CHAPTER ONE
1.0 Introduction
The introduction forms the beginning of the main body of the project. It is designed as Chapter one. It is devoted primarily to justifying the research work. Accordingly, the following headings are discussed: Background of the Study, Statement of the study, Objectives of the study, Research Questions, Significance of the study, Scope and Limitation(s), Definition of terms and the Organization of the study or Chapters
1.1 Background of the Study

The Rural Banking concept was introduced in the mid-1970s. The motives were to mobilize savings from the rural areas and in turn make institutional credit available to the Rural Economy.
The need for improved financial intermediation in the rural economy became paramount because of the non-availability of formal institutions and the fact that most rural dwellers are engaged in agriculture. Agriculture is the mainstay of the Ghanaian economy and until recently the largest contributor to GDP. (Yahiya, research Dept. of BOG, 2013)
Despite the potential resources existing in the rural areas, farmers and small entrepreneurs lack the required institutional credit to play the expected meaningful role in the Economy.
The peasant farmer had to rely on informal operators such as Mobile Bankers locally known as Susu Collectors, and self-help groups and money lenders for his credit needs. These creditors charge exorbitant interest rates which, in most cases, aggravates the poverty state of the borrowers.
The bank of Ghana, in a bid to take care of the credit and other financial needs of the rural people, therefore encouraged Commercial Banks to expand their rural networks. The Agricultural Development Bank, for example, which was originally a unit of the Bank of Ghana, was established in 1965 with the aim of reaching the small-scale farmer(s).These Banks were however unable to satisfy the financial