the administrative set up for planning for Rural Development, there are other Institutions, who plays equal important role in planning, Implementation and Monitoring of rural development programmes.

The important among them are:

(i) The Panchayati Raj System and

(ii) The Financial Institutions.

A. Panchayati Raj Institutions:

The successful implementation of rural development programmes requires not only decentralisation of administrative Machinery and Mechanisms for Co-ordination at the local level but also institutions for participation and involvement of local people. From this point of view; the Panchayati Raj institutions play the catalytic role.

The ‘Panchayat’ or the institution of village councils is as old as India’s history and is a part of her tradition. The ancient Panchayats serving as units of local government, discharged most of the functions that affected the life of the village community. There have been a number of indicative citations describing succinctly the forms, functions, features and forces that constructed the strong structure of Panchayats.

The erstwhile British Government had caused to supersede the Panchayat institutions by diverting their powers and functions concerning administration, execution and justice, and thereby centralised the administrative set-up to serve its colonial interests. Some