Template for Preparation of Project Report for MBA course

Contents 1. Cover page 2. Title page 3. Acknowle gement !. Bonafi e "etter #. A$stract %. Ta$le of contents &. "ist of Ta$les '. "ist of (igures ). "ist of *+m$ols, A$$reviations an -omenclature 1.. 11. 12. C/apters References0Bi$liograp/+ 1-*TR2CT13-*4

Calibre Infotech, Coimbatore. LC Code 0093

RURAL BANKING IN INDIA

A PROJECT REPORT

Submitted by
! BALA"I

______________________________
in partial fulfillment o f the requirement for the award of the degree

Of

Ma ter in !u ine

Management

A#RIL $0%%

Acknowle gement4 Acknowledgment is the regards given to the people and organization who have helped you in completing the project undertaken. Mainly it must consist of Acknowledgement towards the organization you study and to the company where you have done your project followed by the people who have helped you in the process.

Bonafi e Certificate:

B&NA'ID( C(R)I'ICA)(
Certified that this project report titled RURAL BANKING IN INDIA is the bonafide work of M BALAJI who carried out the project work under my supervision.

*IGNA)UR( +(AD &' )+( D(#AR)!(N) !epartment# $ull address of the !ept % Colle"e ## Colle"e #

*IGNA)UR( 'ACUL), IN C+ARG( Academic !esi"nation# !epartment# $ull address of the !ept %

56ecutive *ummar+- Executive summary should be of one page summary of the project report. It should consist of the statement of the problem main findings and recommendations for the further use. It should be typed in double line spacing !ont "tyle#$imes %ew &oman and !ont "ize#'(.

Ta$le of contents4 It is the list of all the contents in the report and all the detailed content precedes this table of content. A "pecimen is shown below.
TAB"5 3( C3-T5-T* C7APT5R -3. 1. 1 1.1 1 1.2 2 1.2.1 5 1.2.2 12 1.2.2.1 19 1.2.2.2 25 1.2.2.3 29 1.2.3 30 1.3.. 45 1.4 58 . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . ...... General . . . . . . . . General . . . . . . . . . . . GENERAL T1T"5 INTRODUCTION PA85 -3.

2. 69 2.1 GENERAL 75 2.2.1 99 2.2 100 . .

LITERATURE REVIEW

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Li2t of table2 %. )able %- 3ca4tion the table%5 $. 1 -ote4 B+ t/e wor Ta$le, is meant ta$ulate numerical ata in t/e $o + of t/e project report as well as in t/e appen ices 91f an+:. All ot/er non;ver$al materials use in t/e $o + of t/e project work an appen ices suc/ as c/arts, grap/s, maps, p/otograp/s an iagrams ma+ $e esignate as figures.

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-omenclature4 '.* line spacing

should be adopted for typing the matter under this head. "tandard symbols abbreviations etc. should be used.

C/apters4 Mainly the chapters can be broadly classified into + parts 1. Introductory chapter 2. ,hapter-s. on the main content of the project 3. ,oncluding chapter. $he main text will be divided into several chapters and each chapter can be further divided into several divisions and sub#divisions. Each chapter should be given a relevant title. $ables and figures in a chapter should be placed in the position with respect to the reference where they are cited. /eaders and !ootnotes should be used sparingly. $he title of the project must be reflected in the left side of the header and chapter name must be in the right side of the headers. 0age numbers are to be placed in the right side of the footer. $hey should be typed single space and placed directly underneath in the very same page which refers to the material they annotate. -3T54 Alwa+s t/e report must $e en e c/apter an future en/ancements wit/ t/e conclu ing

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:ournal on contemporary management. +. &amya " )owda. -;<<=. 8Automatic ,lassification of

"atellite Images for ?eather Monitoring9 International conference on @igital !actory ,oimbatore. (.

???. %ortelconnectivity.com4openpge4product.pdfA

1-*TR2CT13-*4 $he text in the printed copies must in black color. '.* line spacing should be used for typing the general text. $he general text shall be typed in the !ont style 8$imes %ew &oman9 and !ont size '(.

IN)R&DUC)I&N

RURAL BANKING IN)R&DUC)I&N &ural bankin" in India started since the establishment of bankin" sector in India. &ural banks in those days mainly focused upon the a"ro sector. 'oday( commercial banks and &e"ional rural banks in India are penetratin" every corner of the country are e)tendin" helpin" hand in the "rowth process of the rural sector in the country. BANK* 'UNC)I&NING '&R )+( D(8(L&#!(N) &' RURAL AR(A* 'he Areas of operation of majority of &&B*s is limited to a notified area comprisin" a few districts in state. +BI has ,- re"ional &ural banks in India known as &&Bs. 'he rural bank of +BI are spread in ., states e)tendin" from kashmir to /anyakumari .Apart from +BI( follows. 0aryana state cooperative bank ltd 1ABA&! +indhanur 2rban +ouharda Cooperative bank 2nited bank of India +yndicate bank Cooperative bank there are the few banks which functions for the development of the rural areas in India. $ew of them are as

C&&#(RA)I8( BANK* AND RURAL CR(DI) 'he Cooperative bank has a history of almost .-- yrs. 'he Cooperative banks are an important constituent of the $inancial system jud"in" by the role assi"ned to them( the e)pectations they are supposed to fulfill their number and the number of offices they operate. 'heir role in rural financin" continues to be important even today and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number or primary cooperative banks. Cooperative banks in India are re"isters under the Cooperative societies act. 'he &BI also re"ulates the cooperative bank. 'hey are "overned by the bankin" re"ulation act .343 and bankin" laws Act .356. Cooperative banks in India finance rural areas under 7 $armin" Cattle Milk 0atchery 8ersonal $inance Institutional arran"ements for &ural credit 9Cooperatives: +hort term Cooperatives Lon" term Cooperatives

+hort term Cooperatives !istrict Central Cooperative banks +tate Cooperative banks 8rimary A"riculture credit Cooperative societies Branches Lon" term Cooperatives +tate A"riculture % &ural development banks 8rimary A"riculture % &ural !evelopment banks Branches

