Rural Development, Administration

and Planning

Unit 3

Panchayati Raj and

Rural Administration
 Topics
Panchayati Raj and Rural Administration
Administrative Structure
Bureaucracy
Structure of Administration
Panchayati Raj Institutions Emergence and Growth of
Panchayati Raj Institutions in India
People and Panchayati Raj
Financial Organizations in Panchayati Raj Institutions
Structure of Rural Finance
Government and Non Government Organizations/
Community Based Organizations
Concept of Self Help Groups (SHGs)
 Structure of Panchayati Raj Institutions in India
It is also known as Council of five officials.
It is the system of local self government of villages in rural India.
It consists of the Panchayati Raj Institutions (PRIs) through which the
self-government of villages is realized.
PRIs focus on economic development, social justice, and government
scheme implementation.
Part X of the Indian Constitution addresses Panchayats.
In states or Union Territories with more than two million inhabitants,
there are three levels of PRIs:
i. Gram Panchayats (village level)
ii. Panchayat Samiti (block level)
iii. Zila Parishad (district level)
Gram Panchayats (Village Level):
Basic level of Panchayati Raj.
Divided into constituencies based on voters.
Each constituency elects one member.
Responsible for local governance and grassroots development.

Panchayat Samiti (Block Level):

Intermediate level covering a block or tehsil.
Composed of elected representatives from Gram Panchayats.
Coordinates activities, implements programs, and oversees welfare at the
block level.

Zila Parishad (District Level):

Operates at the district level.
Elected body representing Panchayat Samitis and Gram Panchayats.
Coordinates and supervises functions, plays a key role in district-level
planning.
 Specific Objectives of Panchayati Raj
Assistance to economically weaker sections.
Cohesion and cooperative self-help in the community.
Development of cooperative institutions.
Development of local resources, including the utilization of
manpower.
Production in agriculture as the highest priority in planning.
Progressive dispersal of authority and initiative both vertically and
horizontally, with special emphasis on the role of voluntary
organizations.
Promotion of rural industries.
Understanding and harmony between people's representatives and
public servants through comprehensive training/education and clear
demarcation of duties and responsibilities.
 Philosophy of Panchayat Raj
Panchayat Raj deeply rooted in rural Indian tradition.
System of self-governance at the village level.
Panchayati Raj Institutions (PRIs) vehicles for socio-economic
transformation.
Functioning depends on active citizen involvement, both male and female.
Aim for every village as a republic realized with the three-tier Panchayati
Raj system, encouraging people's participation in rural reconstruction.
 Gram Panchayats
1. Refers to a village or cluster of villages.
2. Minimum of five constituencies based on voter numbers.
3. One member elected from each constituency forms Gram Panchayat.
4. Democratic, grassroots-level political institution.
5. Varies widely in size across Indian states.
6. Represents local self-governance and democratic principles.
7. Acts as the political cabinet of the village.
8. Gram Sabha serves as the general body.
9. Members elected by Gram Sabha, promoting local participation.
 Functions of Gram Panchayats

1. Preparation of Annual Plans for village Panchayat area development.

2. Drafting Annual Budget for the Village Panchayat.
3. Mobilization of relief during natural calamities.
4. Removal of encroachments on public properties.
5. Organizing voluntary labor and contributions for community projects.
6. Maintenance of essential village statistics.
7. Service functions: Promotion of education, health, agriculture, etc.
8. Representative function: Voicing and representing public opinions.
9. Regulatory and administrative functions: Regulating conduct and tax
collection.
 Panchayat Samiti
Panchayat Samiti is a rural local government body at the intermediate tehsil
level in India.
Works for villages in the tehsil, forming a development block.
Referred to as the "panchayat of panchayats."
Composition includes:
i. Elected members
ii. Block development officer
iii. State legislative assembly members
iv. Members of Parliament from the area
v. Underrepresented groups
vi. Associate members
vii. Elected members of the panchayat block on the zila parishad
Elected for five years; headed by a chairman and deputy chairman.
Coordinates between district panchayat and gram panchayat.
Oversees other gram panchayats, serving as a supervisory body
 Functions of Panchayat Samiti
Planning, execution, and supervision of developmental programs in the
Block.
Supervision of works carried out by Gram Panchayats within its jurisdiction.
Instilling a spirit of self-help and initiative among people in its area.
Working towards raising the standard of living within its jurisdiction.
Support for the implementation of development programs.
Overseeing welfare and development activities in various sectors including
agriculture, animal husbandry, health, sanitation, elementary education,
cottage industries, and social fields.
Utilizing village housing project funds and loans for development initiatives.
 Zila Parishad
1. Zila Panchayat is the third tier of the Panchayati Raj system at the district
level.
2. Elected body with representation from Block Pramukh of Block Panchayat.
3. Includes members of the State Legislature and Parliament.
4. Acts as a link between the state government and village-level Gram
Panchayat.
5. Apex Panchayats at the district level in the Panchayat Raj system.
6. Chairman of all Panchayat Samitis in the district are ex-official members.
7. Ex-officio secretary is the deputy chief executive officer from the General
Administration department.
8. Administrative setup is headed by the chief executive officer, usually an
IAS or senior state service officer.
 Functions of Zila Parishad

