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IRDP in Rajasthan—A Bonanza or a Challenge for the Banks?

AT LEAST in terms of coverage, the Integrated Rural Development Programme (IRDP) has meant a big bonanza for the banking sector in Rajasthan, including both commercial and cooperative institutions. The main emphasis of the programme, though it is called 'integrated' seems to have been on providing loan assistance, with a little bit of technical guidance and government subsidy, to deserving families "below the poverty line". Thus, over a span of about six years from 1978-79. nearly six lakh families have been identified and provided with' benefits. Certain economic activities in farming, dairying, transport, trade, business and service sectors, largely based on individual efforts and enterprise, have been identified in the rural areas for which, according to certain pre-determined or mutually agreed limits or basis of understanding and calculations of viability, commercial loans are provided by the banks with subsidies by the government, in the hope or expectation that within a year or so, each and every benefited family will be able to find its own feet and begin to earn a reasonable amount in the changing rural society.