The concept of Rural Development has emerged through socio- political struggle and debates. A lot of studies have been done in this respect and it is evident that, while some see rural development as the final expropriation, others regard it as a force that will revitalize agriculture. Any critical study on the issue of rural development begins with the acknowledgement that, as yet, there is no definite meaning for rural development. The reason is that rural development is a multi-level, multi- actor and multi facet process. Rural Ghana is a nucleus and a livelihood support system for almost 50% of Ghanaians. Since independence in 1957; successive governments have made commitments to ensuring the development of rural Ghana. one of such interventions was the introduction of rural banking. After over thirty years of the operation of the rural banks, the rural economy is still baffled with a lot of socio economic challenges like poverty and the general lack of social services. The urban areas are daily visited by throng who hitherto were resident in the rural areas due to the general lack of opportunities in rural Ghana. The case for seven rural banks were studied by assessing the reasons for existence as informed by the vision and mission statements, the nature of operations as well as the contribution made towards the development of cottage industries as well as social infrastructure in their areas of operation. The study concludes with solutions to problems encountered in the quest of the banks to perform as agents of rural development.