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To ensure that the unemployed rural population of India also fulfils its <a href="http://www.businessinsider.in/searchresult.cms?query=entrepreneur&amp;sortorder=effectivedate">entrepreneurial dreams</a>, a new programme is going to be launched soon on the lines of ‘<a href="http://www.businessinsider.in/searchresult.cms?query=startup+india&amp;sortorder=effectivedate">Startup India, Standup India’</a>. 
 
The Deen Dayal Upadhyay Swaniyojan Yojana will be launched soon in which rural poor will be able to explore self-employment opportunities. 
 
The programme, which will be funded by the National Rural Livelihood Mission of the rural development ministry, will have skill sets such as driving, plumbing, <a href="http://www.businessinsider.in/searchresult.cms?query=agriculture&amp;sortorder=effectivedate">agriculture</a>, horticulture, etc. 
 
In case of funding, the Micro Units Development and Refinance Agency, or the <a href="http://www.businessinsider.in/searchresult.cms?query=mudra+bank&amp;sortorder=effectivedate">MUDRA Bank</a> will oversee it. 
 
As per the Socio Economic and Caste Census (SECC) data, one third of India's rural households are landless and depend on manual labour for an income, highlighting the need for <a href="http://www.businessinsider.in/searchresult.cms?query=skill+development&amp;sortorder=effectivedate">skill development</a> in these areas. 
 
(Image: Indiatimes)

Unemployed rural-poor to get desi version of ‘Startup India, Standup India’, fulfil entrepreneurial dreams

A general perception is that most of the rural population is not well-versed in digital banking in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>. However, in what can be termed as a revelation, according to a pan-India "Financial Literacy and Inclusion survey" conducted by the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>), digital banking awareness and knowledge among the rural and urban population across the country is at par with each other, with the average being 11.7 for both segments on a score of 21. The survey was based on three parameters namely, financial knowledge, attitude and behaviour. On a total score of 21, the average urban and rural scores were 11.7. Zone-wise, the scores were as follows: In the north zone, the scores in urban and rural areas were at par at 11.5 each. Similarly in the east zone too, the scores were 12.1 for both rural and urban areas. In the central zone, the score for urban areas was 12.5 and for rural areas, it was marginally less at 12.1. The West zone also showed neck-to-neck scores with urban areas recording 12.6 and rural areas showing 12.5. In the south zone, the urban area score was 11.2 while the rural area score stood at 10.3. With both urban and rural areas not showing much of a difference across the country according to the RBI survey, it indicates that in terms of awareness about digital banking, a lot needs to be done to improve knowledge across all strata of society. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/fm-nirmala-sitharaman-admitted-to-aiims-hospital-say-news-reports/articleshow/96513576.cms">FM Nirmala Sitharaman admitted to AIIMS Hospital, say news reports</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/central-bank-of-india-to-raise-up-to-1500-crore-this-fiscal/articleshow/96520295.cms">Central Bank of India to raise up to ₹1,500 crore this fiscal</a>

