This research aims to look at the impact of rural banks in the development of the Ghanaian rural economy. According to the Moshi Conference, (1969), held in Tanzania, the purpose of rural development is to achieve “A rise in the standard of living and favorable changes in the way of life of the people concerned”. Thus, the Rural and Community Banking (RCBs) system was promoted by the Bank of Ghana some 32 years ago when it opened a dialogue with the Ministry of Finance about what was called junior league of banking institutions to serve the special needs of the rural population in Ghana and to fill the financing gap which had been created in the rural community as a result of the failure on the part of the main commercial banks to penetrate the rural economy.