This action might not be possible to undo. Are you sure you want to continue?
for agriculture and other economic activities in rural areas in India. The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), set up by the Reserve Bank of India (RBI) under the Chairmanship of Shri B. Sivaraman, conceived and recommended the establishment of the National Bank for Agriculture and Rural Development (NABARD). The Indian Parliament through the Act 61 of 1981, approved the setting up of NABARD. The Bank which came into existence on 12 July, 1982, was dedicated to the service of the Nation by the Hon’ble Prime Minister, Smt Indira Gandhi on 5 November, 1982. NABARD is established as a development Bank, in terms of the Preamble of the Act, "for providing and regulating Credit and other facilities for the promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas and for matters connected therewith or incidental thereto." NABARD took over the functions of the erstwhile Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of RBI and Agricultural Refinance and Development Corporation (ARDC). Its subscribed and paid-up Capital was Rs.100 crore which was enhanced to Rs. 500 crore, contributed by the Government Of India (GOI) and RBI in equal proportions. Currently it is Rs. 2000 crore, contibuted by GoI (Rs.550 crore) and RBI (Rs.1450 crore). NABARD: (i) serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas; (ii) 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. ; (iii) co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation; and (iv) undertakes monitoring and evaluation of projects refinanced by it. NABARD’s refinance is available to State Co-operative Agriculture and Rural Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural Banks (RRBs), Commercial Banks (CBs) and other financial institutions approved by RBI. While the ultimate beneficiaries of investment credit can be
individuals, partnership concerns, companies, State-owned corporations or cooperative societies, production credit is generally given to individuals. NABARD operates throughout the country through its 28 Regional Offices and one Sub-office, located in the capitals of all the states/union territories. It has 336 District Offices across the country, one Sub-office at Port Blair and one special Cell at Srinagar. It also has 6 training establishments.
ORGANISATIONAL SET-UP BOARD OF DIRECTORS CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTORS (5) REGIONAL OFFICES (28)
HEAD OFFICE DEPARTMENTS (22)
TRAINING ESTABLISHMENTS (5)
SUB-OFFICE (1) & SPECIAL CELL(Srinagar) DISTRICT DEVELOPMENT OFFICES (360)
OFFICES all over INDIA
Forestry. Agricultural Economics Accounts and Finance Information Technology Appropriate training and skills are imparted to the staff on an ongoing basis within and outside the country. etc. Land Development. Staff Structure CHAIRMAN MANAGING DIRECTOR EXECUTIVE DIRECTORS CHIEF GENERAL MANAGERS GENERAL MANAGERS DEPUTY GENERAL MANAGERS ASSISTANT GENERAL MANAGERS / MANAGERS / ASSISTANT MANAGERS CLERKS / STENOGRAPHERS / TYPISTS Total Staff: Officers: 2973 (including 50 officers on deputation) Others: 2257 I. Bio-technology. Animal Husbandry and Dairy Technology. Agricultural Engineering. Role & Functions of NABARD .STAFF NABARD has suitably qualified and experienced staff in the areas of: General Banking Agriculture and related Sciences such as Irrigation. Plantation and Horticulture. Fisheries. NABARD's own training establishment as also outside agencies are utilised for the purpose.
It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas It takes measures towards institution building for improving absorptive capacity of the credit delivery system. 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. formulation of rehabilitation schemes. etc. Reserve Bank of India and other national level institutions concerned with policy formulation. restructuring of credit institutions. It promotes research in the fields of rural banking. training of personnel. Institution Building Objectives . including monitoring.Introduction 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. agriculture and rural development a. State Governments. these plans form the base for annual credit plans of all rural financial institutions It undertakes monitoring and evaluation of projects refinanced by it. It prepares. on annual basis. rural credit plans for all districts in the country.
Human Resource Development aimed at achieving better working results and improvements in viability and also for improvement in systems in cooperative credit institutions. Staff training and faculty support. 2004 aggregated to Rs.50. NABARD had created Co-operative Development Fund for providing assistance to Co-operative Credit Institutions for improving their infrastructural facilities for growth. capable of taking care of the expanding and diverse credit needs of agriculture and rural development. More than 50% of the rural credit is disbursed by the Co-operative Banks and Regional Rural Banks. COOPERATIVE DEVELOPMENT FUND (CDF) In pursuance with the recommendations of the Parliamentary Committee on Agriculture. Building of better MIS and Conduct of special studies for improving functional efficiency and on subjects referred to above. has a balance of Rs. 2003. Computerization support for building of MIS in cooperative banks.18 crore against which an amount of Rs. media.The rural financial system in the country calls for a strong and efficient credit delivery system.10. The assistance sanctioned to various cooperative institutions from the Fund till 31 March. (b) Purposes eligible for assistance: Provision of infrastructural facilities to PACS for deposit mobilization.68 crore as on 31 March. Conduct of special studies.00 crore from the surplus contributed by NABARD. In this direction NABARD has been taking various initiatives in association with Government of India and RBI to improve the health of Cooperative banks and Regional Rural Banks.115. . etc. Creation of a conducive recovery climate through meeting the cost of publicity. NABARD is responsible for regulating and supervising the functions of Co-operative banks and RRBs. The Objectives and Purposes of the fund are given below: (a) Objective of the Fund: Supporting the efforts of grass root level institutions (PACS) to mobilize resources etc.87 crore has been disbursed. which started with an initial corpus of Rs.62. The Fund.
7 9 1920.52 210.33 23.0 100. 1 2 3 4 5 Infrastructur e to PACS Computerisat ion Purchase of Vehicles Conduct of studies and seminars Reimbursem ent to ACSTIs/JLT Cs Other trainings Fax Machines FA/BDD SCB SCAR DB Othe rs Total Loa n Grant Total Assistance sanctioned Amount disbursed % Disb to Sancti on 1131.9 2 99. Purpose-wise sanction and disbursement of CDF assistance as on 31 March 2004 is given below: Sr .38 870.08 18.8 7 517.9 0 98.0 5 30.0 5 30.4 8 579.71 231.94 40.5 3 1920.2 9 101.40 1016.89 19.0 5 30.72 1920.3 6 16.08 6.0 100.62 15. 67 1101.1 52.4 8 347.0 6 7 8 9 Best Performance Award 10 ODI 11 Cooperators .43 9.50 1131. 95 517.08 6.08 6.0 77.95 904. 69 31. Reimbursement of training expenditure to ACSTIs and JLTCs Best Performance Awards to Cooperative Banks Establishment of Business Development Department (BDD) in Cooperative Banks Publicity of Kisan Credit Cards (KCC) Mode of Assistance: Assistance is provided by way of grant.94 670.54 19.07 225. 29 - 929. 67 655.Providing mobility to the field staff for improving recovery.91 31.71 12.65 77. 69 31.6 2 123.0 4 870.38 870.71 929. 69 31.94 18.71 82.1 82. soft loan or grant-cum-soft loan.94 870.1 3 - 426.1 8.55 14.3 5 - 100.08 6.0 5 30.0 100.94 30. 27 670. Purpose N o.6 100.
33 74.00 190.10 43.35 46.50 26.0 56.21 6.00 35.26 71.00 8.38 0.85 0.00 1.61 0.19 185.68 77.57 7.75 3.45 0.79 0.01 1.10 52.10 26.13 106.09 2.30 20.19 0.40 179.00 0.50 27.15 97.08 51.22 405.13 70.15 224.95 2.03 44.66 4323.76 1.46 3053.48 36.00 3. 3 26.25 5.01 70.67 25.78 318.58 0.72 26. 26 761.47 7.45 6.50 6.00 0.44 1.19 187.74 217.92 28.93 4.61 16.77 247.58 26.84 14.19 232.38 0.00 32.18 34.43 71.27 0.30 132.00 17.94 0.65 103.00 3.70 217.00 6.13 40.00 0.11 1.07 96.43 17.69 1.05 4.00 11.16 46.00 4.76 25.87 0. state-wise is indicated below : CDF .89 169.47 61.86 142.01 17. No .13 22.59 60.Meets 12 KCC 13 Others Total 36.66 5086.23 26.13 30.82 107.47 1.00 320.68 4.19 243.08 13.86 0.96 0.26 73.20 5.26 270.0 81.03 0. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 States SCBs SLDBs Total Sanctio Disburseme Sanctio Disburseme Sanctio Disburseme n nt n nt n nt 39.00 1.50 7. 59 26.00 11. 96 100.05 56. 99 26.00 196.07 27.76 1.69 1.22 219.86 0.36 6.62 16.32 1.45 6.78 29.50 33.00 6.76 18.24 4.08 14.47 44.10 0.17 28.80 CDF assistance availed of by Cooperative Banks.26 261.82 179.01 0.40 47.34 0.13 22.13 4.40 0.25 62.19 0.22 81.17 25.60 0.19 8.15 1.00 3.00 127.96 Andaman & Nicobar Andhra Pradesh Arunachal Pradesh Assam Bihar Chattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland New Delhi Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura .13 44.8 4 26.66 0.40 1.00 0.00 36.86 462.24 66.19 11.07 45.46 6218.00 2171.00 186.00 0.69 3.STATEMENT OF ASSISTANCE SANCTIONED & DISBURSED TO SCBs/SLDBs AS ON 31 MARCH 2004 Sl.10 117.16 8.00 1.50 21.43 992.32 33.00 64.10 8.93 20.69 26.15 0.