C&!!(RCIAL BANK* AND RURAL CR(DI) 'he commercial banks at present provide short term cop loans account for nearly 46; to 4<; of the total loans "iven and disbursed by the commercial banks. 'erm loans for varyin" periods are "iven for purchasin" pump sets tractors and other a"ricultural machinery( for construction of wells and tube well( for development of land( purchase of plou"hs( animals etc. commercial banks also e)tend loans for allied activities vi=.( for dairyin"( poultry( pi""ery( bee keepin"( fisheries and others. 'hese loans come to .6 to .5;. Commercial ban92 and 2mall farmer2 'he commercial banks identifyin" the small farmers throu"h small farmers development a"encies setup in various districts and "roup them in to various cate"ories for credit support so as to enable them to become bible cultivators. As re"ard small cultivators near urban areas and irri"ation facilities( commercial banks can help them to "o in for ve"etable cultivation or combine it with small poultry farmin" and maintainin" of one or two milk cattle. IRD# and commercial ban92 +ince >ctober .3?-( the Inte"rated &ural !evelopment 8ro"rammed I&!8 has been e)tended to all the blocks in the country and the commercial banks have been asked by the "overnment of India to finance I&!8. 'he lead banks have to prepare bankin" plans and allocate the responsibilities of financin" the identified

beneficiaries amon" the participatin" banks. Commercial banks have been asked to finance all economically backward people identified by "overnment. R(GI&NAL RURAL BANK* AND RURAL CR(DI) 'he 1arasimhan committee on rural credit recommended the establishment of &e"ional &ural banks on the "round that they would be much better suited than the commercial banks or cooperative banks in meetin" the needs of rural areas. Acceptin" the recommendations of 1arasimhan committee the "overnment passed &e"ional &ural bank Act .3<5. 'he main objective of &&Bs is to provide credit and other facilities particularly to the small and mar"inal farmers( a"ricultural labours( artisians and small enterprenuers and and develop a"riculture( trade( commerce( industry and other productive activities in the rural areas. *tr7ct7re of Re6ional R7ral ban9 'he establishment of the &e"ional &ural Banks 9&&Bs: was initiated in .3<6 under the provisions of the ordinance promul"ated on .3<6 and thereafter section ,9.: of the &&B act( .3<5. 'he issued capital of &&Bs is shared by central "overnment( sponsor bank and the state "overnment in the proportion of 6-; ( ,6; and .6; respectively. &&Bs established with the e)plicit objective of 7

Brid"in" the credit "ap in rural areas. Check the outflow of rural deposits to urban areas. &educe the outflow imbalances and increase rural employment "eneration. R&L( &' RBI IN RURAL CR(DI) +ince it was setup in .3,4( &BI has been takin" keen interest in e)pandin" credit to rural sector. After 1ABA&! was setup as the ape) bank for a"riculture and rural development( &BI has been takin" series of steps for providin" timely and ade@uate credit throu"h 1ABA&!.

+cheduled commercial banks e)cludin" forei"n banks have been forced to supplement 1ABA&!*s efforts throu"h the stipulations that the 4-; of net bank credit should "o to the priority sector( out of which at least .?; of net bank credit should flow to a"riculture. Besides( it is mandatory that any shortfall in fulfillin" the 4-; tar"et or the .?; sub tar"et would have to "o to the corpus rural infrastructure !evelopment fund 9&I!$:. &BI has also taken steps in recent years to stren"then institutional mechanisms such as recapitali=ation of &e"ional &ural Banks9&&Bs: and settin" up of local area banks9LAB+:.

!icro finance Micro $inance is a novel approach to bankin" with poor as they attempt to combine lower transaction costs ai"h de"ree of repayment. 'he major thrust of

these micro finance initiatives is throu"h the settin" up of +elf help "roups and 1on "overnmental >r"anisations( credit unions etc. Ki2an Credit Card Another notable development in recent years is the kisan Credit cards in .33? A 33. 'he purpose of /issan CreditCards is to facilitate sjort term credit to farmers. 'he scheme has "ained popularity and its implementation has been taken up by B< commercial banks( .?< and ,,4 central cooperative banks. A6ric7lt7ral in27rance As a"ricultural is hi"hly suspectible to risks such as drou"ht( flood( pests( etc. it is necessary to protect the farmers from natural calamities and ensures their credit eli"ibility from the ne)t season. 'owards this purpose( the "overnment of India introduced a comprehensive crop insurance scheme throu"h out the country in .3?6 coverin" major cereal crops( oil seeds and pulses. Major commercial crops are covered.

!ARK()ING &' !U)UAL 'UND* UNI)* : RRB2 Cith a view to e)pandin" the scope of Mutual $und units provides a profitable avenue for banks( it has been decided by &BI on .< th May B--5 to allow &&Bs to undertake marketin" of units of Mutual $unds as a"ents. Accordin"ly( &&Bs may with approval of their Board of !irectors enter into a"reements with mutual funds for marketin" their units subject to the followin" terms and conditions 7D 'he banks should act as an a"ent to customer ( forwardin" applications of the investors for purchase E sale of M$ units to mutual fund E &e"istrar transfer A"ents. 'he purchase of M$ units should be at the risk of customers and without the bank "uaranteein" any assured return. 'he bank should not ac@uire such units of M$ from secondary market. 'he bank should not buy back units of Mutual funds from their customers. 'he bank holdin" custody of M$ on behalf of their customers should ensure that its own investment and investments belon"in" to their customers are kept distinct from each other. &etailin" of units of M$ may be confined to some select branches of the bank to ensure better control.

'he bank should comply with e)tent /FC "uidelines in respect of the applicants. 'he &&Bs should put in place ade@uate and effective control mechanisms in consultations with their sponsor banks.

&&Bs performance in respect of some important indicators was certainly better than that of commercial banks or even cooperatives. &&Bs have also performed better in terms of providin" loans to small and retail and petty non farm rural activities. In recent years( they have taken a leadin" role in financin" self help "roup and other micro credit institutions and linkin" such "roups with formal credit sector.

&&Bs should really be stren"thened and provide with more resources with which they can undertake more of these important activities. And most certainly they should be kept apart from a profit oriented corporate motivation that would reduce their capacity to provide much needed financial services to the rural areas( includin" to a"riculture. Ideally the best use of resources raised by &&Bs throu"h deposits would be throu"h e)tensive cross subsidation. 'his in turn really re@uires an ape) body that would cover and oversee all &&Bs sometimes like 1ational &ural bank of India.