1. Functions as an advisory body for blocks.

2. Approves budgets and plans for blocks.
3. Allocates funds to the blocks.
4. Bears responsibility for secondary education.
5. Advises the Government on rural development matters in the district.
6. Reviews the results achieved under various items across all blocks.
 Emergence and Growth of Panchayati Raj
Institution in India.
Panchayati Raj had historical roots in Indian villages with executive and
judicial powers.
Gandhiji advocated for Panchayat empowerment for rural development.
The Constitution included provisions for Panchayats in Part IV, with Article
40 urging states to organize Village Panchayats.
Balwant Rai committee recommended the formal organization of Panchayati
Raj.
The committee proposed a three-tier system and direct elections for village-
level Panchayats.
Rajasthan became the first state to establish Panchayati Raj in 1959.
Ashok Mehta Committee (1977-78) recommended a two-tier Panchayat
system, social audits, political party representation, regular elections, and
SC/ST reservations.
G V K Rao Committee (1985) proposed measures to strengthen Panchayati
Raj.
LM Singhvi Committee (1986) recommended constitutional status for
Panchayati Raj.
A bill for constitutionalizing Panchayati Raj was introduced in 1989 but not
passed.
P V Narashima Rao's government introduced a successful bill in 1991,
leading to the 73rd Constitutional Amendment Act in 1992.
The amendment came into force on April 24, 1993, establishing the
framework for Panchayati Raj in India.
 Balwantrai Mehta Committee
1. Balwantrai Mehta Committee established in 1957.
2. Focused on democratic decentralization and community development projects.
3. Made far-reaching recommendations for rural reconstruction.
4. Criticized the lack of local initiative in the community development program.
5. The committee laid down following five fundamental principles:
Three-tier local self-government structure recommended.
Emphasis on genuine transfer of power and responsibility.
Adequate resources to be transferred for effective functioning.
Centralization of welfare and developmental schemes through these
bodies.
The three-tier system envisioned to facilitate ongoing devolution of
power and responsibility in the future.
6. Envisioned Zilla Parishad, Panchayat Samiti, and Gram Panchayat in the
three-tier system.
7. Emphasized people's participation, agriculture promotion, and welfare of
weaker sections and women.
8. Recommended co-opting two interested women for specific roles.
9. Recommendations effective from April 1, 1958.
10. Rajasthan was the first state to implement them on October 2, 1959.
 Ashok Mehta Committee
1. In December 1977, Janata Government appointed the Ashok Mehta
Committee on panchayati raj institutions.
2. Report submitted in August 1978 with 132 recommendations to revive and
strengthen the declining panchayati raj system.
3. Its main recommendations were :

Replace three-tier system with a two-tier system: zila parishad at district

level, and below it, mandal panchayat for villages (15,000 to 20,000
population).
District to be the first point for decentralization under popular
supervision below the state level.
Designate zila parishad as the executive body, responsible for district-
level planning.
 iv. Advocate official participation of political parties at all levels of
panchayat elections.
v. The panchayati raj institutions should have compulsory powers of
taxation to mobilise their own financial resources,
4. Due to the collapse of the Janata Government before the completion of its
term, no action could be taken on the recommendations of the Ashok Mehta
Committee.
 GVK Rao Committee
1. G.V. K. Rao Committee appointed by Planning Commission in 1985.
2. Reviewed existing Administrative Arrangements for Rural Development
and Poverty Alleviation Programs.
3. Concluded that the developmental process became bureaucratised,
distancing it from Panchayati Raj.
4. Bureaucratisation weakened Panchayati Raj institutions.
5. Hence, the Committee made the following recommendations to
strengthen and revitalise the Panchayati Raj system :
Zila Parishad at the district level should be pivotal for democratic
decentralization.
Panchayati Raj institutions at district and lower levels should have a
key role in planning, implementation, and monitoring of rural
development programs.
 Transfer some planning functions from the state level to district-level
planning units for effective decentralized district planning.
Create the post of District Development Commissioner, acting as the
chief executive officer of Zila Parishad, overseeing all development
departments at the district level.
Advocate regular elections for Panchayati Raj institutions.
6. Committee assigned a leading role to Panchayati Raj in local planning and
development in its scheme of decentralized field administration.
 L.M. Singhvi Committee
1. LM. Singhvi Committee is one of the committees related to Panchyati Raj
in India.
2. L.M. Singhvi Committee is a committee on revitalisation of Panchayati Raj
Institutions for democracy and development.
3. In 1986, Rajiv Gandhi government appointed the committee under the
chairmanship of L.M. Singhvi.
4. It made the following recommendations:

Panchayati Raj institutions constitutionally recognized, protected, and

preserved.
Suggested constitutional provisions for regular, free, and fair elections
to Panchayati Raj bodies.
Recommended establishment of Nyaya Panchayats for a cluster of
villages.
Advocated reorganization of villages for enhanced viability of Gram
Panchayats.
Emphasized the significance of Gram Sabha as the embodiment of
direct democracy.
Advocated increased financial resources for Village Panchayats.
Proposed establishment of judicial tribunals in each state for
adjudicating controversies related to Panchayati Raj institutions.
 73rd Amendment Act, 1992
1. 73rd Amendment in 1992 added Part-IX to the Constitution.
2. Introduced XI schedule with 29 functional items for Panchayats.
3. Made statutory provisions for the establishment, empowerment, and
functioning of Panchayati Raj institutions.
4. Some provisions binding on states, while others left to be decided by
respective State Legislatures.
5. The salient features of this amendment are as follows :
Organization of Gram Sabhas.
Creation of a three-tier Panchayati Raj Structure at the District (Zila),
Block, and Village levels.
Direct elections to almost all posts at all levels.
Minimum age for contesting Panchayati Raj elections set at twenty-
one years.
 Indirect election for the post of Chairman at the District and Block levels.
Reservation of seats for Scheduled Castes/Scheduled Tribes in proportion
to their population and one-third seats for women in Panchayats.
Establishment of a State Election Commission in each State for conducting
elections to Panchayati Raj institutions.
Tenure of Panchayati Raj institutions set at five years, with fresh elections
within six months if dissolved earlier.
Establishment of a State Finance Commission in each State every five
years.
Provisions Not Binding on States, Only Guidelines:
Giving representation to members of the Central and State legislatures in
Panchayati Raj bodies.
Providing reservation for backward classes.
Granting financial powers to Panchayati Raj institutions related to taxes, levy
fees, etc., with efforts made to make them autonomous bodies.
 Issues faced by Panchayati Raj Institutions

Panchayats in India lack tax levying powers, heavily dependent on State

Government funding.
State Finance Commission recommendations often not accepted,
affecting effective support.
No state or UT transferred all 29 functions to PRIs, indicating their
extension of the State.
Institutional structures like district planning boards often non-functional
or neglect PRIs.
Limited efforts to empower elected PRI representatives with
constitutional functions.
Despite legislative efforts, influence from bureaucracy and political
parties still exists in Panchayats.
 People's Participation in Panchayati Raj
People's participation is necessary for local development in Panchayats.
Strengthening PRIs achieved through enhanced people's participation.
Following circumstances helps in strengthening people's participation in PRIs:
A. Strengthening Gram Sabha:
Unique forum for direct participation of all adult villagers in suggesting and
deciding actions for their village.
Contrast with other forums where elected leaders often substitute for the
people.
Strong Gram Sabha crucial for building community capacity to regulate
authority.
Without accountability to the community, Gram Panchayats may become
Sarpanch Panchayats.
Gram Sabha acts as a mechanism to keep Gram Panchayat accountable.
B. Developing Strong Leadership of Women and Dalits:
Reservation of seats in Panchayats provides opportunities for women and
Dalits in the development process.
Many face challenges due to illiteracy, social taboos, and patriarchal values
hindering active participation.
Special programs needed for awareness, attitudinal changes, and skill
development for women and Dalits.
Integral involvement of women and Dalits from the beginning to the end of
any process is crucial.
Inadequate information about roles and responsibilities inhibits effective
functioning of women Panchayat leaders.
Improved information dissemination, support, and encouragement from
community and NGOs essential for building up women and SC/ST
leadership.
C. Enabling Panchayats to Control Their Resources:
Effective work by Gram Panchayat enhances people's participation in Gram
Sabha.
Constitutional provisions incorporated to strengthen financial situations of PRIs.
Empowered PRIs to levy and collect taxes/fees.
Central and State governments mostly provide tied funds to Panchayats.
Panchayats lack control over their own resources.
Actual control over physical and natural resources can enable Panchayats to
mobilize substantial revenue.