Financial literacy poor across urban, rural population in country: RBI survey

<ul class="summary-list"><li>This is an excerpt from a story delivered exclusively to Business Insider Intelligence Banking subscribers. </li><li>To receive the full story plus other insights each morning, <a href="https://www.businessinsider.com/intelligence?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=top_text&amp;itm_term=bundle_subscription_text_link-banking-deserts-emerging-across-rural-regions-2019-8">click here.</a></li></ul>Banking deserts are cropping up in rural areas as banks shutter branches in remote areas, considering the majority of the US population is concentrated in cities and drives the bulk of deposits, <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuYW1lcmljYW5iYW5rZXIuY29tL29waW5pb24vYmFua3MtaW4tcnVyYWwtYXJlYXMtbmVlZC10by1zdGVwLXVwLXRoZWlyLW1vYmlsZS1nYW1l/5d233c18f730436f2414784fBcc9e288b" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuYW1lcmljYW5iYW5rZXIuY29tL29waW5pb24vYmFua3MtaW4tcnVyYWwtYXJlYXMtbmVlZC10by1zdGVwLXVwLXRoZWlyLW1vYmlsZS1nYW1l/5d233c18f730436f2414784fBcc9e288b&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFD7PMxbJ08yBfGAyiiv6k5j08UNA">per</a> American Banker. And as consumers increasingly turn to digital banking platforms, bank closures have allowed institutions to cut operational costs. <div class="KonaFilter image-container display-table float_right no-rightrail"><div><div class="image"></div></div></div>Net branch closures nearly <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuc3BnbG9iYWwuY29tL21hcmtldGludGVsbGlnZW5jZS9lbi9uZXdzLWluc2lnaHRzL2xhdGVzdC1uZXdzLWhlYWRsaW5lcy80OTM2MDIyNA/5d233c18f730436f2414784fB32d0d156" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuc3BnbG9iYWwuY29tL21hcmtldGludGVsbGlnZW5jZS9lbi9uZXdzLWluc2lnaHRzL2xhdGVzdC1uZXdzLWhlYWRsaW5lcy80OTM2MDIyNA/5d233c18f730436f2414784fB32d0d156&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNEwPLA9WkDghbGAMzOJmEWXzpsndA">doubled</a> between 2012 and 2018, with 1,947 branches shutting down last year alone, per S&amp;P Global Market Intelligence. Bank of America (BofA), for example, has closed over <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2Jhbmstb2YtYW1lcmljYS10by1vcGVuLTUwMC1uZXctYnJhbmNoZXMtMjAxOC0z/5d233c18f730436f2414784fBa7d39cb3" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2Jhbmstb2YtYW1lcmljYS10by1vcGVuLTUwMC1uZXctYnJhbmNoZXMtMjAxOC0z/5d233c18f730436f2414784fBa7d39cb3&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNG-wCN1UVrX3YiG4FWfK3ONWpsOPQ">1,600</a> branches since the 2008 financial crisis, primarily in rural areas, as they're less lucrative than its city-based branches: The typical BofA urban branch generates about <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9ob3ctYmFuay1vZi1hbWVyaWNhLWRpdGNoZWQtMS01OTctYnJhbmNoZXMtYWNyb3NzLXRoZS11LXMtMTUwNTY0NjAwMA/5d233c18f730436f2414784fB67fe9b63" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9ob3ctYmFuay1vZi1hbWVyaWNhLWRpdGNoZWQtMS01OTctYnJhbmNoZXMtYWNyb3NzLXRoZS11LXMtMTUwNTY0NjAwMA/5d233c18f730436f2414784fB67fe9b63&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNGwRUeW83tLiavWsWwMnsT596ePhg">$2.5 million</a> in revenue, compared with $1.4 million in revenue for the typical rural branch, per The Wall Street Journal.Beyond shuttering branches, firms like JPMorgan Chase and BofA have also been <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L3dlY2hhdC1wYXktYWRkcy1pbnRlcm5hdGlvbmFsLWNhcmQtc3VwcG9ydC1qcG1vcmdhbi1jaGFzZS10by1vcGVuLTQwMC1icmFuY2hlcy1zdHJpcGUtbml4ZXMtYml0Y29pbi0yMDE4LTE/5d233c18f730436f2414784fBa489716a" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L3dlY2hhdC1wYXktYWRkcy1pbnRlcm5hdGlvbmFsLWNhcmQtc3VwcG9ydC1qcG1vcmdhbi1jaGFzZS10by1vcGVuLTQwMC1icmFuY2hlcy1zdHJpcGUtbml4ZXMtYml0Y29pbi0yMDE4LTE/5d233c18f730436f2414784fBa489716a&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNF7S9FnrRxlwqQpVhKWtBB0hy4hrw">shifting</a> their strategies to include opening new branches in cities they didn't previously operate in - with gaps in rural areas remaining.Rural areas include a considerable amount of financially underserved consumers, which amount to <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuZmRpYy5nb3YvaG91c2Vob2xkc3VydmV5LzIwMTcvMjAxN3JlcG9ydC5wZGY/5d233c18f730436f2414784fBf2b52609" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly93d3cuZmRpYy5nb3YvaG91c2Vob2xkc3VydmV5LzIwMTcvMjAxN3JlcG9ydC5wZGY/5d233c18f730436f2414784fBf2b52609&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNHAMKdAHn64_okmBBuPO8Qz2kdTQw">33 million</a> US households - opening opportunities for firms of all sizes:<ul><li>Major banks could offer remote banking services to access these customers in a more cost-efficient way. Depositing a check digitally is <a