C+A#)(R % CR(DI) AND RURAL (C&N&!,

C+A#)(R % CR(DI) AND )+( RURAL (C&N&!,

$inancial liberali=ation after .33. decimated the formal system of institutional credit in rural in India. It represented a clear e)plicit reversal of the policy of social and development bankin" such as it was( and contributed in no small way to the e)treme deprivation and distress of which the rural poor in India have been victims over last decade. $inancial liberali=ation is a crucial component of the pro"rams of economic reforms that are bein" imposed on the people of less developed countries. 'he demand that the financial markets be liberali=ed @uickly is hi"h on the a"enda of imperialism in India as well advocates of economics reform see financial liberali=ation as bein" at the core of structural adjustment. 'here are many components of the packa"e of reforms associated with financial liberali=ation in India. It is well known that the burden of indebtedness in rural India is very "reat( and that despite major structural chan"es in credit institutions and forms of rural credit in the post independence period the e)ploitation of the rural life in India. &ural households need credit for a variety of reasons. 'hey need credit to meet

their short term re@uirements of workin" capital and lon" term investment in a"riculture and other income bearin" activities. A"riculture and non a"ricultural activities in rural areas typically are seasonal and household need credit to smoothens out seasonal fluctuations in earnin" and e)penditure. &ural house holds particularly those vulnerable to what appear to others to be minor shocks with respect to income and e)penditure( need credit as an insurance a"ainst risk. In a society that has no law of free( compulsory and universal school education( no arran"ement for free and universal preventive and curative health care( a weak system for the public distribution of food and very few "eneral social security pro"rams( rural households need credit for different types of consumptions. 'hese includes e)penditure of food( housin"( health and education. In the Indian conte)t another important purpose of borrowin" is to meet e)penses on variety of social obli"ations and rituals. 0istorically there have been four major problems with respect to the supply of credit to the Indian country side. $irst the supply of formal sector credit to country side as a whole been ade@uate. +econdly( rural credit markets in India themselves have been very imperfect and fra"mented. 'hirdly as for"oin" su""ests( the distributions of formal sector credit has been une@ual particularly with respect to re"ion and class( and "ender in the countryside. $ormal sector credit needs specially to reach backward areas( Income poor households( people of the oppressed castes and tribes. And women. $ourthly the major source of credit to rural households particularly income poor workin" households has been

the informal sector. Informal sector loans typically are advanced at very hi"h rate of interest. $urther terms and conditions attached to theses loans have "iven rise to an elaborate structure if coercion economic and e)tra economic in the countryside.

'hat these constitute what may be called the problem of rural credit has been well reco"ni=ed in fact in official evaluation and scholarship since the end of the .3 th century. Given the issues involved the declares objectives of the public policy with re"ards to the rural credit in the post independence period where in the words of a former Governor of &BI H 'o ensure that sufficient and timely credit at reasonable rate of interest is made available to as lar"e a se"ment of rural population as possibleI. 'he policy instruments to achieve these objectives were to be first the e)pansion of the institutional structure of formal sector lendin" institutions( secondly directed lendin" and thirdly concessional or subsidiary credit. 8ublic policy was thus aimed not only at meetin" rural credit needs but also pushin" out financial sector and the e)ploitation to which it subjected borrowers. &ural credit policy in India envisa"ed the provision of ran"e of credit services includin" lon" term and short term credit and lar"e scale and small scale loans to rural house holds.

C0A8'J& B BANKING #&LIC, IN RURAL INDIA %909 )& )+( #R(*(N)

C+A#)(R $ BANKING #&LIC, IN RURAL INDIA %909 )& )+( #R(*(N) 'he period from .353 to the present can be considered in to three phases in bankin" policy the first was the period followin" nationali=ation of India*s .4 major commercial banks in .353. 'his was also early phase of the "reen revolution in rural India and one of the objectives of the nationali=ation of banks was for the state to "ain access to the new li@uidity particularly amon" rich farmers in the country side. 'he declared objective of the new policy with respect to rural bankin" what came to be known as H social and development bankin"I
1)

'o provide bankin" services in previously unbanked or under banked rural areas

2)

'o provide substantial credit to specific activities includin" a"ricultural and cotta"e industries.

3)

'o provide credit to certain disadvanta"ed "roups such as $or J" !alit and scheduled 'ribe households.

'he introduction of social development bankin" policy entailed a radical shift from prevalent practice of the objective and functionin" of commercial banks. An important feature of the policy of social and development bankin" was that

it recast completely the role of commercial banks in rural bankin". 8rior to .353 the country side was not considered to be problem of commercial bankin". It was only .353b that a multi institutional approach to the credit in the country side became policy with commercial banks( &e"ional &ural banks and cooperative institutional establishin" wide "eo"raphical and functional in the Indian country side.

'he &eserve bank of India issued specific directives with respect to social and development bankin". 'hese included settin" tar"ets for the e)pansion of rural branches imposin" ceilin"s on interest rates and settin" "uidelines for the sectoral allocation of credit. &ural credit was an important component of the "reen revolution packa"e this phase saw a substantial "rowth in credit advances for a"riculture. +pecifically advances to a"riculture and allied activities increased for 4-; as H 8riority sectorI. Advances to country sides increased substantially althou"h they were as was the "reen revolution itself in respect of re"ions crops and classes. 'he B main crops that "ained from "reen revolution as is well reco"ni=ed were wheat and &ice. 'he application of new technolo"ies was primarily in the irri"ated areas if the north west and south in India.

In .3<6 the "overnment established by ordinance and then le"islations a new network of rural financial institutions called &e"ional &ural Bank 9&&B: which ere promoted by the Government of India( +tate "overnment and Commercial banks. 'hese ere created on the basis of recommendations of 1arasimhan committee and were intended to H combine the cooperativesI local feel and familiarity with business acumen of commercial banks.

'he second phase which be"an in the late .3<-*s and early .3?-*s was a period when the rheotic of land reform was finally discarded by the rulin" classes themselves and period when major instruments of official anti poverty policy were pro"rammed and for the creation of employment. 'wo strate"y for employment "eneration were envisa"ed namely wa"e employment throu"h state sponsored rural employment schemes and self employment "eneration by means of loans cum subsidy tar"eted at rural poor. 'his directed towards weaker sections. 'he most important new schemes of this phase was of course( the Inte"rated &ural development pro"ram or I&!8( a scheme for the creation of productive income bearin" assets amon" the poor. 'hrou"h allocation of subsided credit. 'he I&!8 was initiated in .3<?D<3 as pilot project and e)tended in .3?-. 'here is failure in I&!8 amon" the many reasons were the absence of a"rarian reform and decentrali=ed institutions of democratic "overnment( the inade@uacy of public infrastructure and public provisionin" of

support services and the persistence of employment insecurity and poverty in rural society. 'he second phase also involved an e)pansion and consolidation of the institutional infrastructure of rural bankin". After bank nationali=ations there was unprecedented "rowth of commercial bankin" in terms of both "eo"raphical spread and functional reach.

'he third phase and current phase which be"an in .33. is that of liberali=ation. 'he policy objectives of this phase are encapsulated in the &eport of the committee of $inancial system( which was chaired ironically by M 1arasimham 9&BI( .33.:. In its very first para"raph the report called for H a vibrant and competitive financial system to sustain the on"oin" reform in the structural aspects of the real economyI. 'he committee said 7 should use the instrumentality of the fiscal rather than the credit systemI and accordin"ly( 'hat H directed credit pro"rammed should be phased outI. It also recommended that interest rates be dere"ulated( the capital ade@uacy norms be chan"ed( the branch licensin" policy be revoked that a new institutional structure that is market driven and based profitability be created and that the part played by various private Indian and forei"n banks be enlar"ed.

C+A#)(R 3 R(C&RD &' #R&GR(** &' RURAL BANKING

C+A#)(R 3 R(C&RD &' #R&GR(** &' RURAL BANKING

8olicies of the current phase of financial liberali=ation have had an immediate direct and dramatic effect on rural credit. 'here has been a contraction in rural bankin" in "eneral and in priority sector lendin" and preferential lendin" to the poor in particular.

Considerin" few indicators Appendi) table . documents "rowth of bank offices deposits and "ross bank credit In rural areas as well as the share of rural areas in the all India total from !ec .353 to MarchB--B( for all scheduled commercial banks. 'he impact of bank nationali=ation on the "rowth of scheduled commercial banks n rural areas is clear the share of rural bank office in total offices jumped from .<.5; in .353 to ,5; in .3<B. 'he share then rose steadily of the rural bank offices and the share fell below 6-; in .33? and there after. In fact there was an absolute contraction in the number of bank offices in .33-s B<B, rural banks offices were closed between March .334 and March B-->fficial bankin" statistics do not unfortunately "ive us information on the volume of advances in specified year. 'he basic source of data on bankin" is

&BI annual Bankin" statistics. !ata in this document are provided on Credit Monitorin" includin" all outstandin" loans and non performin" assets on March ,.stof the reference year. !ata under credit sanctioned and credit utili=ed are e@ual. 'he conse@uence of this method of collection and presentation of data is that there are no data at all on loan advances by banks each year. 'he data on the stock of credit show marked declaration in credit provision to the countryside since .33.( had data on the actual amount each year we would have had a clearer picture of the collapse in rural bankin" in the period of liberali=ation.

'he period after nationali=ation was characteri=ed by an e)pansion of bank credit to rural areas the credit outstandin" from rural branches in the .3<-s and continued to rise in .3?-s After .3?? however( the credit outstandin" from the rural branches as a proportion of total credit outstandin" declined from around .6; in .3?< and .3?? to ..; in March.333( and .-.B; in B---. >nce a"ain the peak was reached .33-D3. when rural deposits accounted for .6.6; of a""re"ate deposits. 'he pace of deposit mobili=ation in rural areas fell in .33-*s.

>ne of the objectives of bankin" after nationali=ation was to e)pand the flow of credit to a"riculture and small industries( or what were termed as H8riority

+ectorsI. As Appendi) 'able B shows the share of priority sectors in the total credit outstandin" of scheduled commercial banks rose from .4; in .353 to B.; in .3<B and then went up ,,; in .3?-. 'he &BI set a tar"et of 4- ; for priority sector lendin" and by mid .3?-s this was met. $rom .3?6 to .33-( the tar"et was over achieved . In .33. to .335 the share if priority sector credit fell( in line with the recommendations of 1arasimhans Committee. 'he direction priority sector lendin" appears to have been reversed over the last five years. 'his is however a reversal by redefinition7 H8riority +ectorI lendin" now includes advances to newly created infrastructure funds( to 1B$C for on lendin" to very small units and to food processin" industry. Loans to multinationals like 8epsi( kello"s( 0industhan Lever and Con A"ra now count as priority sector advances.

'he I&!8 was a major component of the credit led poverty alleviation strate"y of the .3?-*s. the number of families assisted annually with I&!8 loans rose B.< million in .3?-D?. to 4 million in .3?4 and 4.B million in .3?<. Althou"h the pro"ramme slackened after that the number of beneficiaries in .33-D.33. remained above the level of early .3?-*s. After .33. there was a steep decline in the number of I&!8 beneficiaries. >nly .., million families were assisted in .33?. 'he term credit disbursed by bank under I&!8 followed a similar trajectory. Cith .3?B inde)ed at .-- total term credit mobili=ed for I&!8 peaked at .., in .3?< and went down to 6B in .33?.

C+A#)(R . R(GI&NAL RURAL BANK*

C+A#)(R . R(GI&NAL RURAL BANK*

&e"ional &ural banks as we have noted were created in the .3<-*s to serve the credit needs of rural India( specifically those individuals( social "roups and re"ions most e)cluded by the formal system of credits. $or all their weakness( these banks passed an important international test. A cross country study of rural credit institutions threw up the important findin" that( in the period .3??D3B of all the institutions studied( re"ional &ural banks in India incurred the lowest costs of administration( ?..; of the total portfolio.

An important feature of bankin" reforms has been to alter the e@uation between different sectors of bankin" in this case to make the norms "overnin" &e"ional rural bank indistin"uishable from those "overnin" commercial banks thus underminin" their capacity to serve the special needs of the rural economy and the rural people.

'here has been a ban on recruitment to the staff of &e"ional &ural Banks since .33. At every discussion or seminar on problems of &ural credit that we have attended in the recent past( bank officials speak of the impact on rural credit of

the "rayin" of bank personnel and the thinkin" of their ranks. $ield officer of &e"ional &ural Bank in the .3<-s and .3?-s were relatively youn" and capable of spendin" substantial periods of time in the villa"es served by their branches. &e"ional &ural banks have also suffered because they are no lon"er permitted to recruit a"ricultural science and en"ineerin" "raduates for speciali=ed lendin". Liberali=ation has had the effect of cripplin" &e"ional &ural Banks ( renderin" incapable of fulfillin" their ori"inal mandate.

