According to the 2001 census, 72 per cent of Indians live in rural areas. According to finance minister P. Chidambaram, he can’t do anything about farmers borrowing money from moneylenders. According to P. Sainath in The Hindu:
Number of rural branches of scheduled commercial banks in 1993: 35,389
No. of rural branches of SCBs in 2007: 30,639
No. of branches closed in 15-year period: 4,750 @ 26 per month
***
Number of metro, urban, semi-urban branches of SCBs in 1993: 25,671
No. of metro, urban, semi-urban branches of SCBs in 2007: 40,832
No. of new branches opened in 15-year period: 15,161
Source: Reserve Bank of India’s Handbook of Statistics on the Indian Economy (2006-07)
churumuri 
Its quite normal that 72% of Indians live in the rural areas. It must be the duty of the government to take care of them. They should be provided loans through banks to the people, so that these people may not face any problems.
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If there is will to do some things to rural people any Govt would do it. But most of the political parties are talking about rural people all are lip service. To day the mass loan waver is also a gimmick only to eyewash the rural people.
Every party is taking the city development where the politicians can make money in land deals or real estate. The same rural development is not happening. Priorities in rural area are not properly identified. Mass employment is properly identified. Hence no bank or no financial institutions will participate. It is only the local known money lenders will dominate. In fact the local moneylenders are most of them are (cong) political party leaders. They do not want rural development. If it is developed they will not get elected. And there business is hampered. Then how the development in rural area will happen?
There are many MNC banks are coming forward to open their branch in India that too in metros and bigger cities.
As the Govt has fixed for private telecom operators to pay to BSNL some amount as ADR
Why the Govt cannot fix some amount to these private or PSU banks if they do not operate in rural area they will have to pay to RBI?
If the PSU/Private Bank fails to comply they can charge non-adhering to the norms and charge. This amount can be distributed to the banks that are offering services. Or can be used to wave off the loans of the rural borrowers.
Chidambaram seems to be expert in indirect taxes to be charged on people. But not ready to charge the people where they have to take rural development.
Mr. Chidambaram cannot do any thing B’cos there no inclination to do.
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