href="https://e.businessinsider.com/click/17902449.3/aHR0cDovL2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9jbGljay8xMjAxODI0MS4xNjkxL2FIUjBjSE02THk5M2QzY3VhbkJ0YjNKbllXNWphR0Z6WlM1amIyMHZZMjl5Y0c5eVlYUmxMMmx1ZG1WemRHOXlMWEpsYkdGMGFXOXVjeTlrYjJOMWJXVnVkQzlqWTJKZmFXNTJaWE4wYjNKZlpHRjVYekl3TVRjdWNHUm0vNTkzZTI0NWVjYmNmNDg3ZTZjOGI0NTY3QjMyNWI5ODc2/5d233c18f730436f2414784fB174ced7a" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cDovL2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9jbGljay8xMjAxODI0MS4xNjkxL2FIUjBjSE02THk5M2QzY3VhbkJ0YjNKbllXNWphR0Z6WlM1amIyMHZZMjl5Y0c5eVlYUmxMMmx1ZG1WemRHOXlMWEpsYkdGMGFXOXVjeTlrYjJOMWJXVnVkQzlqWTJKZmFXNTJaWE4wYjNKZlpHRjVYekl3TVRjdWNHUm0vNTkzZTI0NWVjYmNmNDg3ZTZjOGI0NTY3QjMyNWI5ODc2/5d233c18f730436f2414784fB174ced7a&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNHPlT5rqOomqHIg3--0Hl5oX9irHA">96%</a> less expensive for Chase than depositing it via a human teller, for example, which has caused many banks to build out their digital channels with everyday banking capabilities. But because some financial tasks are more complex and require more personal attention than a mobile banking app feature, these firms will need to offer remote capabilities, like phone and video services, to serve consumers in remote areas. It's important to note that broadband penetration is <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2VyaWNzc29ucy1lZGdlLW5ldHdvcmstcGxheS1odWF3ZWktdG8taW52ZXN0LTgwMG0taW4tYnJhemlsLXRlbGVjb21zLWNvdWxkLXdpbi1iaWctZnJvbS1ydXJhbC1wb2xpdGljYWwtcHJvbWlzZXM/5d233c18f730436f2414784fBd5547718" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2VyaWNzc29ucy1lZGdlLW5ldHdvcmstcGxheS1odWF3ZWktdG8taW52ZXN0LTgwMG0taW4tYnJhemlsLXRlbGVjb21zLWNvdWxkLXdpbi1iaWctZnJvbS1ydXJhbC1wb2xpdGljYWwtcHJvbWlzZXM/5d233c18f730436f2414784fBd5547718&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNEMpouqI4DjdrIyEnbwmXrxSb1yaw">lower</a> in some rural areas, which could limit access to services like video banking.</li><li>Challenger banks could carve out a niche among consumers living in rural areas. The US neobank market has been growing, with US firms like Varo and Chime, and foreign entrants such as N26 and Monzo <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L24yNi1sYXVuY2hlcy1uZXctdG9vbC1hbmQtbGVhdmVzLWJldGEtaW4tdGhlLXVzLWNoYXNlLXRvLWRpc2NvbnRpbnVlLWNoYXNlLXBheS1pbi0yMDIwLW5hdGlvbndpZGUtaW50cm9kdWNlcy1uZXctYnJhbmNoLWNvbmNlcHQtMjAxOS04/5d233c18f730436f2414784fB38fb3bb5" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L24yNi1sYXVuY2hlcy1uZXctdG9vbC1hbmQtbGVhdmVzLWJldGEtaW4tdGhlLXVzLWNoYXNlLXRvLWRpc2NvbnRpbnVlLWNoYXNlLXBheS1pbi0yMDIwLW5hdGlvbndpZGUtaW50cm9kdWNlcy1uZXctYnJhbmNoLWNvbmNlcHQtMjAxOS04/5d233c18f730436f2414784fB38fb3bb5&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFvtpclQHteE33fcN7XBF4GaZzy5A">launching</a> new services to grab a larger share of the space. As the space gets more crowded, these neobanks could target rural areas, and ultimately an underserved audience that legacy banks largely don't cater to.</li><li>Community banks could establish themselves as regional leaders. These smaller firms might ultimately have a leg up on digital providers due to the <a href="https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2ZpbnRlY2gtYW5kLWZpbmFuY2lhbC1pbmNsdXNpb24taG93LWxvdy1vdmVyaGVhZC1kaXJlY3QtYmFua2luZy1tb2RlbHMtZW5hYmxlLWJhbmtzLXRvLXByb2ZpdGFibHktc2VydmUtdGhlLXVzLTMzLW1pbGxpb24tdW5kZXJiYW5rZWQtaG91c2Vob2xkcy0yMDE5LTg/5d233c18f730436f2414784fB2ae80932" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://e.businessinsider.com/click/17902449.3/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2ZpbnRlY2gtYW5kLWZpbmFuY2lhbC1pbmNsdXNpb24taG93LWxvdy1vdmVyaGVhZC1kaXJlY3QtYmFua2luZy1tb2RlbHMtZW5hYmxlLWJhbmtzLXRvLXByb2ZpdGFibHktc2VydmUtdGhlLXVzLTMzLW1pbGxpb24tdW5kZXJiYW5rZWQtaG91c2Vob2xkcy0yMDE5LTg/5d233c18f730436f2414784fB2ae80932&amp;source=gmail&amp;ust=1567168682466000&amp;usg=AFQjCNFr5UslPXUNR6V9KCpec0EfVzPjng">reliance</a> of low- to middle-income consumers on branches, creating a behavioral barrier to adoption of digital banking services. Given the pace of branch closures among big banks in the US, and factors like low connectivity that might inhibit digital banking adoption, community banks operating branches could allow them to gain a substantial market share in rural areas.</li></ul>Interested in getting the full story? Here are two ways to get access: <ol><li>Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Banking Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. &gt;&gt; <a href="https://www.businessinsider.com/intelligence?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=bundle_subscription_text_link-banking-deserts-emerging-across-rural-regions-2019-8">Learn More Now</a></li><li>Current subscribers can read the full briefing <a href="https://intelligence.businessinsider.com/post/banks-should-leverage-digital-offerings-to-reach-underserved-consumers-citi-upped-minimum-wage-after-government-pressure-scotiabank-sees-digital-rise-and-branch-transactions-fall-2019-8">here.</a></li></ol><a href="https://www.businessinsider.com/intelligence/10-up-and-coming-fintechs-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=finance&amp;itm_campaign=10-up-and-coming-fintechs-2019"></a>

