Rural development has been emphasized by the planning experts and policy makers to achieve a drastic reduction in the hands of poverty in developing countries. India, being a developing country, has to evolve a strategy to ameliorate the social and economic conditions of rural people who live below the poverty line. All these years no serious efforts were made to study the rural social structure as a separate and distinct entity. Many schemes have been evolved to ameliorate the working and living conditions in the country side. Rural development is top most priority in the economic development and planning schemes under Janata government. Rural development is an extremely complicated subject to handle because of its very wide range of content and variety of socio-economic and ecological dimensions which it has assumed. The Government of India had set up first five regional rural banks on the accession the promulgation of the Regional Rural Banks Ordinance on 2nd October 1975 (the birth anniversary of Mahatma Gandhi).By the end of March 2001, 196 Regional Rural banks 14,431 branches covering 476 districts.