Rajiv Gandhi South Campus

MINOR PROJECT REPORT

ON
“TO STUDY THE RURAL BANKING APPROACHES FOR ECONOMIC
GROWTH OF RURAL PEOPLE IN VARANASI, A CASE STUDY OF KASHI
GOMTI SAMYUT GRAMIN BANK.”

Submitted by:

Ms. POOJA

In partial fulfillment of the requirement for the degree of

Master of Business Administration – Agribusiness

Guided By:

Ms. Sweta Singh

Assistant Professor
RGSC, BHU

MBA AGRRIBUSINESS RGSC

Banaras Hindu University

Roll number Enrolment No. Batch

18430BAB029 407374 2018-20
1
 Banaras Hindu University, Varanasi
(Established by Parliament by Notification No. 225 of 1916)

Institute of Management Studies

CERTIFICATE

This is to certify that minor project report entitled “TO STUDY THE RURAL
BANKING APPROACHES FOR ECONOMIC GROWTH OF RURAL PEOPLE
IN VARANASI, A CASE STUDY OF KASHI GOMTI SANYUKT GRAMIN
BANK.” has been prepared under my supervision by Ms. POOJA, a student
of MBA (Agribusiness), session 2018-20 of Institute of Management
Studies as part of her course curriculum. This report is her original work
and up to the standard expected from an MBA (Agribusiness) student of
Management faculty.
I recommend this Minor project be forwarded for evaluation and I wish all
the success to the candidate.

SUPERVISOR

Ms. Sweta Singh

RGSC, BHU

Date-
Place -

2
 ACKNOWLEDGMENT

I would take this opportunity to express my profound and sincere gratitude to

“BANARAS HINDU UNIVERSITY” which provided me with excellent implements
to achieve most cherished goal in life.

I am extremely thankful to Prof. S.K Dubey, Director, Prof. P.S. Tripathi, Dean
and Head, Institute of Management Studies, Banaras Hindu University and Prof.
Ashish Bajpai, Course Coordinator MBA (Agribusiness), Institute of Management
Studies, Banaras Hindu University for providing an excellent academic climate in the
institute which helped me making this project a grand success.

I wish to express our heartfelt thanks and immense gratitude to my respected advisor
Ms. Sweta Singh, Assistant Professor, Institute of Management Studies, Banaras
Hindu University for her keen interest, valuable guidance, persistence inspiration,
encouragement and moral support though out the course of preparation of this project.
She had always taken time out from her busy schedule to listen to me and also gave
valuable suggestions.

My cordial and sincere thanks to all my teaching staff for giving me valuable academic
suggestions, encouragement and reliable help during my academic course and project.

I am thankful to my seniors and friends for their help, support, and good spirits.

Words are very inadequate to express my indebtedness and affection to my parents and
all family members who gave me infinite love to go for this achievement and showed
full faith in me even when I was not at my best.

POOJA
nd
MBA (AB) 2 SEMESTER

2018-20
3
 DECLARATION

I POOJA D/o Mr. RAJENDRA SINGH hereby declare that this project report titled “ TO
STUDY THE RURAL BANKING APPROACHES FOR ECONOMIC
GROWTH OF RURAL PEOPLE IN VARANASI, A CASE STUDY OF KASHI
GOMTI SANYUKT GRAMIN BANK. ” is an authentic work done by me as complementary
part of MBA (Agribusiness) program. It is not a duplicate work of readymade assignment of others.

On being proved so I myself will be liable for consequences.

POOJA

MBA (Agribusiness) 2018-20

Institute of Management Studies, BHU
Enrolment No- 407374
Roll no. -18430BAB029

4
 Table of Content

Topic Page No.

Introduction 6-13

Review of Literature 14-15

Research Methodology 16-18

Data Tabulations & Interpretations 19-30

Finding 31-32

Conclusions 33

Suggestions 34

Limitations 35

Bibliography 36

Annexure 37-40

5
 INTRODUCTION

RURAL BANKING
Regional Rural Banks (RRBs) also known as Gramin banks, are Indian scheduled banks
(Government banks) operating at regional level in different States of India. They have been created
with a view of serving primarily the rural areas of India with basic banking and financial services.
However, RRBs may have branches set up for urban operations and their area of operation may
include urban areas too.
The area of operation of RRBs is limited to the area as notified by Government of India covering one
or more districts in the State. RRBs also perform a variety of different functions. RRBs perform
various functions in following heads:

 Providing banking facilities to rural and semi-urban areas.

