Caste system in India is transforming from its rigidity and conception of purity and pollution. Untouchability which has the serious social problem associated with caste too is transforming and is giving way to new forms of social interaction without prejudices and discriminations. The present study is based on data collected from the three districts of Punjab, categorized as advanced, less advanced and in-between. In all, 12 villages were selected for the study and 20 respondents belonging to Scheduled and Non-scheduled castes were interviewed with the help of a structured schedule. It is inferred that geographical segregation of Scheduled castes is no more an issue as their residential areas are expanding towards the village side. The caste restriction of accepting food, water and the like have changed altogether and scheduled castes to a large extent, have joined the mainstream in Punjab. Political and religious deprivation has not been observed in the study area. Education, development of the means of communication and transportation, impact of urban life, mass media are some of the factors responsible for this change in rural society. [ABSTRACT FROM AUTHOR]