D. Establishing Linkages Between Community Groups and PRIs:

Besides statutory bodies like GP and GS, numerous community groups exist
in almost every village.
Gram Sabha (GS) should be made aware, active, and strong for effective
collaboration with community organizations and PRIs.
Community groups should have close interaction with specialized
standing committees of Gram Panchayats (GPs).
Project-based committees should be strengthened to be more effective,
autonomous, and participatory in this regard.
Various Aspects of Direct Participation in Pachayati
Raj Institutions
Grassroots democracy strengthened through active people's
participation.
PRIs should have encompassing responsibility and authority over local
matters, being accountable to voters (Gram Sabha).
Active and effective participation of women and Dalits crucial in local
self-governance.
Collaboration between state-led and other project committees with PRIs,
providing space for community organizations.
 Current Financial Position of PRIs in India
1. PRIs have a poor fiscal base, and resource mobilization is generally limited.
2. Providing PRIs with revenue-raising powers is crucial to reduce excessive
dependence on State and Central Governments.
3. Until financial independence, State Budgets should specify the earmarked
amount for district sector plans under Panchayati Raj.
4. Suggested devolving 30-40 percent of a State's Plan on local bodies.
5. Part of finances should be untied funds for flexible use according to
Panchayats' needs.
6. Essential training and capacity building for PRI functionaries.
7. Devolution of financial resources should be accompanied by strengthening
PRIs through the transfer of departmental functionaries.
 Need of Finance Commissions
1. Concerns about adequacy of resources for Panchayati Raj Institutions
(PRIs) in line with allotted functions.
2. Committees and commissions generally conclude that PRIs lack adequate
finances for their assigned functions.
3. PRIs lack freedom to tap and utilize resources according to their needs,
with insufficient funds for discriminatory expenditure.
4. Scope exists for increasing the quantum of financial resources for PRIs.
5. Finance Commissions appointed to improve the financial position of PRIs.
 Objectives of Finance Commissions
1. Collect data on the finances (income and expenditure) of Panchayati Raj
Institutions (PRIs).
2. Study the structure and functions allocated to PRIs at different levels, along
with their performance.
3. Analyze the resource situation concerning the functions assigned to PRIs.
4. To analyse the implications of the existing situation of PRIs in relation to the
73rd amendment.
 Structure of Rural Finance in India
The rural finance market comprises of :
A. Organized or formal segment :
1. The formal segment consists of the Reserve Bank of India (RB), National
Bank for Agriculture and Rural Development (NABARD), Public and Private
Sector Commercial Banks, Regional Rural Banks (RRB), Land Development
Banks (LDB), State Cooperative Banks (SCB), Central Cooperative Banks
(CCB), Primary Agricultural Cooperative Banks (PACB), Central and States
Governments, Life Insurance Corporation (LIC), Post Office Savings Bank,
etc.
2. RBI is responsible for overall monetary policy and provides
accommodation to NABARD and IDBI for agricultural and Rural Industries
respectively.
3. These institutions in turn provide refinance to commercial banks including
RRB's and SCBs and State Land Development Banks (SLDBs).
4. The refinance from NABARD is distributed to the rural entrepreneurs
through two or three tier cooperative structures respectively for long term,
short term and medium term lending. In case of commercial banks and RRB's
they refinance directly to the users.
5. Except LDB's and PAC's, all financing agencies collect deposits from rural
households. Post office saving banks are active in rural areas.
B. Unorganized or informal segment :
1. Relatives and friends : Borrowers obtain their loans more promptly from
relatives and friends and loans are virtually interest free.
2. Money lenders : Money lenders are the main informal source of credit for
rural household in India. Because in rural areas people do not have access to
banks and other financial institutions.
3. Traders and Commission Agents: Traders and Commission agents in
village are in direct contact with the farmers. Much of their financing is
really in the nature of advance payment for purchase of products.
Government Organizations in the Field of Rural Finance
1. Reserve Bank of India (RBI):
Central bank and regulatory body under the Ministry of Finance,
Government of India.
2. National Bank for Agriculture and Rural Development (NABARD):
Apex regulatory body for regulating regional rural banks and apex
cooperative banks, under the Ministry of Finance, Government of India.
3. Regional Rural Banks (RRBs):
Government-owned scheduled commercial banks operating at the
regional level in different states of India.
4. Land Development Banks (LDB):
Specialized bank focusing on agricultural development and preventing
land corruption.
5. Cooperative Banks:
Rural cooperative credit system ensuring credit flow to the
agriculture sector through a three-tier structure: PACS, CCBs, and
SCBs.
6. Life Insurance Corporation (LIC):
Indian statutory insurance and investment corporation under the
ownership of the Ministry of Finance, Government of India.
National Bank for Agriculture and Rural Development
(NABARD)
1. Importance of institutional credit in rural economy recognized by the
Indian Government.
2. RBI forms a committee in March 1979, chaired by Shri B. Sivaraman.
3. Committee's interim report submitted on November 28, 1979.
4. Emphasis on the need for a new organizational device for rural credit
issues.
5. Committee recommends the formation of a unique development
financial institution.
6. NABARD's formation approved by Parliament through Act 61 of 1981.
7. NABARD dedicated to national service by Prime Minister Smt. Indira
Gandhi on November 5, 1982.
8. NABARD aimed at providing undivided attention, forceful direction, and
focused credit for rural development.