C+A#)(R / !ICR& CR(DI) AND *(L' +(L# GR&U#

C+A#)(R / !ICR& CR(DI) AND *(L' +(L# GR&U# It is clear from the precedin" sections that neo liberal bankin" reforms amounts in theory and practice to a reversal of the public policy objectives of e)tendin" the reach of rural credit( providin" cheap ad timely credit to the rural households9 particularly economically vulnerable households:( overcomin" historical problems of imperfect and fra"mented rural credit makers( and displacin" the informal sector from its powerful position in rural credit markets. As we have seen there was a lar"e scale retreat by the formal sector from the Indian countryside in the post .33.. $rom official policy statements ( it appears that the "overnment envisa"es only one major policy instrument to fill the "ap left by the formal credit sector in the countryside the establishment of micro credit projects in &ural India. 'he micro credit approach is viewed as bein" able to rectify the major weakness of the bankin" system itself( most notably the Htwin problems of non viability and poor recovery performanceI of e)istin" credit institutions. Micro Credit is the favored alternative to the present system because first it is assumed that the transactions costs of banks and financial institutions can be lowered si"nificantly if these cost are passed on to 1G>s or +elf 0elp Groups and secondly( because

1G>s are e)pected to perform better than formal sector institutions in respect of recovery of loans. 'he terms micro credit and micro finance have risen spectacularly to fame in the development profession and in development literature in the last decade and a half. 'he declaration of Corld bank sponsored Microcredit summit held in Cashin"ton ! C . in .33< defined micro credit pro"rammed as those He)tendin" small loans to poor people for self employment projects that "enerate income( allowin" them to care for themselves and their familiesI. In India the task force on supportive and &e"ulatory frame work for Micro finance in India defined Micro finance as the Hprovision of thrift( credit and other financial services and products of very small amounts to poor in rural( semi urban or urban area enablin" them to raise their income levels and improve livin" standardsI. 'he &eserve bank of India used the same definition. Chile micro credit loans are "enerally advanced for self employment projects( they are sometimes advanced for consumption as well. 1evertheless the advocates of micro credit do consider it necessary for micro credit institution to "et borrowers to make the transition from consumption loan to production loans. 'he characteristic features of micro credit operation are small loans to poor house holds in rural and urban areas for income "eneration throu"h self employment Micro Credit institutions may also provide facilities for savin"s and other

employment. Micro credit as discussed in international literature( is associated with the followin" recurrin" empirical features 7 Kery +mall loans 1o collateral Borrowers from amon" the rural and urban poor Loans for income "eneration throu"h market based self employment 'he formation of borrowers "roups 8rivati=ation( "enerally throu"h the mechanism of 1G> control over disbursement and the determination of the terms and conditions attached to each.

Jarlier we reviewed the B claims in support of 1G> control micro credits( that is lower transactions costs and a better repayment record than that of formal sector financial institutions. 'he International evidence on administrative costs of 1G>*s shows that these costs were hi"h and relatively hi"her than those of commercial banks. 1G> cannot match the economies of scale of a comprehensive system of bankin" . +econdly the costs of administration of 1G> controlled micro credit have actually risen when 1G> actively is scaled up

repayment rates in 1G> controlled micro credit projects are related directly to the level of administrative cost and mobili=ation efforts. 0i"h cost 1G> operations are financed either by donor funds interest rates to levels hi"her than those offered by the bankin" system or by raisin" both. It is acknowled"ed widely that interest rates char"ed by micro credit or"ani=ation are hi"her than the correspondin" rate char"ed by commercial banks and other financial institutions. 'hus the transfer if servin" the credit needs of rural borrowers from the bankin" system to 1G> controlled micro credit projects does not reduce transactions costs but in effect transfers transaction costs hi"her transactions costs donors as well as borrowers. &eviewin" interest rates on micro credit loans it was observed that annual rates ran"ed from B4 to ,5 ; on bank linked schemes refinanced by 1ABA&!. +ome studies( however( found rate of interest that were even hi"her and as much 5-; per annum. 'o sum up interest rates for micro credit loans are undoubtedly hi"her than those char"ed by the bankin" sector for a"ricultural loans and the interest rate spread is also lar"er. 'he other salient feature of micro credit hi"h repayment is not a costless achievement. A system based on @uick repayment of very small loans does not allow for funds to "o in to income bearin" activities that have an "estation period of any si"nificance. >nly projects with very @uick rates of return and hi"h rates of

return relative to tiny investment can meet e)istin" repayment schedules. 'his pattern of repayment can put the poorest out of pale of micro credit since the ability to pay the first few installments depends on the initial resource base of the borrower. 1e)t hi"h repayment on hi"h transactions costs. As mentioned earlier( 1G>s invest heavily in supervisin" monitorin" and enforcin" loan repayment. Chen the activities of 1G> controlled micro credit projects are scaled up the relative burden of administration cost trends to increase. An evaluation of +JCA bank( a bank setup by the self employed Comen*s association showed that the proportion of overdue to total advances was actually mar"inally hi"her than the correspondin" ratio for the public sector banks. +calin" up 1G> controlled micro credit project it appears can "enerate problems similar to those faced by tradition bankin" institutions. 'he corrective measures bein" taken by +JCA bank to address the problem of overdue loans involve "reater supervision and monitorin". In short hi"her and better repayment re@uires more staff and closer monitorin" or hi"her transaction cost. In India 1"o controlled micro credit is not yet as wide spread and does not represent "eneral policy towards rural credit as it is and does for instance in Ban"ladesh. 1evertheless( the scale of bank finance throu"h self help "roup has e)panded rapidly in the last few years( and considered Hthe lar"est and faster "rowin" e)ample of micro finance in the worldI. Citness the proliferation of +elf help "roups from less than .---- in .335D3< the umber of self help "roup with

bank finance has "rown .- lakhs in B--4. 1ABA&! has set a "oal of creatin" B million self help "roup by B-.B. Andhra 8radesh has been somethin" of a leader in establishin" self help "roups by B--B over 6-; of the self help "roup in the country were in Andhra 8radesh. !espite the "rowth in numbers with over , lakhs self help "roup by B--B only -.5; of the total bank credit in Andhra 8radesh was channeled to self help "roup in B--B. 'he results of a recent case study of the costs and benefits of participation in women*s self help "roup in Andhra 8radesh are note worthy. !rawin" on detailed interviews with women from different self help "roups in two villa"es of the 'elan"ana re"ion( involves various features of self help "roup in practice ( amon" them the e)clusion of the poorest of the e)istin" class and caste hierarchies by "roups. 'he state "overnment allocated very little by way of funds and manpower to monitor self help "roups. 'ransactions costs were inevitably borne by 1G>*s or members of the "roups( includin" income poor women. $rom these villa"e studies it emer"es that micro credit advances were small short term and hi"h cost. Interest rates on these loans were typically ,-; p.a. as compared to t ,5; of the informal lenders. 'here is as yet no lar"e scale evaluation of micro credit institutions and finance as an alternative mechanism for meetin" credit and bankin" needs in rural India.

