Professional Documents
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Bandra-Kurla
Complex ,
Bandra , Mumbai,
Maharashtra
Chairman
Managing Director
Board Of Director
Executive Director
Microfinance Program
FINANCIAL
functions
DEVELOPMENT
SUPERVISORY
FINANCIAL FUNCTION REFINANCE
• SHORT TERM REFINANCE:
❖For using high yielding varieties of seeds, fertilizers, insecticides and costly
agricultural implements.
❖For increasing the production, productivity, marketing and raising the level of
surplus and saving.
❖Production credit department (PCD) deals with ST refinance facilities for
various types of production, marketing and procurement activities being
provided to client institutions.
❖Refinance is given for production purposes at concessional rate of interest to
state cooperative banks and regional rural banks (RRBs) by way of sanction
of credit limits. Each withdrawal against the sanctioned credit limit is
repayable with in 12 months
❖The short term limit would consist of different
purposes via
❖Agriculture and allied activities
➢Purchase, stoking and distribution of chemicals
fertilizers
➢Marketing of crops
➢Fisheries sector
➢Industrial cooperative societies
These types of loans are provided for production purposes
at reduced rate of interest to the RRBs(Regional Rural
Banks) and SCBs(State Cooperative Banks). Then RRBs
and SCBs provide the credit as loans to the needy ones for
different purposes such as:
• Seasonal agricultural operations
• Marketing of crops
• Fisheries Sectors
• Industrial Cooperative Societies (other than
weavers)
• Purchases, Stocking and Distribution of Chemical
Fertilisers and other Agricultural Inputs.
MT conversion
❖NABARD provide relief to the farmers whose crop are damaged
due to natural calamities by way of
- Conversion of current short term loan into medium term
loans.
- Repurchase/ reschedule of existing MT(conversion)
loans.
❖Consolidated limit sanctioned to RRBs and SCBs in respect of
eligible DCCBs.
LONG TERM REFINANCE
Loan period- 3 to 15 years
• Investment credit leads to capital formation through asset creation.
• It induces technological up gradation resulting in increased
production, productivity and incremental income to farmers and
entrepreneurs.
Intended to create income generating asset in following sector
• Artisans, small scale industries, non farm sectors (small and micro
enterprises), handicraft, handlooms, power looms etc.
• Activities of voluntary agencies and self help groups working among
the rural poor .
• Agriculture and allied activities.
ELIGIBLE INSTITUTION
• State cooperative agriculture and rural development bank
(SCARDBs)
• Regional Rural Bank (RRBs)
• State cooperative bank (SCBs)
• Commercial banks
• State agriculture development finance companies (ADFCs)
• Scheduled primary urban cooperative banks (PUCBs)
• North east development finance corporation (NEDFC)
• Non banking financial companies (NBFCs)
Supervisory Functions
Section 35(6) of the Banking Regulation Act, 1949,
empowers NABARD to conduct inspection of State
Cooperative Banks (SCBs), Central Cooperative Banks
(CCBs) and Regional Rural Banks (RRBs). In addition,
NABARD has also been conducting periodic inspections of
state level cooperative institutions such as State
Cooperative Agriculture and Rural Development Banks
(SCARDBs), Apex Weavers Societies, Marketing
Federations etc., on a voluntary basis
Schemes by NABARD
Dairy Entrepreneurship Development Scheme
• Dairy Entrepreneurship Development Scheme (DEDS) is implemented
from September,2010 through National Bank for Agriculture and Rural
Development (NABARD) across the country.
• DEDS aim to generate self-employment opportunities in the dairy sector,
covering activities such as enhancement of milk production, procurement,
preservation, transportation, processing and marketing of milk
• Under DEDS back ended capital subsidy @ 25% of the project cost to
the General Category (@33.33% of the project cost to SC/ST category)
farmers/beneficiaries for bankable projects through NABARD subject to
the norms of the scheme. The budget provision during 12th plan is ₹ 1400
crore.