Vision : Development Bank of the Nation for Fostering Rural Prosperity.

Mission : Promote sustainable and equitable agriculture and rural development

through participative financial and non-financial interventions, innovations,
technology and institutional development for securing prosperity.
 Regional Rural Banks (RRBs)
1. Realization in mid-1970s for more systematic efforts to strengthen
institutional rural credit.
2. Working Group under Shri M. Narasimham recommends a new institution to
supplement rural credit.
3. Recommendation leads to the establishment of Regional Rural Banks (RRBs).
4. RRBs successful in providing banking services to remote and unbanked areas.
5. RRBs function as commercial banks, granting short-term and long-term loans
and mobilizing savings.
6. Sanction loans for agriculture, allied activities, retail trade, and small
industries in rural sectors.
7. Specifically target small and marginal farmers, landless laborers, rural
artisans, etc., under Integrated Rural Development Programme.
8. Extend financial assistance to local cooperative institutions to strengthen
their financial base.
 Objectives of Regional Rural Banks:

1. Extend banking services to rural masses, especially in areas lacking

banking facilities.
2. Provide affordable institutional credit to the weaker sections of society.
3. Mobilize rural savings and direct them toward supporting productive
activities.
4. Generate employment opportunities in rural areas.
5. Reduce the overall cost of providing rural credit.
Government Organizations Associated with Rural
Development
1. Panchayati Raj Institutions (PRIs) and Ministry of Rural Development
are associated with rural development.
2. The individual or the community in the village can interacts with PRIs
at following level :
i. The Gram Panchayats at village level.
ii. The Panchayat Samiti at block level.
iii. The Zila Parishad at district level.
3. Departments of Government : The Ministry of Rural Development
consists of two departments, viz.,
A. Department of Rural Development:
1. The department run three national-level schemes :
Pradhan Mantri Gram Sadak Yojana (PMGSY) for rural roads development,
Swarnajayanti Gram Swarozgar Yojana (SGSY) rural employment and for rural
housing,
Pradhan Mantri Awas Yojana (PMAY).

2. It handles the administration of District Rural Development Ageney (DRDA),

and has three autonomous organisations under it:
Council of Advancement of People's Action and Rural Technology(CAPART).
National Institute of Rural Development (NIRD).
National Rural Road Development Agency (NRRDA).
B. Department of Land Resources:
The Department of Land Resources runs three national-level programs:
Dradhan Mantri Krishi Sinchayee Yojna (Watershed Development Component).
Digital India Land Record Modernization Programme.
Neeranchal National Watershed Project.
Need for Non-Government Organizations(NGOs)
1. Rural development is a complex process involving the adaptation of
traditional values with scientific knowledge and technologies.
2. It requires active participation of people in decision-making for effective
modernization and change.
3. People need to be organized and empowered to play an active role in the
development process.
4. Government servants may not be the most effective in this role.
5. Non-Governmental Organizations (NGOs) are recognized as viable forces
for articulating people's needs and grievances.
6. Government policy encourages NGOs to participate in rural development
tasks.
 Community Based Organizations (CBOs)

