Funds Transfer Operations: Boon or Bane to the Viability of Rural Financial Intermediaries?

Abstract

As far as the policies are concerned, the government has been successful in reversing the flow of loanable funds in favor of rural areas through maintenance of agricultural loan quota and deposit retention policies. This paper examines the structure of funds transfer operations of rural-based branches of banks, the factors that determine the volume of transferred funds from one branch to another and the impact of funds transfer operations on the savings mobilization efforts of rural-based financial intermediaries.