NABARD Its Functions & Various Schemes for Rural Market
By:-
Namita Mehrotra
Namita Singh
Prashant Mishra
Pappu Yadav
04/11/2023
NABARD MODEL
2
GENESIS AND HISTORICAL BACKGROUND
The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) set up by the RBI under the Chairmanship of Shri B Sivaraman in its report submitted to Governor, Reserve Bank of India on November 28, 1979 recommended the establishment of NABARD. The Parliament through the Act 61 of 81, approved its setting up.
OverviewGovernment of India setup the National Bank for
Agriculture and Rural Development (NABARD) on July 12,1982 to act as an agency for promoting integrated rural development and to provide all sort of production and investment credit for agriculture and rural development.
With a capital base of Rs 2,000 crore provided by the Government of India and Reserve Bank of India .
It operates through its head office at Mumbai, with 28 regional offices situated in state capitals and 391 district offices at districts.
It is an apex institution handling matters concerning policy, planning and operations in the field of credit for agriculture and for other economic and developmental activities in rural areas.
Essentially, it is a refinancing agency for financial institutions offering production credit and investment credit for promoting agriculture and developmental activities in rural areas.
NABARD is entrusted with
Providing refinance to lending institutions in rural areas
Bringing about or promoting institutional development and
Evaluating, monitoring and inspecting the client banks
Mission and Vision of NABARD
MissionPromoting sustainable and equitable agriculture
and rural development through effective credit support, related services, institution building and other innovative initiatives.
Vision• Empowerment of rural poor by
improving their access to the formal credit system through various MF innovations in a cost effective and sustainable manner
NABARD and Micro finance
04/11/2023
INFLUENCING POLICIES
NABARD
INVOLVING INSTITUTION
CREDIT SUPPORT
TECHNICALSUPPORT
ENCOURAGING INNOVATIONS
MOTIVATING PARTERNERS
COORDINATION WITH PARTNERS
GROUP FORMATION
TRANNING AND CAPACITY BUILDING
GROUP LINKAGE
NABARD focuses its activities on:-Credit functions:- involving preparation of potential-
linked credit plans annually for all districts of the country for identification of credit potential, monitoring the flow of ground level rural credit, issuing policy and operational guidelines to rural financing institutions and providing credit facilities to eligible institutions under various programmes .
Development functions:- concerning reinforcement of the credit functions and making credit more productive.
Supervisory functions:- ensuring the proper functioning of cooperative banks and regional rural banks
Pivotal roleActs as a coordinator in the operations of rural credit
institutionsExtends assistance to the government, the Reserve Bank
of India and other organizations in matters relating to rural development
Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development
Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development
Acts as regulator for cooperative banks and RRBs
NABARD today Initiates measures toward institution-building for improving
absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutions .
It supports State Governments in creation of infrastructure.
Coordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with the government of India , State governments, the Reserve Bank of India and other national level institutions concerned with policy formulation.
Undertakes monitoring and evaluation of projects refinanced by it .
Promotes research in the fields of rural banking, agriculture and rural development.
Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional rural banks.
RoleandFunctions NABARD is an apex institution accredited with all
matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas.
It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas .
It undertakes monitoring and evaluation of projects refinanced by it.
Cont……..It takes measures towards institution building for
improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
It co-ordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India and other national level institutions concerned with policy formulation.
Cont…….It prepares, on annual basis, rural credit
plans for all districts in the country; these plans form the base for annual credit plans of all rural financial institutions.
It promotes research in the fields of rural banking, agriculture and rural development
SchemesRural Non-Farm Sector Schemes
National Bank for Agriculture and Rural Development (Nabard) has introduced a refinance scheme for regional rural banks, State and district central cooperative banks, urban cooperative banks and scheduled commercial banks to accelerate the pace of construction of quality warehousing facilities for agricultural commodities.
The scheme is expected to create around 9 million tonnes of additional storage capacity in the country
Investment CreditNABARD provides refinance under
Investment Credit to eligible banks for a wide spectrum of manufacturing, processing and service sector activities under Rural Non-Farm Sector. The various refinance schemes of NABARD, inter-alia, cover the entire manufacturing, processing and approved service activities in the SSI sector with emphasis on Cottage, Village, Tiny Industries, Rural Artisans and Rural Crafts
Refinance Schemes for banks under Non-Farm Sector
Refinance to banks will be provided under:Automatic Refinance Facility (ARF), without
submission of schemes/ projects for prior sanction by NABARD up to a prescribed level, an
Pre-sanction procedure i.e., the banks will have to submit scheme/project proposals to NABARD and get them sanctioned before disbursement of loans to their borrower clients
Special Project under Swaranjayanti Gram Swarojgar Yojna (SGSY) on Livelihood Based Development in Sultanpur District, Uttar PradeshGovt of India , Ministry of Rural Development has sanctioned a Special Project under Swarnjayanti Gram Swarozgar Yojana (SGSY) on Livelihood Based Development for 11,500 BPL families in Sultanpur district, Uttar Pradesh. The total approved cost of the project is Rs.1497.36 lakh
PILOT PROJECT FOR INTEGRATED
DEVELOPMENT OF BACKWAR BLOCKS (PPID)The objective of the PPID is comprehensive
development of the selected backward blocks in an integrated manner which would include economic development, infrastructure development and other aspects of human development i.e., education, health, drinking water supply, et
Scheme for setting up of Agriclinic and Agribusiness centres
For setting up agriclinics and agribusiness centres by agriculture graduates has been launched by GoI with the support of NABARD. These centres will provide a package of input facilities, consultancy and other services. They will strengthen transfer of technology and extension services and also provide self employment opportunities to technically trained persons.
Rural Haat Scheme
NABARD has, decided to support Rural Haats in all districts for development of infrastructural facilities in the existing/ new haats by providing grant assistance @ 90% of the total project cost with an upper limit of Rs.5 lakh per haat for minimum infrastructural facilities in the form of raised platforms with semi-permanent roofing, sanitation arrangements, provision of drinking water, compound wall/barbed wire fencing, parking, notice board etc.
SCHEME OF PROVIDING TECHNOLOGY SUPPORT TO NGOs
Grant Assistance up to Rs.50,000
Purchase of PC
NGO should have completed 3 years
Should have promoted minimum 500 SHGs
Should not have been black-listed
04/11/2023
Innovative Projects
Setting up of grain banksProject on processers cardsProject on e-gramaJoint Liability GroupsSetting up of computer munshisMicro enterprise promotion by SHGs
04/11/2023
NABARD and its Role in Training
• National Bank Staff College, Lucknow .
• National Bank Training Centre, Lucknow.
• Zonal Training Centre, Hyderabad.• Regional Training Centre, Mangalore.• Regional Training Centre, Bolpur.• Bankers Institute of Rural
Development (BIRD), Lucknow.
SUBSIDIARYNABARD Consultancy Services
(Nabcons) is a wholly owned subsidiary promoted by National Bank for Agriculture and Rural Development (NABARD) and is engaged in providing consultancy in all spheres of agriculture, rural development and allied areas
04/11/2023