MODULE 3

BANK ATTACHMENT
4/10/2021-6/10/2021
Discipline: Agricultural Economics

INTRODUCTION
Agricultural credit is considered as one of the most basic inputs for conducting all
agricultural development programs. In India, there is an immense need for proper agricultural
credit as Indian farmers are very poor. From the very beginning, the prime source of credit
was moneylenders. After independence, the government implemented an institutional credit
approach through cooperatives, commercial banks, regional rural banks etc., to provide
adequate credit to farmers at a cheaper rate of interest. Moreover, with the growing
modernization of agriculture, a further increase is observed in recent years.
The main motive of institutional credit is to assist the farmers in raising their agricultural
productivity and maximizing their income. It is non-exploitative in character. The important
institutional sources of credit include cooperatives, land developmental banks, regional rural
banks, government, etc. Cooperatives were earlier the main source of credit, but with time
commercial banks came forward to extend to agriculture. Considering the period and purpose
of credit requirements of farmers, agricultural credit can be short-term credit, medium term
loan and long-term credit.
Short-term loans (6-18 months): the farmers require this type of credit to meet the expenses
of the ongoing agricultural operations on the farm like sowing, fertilizer application, plant
protection measures, payment of wages to casual laborers, etc. Medium-term loan (18 months
to 5 years): these loans are required by the farmers for bringing about some improvements on
his farm by way of purchasing implements, electric motors, milch cattle, sheep and goat, etc.
Long-term loans (5 years to more than 20 years): these loans are meant for permanent
improvements like leveling and reclamation of land, construction of farm buildings, purchase
of tractors, raising of orchards, etc.

ORIENTATION
The third module of our RAWE program was bank attachment module under the leadership
of Dr. Hema M. and Ms. Divya K. M. The duration of the module was from 4 th October 2021
to 6th October 2021. Dr. Hema ma’am and Ms. Divya ma’am gave an orientation about the
module and the activities to be undertaken. The first session was by Dr. Anupama K. S. about
national banks. Banking is accepting money from the public and providing money to the
needy. There are two types of accounts, savings account and current account together called
CASA. There are two types of loans namely retail loans for an amount less than 5 crores and
corporate loans for amounts more than 5 crores. Retail loans include personal loans for
housing, agriculture, education. Agricultural loans include Kisan Credit Card,cow loan, goat
loan, pig loan, agricultural infrastructure loans as well as for facilities like silos, cold storage,
marketing, etc. Further insight was given on how agriculture is kept under priority sector
lending, with about 18% to agriculture out of the 40% assigned for priority sector lending.
Agricultural loans are characterized by a repayment period of 1 year after harvest in most
cases under simple interest. The interest is applied half yearly in March and September.
Further information about Agri clinics, agribusiness centers, and financial inclusion, i.e., the
availability and equality of opportunities to access financial services which can be achieved if
all houses have a bank account was provided.
The second session was by Mr. Mohana Chandran Nair about Regional Rural Bank. He
started the session by mentioning the nationalization of banks which took place on 22 nd July
1969 which changed class banking system to mass banking. RRB emerged as a result of the
Narasimham committee during the emergency period to bridge the gap between commercial
banks and cooperative banks. The main objective of RRB is to provide credit and other
banking facilities to small and marginal farmers, agricultural laborers, etc. in rural areas for
boosting the rural economy. At present, there are 43 RRBs in India. RRBs are owned by the
government of India receiving capital from the government sector alone with about 50% from
central government, 35% by sponsor banks, and 15% from state governments. The roles of
RRB include identifying the financial needs of the people, 100% lending to the priority
sector, mobilizing rural savings with clients as rural people only. RRB gives loan only in its
area of operation. NABARD and sponsor banks give loans to RRB. RRB gives loans to
primary cooperative banks and other activities include selling insurance products, active
involvement in financial inclusion, implementing government schemes, providing support to
SHGs. Kerala Grameen Bank was formed by the amalgamation of north and south Malabar
Grameen bank in order to make the banks more viable. The total deposits of RRB Kerala are
about 26,000 crores. Furthermore, the challenges faced by RRB were also discussed.
The third session was by Mr. M. P. Vijayan on cooperative banks. It was an interactive
session based on his experience of working with Palliyakkal service cooperative bank, North
Paravoor for the past 38 years. The Palliyakkal service cooperative bank was established in
1943. It is one of the registered primary cooperative societies under the Department of
Cooperation, Government of Kerala. The operational area is limited to seven wards of
Ezhikkara Grama Panchayat in Ernakulam. The bank once reached the stage of liquidation
from where his prominent leadership made it one of the most successful models in the
cooperative banking sector. They set up SHGs for fruits and vegetables, implemented the
minimum support prices, and ensured the timely supply of the necessary inputs. Currently,
about 1000 families are part of various SHGs and the bank has sold about 35 crores worth of
products ranging from paddy, fruits, vegetables, dairy, poultry, and so on. Thousands of
students from various states of the country, as well as other countries, also visit the farms to
study more about the project and its success. The PSCB also took up the initiative to promote
pokkali rice cultivation in the region. The farmers were provided with interest free loans as
well as marketing facilities. They also formed cooperative SHGs for pokkali farmers. PSCB
also set up a milk society in the region and is continuing its success streak trying to outdo
itself with more farmer friendly programs.

