The aim of the project was to assess the effectiveness of the banking sector's contribution to the overall development in Bihar. In a nutshell, the study tries to understand the efficiency of the banking sector in Bihar with regards to its ability to raise deposits and disburse funds to private sector in Bihar. The findings showed that there is a positive link between finance and development in agriculture sector in Bihar and therefore, easing government restrictions in the banking sector can aid the process of financial development in Bihar.

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