Is Rural banking the new mantra for Retail banks?

Rural economy is improved a lot almost in all taluka and district places. In now a days lots of savings and small business also available with the rural people furhter they are aware and have knowledge about their investment, where to invest and and when to invest. I am also part of the Rural Banking since i am a branchhead of Rural branch. The disturbing factor is that government is not supporting pvt sector player and their official are passive to co-operate wtih the private banks. Thus Rural banking is the new mantra for the banks

My sense of the rural market for banking is that banking today is penetrating into a connected rural India, as against the disconnected rural India earlier. The Government of the day is an investor in rural India more than ever before. The mandate today is one for inclusivity. The regulator, RBI is seriously engaged on the rural inclusiveness in banking. And look at the real economy, India is somewhat insulated from the global meltdown, precisely because of consumption from rural and semi urban India, which are not so much coupled to the vulnerable external sector. Therefore, there is ever new realization in all businesses to diversify into rural economy as a risk mitigation strategy. And there is undoubted money in rural India - you may call it profit at the bottom of Pyramid. According to me, Pyramid is going to be increasingly reversed. I will take 3 sectors for this logic. Look at what Bharti Airtel is telling in its earnings forecasts. Analyse what outside banking credit Hero Honda is selling. Look at FMCG corporates - the rural gold hunt is all already an element very well integrated. We can take a hard look at what ITC is doing. What Reliance is planning in its overall strategy in retail. There is absolutely no doubt banking in Rural India is the Mantra of development. And this is going to come through innovation, use of technology, out of the box thinking and new vehicles of growth in banking like micro finance, an area, where again non banking financial instititutions have done a rare penetration while the herd of commercial banks, who - with very few exceptions, have always been directed and led into rural India by regulator and Government. Having said that, I would like to add Government should work towards the right credit culture in the market and should not lure their political constituency through write offs disincentivising serious stakeholders and genuine borrowers.

Definitely rural sector is an area of high growth for retail banks.Most of the people still don't have bank accounts and if banks can cash-in on this huge potential then it will help both of them.