OBJECTIVE
To acquire knowledge on institutional agricultural credit system, lending procedure, and
utilization of different types of credit by different categories of beneficiaries.
The role of credit in an agricultural economy is crucial, and its constraints which can affect
farmers' investment behavior necessitate the investigation of sources of agricultural credit and
its use by farmers. Agricultural credit enhances productivity and promotes the standard of
living by breaking the vicious cycle of poverty of small farmers. In the present era of new and
 advanced technology in agriculture, sourcing for agricultural credit by small farmers and
efficient utilization of such credit is a must to boost agricultural production.

BANK VISIT
As part of the module, all the students visited a commercial nationalized bank and a co-
operative bank individually or in groups, to survey its operation and types of lending in the
field of agriculture.
Sl Students option Banks visited District
no No Name Admission no
1 1 Keerthana A 2018-41-350 1. Mayyil Service Co- Kannur
2 Anagha M 2018-41-312 Operative Bank
3 Bhagya K. K 2018-41-329 2. Canara Bank, Mayyil
4 Ramjith N. P 2018-41-374

2 1 Athira Prakash P 2018-41-326 1. Central Bank of India, Kannur

Peralassery
2 Devapriya N. P 2018-41-333 2. KGB Mambaram
Branch
3 Vyshna I. C 2018-41-399
3 1 Akhila P. S 2018-41-305 1. Ayyanthole Service Co- Thrissur
2 Teena Tony 2018-41-393 Operative Bank
2. Canara Bank,
Ayyanthole
4 1 Devika T. M 2018-41-335 1. SBI Mullassery
2. Venkidangu Farmers
Co-operative bank
5 1 Athira S 2018-41-327 1. Kunnamangalam Co- Kozhikkode
2 Shifana P 2018-41-384 operative bank
2. Canara bank,
3 Sneha R 2018-41-386
Kunnamangalam
6 1 Malavika J 2018-41-354 1. Canara Bank, Kollam
2 Suchitra B 2018-41-392 Pooyappally
2. KGB Karunagappally
3 Athulya S 2018-41-328
4 Fathima A 2018-41-337

7 1 Athira P. S 2018-41-325 1. SBI Pattikkad Thrissur

2 Aswathy Ashok 2015-41-417 2. Panancheri Co-
operative bank

8 1 Saranya M 2018-41-381 1. Canara Bank, Wandoor Malappuram

 2 Anila P. K 2018-41-316 2. KGB Thiruvali

9 1 Amala Thomas 2018-41-307 1. Canara Bank, Malappuram

2 Deepthi P 2018-41-332 Thrikkalangod
2. Service Co-operative
bank Thrikkalangod

10 1 Megha P 2018-41-356 1. Canara Bank, Kozhikkode

Ramanattukara
2. Ferok Service Co-
operative bank
11 1 Harseena 2018-41-342 1. SBI Manimooly Malappuram
2 Subi Sajikumar 2018-41-391 2. KGB, Nilambur
12 1 Mrinalini 2018-41-362 1. Canara Bank, Alappuzha
. Krishnan Alappuzha
2 Mareena Alex 2018-41-355 2. Alappuzha District Co-
3 Archana Gilbert 2018-41-322 operative Bank Limited
4 Juliya Mariam 2018-41-346
Fedin
5 Vivek Azad 2018-41-397
13 1 Jills Joseph 2018-41-345 1. Kanjirappalli Service Kottayam
2 Liset George 2018-41-352 Co-operative Bank
2. Bank of Baroda,
3 Riya George 2018-41-377
Kanjirappali
4 Sneha Sebastian 2018-41-387
14 1 Nandana S. L 2018-41-365 1. Nadakkal Service Co- Kollam
2 Deepa M Das 2018-41-331 operative Bank,
Parippally
2. Canara Bank,
Parippally
15 1 Amisha Vasu 2018-41-308 1. UCO Bank, Mavoor Kozhikode
2 Noufa T. K 2018-41-371 2. Mavoor Sevice Co-
operative Bank
3 C. S. Kavya 2018-41-348
16 1 Fahiz P 2018-41-336 1. Canara Bank, Edavanna Malappuram
2 Jumana jabin V 2018-41-347 2. Edavanna Service Co-
operative Bank
3 Shahana V. P 2018-41-383
17 1 Aparna Asok 2018-41-320 1. Canara Bank, Eritty Kannur
2 Kavya Rag 2018-41-349 2. Chirakkal Service Co-
operative Bank,
Panankavu18
18 1 Sreeshma M 2018-41-390 1. Canara Bank, Palakkad
2 Mithra P 2018-41-357 Karakurussi
2. Karakurussi Service
Co-operative Bank
19 1 Devika K 2018-41-334 1. Union Bank of India, Malappuram
 Ariyallur
2. Ariyallur Sevice Co-
operative Bank
20 1 Mohammed 2018-41-358 1. Kerala State Co- Thrissur
Saleem P operative Bank,
2 Mohammed 2018-41-359 Thiruvambady
Salman C. K 2. Canara Bank,
3 Muhammed Yasir 2018-41-363 Patturaikkal
M
4 Munawar Asmal P 2018-41-364
21 1 Hari P. K 2018-41-340 1. SBI, Viyyoor Thrissur
2 Harikuttan K 2018-41-341 2. Viyyoor Service Co-
Sanal operative Bank
3 R. Aravind 2018-41-321
4 Jasmin R 2018-41-344

