An ICT Based framework for improving rural credit delivery

Abstract

There is an immediate need to step up the flow of credit to agricultural and other rural activities in India for improving rural productivity and economic welfare. In this context, we propose an ICT-based solution for improving the delivery of credit and other services to the rural areas through unbundling and outsourcing of the rural banking operations. The solution involves setting up of a common infrastructure for rural data collection, information management and processing and sharing of the multi-service delivery channel by banks and other service providers with a view to substantially reducing the transaction costs and improving the speed and quality of delivery. © Springer-Verlag 2004.