 Carrying out government operations like disbursement of wages of MGNREGA workers, distribution
of pensions etc.
 Providing Para-Banking facilities like locker facilities, debit and credit cards.
 Small financial banks

History

Regional Rural Banks were established under the provisions of an Ordinance passed in September
1975 and the RRB Act 1976 to provide sufficient banking and credit facility for agriculture and other
rural sectors. These were set up on the recommendations of The narshimham committee Working
Group[1] during the tenure of Indira Gandhi's government with a view to include rural areas into
economic mainstream since that time about 70% of the Indian Population was of Rural Orientation.
The development process of RRBs started on 2 October 1975 with the forming of the first RRB, the
Prathama Bank with authorised capital of ₹5 crore at its starting. Also on 2 October 1975 five
regional rural banks were set up with a total authorised capital ₹100 crore ($10 Million) which later
augmented to 500 crore ($50 million). The Regional Rural Banks were owned by the Central
Government, the State Government and the Sponsor Bank (Any commercial bank can sponsor the
regional rural banks) who held shares in the ratios as follows Central Government – 50%, State
Government – 15% and Sponsor Banks – 35%.

The establishment of Regional Rural Banks in India was an important landmark in the banking
history of the country. These banks were established under the provision of the Regional Rural Banks
Ordinance, 1975, by the government on September 27, 1975. The main objective of establishing the
regional rural banks was to provide credit and other facilities especially to the small and marginal
farmers, agricultural laborers, and small entrepreneurs in the rural areas. It’s the Narasimha
Committee that theorized the foundation of Regional Rural Banks in India.
6
 The committee felt the need of regionally oriented rural banks that would address the problems and
requirements of the rural people in India.

In 1969, a major renovate in the banking sector took place with Nationalization of the 14 largest
Indian commercial Banks in India. Bank nationalization was intended to allow the state to target
financial backwardness as a means of promoting social objectives. Rural sector continues to play an
important role in terms of contribution to GDP and employment generation in India.

FEATURES OF A REGIONAL RURAL BANK ARE:

1. Its area of limited to a specific region in a state comprising one or more state.

2. It carries on the business of banking & may conduct such other business as allowed under the
Banking Regulation Act 1949.

3. It shall grant loans & advances to the rural poor comprising farmers, artisans, small entrepreneurs &
other persons with small means.

4. The lending rate of the bank shall not be higher than that of any cooperative society in the area.

FUNCTIONS OF A REGIONAL RURAL BANK ARE:

1. To give loans to the weaker section of society, particularly those engage in agriculture, trade,
commerce, industry and other productive purpose.

2. To give loans to cooperative societies for agriculture purposes;

3. To provide banking services at the door steps of the rural people, particularly in those areas which
are not served by any commercial bank;

4. To generate employment n rural areas;

5. To mobilize rural saving and accept deposits and channelize them into productive activities; and

6. To reduce the cost of credit in rural areas.

These banks have also started also giving loans and advanced for the purchase of consumer durables
and other purposes, on the security of gold ornaments, National Savings Certificate, India Vikas
Patras to rural people in general up to 10 percent of their fresh lending within the overall limit of 60
percent of fresh loans to non-target group. They have also been permitted to issue guarantees on
behalf of their clients without limit on 100 percent cash margin up to Rs 20 lacs and Rs 40 lacs cash
margin plus collateral security of more than 50 percent, these banks also provide lockers facilities.
They can purchase draft and cheque up to Rs 25,000 and Rs 1, 00,000 respectively, per customer and
per bank. With effect from January 8, 1997, these banks have also been giving permission to invest in
7
corporate shares and debentures and units of mutual fund up to a maximum of 15 percent of their
incremental deposits. They are also allowed to buy corporate shares and debentures from the
secondary market. They can also fix their own lending and deposit rate.