'Banking deserts' are emerging across rural regions of the US

<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dc156bb3f7c845fc827e-960/bii-have used mobile banking.png"></a>BI Intelligence</div></div></div>Mobile banking adoption in remote (rural) areas lags that in non-remote (metropolitan) areas, according to survey <a href="http://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201503.pdf" target="_blank">data</a> from the Federal Reserve. While the findings are unsurprising at face value, the data lends interesting clues into why adoption lags. <ul><li>Among respondents who lived in remote areas of the US and had a mobile phone and a bank account, 32% had used mobile banking in the past 12 months. For people who lived in non-remote areas adoption was at 39%. </li><li>But it's not because of access to mobile internet. In rural areas 69% of respondents said that mobile internet was either almost 'always available' or 'not always available, but was available at convenient locations.' In non-remote locations it was 72%. </li></ul><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dd8669bedd4158fc827f-960/bii-how available is internet access.png"></a>BI Intelligence</div></div></div>There was a gap in the percentage of respondents in each group who knew if their financial institution offered mobile banking. In remote areas, 62% of respondents said that their bank or credit union offered mobile banking compared with 74% in non-rural areas. But among respondents who said their financial institution did not offer mobile banking the gap was much smaller - 6% in remote areas and 4% in non-remote areas. The standout gap was in awareness of whether or not a financial institution offered mobile banking or not. In remote areas, a third of respondents said that they didn't know if their institution offered mobile banking compared with 21% in non-remote areas.<a href="https://intelligence.businessinsider.com/mobile-banking-adoption-lags-in-remote-areas-2015-4?utm_source=House&amp;utm_medium=Edit&amp;utm_term=LKNDInSelf&amp;utm_content=link&amp;utm_campaign=mBank" target="_blank">The full version of this post is available on BI Intelligence, a subscription research service for professionals who work on the forefront of payments and digital technology</a><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523ddf16bb3f70849fc8283-960/bii-does your bank offer mobile banking-1.png"></a>BI Intelligence</div></div></div>

Mobile banking adoption lags in remote areas

Kolkata, May 29 () The National Bank for Agriculture and Rural Development (NABARD) has sanctioned credit of Rs 1,050 crore in the current fiscal so far to West Bengal for benefit of farmers and poor people in rural areas, an official said on Friday. The credit support under special liquidity facility (SLF) will be extended to state cooperative banks, regional rural banks and micro-finance institutions (MFIs), he said. The NABARD has already disbursed an amount of Rs 720 crore to state coperative and regional rural banks, he said, adding that disbursements to MFIs will commence shortly. The lender has sanctioned Rs 300 crore for MFIs, Rs 700 crore for state cooperative banks and Rs 50 crore for regional rural banks. The development bank said the credit flow to the rural sector of the state is extreme important to sustain agricultural operations as the economy has been hit by COVID- 19 outbreak. The credit flow will provide relief to the farmers in the upcoming kharif season, he said. dc BDC BDC

