TABLE OF CONTENT

Title Page                                                                 i

Certification                                                             ii

Dedication                                                               iii

Acknowledgement                                                    iv

Table of contents                                                     vi

CHAPTER ONE

1.0   Introduction                                                     1

1.1 Background to the Study

1.1   Statement of the Problem                        3

1.2   Research Question

1.2   Objectives of the Study                                    4

1.3   Significance of the Study                                 5

1.4   Limitation of the Study                                    6

CHAPTER TWO

2.0   Literature Review                                             7

2.1   Concept of Rural Banking                                7

2.2   Key Role Of Rural Banking For Rural Dwellers 9

2.3   Federal Government Policy and Central Banking of Nigeria (C.B.N)                                         16

2.4   Achievement of the program                            20

CHAPTER THREE

3.0   Research Methodology                                     23   

3.1   Historical Background of the Case Study 23

3.2   Method Of Data Collection

3.2   Population of the sample size                          25

3.3   Sample Technique                                           26

CHAPTER FOUR

4.0   Data Presentation and Analysis                       27

4.1   Preamble

4.2   Presentation of Data                                        32

4.3   Data Analysis

CHAPTER FIVE

5.0   Summary, Conclusion and Recommendations. 35

5.1   Summary                                                         35

5.2   Conclusion                                                      37

5.3   Recommendations.                                          39

        References                                                       44

CHAPTER ONE

1.0   INTRODUCTION

1.1   Background to the Study

        The traditional banking business is the holding of deposit and lending money. This role is developed from the fact that in any society it appears to exist too broad classes of people this surplus spending limit and deficit spending limit however; the following are some of the functions of commercial banks.

        Intermediaries: the banks serves as intermediaries or middlemen between the people who saves there money in the bank and those who borrow the money from the banks.

        Acceptance of deposit: this is undoubtedly the oldest function of the bank in the early stages of bank depositions usually paid a charge lost of keeping their income in the bank but as banking system modernized and well organized, banks realize the advantages that accrue to them through saving.

        They promote saving investment the banks naturally pare the ways for this and investment debtors are by this means enticed to save more money since they are conscious of the additional money which the bank would give for any amount saved.

        It serves as agent for payment by their policy commercial banks usually allows their customers to keep either current or saving accounts or both customers in this respect the most outstanding help is the lending of money to customers.

        Another function is granting loan of loans when banks grant loans to their customer they normally credits the granted loans to the account of the borrowers.

        Also the banks grants overdraft to their customers, they do this by allowing such customer to issue charges up to sum of the overdraft in additions to the original money which such customer has in the bank.

        Finally, the bank do the bill of exchange and transaction of foreign exchange in the rural areas there is need for the establishment of banks deposit the effort made of the growth of bank in the rural areas since 1960 much integration in rural areas have met and establishment of bank have been centered in urban areas.

1.2   Statement of the Problems

The problem in this research work wants to deal with the hindrances encountered by the commercial banks on the process of their operation in rural areas. Some of these can be stated as follows:

1. Lack of man power of commercial banks, poses a problem for them in their operation.
2. Lack of cordial/ customer relationship in rural area due to numerous branches
3. Illiteracy of customers in rural areas
4. Inadequate security outfit in rural area to secure the bank premises
5. Insufficient volume of business of the attitudes of farmers, hunters, and market sellers
6. Problem of accommodation encountered by staffs

The problem therefore is how to resolve the profit motives of the rural commercial banks and the essential services being rendered to rural dwellers. This project work is designed to measure to what extent the rural commercial banks have been to involve the rural dwellers in the economic activities in terms of awareness.

        The commercial banks are profit making organization. There is a greater fear in establishing in rural areas where it cannot maximize profit. Rural banking has being seen as indispensable if the nation is to develop its rural areas. The development of one rural area may not be a reality if services of commercial banks  are not at the reach of rural dwellers.