Role of Rural Sector in Indian Economy-

Rural sector continues to play an important role in terms of contribution to GDP and employment
generation in India, as about 70 percent of India’s population still lives in rural areas. The slow
reduction of poverty levels in rural areas against urban areas is an evidence of the sluggish
development in rural areas, in spite of new opportunities coming up in rural areas in the post
liberalization due to better rural-urban linkages and backward and forward linkages of agricultural
sector with non-agricultural sector. If the rural population takes advantage of these new opportunities
there is a greater scope for reduction in poverty and increase in living standards. However , to fully
exploit these opportunities, there is need to empower rural population with necessary new
knowledge, capital and entrepreneurial skills.

Rural Innovation for Inclusive Growth

Inclusive growth implies growth that is broad-based across sectors and inclusive of a large proportion
of a country’s labor force (World Bank, 2009). One of the major tenets of inclusive growth is that it
focuses on productive employment rather than on income redistribution, and that there should be an
equality of opportunity for individuals and firms within an economy. The idea is that broad based,
inclusive growth will lead to rapid and sustained poverty reduction. Therefore, programs or policies
designed to to promote inclusive growth must not neglect sectors of the economy in which the poor
are more likely to work.

As a result, promoting growth in the agricultural sector is crucial to inclusive growth. In the
developing world, the poor are largely concentrated in rural areas. Ravallion, Chen, and Sangraula
(2009) estimate that 76 percent of the world’s poor lived in rural areas in 2002. As people in rural
areas of developing countries are largely employed in agriculture, increasing labor productivity in
agriculture would play an important role in an inclusive growth strategy. Consequently, de Janvry
and Sadoulet (2010) argue that GDP growth in agriculture leads to three times as much poverty
reduction than GDP growth outside of agriculture.Furthermore, recent, careful studies of labor
productivity show large productivity gaps between agriculture and non-agricultural sectors.
McMillan and Rodrik (2011) show that there are large differences in productivity across more
detailed sectors within economies, and a reallocation of workers from agriculture to more productive
sectors than agriculture would raise income in any of those countries dramatically. In a related paper,
Gollin, Lagakos and Waugh (2011) show that the gap between agricultural and non-agricultural
productivity cannot be explained by differences in hours worked, human capital, educational quality,
cost-of-living differences, or factor shares. In both cases, the gap between agriculture and the rest of
8
the economy implies that relatively low labor productivity in agriculture is important to address in
promoting inclusive growth.

Kashi Gomti Samyut Gramin Bank

Union Bank of India was sponsoring 3 RRBs in the state of Uttar Pradesh. These three Banks were
Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank. With the onset of
Globalization and financial reforms all over the world, self-dependency became the keyword in
banking industry. This scenario put pressure on RRBs also which were hitherto concentrated on
social banking. Banking industry was very intensively growing and RRBs had to face extreme
competitive environment as soon as they tried to capture the non-target group customers. India was
rapidly sailing on the tides of financial reforms. There were no choices left to Government of India
than to consolidate the RRBs. In this process the government of India embarked upon a process of
amalgamation of RRBs which were adjacently situated and sponsored by the same sponsoring bank
and in this process Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank
sponsored by Union Bank of India in U.P. were amalgamated by GOI vide its notification No.SO-
1264(E) on 12th September 2005. Thus, came into existence the "Kashi Gomti Samyut Gramin
Bank"

The bank has achieved the landmark of converting its 100 percent branches on Core Banking
Platform. This was a historical event in banking industry that a RRB had achieved such a technical
up gradation of its services and that too in a record time. KGSG Bank is one of the most profitable
regional rural bank of India with about 445 branches and more than 75 lakh customers from whom
they made a business of around 554.64 crore rupees in the last financial year. It is the bank who has
always been in profit when talked of business. The bank has a wide range of customers linked to it
for which it provides financial services all over the regions of Jaunpur, Mau, Azamgarh, Ghazipur,
Bhadohi, Chandauli and Varanasi.

Mahatma Gandhi once said "Eighty percent of the Indian population lives in villages and most of
them live below poverty line. We should therefore formulate such plans and schemes which are
beneficial to weakest person of the society also. If the poor people are not brought into mainstream of
development, the total development of India will not be possible." Our Prime Minister Late Mrs.

9
Indira Gandhi initially nationalized 14 commercial banks with the intention that these institutions
would float credit in social activities and rural development. But after 06 years of nationalization she
realized that nothing concrete could be achieved. She then brought in an ordinance on 2nd October,
1975 (Date of Birth of our beloved Bapu and Lal Bahadur Shastri ji) to set up the Regional Rural
Banks with the object to accelerate the development of rural economy. The aim was to attain
upliftment of the poor, the neglected and the down trodden people by channelizing the flow of credit
to the rural areas.