'his is an important area for further research. 'he conclusion of the case study however are salutary( for they indicate the shortcomin"s of relyin" solely on micro credit to alleviate poverty and empower women. Ce have shown that despite associations to the contrary 1G> controlled micro credit or"ani=ation do not incur lower transactions costs than banks. Banks have many advanta"es over private micro credit or"ani=ations as providers of small loan. 'hey have advanta"es of scale( the bankin" system in India has a reach and spread that 1G> controlled microcredit cannot be"in to match L banks can cross subsidi=e loansL banks are better placed to coordinate bankin" activity with development administration( local "overnment and self help "roupsL and banks are better able than private micro credit to offer a wide ran"e of financial services to borrowers. $or the state to withdraw from the field and hand over small scale credit to 1G> controlled micro credit or"ani=ations is in effect to undermine and weaken major national asset the widespread rural bankin" system.

C+A#)(R 0 8ILLAG( *)UDI(*

C+A#)(R 0 8ILLAG( *)UDI(* Case studies based on primary data help to identify the impact of chan"es in financial policy and bankin" structure on patterns of indebtedness amon" rural households. >n reviewin" the major results from five papers each reportin" the findin"s of detailed villa"e surveys on rural credit in the contemporary period. 'he studies cover Ba"hra and 2daipur villa"e of Giridih district in Jharkand( panahar abd Muidara villa"es of Bankura district in Cest Ben"al(Mora=a villa"e of /annur district in /erala( Gokilapuram of 'heni district in tamilnadu and !hamar of &ohtak district and Birdhana of $atehbad district in 0aryana. Gokilapuram villa"e in 'amilnadu is hi"hly irri"ated a"riculturally advanced and commerciali=ed villa"e. 'he hi"h development of productive forces is combines with a very une@ual distribution of resources a lar"e portion of households are landless while a small minority control the major share of land and other assets. 'he availability of data from B census type surveys the . st in .3<< and the Bnd .333( with smaller surveys in the interim particularly in .3?6 allows for a discussion of chan"es over a relatively lon" period of time. &esurvey data are also available for the two villa"es in west Ben"al. 'he study of the villa"es of 8anahar and Muidara in .336 D35 and restudied them in B--B.

After land reform in the .3<-*s and .3?-s there were major chan"es in these B villa"es. Irri"ated area a"ricultural output and yields sur"ed. As in other parts of Cest Ben"al a"rarian structure in 8anahar and Muidara is dominated by smallholders. In the nei"hborin" Jharkand( the surveys of rural credit in the villa"es of Ba"hra and 2daipur in B--,. 'hese villa"es are not only less developed in terms of a"ricultural production than 8anahar and Muidara but also poorer in terms of "eneral infrastructure and resources. 2daipur villa"e a villa"e whose population was almost entirely Adivasi has fewer landless households and less ine@uality in the distribution of land than Ba"hra( a multi caste villa"e. 'he last case study is from northern /erala. 'his survey in B--. of all landless households whose members participated in a"ricultural work in Mora=ha villa"e. Mora=ha villa"e belon"s to the re"ions that was characteri=ed by widespread ad acute indebtedness amon" the peasantry durin" British periods. It is also re"ion where there were major stru""les a"ainst British rule and a"ainst landlordism and where the cooperative movement took stron" roots. 'hese villa"es studies present some strikin" observations with respect to the rural credit in the liberali=ation phase. All the villa"e studies report hi"h levels of indebtedness 7 54; of households in Mora=ha were indebted( the correspondin"

proportions were 55; in Gokilapuram <B; in Ba"ha( <6; in !hamar and ?,; in8anhar and Muidara. 1e)t with one e)ception the villa"e data combined with information on the bankin" sector indicate that the share of formal sources of credit that is commercial banks re"ional rural banks and cooperatives is e)tremely low.In Ba"hra villa"e for e)ample only B?; of total credit was from formal sector. In 8anahar and 1uidara the formal sector accounted for B4; of credit amon"st villa"ers. In Gokilapuram only .4;of loans taken and 4-; of principal borrowed by villa"e households. Class further differentiates access to credit. only BB; of total principal borrowed. 'he e)ception is the villa"e of Mora=ha where the cooperative movement is well established and societies are almost the sole source of credit in rural house holds. In B--. 3?; of the principal borrowed by landless households was from cooperatives. Jven here thou"h cooperatives mainly met consumption credit and the issues of credit to landless households to productive purposes remained unchan"ed. A most strikin" feature of the villa"e data from Jharkand was that the people at lar"e had no access to the formal sector of credit. In Ba"hra( only seven households received any formal sector credit at all in the five years prior to the Amon" landless hired labour households in Gokilapuram the formal sector accounted for

survey. In each of the two study villa"es( only one household received any formal sector credit in the year precedin" survey. 'he formal sector has virtually washed its hands of any responsibility to the villa"es. 1e)t the two studies that capture over time show a clear decline in access to formal resource of credit( particularly credit from scheduled commercial banks( in recent years. In 8anahar and Muidara the share of formal sector in total debt fell from B4; in .336D35 to <; in B--.D-B. In Gokilapuram the share of the formal sector in the total principal borrowed by landless households fell from ?-; to .<; between .3?6 and .333. In the study villa"es in west Ben"al and tamilnadu informal lenders are thrivin" and in fact "ained "round after .33. as a result of the withdrawal of the bankin" sector from rural areas . the villa"es studies indicate the "ross inade@uacy of credit( especially for crop cultivation and other productive productivities. 'he "rowin" and unmet demand for credit both for direct production as well for demands of health( education( and other needs is resultin" credit starvation amon" &ural households. !espite over , decades of systematic e)pansion of the bankin" infrastructure in the country the villa"e studies indicate that informal sources of credit includin" usurious moneylenders remain important and often dominant and "rowin"( sources of credit for rural households.

