Article
PROBLEMS OF ESTABLISHMENT OF BANK IN RURAL AREAS
The establishment of banks in rural areas has long been a strategic imperative aimed at inclusive economic growth, poverty alleviation, and financial empowerment. However, persistent challenges such as poor infrastructure, low financial literacy, high operational costs, and limited customer bases have hindered rural banking penetration. This study examines these traditional obstacles and investigates how contemporary solutions—especially software-driven innovations like Machine Learning (ML), Deep Learning (DL), mobile banking apps, and cloud-hosted micro services—are transforming the rural financial landscape. We employ a mixed-method research design combining surveys of rural residents, interviews with banking professionals, and ML-powered data insights. Our findings highlight key barriers such as connectivity gaps, regulatory complexities, trust deficits, and cash-dependent cultures. Yet, through pilot digital schemes, AI-based credit scoring, agent networks supported by mobile apps, and predictive analytics for crop financing, rural banking is gaining momentum. This paper offers policy insights, architectural frameworks, and practical recommendations to scale digital-friendly rural banking services sustainably
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