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This report examines the policy framework, institutional structure, trends and patterns in the flow of financial services, product suitability, and efficacy of financial services both in terms of penetration and customer satisfaction. It has been organized into savings, credit, insurance policy issues, repayment performance, and products. The performances of NABARD, non-farm sector, microfinance, and cooperative banking reform-considering the specific and topical nature of these institutions/segments—are also discussed.

The chapters are designed in terms of different strands of finance-savings, credit, insurance, banking and financial institutions in lending, important apex institutions in rural finance-and the findings of some major studies. Credit has been divided into different chapters on account of the various facets of analysis, such as subsectoral flows, geographical aspects, institutional aspects, and products and repayment performance. Microfinance has been covered in a separate chapter on account of its peculiarities and significant differences from bank credit. The final chapter, on policy issues and implications, discusses the learning from the past and pointers for the future.