This  research work is intended to do analysis of rural banking habits f the rural communities of the Nigeria and to analyze the various problems militating against the successful implementation of the rural banking awareness from the central bank annual report and statement of account 1999.  Survey conducted it was revealed that the country is under banked.

 In this work, some plausible recommendations that will assist the monetary authorities in fashionry out practicable and attractive incentives for the banking ensuring the achievement of the objectives of the programmed will be made.

 The third chapter of this shows the research design and methodology.

 The chapter four of this talks about the summary of findings of this topics

 Finally, chapter five comprises of conclusion and recommendation of this topic and the bibliography.  I hope that this project will be of benefit to the problems of banking habits of the rural communities in Nigeria.

Title page         

Approval page        

Dedication        

Acknowledgement       

Abstract        

Table of contents       

1.0 CHAPTER ONE     

1.1 Introduction

1.2 Incentives use for the programme

1.3 Their statement of the problem

1.4 Objectives of the study

1.5 Significance of the study

1.6 Scope of and Limitation

1.7 Definition of Terms.

1.8 Reference.

CHAPTER TWO

2.1 The need for community banking

Reference

CHAPTER THREE

3.1 Source of data collection

3.2 Secondary method of data collection 

3.3 Location of data

3.4 Method of data analysis.

Reference

CHAPTER FOUR

4.1 Summary of findings

Reference.

CHAPTER FIVE

5.1 Conclusion and Recommendation

Reference

Bibliography.

 Since July 1997 which marked the official beginning of the rural banking programme for commercial banks, the economy of Nigeria has gone, through several changes each government continued policies it considered relevant banks have in recent times been confronted with challenges and they have called for introduction of one reform or directives so as to put it with our present economic realities.  This role is about what should be the proper function of banks in the transformation of Nigeria alien economy.  It is n this regard that the rural banking programe of commercial banks came as measure that will ensure effective grass root mobilization this resulted in settling up the Okigbo financial system review committee in 1976.  This most important recommendations of the committee excepted by government include:

1) That banks should actively facilitate the transformation of the rural environment by promoting the rapid expansion of banking habits by the rural communities or committees.  They will provide saving deposit facilities for their customers and there by help to mobilize rural funds outside the banking system.  This served as a revenue for creation of credit in rural areas which will be in the form of equity and loan for small scale farmers, co-operative societies and entrepreneurs.

2) That bank lending policy in the past been in favour of short term lending, that they should allow the medium and long tern lending so as to give the long time instrument enough time to mature.

3) That banks should identify with national objectives.  They maintained that decision making of banking should be localized.

4) That banks should be base a significant portion of their profit to improve the quality they offer.

The most striking of these recommendation was on the view

that rural banking programme of commercial bank should be established and that banks should allocate specific loan port-folio to their rural bank customers.

 The rural banking programme of commercial bank was introduced with objectives and incentives.

1) The development of banking habits among rural dwellers.

2) To curb the excesses in crude banking practice such practice expose money to termites and render central bank monetary policy effective.

3) To provide an institutional agency to mobilize rural fund.

4) To improve agricultural production and the growth of allied industries by extending necessary credit to those sectors whose sources of credit to emanates from the local money lenders.

5) Diversification of rural economy in particular and the National economy in general.

6) Others include the pegging the rural-urban migration with the hope of reducing urban unemployment.