An Assessment for Recovery Performance of Agriculture Credit Societies in Haryana: Assessing the Recovery Performance of Agricultural Credit Societies in Rural Haryana

Abstract

Agricultural credit is one of the most crucial inputs in all agricultural development programmes. Access of rural credit has still remained scarce in Haryana. Primary Agriculture Credit Societies (PACS) run on a grassroots basis, provide close interaction with rural communities and satisfy their financial needs. In various regions of the world, the overdue issue of loans has a significant impact on the recycling of funds and on the lack of economic viability as a lending entity. The present study examines the recovery performance of rural credit given by PACS in two districts of Haryana namely Karnal and Jhajjar. The result suggests that the performance of credit recovery has been low in Karnal district and high in Jhajjar district. Credit retrieval is directly proportional to agricultural loans, qualified workers ratios and average representatives by corporation in non-farm loans, and is inversely correlated to the share of government equities in job resources and actual growth rates at constant prices. The Reserve Bank of India in partnership with state governments needs effective policies to render all the PACS viable and to ensure sufficient and timely credit circulation.