1. Community based organizations (CBOs) are nonprofit groups that work

at a local level to improve life for residents.
2. The focus is to build equality across society in all streams.
3. CBOs are typically, and almost necessarily, staffed by local members
community members who experience first hand the needs within their
neighborhoods.
4. Besides being connected geographically, the only link between staff
members and their interests is often the desire and willingness to help.
5. In CBOs occupational skill sets and experience are greatly diverse.
6. Work conducted by CBOs generally falls into the themes of human
services, natural environment conservation or restoration, and urban
environment safety and revitalization. Examples include :
i. Affordable housing,
ii. Food security,
iii. Environmental protection/conservation,
iv. Community sustainability,
v. Humanitarian/disaster response,
vi. Medical relief funds.
 Self Help Groups (SHGs)
1. Self-Help Groups (SHGs) are informal associations of people working
together to improve living conditions.
2. SHGs are self-governed, peer-controlled groups with similar socio-
economic backgrounds and shared goals.
3. Villages encounter issues like poverty, illiteracy, and lack of formal
credit, requiring collective efforts for solutions.
4. SHGs serve as a vehicle for change, emphasizing "Self Help" to promote
self-employment and poverty alleviation.
Functions of SHGs:
Income generation for the poor.
Access to banks for poor, financial inclusion.
A pressure group in Gram Panchayats.
Social Upliftment of marginal sections.
Upliftment of women.
 Necessary of SHG in Rural Development

1. Limited access to credit is a major cause of rural poverty; SHGs

provide crucial credit access for poverty alleviation.
2. SHGs empower women, particularly from economically weaker
sections, by building social capital.
3. Financial independence from self-employment through SHGs
contributes to improved literacy, healthcare, and family planning in
communities.
 Benefits of SHGs
1. Social integrity: SHGs foster collective efforts to combat issues like dowry
and alcoholism.
2. Gender equity: SHGs empower women, nurturing leadership skills and
encouraging active participation in governance.
3. Pressure groups: SHGs engage in governance, highlighting issues like
dowry and open defecation, influencing policy decisions.
4. Voice for marginalized sections: SHGs ensure social justice by
representing weaker and marginalized communities in government
schemes.
5. Financial inclusion: SHG-Bank linkage programs facilitate easier credit
access, reducing dependence on traditional money lenders.
6. Alternate employment: SHGs support micro-enterprises, reducing
dependency on agriculture with ventures like tailoring and grocery shops.
7. Changes in consumption patterns: SHGs enable households to allocate
more funds to education, food, and health.
8. Banking literacy: SHGs motivate members to save, acting as conduits for
formal banking services to reach them.
 Weaknesses of SHGs
1. Diverse economic backgrounds impact SHG member selection.
2. Primitive skills hinder income growth and value addition significantly.
3. Shortage of skilled personnel limits skill upgradation for group members.
4. Poor accounting practices lead to fund mismanagement issues.
5. Limited resources and means affect SHGs' marketing capabilities.
6. Heavy dependency on NGOs and government increases vulnerability.
7. Withdrawal of support often results in SHG collapse risk.
 Measures to make SHGs more Effective
1. Government as a facilitator and promoter for SHG development.
2. Expansion of SHG movement in credit-deficient regions.
3. Rapid financial infrastructure expansion using IT and capacity building.
4. Extension of SHGs to urban areas, focusing on urban poor.
5. Establishment of SHG monitoring cells in every state.
6. Continuous innovation of financial products by banks and NABARD.
 Previous Year Questions
2 Marks
1. State the role of Article 73 in emergence and growth of PRIs in India. (2022-
23)
2. Explain the objectives of Regional Rural Banks. (2022-23)
3. Define community-based organizations for rural development .(2021-22)
4. How can you say that “Gram Sabha is the basic unit of Panchayat Raj
system”? Justify. (2021-22)

10 Marks
1. Describe the structure of Panchayti Raj Institutions in India along with
the role and functions of each level.(2022-23)
2. Explain the structure of rural finance in India along with the functioning
of NABARD. (2022-23)
3. Describe the role and functioning of CBOs and SHGs in rural development.
(2022-23)
4. Write short notes on advantages of financing through Self Help Groups.
(2021-22)
5. Explore the powers and responsibilities delegated to Panchayats at
appropriate levels of hierarchy. (2021-22)
6. NABARD’s Self Help Group’s Bank Linkage Program. Give a detailed insight.
(2021-22)
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