22 1 Abdul Hadi 2018-41-300 1. Pananchery sevice Co- Thrissur

2 Abrar Ahammed 2018-41-303 operative Bank,
Pattikkad
3 Ashil Muhammed 2018-41-324
2. Indian Bank,
4 Mohammed 2018-41-360 Paravattani
Shanif
23 1 Mohammad 2018-41-361 1. Canara Bank, Quilandy Kozhikode
Subhan 2. Chemancheri Service
2 Navya V. G 2018-41-368 Co-operative Bank,
3 Nasareen P. K 2018-41-366 Thiruvangur
24 1 Sawan Kumar 2018-41-382 1. PNB, Thrissur Thrissur
2 Nidhin C 2018-41-369 2. Pananchakalam Co-
operative Bank
3 Vijay Thomas 2018-41-394
25 1 Anseela Parveen 2018-41-317 1. Union Bank of India, Malappuram
2 Raneesha M. P 2018-41-375 Manjeri
2. Ernad Primary Co-
3 Reshma P 2018-41-376
operative Agriculture
and Rural Development
Bank Ltd., Manjeri
26 1 Aiswarya V. S 2018-41-304 1. Bank of Baroda, Thrissur
2 Naveena 2018-41-367 Ashtamichira
Unnikrishnan 2. Ashtamichira Service
Co-operative Bank
27 1 Sreeja Theresa 2018-41-388 1. Mankulam Service Co- Idukki
Thomas operative Bank Ltd.,
Mankulam
2. Kerala State Co-
operative
Bank,Mankulam,Idukki
28 1 Sajith S 2018-41-379 1. Mannuthy Service Co- Thrissur
 2 Rahul T. R 2018-41-373 operative
3 Vipin K 2018-41-395 Bank,Mannuthy
2. Bank of
4 Ronald Jose 2018-41-378
Baroda,Thrissur
29 1 Arunima M. U 2018-41-323 1. KGB,Thrippayar Thrissur
2 Vismaya V. S 2018-41-396 2. SBI, Thrippayar

30 1 Anagha Anil 2018-41-310 1. Canara Bank , Ernakulam

2 T. A. Vrindha 2018-41-398 Thripunithara
Nair 2. Kerala State Co-
3 Biya Berney 2018-41-330 operative Bank,
4 R. V. Ananshya 2018-41-314 Thripunithara
3. People’s Urban Co-
operative
bank,Thripunithara
31 1 Anshidha P 2018-41-318 1. Canara Bank, Wayanad
2 Keerthi K 2018-41-351 Panamaram
2. Service Co-operative
Bank, Panamaram
32 1 Fathima Fairoosa 2018-41-338 1. Makkaraparamba Malappuram
K. T Service Co-operative
2 Fathimath Shibila 2018-41-339 Bank, Makkaraparamba
K 2. SBI,Makkaraparamba
3 Sandra T 2018-41-380
33 1 Amritha Arun 2018-41-309 1. Indian Overseaes Bank, Palakkad
Puthucode
2. Vadakkancherry
Service Co-operative
Bank, Vadakkancherry
34 1 Aneena Anna 2018-41-315 1. SBI, Anakkara Idukki
Sabu 2. Chakkuppallam Service
Co-operative Bank,
Chakkuppallam
35 1 Sneha K. B 2018-41-385 1. Rural Service Co- Palakkad
operative Bank,
Mannarkad
2. SBI, Mannarkad
36 1 Anulakshmi C. A 2018-41-319 1. Union Bank of India, Eranakulam
Malipuram
2. Paliyakal Co-operative
Society Bank, Paravur
37 1 Aleena Sunny 2018-41-306 1. SBI, Koruthodu Kottayam
2. Koruthodu Service Co-
operative Bank,
Koruthodu
38 1 Anaha Krishnan 2018-41-313 1. Canara Bank, Eranakulam
Hrudya Biji 2018-41-343 Manjalloor
 2. Service Co-operative
Bank, Avoly
39 1 Abhedh K 2018-41-301 1. Punjab National Bank, Thrissur
Abin V. E 2018-41-302 Kuttanellur
Nived K. M 2018-41-370 2. Ollur Service Co-
operative Bank, Ollur
40 1 Anagha Lakshmi 2018-41-311 1. Canara Bank, Kozhikode
Ganesh 2018-41-389 Vellarvally
Sreenanda S 2. Atholi Service Co-
Anand operative Bank, Atholi
41 1 Oliviya Reji 2018-41-372 1. Union Bank of India, Idukki
Kattapana
2. Thankamany Service
Co-operative Bank,
Idukki