ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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United States- Constitutional Trap

deposits rose by Rs 459 crores und their advances by only Rs 191 crores. The banks are organisation-wise and attitudes- wise ill-suited to be the instruments for meeting the credit needs of the small fanners. As for the large farmers, they are the beneficiaries of official financial bounties in so many forms that their need to rely on commercial bank funds, on commercial bank terms, must necessarily be limited. Those who look at the credit-deposit ratios of the rural branches of commercial banks and rush to charge the banks with siphoning off resources from the countryside to bolster up the prosperity of the metropolitan centres forget that today between Rs 600 and Rs 700 crores (Rs 601 crores in 1971-72 and Rs 690 crores in 1972-73, to be exact) are being pumped into the agricultural sector annually as medium term and short term credit. In 'addition, land development banks give about Rs 200 crores (Rs 178 crores in 1971-72 and Rs 190 crores in 1972-73) in term loans. And all this is in addition to the pampering of the landed gentry in the form of high prices for farm products and low prices for inputs, including low irrigation rates, and virtual exemption from all direct taxation.

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