INTRODUCTION 

The term banking embraces all the activities of a bank which engages in any of the following functions such as receiving investing lending exchanging serving of money and clams in other domestic and international transaction.

The tendency to act in a certain way o manner customary relating to banking transaction is referred to as banking habits relative to this definition one easily understand that what is being referred to as transaction or informal banking institution because they perform the function of modern banking institution though in an unrefined form.

A rural community is a conglomeration or amalgamation of serve villages in this country majority of our people live in the rural communities.

Farming is the major activity and as such agriculture is their main sources of income other rural activities are trading food processing wearing tolls fabrication and poverty. These activities provide substantial amount of income for the rural population.  Establishment of institutional infrastructure like banks in such areas will ought to cater for their financial needs by mobilizing their resources into savings and extended credits for rural dwellers there by fostering their productive capacity.  But a great number of rural dwellers do not use banking facilities for a number of reasons including the existence of informal banking institution.

These informal banking institutions like their urban counter parts engage to a large extent in financial interpretation some of the informal institutions includes Age grade, Town union local money lenders family funds and married women association. The peculiar reasons which endeared the rural dwellers to informal banking institutions and ways of fostering enhancing and indicating modern banking habits in our rural communities.

Cover page

Title page

Approval page

Dedication 

Acknowledgement

Proposal page

Table of content 

Introduction 

CHAPTER TWO