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INTRODUCTION

 NABARD stands for National bank for agriculture and rural


development

 Established by an act of Parliament on 12 July 1982.

 Performs agriculture credit and refinance functions

 Headquartered at Mumbai with 30 regional offices across the country

 Paid up capital of Rs 2000 crore, subscribed by RBI and GOI in the


ratio of 3:1
OBJECTIVES
 Facilitate credit flow for agriculture, rural infrastructure and rural
development

 Promote policies, practices and innovations conducive to rural


development

 Strengthen rural credit delivery system through institutional development

 Supervise Rural Financial Institutions (Cooperative Banks and Regional


Rural Banks)

 Consultancy services
FUNCTIONS
 Credit planning & monitoring
 Monitoring the flow of ground level credit to agriculture &
allied sectors
 Mapping potential in agriculture & allied sectors for
development through bank credit

 Financial services
 Support for micro credit innovations of NGOs
 Monitoring & evaluation of projects financed
 Co-financing with financial institutions
Contd….
 Promotion & development
 Capacity building of partner institutions
 Dissemination of innovative products & ideas
 Support R&D

 Supervision
 On-site inspection of cooperative banks & Regional rural
banks
 Off-site surveillance on financial health of cooperative banks
& RRBs
CLIENT INSTITUTIONS

CREDIT RELATED DEVELOPMENT RELATED

 Scheduled banks  Regional rural banks


 Regional rural banks  NGOs
 NBFCs  Rural development training
 State governments institutes
 Primary urban cooperative  State Cooperative banks
banks
CREDIT FLOW(Rs crore)
AGENCY TARGET ACTUAL TARGET ACTUAL
07-08 DISBURSEME 08-09 DISBURSEME
NT NT
07-08 08-09

Commercial 1,50,000 1,81,088 1,95,000 2,23,663


Banks

Cooperative 52,000 48,258 55,000 36,762


Banks

Regional Rural 23,000 25,312 30,000 26,724


Banks

Total 2,25,000 2,54,658 2,80,000 2,87,149


OPERATIONS
 District Level Planning
 Maps potential for development of agriculture & rural sector
in all the districts
 Projects credit requirements
 Forming the basis for Annual Credit Plan by banks

 State Level Planning


 State Focus paper is prepared
 It includes filling in critical gaps in infratrucure and support
services
 State Credit Seminars are convened annually aimed at action
planning for development of rural areas
Cont…
 National Level Planning
 Facilitates Ministry of Agriculture, RBI and State
Governments.
 Evolve policy decisions on credit flow to agriculture and rural
development
Thrust Areas
 Ground level credit flow to agriculture and allied sector-
closely involved in monitoring

 Kisan Credit Card


 Introduced in 1988
 Provide timely, cost-effective and hassle free short term loans
for Seasonal Agriculture Operation

 Rural Non-Farm Sector


 Potential for generating employment
 Thereby increasing rural income and arresting migration
Cont…
 Micro-Finance- NABARD promotes MFI’s linkage with
banking sector

 Empowerment of rural women- 94% of women worker are


engaged in unorganized sector

 Support to weaker sections


DEVELOPMENT INITIATIVES
 Tribal development fund –
 created on 1 April 2004,
 with a corpus of Rs.50 crore out of its profits to support
developmental models.
 Assistance from the fund is available for Horticulture , Soil and
Water conservation
 Social Intervention such as women development , health and
sanitation for achieving sustainable development of tribal families.
 Financial Inclusion Fund
 To support developmental activities to secure greater financial
inclusion of weaker sections.
FUNDS
 Financial Inclusion Technology Fund (FITF)
 To enhance Information communication Technology
 To increase the technological absorption capacity of
financial service providers

 Micro Finance Development and Equity Fund


 Promoting micro finance through scaling up the SHG-Bank
linkage program
 Capital Support to MFIs and supporting various
promotional initiatives/activities
FUNDS
 Farm Innovation and Promotion Fund
 To promote innovative and feasible concepts/ projects in
Agriculture and allied activities

 Rural Infrastructure Development Fund


 NABARD extended 90% of the eligible project cost for
roads and social sector projects.

 Farmers’ Technology Transfer Fund


 promoting transfer of technology in agriculture and farm
related activities like Animal Husbandry, Fisheries.
Sources and uses of funds
Sources of Funds Uses of Funds
Deposits MT & LT Project Loans

Bonds and Debentures Liquidity Support

Certificate Deposits Other Loans

Commercial Pape Investments in GoI Securities

Term Money Borrowings Investments in Treasury Bills

Borrowings from GoI Mutual Fund

Borrowings from Commercial LT Non Project Loans


Banks
Foreign Currency Loan
Group –
Dev Jain
Misal Anand
Ankit Grover
Rahul Bhatia
Sagar Suri
Vinamra Bansal

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