NABARD sanctions Rs 1,050 crore credit support to West Bengal

<ul><li>Clothing which is a non-discretionary spending by rural population has gone down substantially. </li><li><keyword id="6590829" type="UNKNOWN" weightage="20" keywordseo="Rural-wage-growth">Rural wage growth</keyword> also plunged from 14.6% in 2013-14 to a mere 1.1% in 2018-19. </li><li>Due to the <keyword id="3345174" type="PERSON" weightage="20" keywordseo="Rural-Slowdown">rural slowdown</keyword>, biscuits as a category, is growing at a dismal 1%, says an Axis bank report. </li></ul>The ongoing slowdown is affecting rural and urban Indians differently. While urban Indians might be buying fewer cars and staying away from jewels, many basic essentials are vanishing from rural homes--be it biscuits, clothes and hair oil. Data shows that 833 million rural Indians have all but stalled buying clothes. “In the last one year the weighted contribution of clothing which is a non-discretionary item plunged from 39 bps in June 20118 to almost zero in June and July 2019, indicating demand slowdown,” says a report by SBI Ecowrap. Villagers are screwing caps on essentials as well. "The slowdown in hair oils is led by moderation in rural growth. The volume growth in the rural area is now at 4.8%,” said Sumit Malhotra, CEO of Bajaj Consumer after its first quarter earnings report. Rural consumption hit by wage decline The rural wages have not been growing at all. “The real rural wage growth plunged from 14.6% in 2013-14 to a mere 1.1% in 2018-19,” said SBI Ecowrap. Not only are villagers making less and spending less, their incomes are so low that savings are going down as well. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[
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 This is a big blow for fast moving consumer goods companies as most have been betting on the rural market. As many as 65,000 villages contribute as much as half of overall of fast-moving consumer goods sales in India. Due to the rural slowdown, biscuits as a category, is growing at a dismal 1%, says an Axis bank report. ”Rural stress led to moderation of rural demand growth which peaked to around 1.5 times of urban growth few quarters back,” said a report by Aditya Birla Capital on FMCG sectoral review in the first quarter. Finance Ministry’s stimulus will take time to reach villages The government has started taking cognizance of slow growth across the country. And, the Finance Minister Nirmala Sitharaman has kicked off a slew of measures to kickstart the economy, and one of them being ₹70,000 crore capital to public sector banks, and rolling back on additional tax surcharge on investors that was imposed during the Budget. “We are cautiously optimistic on the rural, but we'll continue to steer the course on the strategy that we've defined for ourselves as far as rural is concerned. If the government spending and the stimulus reaches out the rural, then it will be great," said Mohit Malhotra, CEO of Dabur. However, for the stimulus to reach rural areas will be a long and arduous journey trickling from banks to non-banking financial institutions. This is unfortunate considering rural Indians are always the first to face the ill-effects of slowdown. See also: <div type="Article" hostid="261" msid="70766429" title="India’s biscuit crisis shows slowdown is hurting the poor more — and job losses are making it worse" mstype="2" mssubtype="0"></div>

After biscuits, Indian villagers are cutting down on clothes and hair oil too

Mumbai, Mar 3 () National Bank for Agriculture and Rural Development on Tuesday said it has infused Rs 1.46 lakh crore in the rural banking system during the current fiscal.Nabard has been extending financial support to the banks operating in rural areas to help them deploy their resources effectively for meeting the credit needs of rural people, including farmers."As on February 28, 2020, Rs 87,069 crore has been extended to cooperative banks and regional rural banks in short-term refinance. In addition, long-term refinance of Rs 59,502 crore has also been provided to these banks as well as other financial institutions," National Bank for Agriculture and Rural Development (Nabard) said in a release.So far in the current fiscal, the development finance institution has extended Rs 66,397 crore in short-term credit and Rs 6,704 crore long-term credit to rural cooperative banks.Regional rural banks have availed Rs 14,141 crore in short-term credit and Rs 8,417 crore in long-term credit.In addition, other banks, including small finance banks, have obtained long-term refinance of Rs 37,895 crore, the release said.It provides short-term refinance, which is essentially production credit, to banks to allow farmers meet their operational costs.Long-term refinance is aimed at supporting sectors like dairy, poultry, fishery, farm mechanisation, irrigation, and non-farm sectors, among others. The development is also directing its resources to increase institutional credit to rural sectors through non-banking financial institutions (NBFCs).It has also extended Rs 4,638 crore to NBFCs and MFIs so far in FY20. HV BAL

Nabard infuses Rs 1.46 lakh cr in rural banking system in 2019-20

The <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword> it seems is very serious on helping PM <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>'s Swachh Bharat dream. It approved a US$1.5 billion loan for the <keyword id="2312336" type="UNKNOWN" weightage="20" keywordseo="Swachh-Bharat-Mission">Swachh Bharat Mission</keyword> (SBM) Support Operation Project to support the Modi government in its efforts to ensure all citizens in rural areas have access to improved sanitation – such as a toilet or latrine with a focus on changing behaviors – in ending the practice of open defecation by 2019. 

