Based on the key status and functions of rural finance in the rural economy and according to the characteristics and nature of rural financial entities, the rules of and requirements for the development of rural finance, the requirements for the validity of institutional design and for the sound financial institution, and the positive and negative experiences and lessons from home and abroad in financial development, the paper suggests that the harmony among efficiency, stability and development is the cornerstone and principle for the institutional arrangements for modern rural finance in the new era.