smallfarmers, rural artisans, small producers, rural labourers etc, to provide finance to cooperative societies,primary credit societies, Agricultural marketing societies, Enhance & Improve banking facilities to semiurban, rural& other untapped market. The Regional Rural Banks help the rural people to come out from thefinancial problems and secured the financial assistance to agriculture in India. The study concentrated onTelangana Grameena Bank is of utmost importance in Telangana state to provide financial support toagriculture and performance of the bank in various Identified potential areas. This bank focused on theContinuous Rural Development, reaching the uncovered and being farmer friendly.