Banking is a service industry which touches the lives of millions of people. It is a potent force that can bring socio-economic transformation in the country. The banks perform social an obligation by serving the interest of various sections of the society such as large business, small business, agriculture, weaker sections of the society, women, minority communities, student etc.
The expectations of the society and the nation from the nationalized banks are as follows:
(i) Banking facilities to unbanked areas: The opening of branches is essential to develop banking habit, mobilize savings of the people and implement projects for rural development and-enlistment of economically weaker sections.
(ii) Deployment of credit to a neglected section of the society: After nationalization, the banks started extending credit to small scale industry and small borrowers. However, the overall quantum of such credit much below the requirements of small farmers, small entrepreneurs etc. To overcome this drawback the lead bank scheme was introduced which contributed to channelize the bank-credit to various sections of the economy.
(iii) Bank finance small scale industries: The bank has been giving trust to the financing of small-scale units, village and cottage industries. Besides providing term loans and working capital, they have evolved schemes such as equity fund scheme, entrepreneur scheme etc. to finance small scale Units.
(iv) Small business finance: The nationalized banks have contributed to the creation of increased opportunities for self-employment in the tertiary sector by financing retail traders, transport operators, professionals, and others.
(v) Financing of agriculture: The banks provided credit support to various agricultural development programs, in addition to direct advances. The banks can extend credits to formers under oilseeds production program, minor irrigation, modernization of farm practices, drip irrigation, dry and farming and wasteland development.
(vi) Assistance to women: Nationalize banks lay emphasis on proving credit facilities for greater economic reliance of women especially those belonging to the weaker section through the development of traditional arts and crafts like tailoring knitting and embroidery. Financial assistance is also made available to women entrepreneurs for setting up of non-traditional ventures such as manufacturing of hosiery goods typewriting institutes etc.
(vii) The welfare of minorities: Nationalize banks have taken special care of the minorities. They are implementing the l: point program of the government on minorities welfare which aims at socio-economic development of the identified minority communities.
(viii) Assistance to students: Every society expects that the nationalized bank will provide the educational loans are granted to individuals for their higher education, research and higher studies abroad. The given loan of interest must be less than the prevailing rate for pursuing higher education.
Besides all above discussion society also demand from a nationalized bank that the bank, non-banking activities include assistance for research and development activities, a donation to charitable institutions, organizing social activities like blood donation camps, health checkup, medicine banks, adult literacy class etc.
