A STUDY ON PERSONALIZED BANKING SERVICES - A STEP TOWARDS RURAL DEVELOPMENT

Abstract

Ever since the country gained independence, the Government of India has taken a plethora of measures for the development of rural areas along with the urban areas. This is perceptible from the first Five-year plan to the latest schemes announced by the Government, which distinguishably emphasize on rural development and enhancing farmers’ income & welfare. To achieve these aims, RBI gives directives to banks for development of rural areas and for opening of bank branches in these areas. Personalized services targeted for the rural residents will make them active participants in the banking sector and they will contribute towards the growth of the economy. The objective of this research paper is to understand the preference of personalized services by bank customers residing in different areas of the Mysore and Tumkur. More than half of the population in Karnataka is residing in rural areas. The results of the study reveal that the urban bank customers have more preference for personalized services as compared to their rural counterparts and there is need to motivate the rural dwellers for utilizing more personalized banking services for their own development and for the development of the economy.