98 1.60 60.01 1150.92 13.63 78.57 b.02 135.70 12.98 2099.60 1.80 79.53 103.63 102.39 16.52 32.56 3209.05 40.17 56.60 2058.28 29 30 32 31 33 Uttar Pradesh Uttarnchal West Bengal NAFSCOB NCARDB NCMDARDB TOTAL 275.62 90.76 378. Promotional KISAN CREDIT CARD SCHEME 1.98 763.03 12.58 22. Genesis .44 2.90 12.13 164.28 169.98 1336.60 12.60 1.97 8.88 22.60 1.03 12.60 12.
4. particulars of land holding. Revolving cash credit facility involving any number of drawals and repayments within the limit. 3. 2. which may serve both as an identity card and facilitate recording of transactions on an ongoing basis. cropping pattern and scale of finance. a passport size photograph of holder etc.. Contents of Credit Card Beneficiaries covered under the Scheme are issued with a credit card and a pass book or a credit card cum pass book incorporating the name. for uniform adoption by banks. etc. . so that the farmers may use them to readily purchase agricultural inputs such as seeds. with instructions to introduce the same in their respective area of operation. Kisan Credit Card Scheme aims at provision of adequate and timely support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible and cost effective manner. validity period. Model Scheme circulated by RBI to commercial banks and by NABARD to Cooperative banks and RRBs in August 1998. Borrower is required to produce the card cum pass book whenever he/she operates the account. Salient features of the Kisan Credit Card (KCC) Scheme Eligible farmers to be provided with a Kisan Credit Card and a pass book or card-cum-pass book.Hon'ble Union Finance Minister announced in his budget speech for 199899 that NABARD would formulate a Model scheme for issue of Kisan Credit Cards to farmers. Objectives As a pioneering credit delivery innovation. address. fertilisers. borrowing limit. Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit. NABARD formulated a Model Kisan Credit Card Scheme in consultation with major banks. on the basis of their land holdings. Limit to be fixed on the basis of operational land holding. and also draw cash for their production needs'. pesticides. Sub-limits may be fixed at the discretion of banks.
margin. rate of interest. Flexibility to draw cash and buy inputs Assured availability of credit at any time enabling reduced interest burden for the farmer Sanction of the facility for 3 years subject to annual review and satisfactory operations and provision for enhancement.Card valid for 3 years subject to annual review. Each drawal to be repaid within a maximum period of 12 months Conversion of loans also permissible in case of damage to crops due to natural calamities Security. Flexibility of drawals from a branch other than the issuing branch at the discretion of the bank 5. etc. etc. Withdrawals through slips/cheques accompanied by card and passbook 5. change in cropping pattern. As incentive for good performance. Advantages of the Kisan Credit Card Scheme 5.1 Advantages to farmers Access to adequate and timely credit to farmers Full year's credit requirement of the borrower taken care of Minimum paper work and simplification of documentation for drawal of funds from the bank. credit limits could be enhanced to take care of increase in costs. as per RBI norms Operations may be through issuing branch (and also PACS in the case of Cooperative Banks) through other designated branches at the discretion of bank.2 Benefits of the Scheme to the Banks Reduction in work load for branch staff by avoidance of repeat appraisal and processing of loan papers under Kisan Credit Card Scheme. .
Following specific steps may be taken by the banks : Conduct of Sensitisation/training programmes for the officers of controlling offices of banks. branch managers and field level functionaries as also district level functions for distribution of cards.Client relationships 6. Since the year of its introduction in 1998-99.000/. banks requested to follow strategies suggested by NABARD from time to time. by 31 March 2004. Better Banker . up to maximum amount of Rs. 2002-03 and 2003-04 include new agricultural farmers likely to become eligible for their KC cards after 31 March 2001 also.e.Follow up : Hon'ble Union Finance Minister in his Budget Speech for the year 2001-02 set the future agenda for the Scheme as under : “The innovation of KCC is proved to be very successful. based on their past performance and experience in implementing the scheme.25. Towards this end. to ensure the coverage of all the eligible agricultural farmers under the KCC Scheme within the next three years i. requested to draw up an action plan immediately in consultation with our Regional Office concerned. vide our Circular letter No. almost 110 lakhs KC cards have been issued. " 6.1 Coverage of farmers . In order to ensure achievement of the targets so fixed.NB.000/ and Rs. Improvement in recycling of funds and better recovery of loans Reduction in transaction cost to the banks. The premium burden will be shared by the card issuing institutions. Budget 2001-02 announcement . Targets fixed for issue of KC Cards be disaggregated month-wise and branch/PACS-wise to facilitate close monitoring of progress vis-a-vis target and also advised to RO concerned. Banks to ensure that targets fixed for 2001-02. banks to launch a campaign approach to accelerate pace of implementation of the Scheme.Future strategy Banks. . I am also asking the banks to provide a personal insurance package to the KCC holders as is often done with other credit cards to cover them against accidental death or permanent disability.PCD(KCC)/29/ 2001-02 dated 10 April 2001.respectively. I am asking our banks to accelerate this programme and cover all eligible agricultural farmers within the next 3 years.Minimum paper work and simplification of documentation for drawal of funds from the bank.50.
Rs.for a 3-year policy.45/. Monitoring of progress in implementation of the Scheme in Board meetings as also through various state/ district and block level fora with the participation of Government functionaries. Scheme covers risk of KCC holders against death or permanent disability resulting from accidents caused by external.2 Personal Accident Insurance Scheme -Salient features : Designated insurance company will nominate one office at district level to function as nodal office for coordinating implementation of personal accident insurance scheme for KCC holders in the district. as under: Death due to accident (within 12 months of the accident) Caused by outward. such as branch premises. Lead Bank Officer and representative of insurance company to certify nature of accident causing disability/death and recommend settlement of insurance claims. 6. violent and visible means -. bringing out KCC literature in local language to create better awareness about KCC Scheme among farmers. bankers. as part of the Kharif 2001 campaign.50. Panchayat buildings. Holding Banker-Farmers' Meets. in each block to identify the ground level constraints in the smooth implementation of the Scheme and to initiate remedial measures therefore Use of VVV Clubs fora for propagation of the scheme. Use of audio-video media.for a one year policy while Rs. Nominated office of insurance company to issue a Master Insurance Policy to each DCCB/RRB covering all its KCC holders Premium payable Rs. violent and visible means.15/. etc. at prominent places. 000/- . farmers etc. Insurance coverage available under Policy only from date of receipt of premium at insurance company Banks to ensure to incorporate name of Nominee in Kisan Credit Cardcum-Pass Book Simplified claim settlement procedure evolved under Scheme whereby an Enquiry-cum-Verification Committee comprising Branch Manager of implementing bank. Mandis. Placement of hoardings/banners etc. Issue of plastic/laminated cards to serve as Identity Cards.
Rs.50. 000/Loss of one limb or one eye -. where necessary. Cooperative Banks and RRBs have been advised that they may. Progress in implementation of the Scheme Since launching in August 1998.38 crore Kisan Credit Cards issued upto 31 March 2002 by Cooperative Banks. Regional Rural Banks and Commercial Banks put together. at their discretion. advantages and other relevant information about the Scheme was brought out by Head Office and ROs were asked to circulate the brochure to State govt. Cooperative Banks. departments.Rs. pay interest at a rate based on their perception and other relevant factors on the minimum credit balances in the cash credit accounts under the Kisan Credit Cards of farmers during the period from 10th to the last day of each calendar month. Studies on KCC Scheme have been entrusted to BIRD and NABARD Staff College to facilitate feed back on the ground level issues/problems so that changes. Studies on the implementation of the Scheme undertaken by NABARD periodically.Rs. RRBs and other concerned agencies/officers so as to generate wider awareness about the Scheme.25. 000/(cover subject to certain exclusions as per Annexure-A to Master Policy document) 7. Commercial Banks.5000/.Permanent total disability -.50. Floor limit of Rs. 8. could be considered.for issue of KC Cards stands withdrawn. . 000/Loss of two limbs or two eyes or one limb and one eye -. around 2. NABARD has prepared a Model Scheme for providing financial assistance for publicity campaign activities of Cooperative Banks under KCC Scheme under CDF with a view to speed up the pace of implementation of KCC Scheme. Major Steps taken by NABARD: A Brochure on KCC Scheme highlighting the salient features. On the lines of instructions of RBI to Commercial Banks.
RRBs and Commercial Banks participating. Daman & Diu and Dadra & Nagar Haveli) with all Cooperative Banks. Supervisory . c. Agency-wise/State-wise progress in issue of cards by all banks during 2001-02 and since inception of Scheme. Scheme implemented in all States and Union Territories (except Chandigarh.
