ZENITH International Journal of Multidisciplinary Research ____________ISSN 2231-5780 Vol.8 (11), November (2018), pp. 144-154 Online available at zenithresearch.org.in BANKING SECTOR REFORMS AND ITS IMPACT ON AGRICULTURE FINANCE IN INDIA: PRE AND POST REFORM PERIODS DR. S. NAGENDRA AND DR. C. LAKSHMI KANTHA REDDY E-mail: drlkreddychitla@gmail.com ABSTRACT: With the modernization of agriculture in the mid-1960s, the demand for short-term and long- term agricultural credit started rising at a rapid rate as the farmer has to purchase costly inputs like fertilizers, HYV seeds, pesticides, etc. from the market. Capital, together with scientific knowledge, played a very significant role in increasing the productivity of agriculture. This had shifted the government’s attention from co-operative based approach to state-owned banks to create an alternative source of finance to free the farmers from the grip of moneylenders. Several committees/working groups/task forces had been formed to go through the financial aspects of rural financial institutions. The Narasimham Committee brought about various measures in the area of agricultural credit such as deregulation of interest rates, abolition of branch licensing, gradual phasing out of directed credit programmes, closing down of loss-making bank branches and so on. The Committee was of the view that easy and timely access to credit was far more important than its cost. KEYWORDS: Agricultural credit, banking sector reforms. REFERENCES 1. B.N.Choubey: “Institutional Finance for Agricultural Development”, Shared Gogate, Subhada Sarswat, Pune 1977. 2. Lebenstein, H. (1957):“Economic Backwardness and Economic Growth”, John Wiley & Son’s publications, New York. 3. Higgins, B.H (1959): “Economic Development”, Norton Publications, New York. 4. Donald, Gordon (1976):“Credit for Small Farmers in Developing Countries”, CU: Westview Press, Boulder. 5. Lipton, M. (1976): “Agricultural Finance and Rural Credit in Poor Countries”, Vol. 4, No. 7, pp.543-553. 6. Nahid Akhtar Siddiqi: “Banking Reforms and Agricultural Credit in India”, 2011, pp.8-9. 7. Government of India (1991): “Report of the Committee on Financial System”, Ministry of Finance, New Delhi. 8. Government of India (1998): “Report of the Committee on Banking Sector Reforms, Ministry of Finance”, New Delhi. 9. Reserve Bank of India (1997): “Report of the High Level Committee on Agricultural Credit through Commercial Banks”, Mumbai. 10. NABARD (2009): “Report on the Doubling of Agriculture Credit Programme (2004-05 to 2006-07): A Study Report”, Department of Economic Analysis and Research, NABARD, Mumbai.