This paper focuses on the importance of Rural Banking and Rural Areas and their implications. The article defines Rural Livelihood as an occupation, as source of income and livelihood in the rural areas that include agricultural work and other allied rural employment such as labor, home industry, etc. The study has examined the economic conditions in developing countries, thus will determine the Status of a country's financial position at a specific period of time. Economic condition is used for statistics and it involves unemployment rates, stock market data, and GDP information, among other metrics. Statistics changes over time in line with the economic and business cycle, as an economy goes through expansion and contraction. The study tries to determine the number of borrowers with poverty alleviation objectives in the area; assess the extent of awareness and participation of rural people in microfinance activity, and examine the impact of the cooperative on farmers' income, farm size, production and productivity. The main purpose of the Rural Bank is to provide banking and credit facilities to the rural people. The regional Rural Banks have been conceived as: (a) an answer to meet the diverse and heterogeneous needs of rural people with different socio-economic and agro-geographical conditions, (b) designed to specific economic and occupational groups, i.e., the small and marginal farmers, agriculture labourers, artisans etc. and (c) to be a catalytic agent to develop the rural economy by providing not only credit but also other facilities.