In 8anahar and Muidara trader money lenders have come to dominate the informal credit market. In .336 A 35 ,B; of the total principal borrowed by the surveyed households was borrowed from traders. Money lenders accounted for .<; of the total principal borrowed by households. In B--.D-B of the total principal borrowed by surveyed households 6-; was advanced by a"ricultural traders and another ,.; was advanced by urban businessmen. In Gokilapuram in .3<< of the total principal borrowed by the landless labor households B<; was advanced by money lenders and B,; by landowners. By .333 the share of landowners has fallen to B.4; while money lenders accounted for 4B;. As major findin" of this study is the phenomenal rise in the number of moneylenders( full time and part time. Killa"e based and town based( operatin" in the area. In Ba"hra villa"e too amon" informal lenders moneylenders dominated accountin" for 54; of the total principal borrowed by households. 'he correspondin" proportion in 2daipur was 45;. 'he rate of interest on loans from the informal sector particularly from

moneylenders remain very hi"h. In 8anahar and Muidara( where traders were major source f credit e)plicit interest rates were not easy to unearth or compute thou"h rates between ,5 and .B- ; per annum reported. In Ba"hra the modal interest rate ran"e from 5-D.B- ; for landless households and ,5D4? M for all households. Amon" landless labour households at Gokilapuram( the share of

principal borrowed at hi"her than ,5; per annum doubled between .3<< and .333.In !hamar( the modal rate of interest char"ed by employer lenders was ,5; per annum. A distinctive feature of the 0aryana villa"es was that the dependence of the landless manual worker households on their employers for credit( to"ether with the conditions of severe unemployment( forced workers to enter in to unfree labor relationships in these villa"es coe)isted with si"nificant technolo"ical advance and commerciali=ation in a"riculture. 'he study found that while unfreedom was closely linked to the hi"h de"ree of concentration of ownership of the land holdin"s in these villa"es. Central workers were subject to various kinds of coercion by employer creditors and had also perform various kinds of labor. 'hey were not allowed to works for employers other than their creditors and restrictions were often imposed even on their physical mobility. In short the study found that the dependence of manual workers households on employers for credit was an important factor in sustainin" unfree condition for employment.

C+A#)(R ; IN*)I)U)I&NAL CR(DI) '&R RURAL INDIA

C+A#)(R ; IN*)I)U)I&NAL CR(DI) '&R RURAL INDIA In April A May B--4 the Indian electorate delivered a dramatic jud"ment on economic policy. ., Fears of neoliberal economic policy has taken roll and there is "eneral a"reement amon" serious political observes that election results represented widespread protest( rural and urban( a"ainst the collapse of livelihood amon" people. If policy is to repair the dama"e done to the rural economy India needs lar"e scale investment I the countryside. 'he links between rural distress and the near collapse of the formal sector of bank is well reco"ni=ed( ad it is no surprise that one promises of the new Government was that it would double cash flow of rural credit in , years. 'he purpose is not to evaluate the rural credit policy of the "overnment. 1evertheless it is clear that if any "overnment is seriously to address the crisis in rural bankin" it must reaffirm the commitment the part played by credit system in redistribution and poverty alleviation. Commercial banks &e"ional &ural Banks and Cooperatives must lead rural credit revival( which is too serious and lar"e scale a task to be left merely to +elf help "roup or 1G>s controlled private sector micro credit >r"ani=ation.

'he "eo"raphical and functional reach of public sector bankin" must be restores and e)tended different interest policies reinstated and special loans cum subsidy schemes reintroduces on lar"e scale for all landless and poor and middle peasant households( scheduled caste and tribal households and other vulnerable sections of rural populations. 8riority sector norms must be enforces and instead of an alternative such as investment in &I!$ bonds( penalties must be imposed on any failure of banks to meet these public interest tar"ets. It is clear that chronic indebtedness amon" rural poor is a problem that cannot be solved by bankin" policy alone( and that the abolition of usury re@uires a"rarian reform( a decisive chan"e in bankin" policy is essential for the very survival of the workin" people in &ural India.

&J$J&J1CJ+

R('(R(NC(* Ba"chi( Amiya /umar9B--4: H&ural Credit and +ystematic&iskI( in &amachandran and +waminathan.

C 8 Chandrsekar C 8 and &ay ( +ujit /umar 9B--4: ( H$inancial +ector &eform and the 'ransformation of Bankin"I( in &amachandran and +waminathan.

Chandrasekar C 8 and J Ghosh B--B 'he Market that failed A !ecade 1eoliberal Jconomic reforms in India 1ew !elhi 7 Left word books.

Chavan ( 8 and & &amakumar( B--B HMicro credit and &ural poverty7 Analysis of empirical evidenceI ( Jconomic and political Ceekly ( ,<(.- pp 366D356.

 Chavan( 8allavi9B--4:( Bankin" +ector Liberalisation and the Growth and &e"ional !istribution of &ural Bankin"I ( in &amachandran and +waminathan.

!hana"are( ! 1 ( .33- HGreen &evolution and +ocial Ine@ualitiesI. In poverty and Income distribution ( ed / + /rishnaswamy B55DB??. Bombay 7>)ford university press for +ammeksha trust.

!re=e( J ( .33- H8overty in India and the I&!8 delusionI( Jconomic and political Ceekly ( B6 9,3:7 A3DA.-4.

Greeley( M ( .33< Hpoverty and Cell Bein"7 8roblems for poverty reduction in role of CreditI.( In Cho needs creditN 8overty and finance in Ban"ladesh( eds Cood and+harif( pp London7 Oed Books.

 Griffin( / .3<6 ( P'he political Jconomy of A"rarian Chan"e. London 7 Macmillan.

0ashemi( + M and Morshed( L.( .33< HGrameen BankIA Case +tudy. In Cho needs CreditN 8overty and $inance in Ban"ladesh( eds Cood and+harif( pp London7 Oed Books.

0ossain( M.(9.33,: HCredit for Alleviationof &ural 8overty 7 the "rameen Bank in Ban"ladeshI tropicultura( ..(,(pp..6D.B..

0ulme( ! and Mosley( p 9.33?:( HMicroenterprise $inance7 Is there a conflict between Growth and 8ioverty AlleviationI( Corld !evelopment( B5(6( pp <?,D<3-.

 Indian +chool of Comen*s studies and development ( B--4( H Comen workers in &ural 0aryana( A field based studyI.