	Today, of the 2.4 billion people who lack access to improved sanitation globally, more than 750 million live in India, with 80 percent living in rural areas. More than 500 million of the rural population in India continue to defecate in the open, suffering from preventable deaths, illness, stunting, harassment and economic losses.
 

	In view of this situation, the project will support the rural component, known as SBM – Gramin (SBM-G), over a five-year period using a new performance-based program which links funds directly to results, ensuring that benefits are delivered to the people in need – more than 60 percent of India’s rural population.
 The SBM-G program focuses on ensuring usage of <keyword id="68945" type="UNKNOWN" weightage="20" keywordseo="Toilets">toilets</keyword> along with their construction. States and their implementing agencies will be given incentives for meeting performance standards. Performance will be measured against the states’ ability to reduce open defecation, sustaining their open defecation free (ODF) status and improving solid and liquid waste management in rural areas. The financing mechanism promotes the leadership of the states, which will have flexibility in innovating and adopting their own delivery models. “One in every ten deaths in India is linked to poor sanitation. And studies show that low-income households bear the maximum brunt of poor sanitation. This project, aimed at strengthening the implementation of the Swachh Bharat Initiative of the government, will result in significant health benefits for the poor and vulnerable, especially those living in rural areas,” said <keyword id="1375051" type="UNKNOWN" weightage="20" keywordseo="Onno-Ruhl">Onno Ruhl</keyword>, World Bank Country Director for India in a company statement. “Incentivizing good performance by states and the focus on behavioral changes are two important components of this project,” he added. 

	The Ministry of Drinking Water and Sanitation (MDWS) will play the overseeing and coordinating role for the Program and support the participating states. Funds will also be used to develop the capacity of MDWS in program management, advocacy, monitoring and evaluation.
 

	“India has demonstrated extraordinary leadership in pursuing the ambitious SBM campaign and embracing the focus on behavior to complement the construction of toilets,” said Annette Dixon, World Bank Vice President for the South Asia Region. “It is our privilege to support the Indian government in this initiative and we look forward to working side by side.”
 

	The World Bank will also provide a parallel US$25 million technical assistance to build the capacity of select state governments in implementing community-led behavioral change programs targeting social norms to help ensure widespread usage of toilets by rural households.
 

	“This program, built on lessons learnt from global and national sanitation projects, represents a fundamental change in approach and recognizes the importance of coupling investments in the construction of toilets to its usage. For it to succeed, large-scale social mobilization for behavior change is critical at the community level,” said Soma Ghosh Moulik, Lead Water and Sanitation Specialist and the project’s Task Team Leader.“Third party assessments and regular monitoring will provide reliable information on the project’s progress,” she added.

World bank comes forward to help PM Modi realize his Swachh Bharat dream

(Eds: Correcting 'Aadhaar' spelling throughout) New Delhi, Apr 29 () Sarvatra Technologies, a payment and banking solutions provider, on Wednesday said it has witnessed a three-fold rise in Aadhaar-enabled cash withdrawal in rural areas amid the COVID-19 pandemic. The company said it is offering services like door-step cash delivery, deposits, funds transfer, among others in small villages and towns where ATMs and regular banking infrastructure are unavailable. It said the monetary needs of rural India are being catered through various modes such as UPI, IMPS, AePS, ATM, micro ATM, PoS. Sarvatra said as the government has announced the Rs 1.7 lakh crore financial support to the needy due to coronavirus pandemic, its AePS (Aadhaar-enabled Payment System) platform has witnessed an exponential rise of 353 per cent in cash withdrawals. Sarvatra's wide range of offerings have also enabled other financial institutions such as BCs (business correspondents) to successfully extend money transfer and cash disbursal services. The financial services provider said money transactions through its platform are serving customers of over 600 small co-operatives, district as well as scheduled commercial banks apart from small finance banks in the 30 states and union territories during the pandemic. The list also has large banks like ICICI Bank, IDBI Bank, Punjab National Bank, Bank of Maharashtra, besides new generation small finance banks like Equitas, Jana and Capital, it added. "In the 30 days of lockdown, in addition to transactions conducted at regular ATM machines, hundreds of mobile ATM Vans and thousands of micro ATMs of our banks have provided doorstep banking services across India to 15 lakh unique customers, including senior citizens," said Mandar Agashe, founder and managing director, Sarvatra Technologies. Banking in the rural areas where Sarvatra provides its PaaS (platform as a service) services has remained unaffected in the midst of the lockdown. With the help of Sarvatra, the rural banking industry has been able to overcome several logistical challenges that could have impeded seamless financial services during this crisis, the company said. Its aim is to drive top technologies to the bottom of the pyramid and help financial inclusion of the remotest person, said Vallabh Bhanshali, chairman, Sarvatra Technologies. KPM MKJ