Objective of the scheme
• To promote setting up of modern dairy farms for production
of clean milk
• To encourage heifer calf rearing, thereby conserving good
breeding stock
• To bring structural changes in the unorganized sector so that
initial processing of milk can be taken up at the village level
itself
• To upgrade the quality and traditional technology to handle
milk on a commercial scale
• To generate self-employment and provide infrastructure
mainly for unorganized sector
Capital Investment Subsidy Scheme for
Commercial Production Units for organic/
biological Inputs
• The scheme is being implemented by the Department of Agriculture &
Cooperation through National Centre of Organic Farming (NCOF) in
collaboration with NABARD or National Cooperative Development
Corporation (NCDC).
• The scheme is being implemented since 2004-05.
• Each unit of Bio-fertilizers - Bio-pesticides will be provided with a
subsidy @ 25% of the capital cost of the project subject to a ceiling of
₹'40 lakh and each unit of fruit and vegetable waste compost production
unit will be provided with a subsidy @ 33% of the capital cost of the
project subject to a ceiling of ₹63 lakh (The ceiling is enhanced from
₹60 lakh to ₹63 lakh w.e.f. 1 April 2k14)
Agriclinic and
Agribusiness
Centres Scheme
Agriclinic and Agribusiness Centres
Scheme
• The scheme aims to promote the establishment of Agri-Clinics and Agri-
Business Centres (ACABC) all over the country.
• The Ministry of Agriculture, Government of India, in association with
NABARD and MANAGE has launched this unique scheme to take better
methods of farming to each and every farmer across the country.
•What is Agri-Clinics?????
• Agri-Clinics are envisaged to provide expert advice and services to
farmers on various aspects to enhance productivity of crops/animals and
increase the incomes of farmers. Agri-clinics provide support in the
following areas:
• Soil health
• Cropping practices
• Plant protection
• Crop insurance
• Post-harvest technology
• Clinical services for animals, feed and fodder management
• Prices of various crops in the market, etc.
• Agriclinics : Agriclinics are envisaged to provide expert services
and advice to farmers on cropping practices, technology
dissemination, crop protection from pests & diseases, market trends
and prices of various crops in the markets and also clinical services
for animal health etc. which would enhance productivity of crops /
animals.
• Agribusiness Centres : Agribusiness Centres are envisaged to
provide input supply, farm equipments on hire and other services. In
order to enhance viability of the ventures, Agriculture Graduates
may also take up in agriculture and allied areas alongwith the
Agriclinics/ Agribusiness Centres.
Interest Subvention Scheme
• According to the scheme farmers receive short term credit at 7%,
with an upper limit of Rs. 3.00 lakh on the principal amount.
• The policy came into force with effect from Kharif 2006-07.
• In pursuance of this announcement, the Government of India provided
interest subvention of 2 % to Public Sector Banks, Regional Rural
Banks (RRBs) and Cooperative Banks in respect of short term
production credit up to Rs. 3.00 lakh provided to farmers out of their
own resources, provided that they make available short term credit @
7% p.a. at ground level.
Modification in 2016-17
• The Central Government will provide interest
subvention of 5 per cent per annum to all farmers for
short term crop loan upto one year for loan upto Rs. 3
lakhs borrowed by them during the year 2016-17.
Farmers will thus have to effectively pay only 4% as
interest. In case farmers do not repay the short term
crop loan in time they would be eligible for interest
subvention of 2% as against 5% available above.
What is RRB (Regional Rural Bank )
•1.New Delhi
2.Mumbai
3.Pune
4.Chandigarh
5.None of these
•1.New Delhi
• National Agricultural Cooperative Marketing
Federation of India Ltd (NAFED)is an apex
organization of marketing cooperatives for
agricultural produce in India, under Ministry
of Agriculture, Government of India. It is
Headquartered in New Delhi
Founded: October 2, 1958
The National Bank for Agriculture and Rural
Development (NABARD) replaced which of the
following organization ?
• A. e-Krishi Samasya
• B. e-Krishi Samvad
• C. e-Krishi Samveda
• D. e-Krishi Solution
• B. e-Krishi Samvad
Launching of Sansad Adarsh Gram Yojna
is related to the:
• (A) Vallabh Bhai Patel
• (B) Deen Dayal Upadhyay
• (C) Mahatma Gandhi
• (D) Jai Prakash Narayan
• (C) 2005-06