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The conventional wisdom is that opening up new branches is the best way to extend outreach of the formal financial sector to rural areas. Using a survey data set, this paper challenges the conventional view by concluding that relatively resource-rich rural households from distant locations availed multiple loans from formal lenders rather than the households located closer to
Using the unit-level data from various rounds of the Employment and Unemployment Survey of the National Sample Survey Office, the first consistent time series of the average real farm income per cultivator for 18 major Indian states for 1987–88, 1993–94, 1999–2000, 2004–05, 2007–08, 2009–10, and 2011–12 is presented. Using this data, two sets of issues are studied. First, how