authors
Santosh Kumar Srivastav

abstract
The role of nationalized banks in fostering economic development in rural areas has been a critical area of focus for policymakers in India. This study examines the impact of nationalized banks in promoting financial inclusion and economic empowerment in Bhagalpur, Bihar—a region characterized by its agrarian economy and socio-economic challenges. Using a mixed-methods approach, the research analyzes banking penetration, credit availability, and financial literacy initiatives to assess their contributions to rural entrepreneurship, employment generation, and poverty alleviation. The study highlights how nationalized banks have acted as financial intermediaries, enabling access to affordable credit for marginalized communities, particularly farmers and small business owners. Special attention is given to government schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Mudra Loans, and the Direct Benefit Transfer (DBT) system, which have significantly enhanced the reach and impact of these banks. Field surveys and interviews reveal that while nationalized banks have made commendable strides in economic inclusion, challenges such as inadequate infrastructure, limited financial literacy, and delays in credit disbursement persist. The findings underscore the need for robust policy interventions, enhanced digital infrastructure, and localized financial literacy programs to optimize the role of nationalized banks. The study concludes with recommendations for strengthening rural banking networks to drive sustainable economic growth in Bhagalpur, serving as a model for similar regions across India.