The Regional Rural Banks were local in structure and were based at the District level. The Lead
Banks were given the responsibility of sponsoring these RRBs. The paid up capital was subscribed
by the central government, sponsoring bank and state government in the ratio of 50:35:15.In a slow
but steady process 196 RRBs were established in 615 districts across the country. The ordinance of
2nd October, 1975 came to be recognized as Regional Rural Banks Act, 1976.

Union Bank of India was sponsoring 3 RRBs in the state of Uttar Pradesh. These three Banks were
Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank.

Samyut Kshetriya Gramin Bank, with its headquarter at Azamgarh was established on January 06,
1976. It covered 4 districts (Azamgarh, Ghazipur, Mau and Ambedkar Nagar) with a network of 168
branches and 5 extension counters. Gomti Gramin Bank was established on 30th March, 1981 with
its Head Office at Jaunpur. It had 84 branches covering 6 tehsils and 21 blocks.
Kashi Gramin Bank headquartered in Varanasi was established on 28th July 1981. In 2004 the Kashi
Gramin Bank was rated as one of the top SIX RRBs in the country.

With the onset of Globalization and financial reforms all over the world, self-dependency became the
keyword in banking industry. This scenario put pressure on RRBs also which were hitherto
concentrated on social banking. Banking industry was very intensively growing and RRBs had to
face extreme competitive environment as soon as they tried to capture the non-target group
customers. India was rapidly sailing on the tides of financial reforms. The banking industry was
trying to make big bases by way of consolidation. There were no choices left to Government of India
than to consolidate the RRBs. In this process the government of India embarked upon a process of
amalgamation of RRBs which were adjacently situated and sponsored by the same sponsoring bank
and In this process Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank
sponsored by Union Bank of India in U.P. were amalgamated by GOI vide its notification No.SO-
1264(E) on 12th September 2005. Thus came into existence the "Kashi Gomti Samyut Gramin Bank"

On 12th September 2005, the bank owned a fund of Rs.232.50 Crore with deposits to the tune of
Rs.2137.87 Crore. Advances of Rs.648.27 Crore and a CD ratio of 30% as on 12th Sep'05.The bank
also achieved the landmark of converting its 100 percent branches on Core Banking Platform. This
was a historical event in banking industry that a RRB had achieved such a technical up gradation of
its services and that too in a record time.

10
 Present Structure

Presently the Bank is having 459 branches working in Azamgarh, Sant Ravidas Nagar,
Chandauli, Ghazipur, Jaunpur, Mau and Varanasi Districts. One Branch is located in
Ambedkarnagar District. Out of these 459 Branches :-

 367 branches are in rural area

 38 in semi-urban
 26 branches in urban area
 28 branches in Metropolitan

Bank is having 7 Regional Offices and one Staff Training Centre.Its Head Office is Located in Holy
city of Varanasi.

11
 Achievements of KGSG Bank-

 First Gramin Bank to roll over Core Banking Platform.

 First Bank to introduce Rupay- ATM card.
 First Gramin Bank to launch Automated Teller Machine.
 Total Business size ₹ 14437.74 Cr.
 Sustained profitability since inception.
 CASA contribute more than 62.19%.
 100% coverage of KCC holders under Rupay-Debit-ATM cards.
 Alternative delivery channel- RTGS/NEFT/ ATM/Mobile Banking/IMPS/E-Commerce/AEPS
services.
 First Gramin Bank as recipient of Award from Hon'ble President of India for best performing RRB
for issuance of RuPayCard.
 Recipient of ASSOCHAM award.
 Recipient of SKOTCH award.

SERVICES AND FACILITIES PROVIDED BY KASHI GOMTI SAMYUT GRAMIN BANK-

Kashi Gomti Samyut Gramin Bank has started its net banking services from December 2017 and is
doing well in this field by providing:

 Access to customer account from any of the branches.

 Account Portability
 NEFT and RTGS facilities which have made fund transfer quite easier.
 ATM- Inter operable ATM cards to our customers who can use the ATM of Union Bank of India as
their own ATM machine.
 RuPay enabled ATM Cards acceptable on any ATM in India.
 Access to any “Point of Sale” can be done PAN INDIA.

ATM Services were started for the customers by the bank since Mar 2011, it was the first ever ATM
of any RRB in Varanasi and now 41 are on site in various districts of U.P.

KGSG Bank is the first bank in India to launch 100% indigenous ATM card with RuPay logo. The
card is the product of National Payment Corporation of India and was launched in Mar 2011.

12
The first ever talking ATM in eastern U.P. specially designed for the visually impaired persons were
launched by the bank.

The bank has started SMS alerts for the customers.

E-Stamping services are also being stated by the bank.

Thus, it can be considered as a technically progressive bank and thus the study of the awareness and
perception of the banks customers toward s e-banking facility would give a prerequisite of the
opinions of the people of that region.

13
 LITERATURE REVIEW

1. Malyadri, V (1975) studied the co-ordination between the regional rural banks and cooperatives. He
advocated that the functioning of the commercial banks in rural areas were marked by a high cost
structure, as reflected in the increasing expenses to income ratio of the rural branches of these banks.
These observations drove the working group to conceive an institution, which would combine the
good features of both the cooperative and commercial banks. The result was recommendation to
organize rural banks on regional basis. While recommending the formation of RRBs the working
group considered in greater detail weather the restructuring and modification of existing credit
structure would help to meet the increasing credit demand and came the conclusions that it may not
yielded any appreciable result. The working group further felt that the field of rural credit is so vast
and complex that it is difficult to meet all the credit needs of the rural people. In this way the working
group endorsed the idea of the government of India of organizing “farmers services societies” (FSS).
The linkage of the FSS would be such that the RRBs would use FSSs as a medium to disburse credit
in field alongside their own direct lending where FSS are not yet organized.

2. Desai (1979) found the aggregate terms of sectoral allocation of credit, mobilization of deposits,
financial independence and the rise in purchasing power of rural credit in the seventies. The study
also observe an increase in the credit outstanding growth of rural deposits and a decrease in the
purchasing power of total rural credit and deposit.

3. Reddy & Reddy (1986) observed that the RRBs have made good progress in the field of deposit
mobilization, branch expansion and disbursement of the credit to small farmers. This study point out
that these institution has been facing certain problems in their operation, as; i) they are consuming a
lot of time in providing approval for branch expansion; ii) there is lack of important infrastructural
facilities for bank employee’s; iii) these banks has been facing the problem of getting suitable
accommodation for new branches in rural areas; iv) that the borrowers are misusing their loans, by
spending on unproductive purposes. They suggested, improvement in the functioning of RRBs,

14
 streamlining RRBs licensing policy to fasten the growth of their expansion, lead banks and the state
governments have to take necessary steps to provide proper infrastructure in the villages and also
state and central government should take initiative to provide accommodations for new branches of
the rural banks.

4. Mishra (1986) made an attempt to appraise the credit facilities provided by the RRBs in rural
development. He has observed that a large number of big farmers were grabbing benefits by taking
loans from these banks though they were not legally entitled to get such loans. The small and
marginal farmers, who were to be the real beneficiaries, were being deprived of such loans facilities.
About 85percent of the marginal farmers were still dependent on money lenders, taking loans at a
higher rate of interest. The rate of interest was as high as 37 percent per annum. A few marginal
farmers who obtained bank loans maintained that terms and conditions of these loans were
unfavourable and they did not get any benefit by the bank loans. However, study reveals that the
RRBs have provided sufficient facilities to rural artisans and have helped them in improving their
living condition.

5. Beer (2006) in his study stated that the convenience of online banking is helping people gain greater
control of their finances and contributing to changing patterns in cash withdrawal and day to day
money management. He stated that internet banking saves lot of time as compared to traditional
system of banking. Saving time is an importance factor which influences the customers prefers to use
e-banking: The most popular online transaction through internet banking is funds transfer/bill
payment.

