' Formal sources are necessary in the rural areas for the development of the rural infrastructure'.Explain it.

Dear Student

Rural development refers to focusing on the ways for the development of areas that are lagging behind in the overall development of the village's economy. Villagers needs money to buy lands, tools and machinery, fertilizers and seeds, for paying debt, and many other reasons. Rural development can be done through:

• Regional Rural Banks (RRBs) and Land Development Banks.
• National Bank for Agricultural and Rural Development.
• Self Help Groups(SHGs) and Micro Credit Programmes.
• State Bank of India and Other commercial banks.

If the rural area people are helped through above means, it will help them overcome unnecessary charges in form of taxes and interest rate and will definitely help in development of rural infrastructure.

Regards.