Ja"an Mohan( K ( B--4 H &e"ional &ural banks 7 the vehicles for brid"in" the bankin" !ivideI +tate bank of India Monthly &eview.

Johnson + and &o"aly B .33< Micro finance and poverty &eduction( 2 / and Ireland7 >Q$AM and Action Aid.

/elkar( G ! 1athan and & Jahan( B--4( H&edefinin" Comen*s P+amman*( Microcredit and "ender &elations in rural Ban"ladeshI.

Madras Institute of !evelopment studies 9MI!+: .3?-. +tructure and Intervention. An Jvaluation of !8A8 ( I&!8and related pro"rams In &amanathapuram and !harmapuri !istricts of 'amilnadu.

 1air( ' ( .333 P&ural $inancial Intermediation and Commercial banks7 A review of &ecent trends*( Gujarat Institute of !evelopment &esearch workin" studies workin" paper 1o,--( March ( thiruvananthapuram.

1arayana( ! .( B---. Bankin" +ector reforms and the emer"in" Ine@ualities in Commercial Credit !eployment in India*( Centre for !evelopment studies .

&amachandran( K / and Madhura +waminathan( .33B( P$orei"n Banks* Kiolations.

&an"arajan( C 9.335: P&ural India( the role of Credit*( &eserve Bank of India Bulletin( May7 Bombay7 &eserve Bank of India.

 &awal( Kikas 9B--4: H Bankin" and credit &elations in &ural west Ben"alI( in &amachandran and +waminathan.

+iebel( 0 ! and 0 & !ave B--B( HCommercial Aspects of +0G Bankin" in IndiaI.

Cade( r. B---( HInternational Institutions and the 2+ &ole in the lon" Asian Crisis of .33- DB---.

Cood G ! and I A +harif( eds( .33<. Cho 1eeds CreditN 8overty and $inance in Ban"ladesh( London7 Oed Books.

'ABLJ+

A44endi< table % N7mber of &ffice2, a66re6ate de4o2it2 and 6ro22 credit o7t2tandin6, all 2ched7le2 commercial ban92, in India %909 to $00$.
,ear .353 .3<.3<. .3<B .3<, .3<4 .3<6 .3<5 .3<< .3<? .3<3 .3?.3?. .3?B .3?, .3?4 .3?6 .3?5 .3?< .3?? .3?3 .33.33. .33B .33, .334 .336 .335 .33< .33? .333 B--B--. B--B No of ban9 &ff R7ral = to .44, .<.5 >No2? total Credit &7t2tandin6 R7ral >in = to ..6 ,., R2%0ml? total .3, 4.6 .63 ,.. B6< 4.5 ,<3 6., 4?, 6.3 5-? 5.?<5.4 ..-6 <.B .6,?.4 B--, 3., B54, .-.< ,5-...3 44<, .B.6 66<5 .,.5 56?3 .,.6 <4?3 .4.. 3,?< .4.6 ...B< .6., .,46B .6., .6645 .4.? .<,6B .4.B .?63?3< .6.B-53BB5 .6.. BB3-54.4.. B45<-,6 .4.B6.<4,. ...3 B3-.B,< ...4 ,B6B6BB ...4 ,<63?-? ...4 4B-3-?. ...4?<6,,3 .-.5 644,.B6 .-.. 555?.3.-.B De4o2it2 R7ral >in ,-5 R2 %0 ml? 4-,<? 64<4. 3B, ..<. .6,3 B-.B554 ,663 4544 63,3 <4.4 ??B? 35-, ..<BB .4,<6 .<6B< B-3-< B4,?4 B?5-3 ,.--3?,6<43<. 4.4-3<, 43,,..4 6.?.35B 5.,.,.< <,<53<?5<-54. .-B5-<-< .B-6,3.3 .,34,.,5 .634B,45 = to 5., total <., 6.B 5.6 <.4 ?.?.6 ?.< 3.4 .-.. ...4 .B.5 .,.4 .4.B .4.4 .,.4 .,.5 .4..4.< .4.< .6..6.6 .6.6 .6.. .6..6.B .,.< .4.4 .4.< .4.6 .4.< .4.< .4.< .4.B Cr. De4 ratio= R7ral All ,<.5 <..3 Area2 4?., <?.. 4B.. 53.< 4<.< 5<.B 6... <-., 6B., <..6..3 <,.6 65.6 <<.66.<..< 6<.4 53.. 65., 5?.3 65.3 55.3 5-.5 5?.. 5-., 5?.B 5,.B 5<.5?.5 5?., 5,.3 5..3 56., 5,.5,.6 5..54., 5..3 5,.? 54.< 5-.< 55.5-.5..3 6<.3 6<.< 66., 6?.3 6-.64., 4?.5 66.5 4<., 63.? 44.. 65.? 4,.4 66., 4..64.? 4-.4 65.,3.65.< 4..? 6?.4

6B<4 5-B4 544< <..B ?6?? .-?65 .B6,4 .4.<. .5... .346, B.5B5 B,<?B B664. B34-? B3<-,-6?6 ,.54. ,,6<B ,4?5< ,6.,4 ,6B64 ,6,5,6,35 ,,-.< ,B3?. ,B3-3 ,B?64 ,B?4,B5<, ,B54,B44,

,5.,5.6 ,6.3 ,6.6 ,5.5 4-., 4B.6 44.45.3 6..B 6,.6B.4 6B.3 64.5 66.< 65.B 65.B 6<., 6?.B 65.3 65.? 65., 66.3 6..< 6..B 6-.6 43.3 43., 4?.< 4?., 4<.?

A44endi< )able $ *hare of 4riorit@ 2ector in 6ro22 credit o7t2tandin6 of all 2ched7led commercial ban92, India, %909 to %999> in =?
,ear .353 .3<.3<. .3<B .3<, .3<4 .3<6 .3<5 .3<< .3<? .3<3 .3?.3?. .3?B .3?, .3?4 .3?6 .3?5 .3?< .3?? .3?3 .33.33. .33B .33, .334 .336 .335 .33< .33? .333 B--B--. *hare of 4riorit@ 2ector adAance2 in total Credit .4.D D B..B,.. B4.B B6.B4.6 B6.3 B?.5 ,-.3 ,,.,6.5 ,5.4 ,5.. ,?.B ,3.3 4..4B.3 4,.? 4B.5 4-.< ,<.< ,<.. ,4.4 ,5.6 ,,.< ,B.? ,4.? ,4.5 ,6., ,4., ,4.4