Measure adopted by the Government for Solving the Problem of Rural Indebtedness

Problem of rural indebtedness and its solution:

During the last one century Government has taken various steps to solve its problems. In fact the solution of this problem could solve the many other problems. The late prime minister of India Mrs. Indira Gandhi had made a vital contribution towards the solution of the problem of rural indebtedness. As a result of this programme the Harijans have been by law released of their credits and not body can realise the loans advanced to them.

It is these members of the weaker section who are mainly pray of the money lenders and users. In spite of this that the Government was attracted towards the problem of rural indebtedness. The farmers had been so much frustrated that they took the violence, and killed many money lenders and burnt their registers and other documents. This awakened the Government to the seriousness of the problem. This was done in Poona and Ahmad Nagar districts and to the Government was forced to take certain legislative measures.

1) Deccan agriculturists Act of 11979:

It was in 1879, that the Government passed Deccan Agriculturists act, through which certain relives were granted to the farmers. The agricultural implements and the animals such as bullocks etc, of the farmers could not be sold for non repayment of loans. A farmer cold not is imprisoned for his inability to pay loans. He was given facility to repay the loans in installments. He also gets the facility to repay the loans in installment. He also gets the facility to declare himself as a bankrupt. These measures gave a good deal of relief to the farmers who were under the debt of the money lenders.

2) Punjab land alienation Act of 1900:

Registration of Document Act of 1864 and the transfer of property Act 1882 gave an opportunity to the money lenders to exploit the poor farmers with the half of the provisions of these Acts, the money lenders took away the land of thousands poor farmers. This exploitation would be created further complications and even affected adversely on the agricultural production and so Punjab land Alienation Act was passed. After this several other such Acts were passed.

According to the provisions of the Punjab Land Alienation Act the money lender could not take away the land mortgaged with think. He has to return this land after 20 years. Similar Acts were passed in 1993 in U.P and on 1904 in North Western Frontier provinces and in 1996 in the central provinces.

Apart from these Acts, several legislations were passed to regulate the business of the money lenders. These measures were passed in Punjab and other places.

3) Law for minimising the amount of loan:

The Government had to come in between the money lenders and the debtors. As a result of legislative measures a ‘Conciliation Board’ was set up by law the Government minimised the amount of loan and also made provision for the realisation of the money in installments. According to these legislations, is no case would the amount of the interest to beyond the capital all these things put restrictions on the exploitation of the debtors by the money lenders.

4) Measure for regulating the money lending:

The Government by this time reallised with the bad conditions of the farmers was very much due to indebtedness. They therefore introduced measures for improving the conditions of the farmers and also for putting restriction on the loans. In 1883 land improvement loan Act was passed through which loan was advanced to the farmers for making the land more fertile and also for marking arrangements for irrigation facilities. The legislative measures to a very great extent helped the farmers.

Agricultural Loans Act 1884:

This Act was passed in 1884. It provided for loans to the farmers for a short time in low rate of interest for certain thing necessary for their agriculture. Then in 1904 co operative Credit Societies Act was passed as a result of which Co operative Credit Societies were set up in various parts of the country. In 1912 this law was amended Land Mortgage Banks were also started to provided loans to the farmers for improving their agriculture and the fertility of land.

Laws regarding control on moneylender:

After 1930 several states passed several Acts through which they put various restrictions on the money lenders in regard to the loans to the farmers. It was made binding for them to have a license and set themselves registered as money lenders. They were also required to keep their accounts properly. The rate of interest was also regulated and the maximum rate of interest was prescribed.

Co-operative movement:

The co operative movement was launched with the object of improving the lot of the charmers. It has worked for about three quarters of a century, but it has not fulfilled the object for which it was started. As a result of co operative Marketing Societies, Multipurpose Co operative Societies etc, were set up. Through the effort is being made to improve the lot of the farmers.

Savings Bank Accounts:

The government launch a movement for education the farmers in regard to economy and savings. In order to encourage the farmers to save money various savings banks. The societies have helped to some extent in the improvement of the economic conditions of the farmers.

Measures for improvements of agriculture:

Several laws were passed and various measures taken for improving the agriculture. It was done on order to make the farmer self dependent. More vigorous efforts were made in this respect after freedom of India under various Five Year Plans. As a result of the improved conditions of the farmers the problem of indebtedness of these farmers and the rural people shall automatically be solved. It has also worked in many respects.

Nationalisation of banks and facilities for loans through banks:

After the nationalisation of banks, there has been a definite effort to advance loans to the farmers for improving their agriculture. Nationalised banks have opened their branches in various villages and more branches are being opened. These banks are providing special facilities to the weaker sections and there who do not have any capital these things have solved the problem of rural indebtedness to a very great extent.

Other measures:

The Government has taken measures for relieving the village people of indebtedness. Apart from making provisions for loans through nationalised banks, the government has also set up various institutions like. Land Mortgage Banks, Land, development Banks etc. For providing facilities and loans to the farmers for their agriculture, once the agriculture improved and the production goes up the problem of indebtedness shall automatically be solved.

Are these measures working satisfactorily?

Recently the Government had added the measure of putting a moratorium on the loans advanced to the Harijans. These Harijans are the weaker section of the Rural Society and they are more indebted than other sections. The government has also taken steps to provide these people with land and those who have been given land for the first time shall not be changed revenue, for three years to come. All these measures are definitely intended at improving the lot of the farmers, once there economic lot improves the problem of indebtedness shall automatically be solved.

But in spite of this sincerity of the Government to provided relief to the farmers, these measures are not working to the full satisfaction of the parties really concerned. The responsibility for implementation of these measures has been entrusted to the governmental machinery which is still not alive to the needs of the society. Then red tapism of the Government departments hinders many of the progressive measures.

Co operative movements are not working satisfactorily rested interests have developed in all these places. Even in the banks certain corrupt practices have cropped in which the farmers and the rural people had a disadvantage position. In spirit of these weakness efforts are being made to solve the problem of rural indebtedness and with the climate that has been created the day is not for when the problem would be completely solved.