Sarvatra Tech logs over 3-fold jump in Aadhaar-enabled transactions in rural India amid lockdown

New Delhi, Apr 29 () Sarvatra Technologies, a payment and banking solutions provider, on Wednesday said it has witnessed a three-fold rise in Aadhar-enabled cash withdrawal in rural areas amid the COVID-19 pandemic. The company said it is offering services like door-step cash delivery, deposits, funds transfer, among others in small villages and towns where ATMs and regular banking infrastructure are unavailable. It said the monetary needs of rural India are being catered through various modes such as UPI, IMPS, AePS, ATM, micro ATM, PoS. Sarvatra said as the government has announced the Rs 1.7 lakh crore financial support to the needy due to coronavirus pandemic, its AePS (Aadhar enabled Payment System) platform has witnessed an exponential rise of 353 per cent in cash withdrawals. Sarvatra's wide range of offerings have also enabled other financial institutions such as BCs (business correspondents) to successfully extend money transfer and cash disbursal services. The financial services provider said money transactions through its platform are serving customers of over 600 small co-operatives, district as well as scheduled commercial banks apart from small finance banks in the 30 states and union territories during the pandemic. The list also has large banks like ICICI Bank, IDBI Bank, Punjab National Bank, Bank of Maharashtra, besides new generation small finance banks like Equitas, Jana and Capital, it added. "In the 30 days of lockdown, in addition to transactions conducted at regular ATM machines, hundreds of mobile ATM Vans and thousands of micro ATMs of our banks have provided doorstep banking services across India to 15 lakh unique customers, including senior citizens," said Mandar Agashe, founder and managing director, Sarvatra Technologies. Banking in the rural areas where Sarvatra provides its PaaS (platform as a service) services has remained unaffected in the midst of the lockdown. With the help of Sarvatra, the rural banking industry has been able to overcome several logistical challenges that could have impeded seamless financial services during this crisis, the company said. Its aim is to drive top technologies to the bottom of the pyramid and help financial inclusion of the remotest person, said Vallabh Bhanshali, chairman, Sarvatra Technologies. KPM MKJ

Sarvatra Tech logs over 3-fold jump in Aadhar-enabled transactions in rural India amid lockdown

<ul><li>Around 88% of <keyword id="450369" type="ORGANIZATION" weightage="20" keywordseo="rural-households">rural households</keyword> in India are estimated to have a savings account at an accredited financial institution, according to a report by <keyword id="6360385" type="UNKNOWN" weightage="20" keywordseo="nabard">NABARD</keyword>. </li><li>40,327 households in 29 states participated in the All-India Rural <keyword id="107911" type="ORGANIZATION" weightage="20" keywordseo="Financial-inclusion">Financial Inclusion</keyword> Survey for 2016-17. </li><li>The survey found that farming households in rural areas earn about ₹107,172 on an annual basis, which is around 23% more than non-farming rural households. </li></ul>It looks like savings culture has penetrated rural India. Around 88% of rural households in India are estimated to have a savings account at an accredited financial institution, according to a <a href="https://www.nabard.org/auth/writereaddata/tender/1608180417NABARD-Repo-16_Web_P.pdf">report</a> by the National Bank for Agriculture and Rural <keyword id="6355210" type="UNKNOWN" weightage="20" keywordseo="development">Development</keyword> (NABARD), a development bank that is a key facilitator of the government’s financial inclusion agenda. The average annual savings for a rural household was found to be ₹17,488. Around 40,327 households in 29 states participated in the All-India Rural Financial Inclusion Survey for 2016-17, the results of which indicated that agriculture was still a viable livelihood in rural India. The survey found that farming households in rural areas earn about ₹107,172 on an annual basis, which is around 23% more than non-farming rural households. Nearly half of all rural households were found to be engaged in agricultural activities of some kind, contradicting the popular belief that almost all rural households are engaged in some form of agriculture or the other. The report also mapped the financial practices of rural families. A little over 47% of rural households reported the incidence of outstanding debt. Despite the higher earning capacity, agricultural households were found to be more indebted than non-agricultural ones. The average level of debt for a rural household was found to be ₹91,407, with the amount rising to ₹104,602 for farming families. Only a quarter were found to be covered under some form of insurance or pension scheme. Additionally, 33% of households reported having more than one savings account, while 26% had savings accounts operated by female family members. There was also a breakdown by each state. Punjab, Haryana and Kerala were found to have the wealthiest rural households, earning an average monthly income of ₹23,133, ₹18,496 and ₹16,927, respectively. The states of Jharkhand, Andhra Pradesh and Uttar Pradesh reported the lowest average monthly incomes for rural farmers.