6. Gayathri Balakrishnan’s (2010) examines the customers‟ awareness towards the various services
offered by both public-sector banks and private sector banks in Erode district of Tamilnadu. The
main objective of the study is to measure the level of awareness by considering aspects like minimum
balance, E-banking, insurance products, mutual fund schemes, concessions to specific category of
customers, customer meet and effectiveness of various awareness programmes. The scholar reveals
that the banker should understand the expectations of customers and powerful strategies are to be
implement

15
METHODOLOGY

16
 RESEARCH OBJECTIVE

1. To identify the potential of banking services in rural areas of Varanasi.

2. To study the banking habits of people towards kashi gomti samyukyt gramin bank.

3. To study the impact of rural banking on rural people.

Research Problem-
As we know that there are various approaches adopted by the rural banks for economic development
of the rural people but to what extent the approaches are actually controlling the economic level of
the rural people. Also study the banking habit of people towards kashi gomti samyukyt gramin bank.

17
 RESEARCH METHODOLOGY

The research process was accomplished by taking 31 samples, for the population of 1000 rural people
(approx.) in the rural arrears of Varanasi, U.P. The convenience sampling technique was adopted.
Then in the sample size questionnaire method was applied, and to obtain primary data and the
secondary data was obtained by the books, journals and research papers. And in case of further
development the option of suggestion is also available in questionnaire. The research design will be a
blend of descriptive research design. The research study was done to investigate the various rural
banking approaches adopted by the regional rural banks.

a) Research Design: Descriptive.

 Population size: 1000 (approx.)

 Sample size: 31 rural people.

b) Research Tools: Questionnaire survey.

c) Sampling unit: customers of kashi gomti samyukyt gramin bank.

d) Sampling technique: Convenience sampling.

e) Source of data: Primary and secondary.

Primary: Interview of rural household people, through questionnaire.

Secondary: Books, journals, websites.

f) Data analysis: Done through pie chart and bar graph.

18
DATA ANALYSIS

19
Ques 1: What is the distribution of gender?

Gender:

Gender Number Percentage

Male 23 74.19
Female 8 25.80

gender

female
26%

male
female

male
74%

Interpretation:

From the above given pie chart we analyze that 74% male go to bank and 26% are
female who preferred to go to bank.
20
Ques2: People of which age group preferred to go to bank?

AGE:

AGE GROUP NUMBER PERCENTAGE

Less than 30 years 9 29.0

31-40 years 16 51.6

41-50 years 6 19.3

AGE

41-50 yr
19%
less than 30 yr less than 30 yr
29%
31-40 yr
41-50 yr

31-40 yr
52%

Interpretation: For this study we have selected the sample population of rural people,
to which 29% are in the age group of less than 30 years, 52% lie in the age group of
31-40 and 19% lie in the age group of 41-50 years.

21
QUES 3: Educational Qualification of costumers:

Qualification:

QUALIFICATION NUMBER PERCENTAGE

HSC and below 15 48.38

Graduate 16 51.61

qualification

HSC and below HSC and below

Graduate 48% Graduate
52%

Interpretation:

From the sample size of 31 people, 48% were of HSC and below educational level and
51% were graduate.

22
QUES4: Occupation of the customers:

Occupation:

OCCUPATION RESPONDENTS PERCENTAGE

Farming 7 23

Self –employed 11 35

Family business 10 32

Service firms 3 10

occupation
service firms
10%

farming
23%
farming

family self employed

business family business
32%
self employed service firms
35%

Interpretation:

Among the sample, several type of occupation was found.23% was involved in
farming, 35% were self-employed, 32%were indulged in family business and 10%
were employed in service firms.

23
QUES 5: Accommodation style of customers?

Accommodation:

Category Response Percentage

Shed house 23 74.19

Buildings 8 25.80

120

100

80 Shed house, 74.19

60
Percentage

40
Buildings, 25.8

20

0
Shed house Buildings

Interpretation:

Among the sample 74.19% were living in shed house and 25.8% in buildings.

24
QUES 6: Number of Dependents in family:

NUMBER RESPONSE PERCENTAGE

Three 12 39

Four 12 39

Above four 7 22

120

100 100 100

100

80

60
DEPENDENTS

39 39
40

22
20

0
three four above four

Interpretation:

Among the sample, 39% people have three dependents, 39% people have four
dependents and 22% people have above four dependents.
25
QUES 7: How long do you have bank account?

