Course Objective: This course provides a macro perspective on the working of the rural financial system. The course is designed to give a broad idea about the nature and operation of the financial markets and institutions specific to the requirement of rural populace.. The discussion will be in a general context of the principles on which these markets and institutions function; with more emphasis on the Indian system so that students can relate the class room discussion with what is happening around them. i. To understand and develop managerial aspects of building rural financial institutions and programmes. ii. To acquire critical elements of evolving effective and sustainable rural financial delivery mechanisms. Course Contents: Key characteristics of rural financial system, Classifications of financial systems, Stylized facts on external finance for Corporates and individuals. Asymmetric information in financial markets and its implications and conflict resolution . Money market - rationale, functions, reforms and instruments; Capital Market - rationale, functioning and working of the primary and secondary markets .Rural Banking System in India- reforms, prudential norms and Basel-II; Mutual Funds, Insurancetc.Credit delivery mechanism-Cooperative,ARDBs Commercial Banks, RRBs.NABARD and other NBFCs .Problem and recent developments in rural financial architecture. The themes outlined would require a lot of cross-referencing and as such should not be seen as watertight compartments. The details as are as under:- ü Basic Concepts of Rural Finance – The Need and Relevance ü Role of Financial Services in rural livelihood promotion ü Overview of Rural Financial Agencies in India ü Credit Delivery Mechanism in Rural Finance ü Cooperative Agricultural & Rural Development Banks ü Commercial Banks and Rural Credit ü Service Area Approach – New Strategy for Rural Lending ü Regional Rural Banks and Rural Finance ü Micro-credit and Self Help Groups ü NABARD and its role in Rural Finance ü Problem of Rural Indebtedness ü Recent Development in Rural Finance BOOKS PRESCRIBED FOR REFERENCE: