Considering that non-adoption of improved groundnut technologies by the small and resource-poor farmers is due to non-availability of quality seeds, poor knowledge, inappropriateness of technologies, etc., in the current study, improved groundnut technologies have been implemented through participatory mode so as to generate awareness about improved technologies among them. The participatory approach could make the farmers to learn, adopt and spread new technologies. The economic indicators have shown that a net return of Rs 7104 per ha was realized by adopting improved varieties and integrated crop management (ICM) package during kharif season, and it is higher than the returns realized by growing local variety (AK-12-24) with local practice (Rs 2010/ha). The cost of production has been found to be Rs 11.04/kg and 13.98/kg among the improved practice and farmers’ practice, respectively. A similar trend of higher net returns (Rs 13820/ha) and lower cost of production (Rs 8.86 per/kg) has been observed with improved practice during the rabi season, compared to the lower net returns (Rs 6309/ha) and higher cost of production (Rs 11.34 per/kg) with farmers’ practice. The informal seed supply system implemented through seed bank operation in a participatory mode has increased the improved groundnut seed availability at the village level. The seed multiplication programme could increase the spread of improved varieties from 32 ha to 69 ha in the adopted villages and from 15.9 ha to 85 ha in the neighbouring villages within a period of three years. It will help increase productivity levels of crops and income of farmers. The informal seed supply system implemented through seed bank operation has been found very successful in the faster technology spread. Hence, this model may be replicated in other areas to provide improved seeds to small and marginal farmers. It will also help in achieving self-sufficiency in improved varietal needs at the village level.