Time duration of having bank account-

TIME DURATION RESPONDENTS PERCENTAGE

Less than 5 years 10 32

6-10 years 16 52

11-15 years 5 16

duration

11-15
years
16% less than 5
years
32% less than 5 years
6-10 years
11-15 years

6-10 years
52%

Interpretation:

Among the sample of 31 people, 32% people had bank accounts since less than 5
years, 52% had from 6-10 years and 16% had from 11-15 years.

26
QUES 8: Whom do you approach to know about banking services?

Mediums approached to know about banking services-

RESPONSE NUMBER PERCENTAGE

Friends 11 35

Relatives 17 55

Colleagues 3 10

120

100 100 100

100

80

60 55
PERCENTAGE

40 35

20
10

0
friends relatives colleagues

Interpretation:

Among the sample size of 31 people, 35% approached their friends, 55% approached
their relatives and 10% contacted their colleagues.
27
QUES 9: What is your primary purpose for which you visit a bank?

Primary purpose to go bank:

PURPOSE RESPONSES PERCENTAGE
To Deposit 14 45
To take a loan 5 16
To transfer funds 7 23
To use ATM 5 16

primary purpose

to use atm
16%
to deposit
to deposit to takea loan
to transfer 45%
to transfer fund
fund
23% to use atm
to
takea
loan
16%

Interpretation:

Among the sample size 0f 31 people, 45% go bank to deposit, 16% go bank to take a
loan, 16% go to use ATM, and 23% go to transfer fund.

28
QUES 10: What are the most admirable banking services, you have come across?

Most admirable banking services:

BANKING SERVICE RESPONSES PERCENTAGE

Deposit 14 45

Loan 5 15

ATM 5 15

Fund transfer 7 25

120

100

80

60
MOST ADMIRABLE SERVICE
45
40
25
20 15 15

0
deposit loan ATM fund transfer

Interpretation:

Among the sample size of 31 people, 45% favoured deposit, 15% favoured loans, 15%
favoured ATM, and 25% favoured fund transfer.
29
QUES 10: Are you satisfied with the services provided by the bank?

Customer satisfaction:

SATISFACTION RESPONSES PERCENTAGE

Extremely satisfied 8 26
Satisfied 10 32
Neutral 11 36
Dissatisfied 2 6
Extremely dissatisfied 0 0

Extremely
Dissatisfied dissatisfied customer satisfaction
6% 0%

Extremely
satisfied Extremely satisfied
26%
Satisfied
Neutral Neutral
36%
Dissatisfied
Extremely dissatisfied
Satisfied
32%

Interpretation:

Among the 31 people, 26%people are extremely satisfied with the service, 32% people
are satisfied, 36%people are neutral, and 6% people are dissatisfied towards the
services provided by the bank.
30
 FINDINGS &
CONCLUSION

31
Findings:

1. The gender diversification mostly visiting is male (74%) and they are at least
high school educated and majority of customer are graduated (51%).
2. Customers have occupation like self-employed (35%) and family business
(32%) and mostly are farmers (23%).
3. Majority of people are living in shed houses (74.19%) and a portion of
customers have building (25.8%).
4. The customers are using banking services from more than 11-15 years
(16%).
5. People prefer and admire deposits (45%) and services among various
facilities provided by banks.
6. Most of the customer visit banks to deposit (45%) once in a month.
7. The medium from which they know about is mostly through relatives (55%),
friends (35%) and colleagues (10%).

32
Conclusion:
The overall development of the economy and poverty alleviation depend on the system of providing
affordable credit by the financial infrastructure that stimulates sustainable economic growth through
the supply of credit in general and to the rural sector in particular. Rural banks is mainly established
to solve the problem of the weaker section of he society.

Banks in Rural areas-

The regional rural banks should adopt innovative methods to make the banks economically viable at
the same time not compromising with outreach to the rural people and priority sector and less
developed regions and poor people. It is also important to see that the every rural bank should be
responsible for all its financial affairs, without access to government funds.

The problem with rural banking is the high cost of reaching to the remote areas and small account
holder.

Kashi Gomti Samyut Gramin Bank is formed by amalgamation of three UP based RRBs sponsored
by Union Bank i.e. Kashi GB, Gomti GB and Samyut KGB by Government of India notification
No.SO-1264(E) on 12th September 2005. The head office is situated in Varanasi. The performance of
the bank increased over the years. Profitability, deposits and advances of the bank increased from Rs
2763.01 lacs, Rs 221301.65 lacs and 64017.78 lacs respectively in 2005 to Rs 4009.53 lacs, Rs
407003.76 lacs and Rs 116447.06 lacs respectively in 2013. The non-performing assets of the Bank
increased from Rs 9080.97 lacs in the establishment period to Rs 6009.28 lacs in the corresponding
period.

