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COMPUTERISATION AND EFFICIENCY OF RURAL CREDIT COOPERATIVES: EVIDENCE FROM INDIA

Authors


  • The author thanks the Engineering and Physical Science Research Council (EPSRC) (Grant No. EP/E026052/1) for generous funding.

Correspondence to: Xiaolan Fu, Department of International Development (QEH), University of Oxford, .3 Mansfield Road, Oxford OX1 3TB, UK.

E-mail: xiaolan.fu@qeh.ox.ac.uk

Abstract

This article explores the impact of computerisation on the efficiency of rural cooperative banks using recent survey data on the usage of various types of information technology in rural cooperative banks in India. Findings from the research suggest that the adoption of appropriate technology such as stand-alone computers in branches promotes the efficiency of rural credit cooperatives; on the other hand, the employment of advanced local area networks is negatively associated with their efficiency. The skills in relation to information technologies of bank staff and the absorptive capacity of service users and the wider community are of crucial importance in the enhancement of efficiency. Copyright © 2012 John Wiley & Sons, Ltd.

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