Theprime importanceofIndia’seconomyisagricultureand in the rural areas it is more effective these days, individuals and the government are not showing their interest in investing in economic activities such as farming, animal rearing etc. The economic development of India has been linked with the performance of the agricultural system over the years. Due to lack of fund and improper education agriculture system is undeveloped and in turns low output, low productivity is arising which makes the country’s economy at minimum. Manyfarmers,facetheproblemoffund to acquire highly skilled equipment that increases the production at larger scale.Therefore if the rural banks help the farmers in terms of funds, assets then country’s economy will be very high. This paper is an investigation on the consequences of rural banking on economic development. The practice involves a survey of management and members of Rural Bank and the inhabitants of a rural village Nandgaon district Mathura.Research techniques adopted were Interviewsandquestionnairesforthedatacollection in this study. On the basis of finding which shows that education of rural people is on prime importance as they can’t understand the schemes of banks and other government policieswhich makes the agriculture system to the minimal and country’s economy is getting affected.