33
 SUGGESTIONS OF THE STUDY

The suggestions from the study are as mention below:

 The rural banks should provide credit facilities to weaker sections in the villages. The State
Government should also take keen interest in the growth of rural banks.
 More local staff and multiple counters may be appointed as far as possible to decrease rush. A
uniform pattern of interest rate structure should be devised for the rural financial agencies.
 For instance, bank nationalization policy, penetration of rural branches to make banking
services accessible to the poor and the policies of priority sector lending to ensure adequate
financial services. Hence, it could be argued that policies and technologies have a significant
impact on the inclusive operation on the banking sector.
 On the basis of the data collected it is come to the notice that some of the respondents using e-
Banking services fall in the category of business class and service class. The farmers and
other class of the respondents were yet unaware about e-Banking services. Therefore, it is
suggested that farmers and other class of respondents should also be brought and make them
users of e-Banking services.

34
 LIMITATIONS

Limitations are part and parcel of every project so this project also has got some limitations
which I faced during the collection of primary data.

1. Due to time constraint the research could not be made extensively. The study is limited to
only 31 respondents.

2. Accurate data could not be collected due to communication barriers.

3. The answers which were given by the respondents could not be generalized.

4. Time limitations, but still efforts have been made to put the picture as clear and candid as
possible.

5. Unwillingness of the respondents to share information.

6. Resource constraints.

35
References-
Books:

 Kotler Philip, “Marketing Management” (New Delhi: Pearson Education Pvt Ltd, 2014)

 C.R Kothari, “Business Research Methodology”

 Dr. Dilip k. Chellani “ Rural Banking System”

1. http://shodhganga.inflibnet.ac.in/jspui/bitstream/10603/120907/8/08_chapter%20%202.pdf

2. http://www.kgsgbank.co.in/

3. https://kgsgbank.co.in/webpages.php?tag=financial-inclusion

4. https://en.wikipedia.org/wiki/Regional_Rural_Bank

5. http://www.scribd.com

6. http://m.economictimes.com

36
ANNEXURE

37
 QUESTIONNAIRE

General Questions:

1. Name:

2. Gender:
A. Male B. Female

3. Age:
(a) Less than 30 years
(b) 31-40 years
(c) 41-50 years
(d) 51-60 years
(e) Above 60 years

4. Education Qualification:
(a) HSC and Below
(b) Graduate
(c) Post- Graduate
(d) Professional

5. Occupation:
(a) Farming
(b) Self-employed
(c) Family business
(d) Service firm

6. Income:___________________

Specific Questions:

1. Do you have a bank account?

(a)Yes
(b) No

38
2. Type of Accommodation
(a)Hut
(b)Shed house
(c)Building

3. Number of dependents
(a) Two
(b) Three
(c) Four
(d) Above four

4. How long do you have your bank account?

(a) Less than 5 years
(b) 6-10 years
(c) 11-15 years
(d) 16-20 years
(e) More than 20 years

5. Whom do you approach to know about banking services?

(a) Friends
(b) Relatives
(c) Colleagues
(d) Neighbours
(e) Banker

6. Do you have bank account in any other bank?

(a) Yes (b)No

If yes, which bank ______________________

7. According to you which bank service is better?

____________________________

8. What is the primary purpose for which you visit a bank?

(a) To Deposit
(b) To take a loan
(c) To get a DD
39
(d) To transfer funds
(e) To use ATM
(f) To get a card
(g) To use locker

9. What is the most admirable banking service, you have come across?
(a) Deposit
(b) ATM
(c) ECS
(d) Funds Transfer
(e) Online Banking
(f) Card Service
(g) Loans
(h) Others

10. Are you satisfied with the services provided by the bank?

(a) Yes (b) No

If yes,

Extremely Satisfied Neutral Dissatisfied Extremely

Satisfied Dissatisfied

If No, why________________________

11. What was the change you feel in your lifestyle after availing banking services?
________________________________________________

12. Any suggestion to improve the banking services?

____________________

40
41