Supervisory Role of NABARD NABARD has been entrusted with the statutory responsibility of conducting inspections of State Cooperative Banks (SCBs). District Central Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs) under the provision of the .
has been simultaneously endeavoring for further developing and strengthening the above institutions to enable them to play a far more effective and efficient role in meeting the rural credit requirements. NABARD has also been conducting periodic inspections of state level cooperative institutions such as State Cooperative Agriculture and Rural Development Banks (SCARDBs). The micro level aspects are to be taken care of by the banks themselves by way of internal inspections or by other agencies such as auditors. In this direction. reviewing the inspection findings. In addition. The broad powers and functions of the Board of Supervision are : giving directions and guidance in respect of policies and on matters relating to supervision and inspection. etc. Under the revised strategy. Liquidity and Systems Compliance(CAMELSC). NABARD. While the capital adequacy norm has not yet been made applicable to these banks. Marketing Federations. income recognition. The exposure of these institutions to the prudential norms also called for a suitable strategy to be adopted by the NABARD to help these banks to adjust to the new financial discipline. reviewing the follow-up action taken . Thus NABARD's focus in its statutory `on-site' inspections is on core assessments leaving the collateral appraisals to supplementary inspections. asset classification and provisioning. Management. revenue and income realisation by way of interest on loans and deposits and other routine features of carrying out general banking transactions were suitably taken care of by the respective banks and their concurrent/ statutory audit systems. 1981 as an Internal Committee to the Board of Directors of NABARD. suggesting appropriate measures. the other prudential norms viz. The changes mentioned above necessitated a review and revision of the strategy adopted by the NABARD for the inspection and supervision of the cooperative banks and RRBs.Banking Regulation Act. Although the prime objective of the statutory inspections is to ensure general safety of public deposits. 1949. Board of Supervision (for SCBs. Earnings. Asset Quality. These norms had already been extended to RRBs since 1995-96. which were made applicable by Reserve Bank of India to the commercial banking sector have been extended to cover SCBs and DCCBs since 1996-97 and to SCARDBs in 1997-98.. Apex Weavers Societies. particularly relating to the internal checks and controls. a sharper focus of the NABARD's inspection was given on the core areas of the functioning of banks pertaining to Capital Adequacy. NABARD attempted to ensure that the other areas. The general banking environment emerging out of the financial sector reforms introduced by GOI/ RBI has also since been extended to cover cooperative banks and RRBs. on a voluntary basis. DCCBs and RRBs) has been constituted by NABARD under Section 13(3) of NABARD Act. through a series of workshops and meetings held with the Chief Executives and the Chief Auditors of cooperative banks. through these statutory inspections.
etc. authorities concerned have been apprised of the weaknesses. management practices. It can also recommend appropriate training for Inspecting Officers of NABARD for imparting necessary skills and knowledge. recommend issue of directions by RBI. action taken thereon. has held 22 meetings till 30 June 2004 and reviewed the financial position of Cooperative Banks and RRBs.by Department of Supervision (DoS) on matters of frauds and internal checks and control. suggest measures for strengthening of DoS. and undertake any other functions entrusted from time to time by the Board of Directors of NABARD. oversee the quality of inspections carried out and the reports issued. investment portfolio. identifying the emerging supervisory issues in the functioning of cooperative banks/RRBs such as NPAs recovery. The Board of Supervision. review the information generated through off-site surveillance and other supplementary vehicles. frauds.. and suggesting necessary follow-up measures. Based on the observations of BoS. since its formation on 20 November 1999. . credit monitoring system.
around 10000 families in 200 villages are working like a family to develop 1 acre of Wadi in which they would be growing Trees .50 lakh Kisan Credit Card where issued Two very important programs undertaken by NABARD are Watershed Development & Wadi 1. but has lost that status from the year 2001 onwards and paid Rs. The other project is Wadi which is in Gujarat. Water-shed Development has been undertaken in Ahmednagar district of Maharashtra and is replicated in other districts.390 Cr by way of IT for the year 2001-02 & Rs.NABARD has the lowest non-performing assets which is around 0.Critical evaluation of NABARD • • • • Income tax exemption:. 2.Till 31st March 2006 just 582.400 Cr for the year 2002-03 Non-Performing Assets: .96% Stagnant Labour: .The number of employees working for NABARD is almost stagnant from the last 10 years.NABARD was exempted for IT all these years. The total numbers of employee’s are 5400 KCC: .
Hope NABARD will improve its execution plans and improve its performance in refinancing RURAL INDIA .Conclusion After studying the role and various refinancing activities of NABARD one can say that there is a lot of scope for improvement. but it is the execution of these functions which is not happening correctly. as the actual scenario is completely different. All the functions of NABARD are adequate.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.