Nearly 90% of rural homes in India have savings accounts in banks: Report

<ul class="summary-list"><li>China is merging hundreds of small rural banks to stomp out bad loan conditions, Bloomberg reported.</li><li>In 2022, the bad-loan ratio of small banks was twice that of the whole sector.</li></ul>Beijing is tackling high-risk financial lenders by enacting a major consolidation wave that will merge hundreds of dealers across the $6.7 trillion sector, <a href="https://www.bloomberg.com/news/articles/2024-01-31/china-merges-hundreds-of-rural-banks-as-financial-risks-mount">Bloomberg reported</a>.These smaller, rural banks will eventually join together into massive regional institutions. The move aims to squash bad debt conditions that have proliferated among the 2,100 lenders under scrutiny.It's a concern Beijing desperately needs to tackle, as <a href="https://www.businessinsider.com/china-economy-shrinking-xi-jinping-debt-real-estate-american-world-2024-1">mounting domestic debt</a> has applied broad downside pressure on China's economy over the last few years. At the end of 2022, the bad-loan ratio in the rural cooperative bank system stood at 3.48%, more than double that of China's entire financial sector. That year, Beijing first began orchestrating mergers between risky lenders. Its efforts erased half of all such banks, with rural, village, and county operations making up 96% of the eliminated dealers.The group's issues stem from a lack of oversight and transparency, analysts told Bloomberg. For instance, these smaller cooperatives have been cited as putting profit ahead of their policy duties, such as by offering loans beyond their rural and agricultural areas.It also resulted in political turmoil. In 2022, four local banks in the Henan province colluded with a stakeholder to attract billions of yuan through online platforms, freezing hundreds of people out of their savings and triggering protests.But Beijing will have to be mindful of its approach, as its previous merger enforcement didn't necessarily lead to improved bad-loan ratios, Bloomberg noted. Additionally, internal management issues could crop up, with numerous banks now having to act as one.

China is merging hundreds of small banks to fend off financial stress

New Delhi, Feb 15 () Finance Minister Nirmala Sitharaman on Saturday said the government is monitoring farm credit given by banks in rural areas, adding that she expects to meet the increased target of Rs 15 lakh crore for the next fiscal. The government in Budget 2020-21 has raised the farm loan disbursal target by 11 per cent to Rs 15 lakh crore for the next fiscal and allocated Rs 1.6 lakh crore to implement various plans in agriculture and allied sectors as it chases the goal of doubling farmers income by 2022. The government has allocated Rs 75,000 crore for the PM-KISAN scheme for the next fiscal, which is same as the budget estimate for this fiscal but higher than revised estimate of Rs 54,370 crore. "Credit limit has been expanded. I am sure it is based on local ground level requirement...we expect the demand to grow and credit requirements to also meet up with it. I am actually closely monitoring banks and their extension of credit facility particularly to rural areas. So I think we'll be able to meet that," she told reporters after addressing the central board of RBI here. The farm credit target for the current fiscal has been set at Rs 13.5 lakh crore. Normally, farm loans attract an interest rate of 9 per cent. But the government is providing 2 per cent interest subsidy to ensure farmers get short-term farm loan of up to Rs 3 lakh at an effective rate of 7 per cent per annum. With regard to proposed mega consolidation of public sector banks, the finance minister said there was no discussion on the issue at the RBI board meeting on Saturday. "I don't see any reason to go back or any reason which is particularly causing any delay for any notification...you will hear on it as it when it comes," she said. Last year in August, the government announced merger of 10 public sector banks into four. United Bank of India and Oriental Bank of Commerce are to be merged with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB) from April 1 this year. It was also decided to merge Syndicate Bank with Canara Bank, and Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank are to be consolidated with Union Bank of India. In April 2019, Bank of Baroda, in the first three-way merger exercise, amalgamated Vijaya Bank and Dena Bank with itself. SBI had merged five of its associate banks -- State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad as well as Bharatiya Mahila Bank with itself effective April 2017. DP ABM

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World bank comes forward to help PM Modi realize his Swachh Bharat dream

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Sarvatra Tech logs over 3-fold jump in Aadhar-enabled transactions in rural India amid lockdown

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Nearly 90% of rural homes in India have savings accounts in banks: Report

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