1

PROJECT REPORT ON NABARD BACHELOR OF COMERCE BANKING & INSURANCE SEMESTER V SUBMITTED TO : UNIVERSITY OF MUMBAI
In partial fulfillment of the requirement for the award of the Degree of Bachelor of Commerce- Banking and Insurance Prepared By : ( runalini Bhalchandra endarkar!

"#$#B#Com# Banking % Insurance (& 'em#! (nder the guidance of Prof# )*"+ C,--+.) ,/ BBI0 B '0 B#com0 'ec-110 2+&I ( B+I

DECLARATION

I 0

runalini Bhalchandra

endarkar of 4#&# # ehta College ,f

B '0 BBI0 B#com0 ( Banking % Insurance!0 & semester0 here5y declare that I ha6e completed the pro7ect on 2+"I,2+- B+28 /,9 +.9IC(-"(9) +2D 9(9+- D)&)-,P )2" ( 2+B+9D !0 in the academic year : 3;13: 3;1<#

"he information su5mitted is true and original to the 5est of my knowledge#

MRUNALINI B. MENDARKAR ( T.Y. B. B. I. )

<

CERTIF ICATE
"his is to certify that Miss MRUNALINI B. MENDARKAR

student of "#$#B# Com# ( Banking % Insurance ! has successfully carried out the pro7ect on : 2+"I,2+B+28 /,9

+.9IC(-"(9) +2D 9(9+- D)&)-,P )2" ( 2+B+9D!= in the academic year 3;13- 3;1<0 & 'emester# >>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>

__________________________ P !"#$% G&i'# __________________ E(%# )*E(*+i)#

METHODOLOGY
"he methodology which has 5een used for collection and compilation data regarding 2+B+9D is classified under primary and secondary research#

P i+* ,

R#s#* $-

+ questionnaire

was prepared and

keeping in mind these question0 primary research has completed 5y meeting respecti6e Bank# S#$!)'* , R#s#* $- : "he secondary research has 5een done with the help of 6arious dailies0 maga@ines0 5ooks0 7ournals0 5ulleting in general and 2+B+9DAs -i5rary at *ead ,ffice of 2+B+9D in particular#

ACKNO.LEDGEMENT

It gi6es me great pleasure while su5mitting this pro7ect on the topic C2+B+9DA

+t the outset0 I sincerely

thank prof# Bharti &alechha0 who has

ad6ised and guided me preparing the pro7ect on 2+B+9D#

"he pro7ect has 5een completed with sincere assistance and guidance of 6arious official of 2+B+9D0 friends0 relati6es0 and professors0 who has gi6en their 6alua5le time#

I am 6ery much grateful to my parents who encouraged and inspired me at e6ery point of time# It is their primiti6e encouragement and guidance which has 5een a source of deep and heartful inspiration to me#

OBJECTIVE

In India there are many 5ank ( pri6ate and pu5lic sector ! and /inancial De6elopment institutions ( /D/IAs! like IBDI0 'IDBI0 I/CI0 etc# But 2+B+9D is the only apeF agriculture and rural de6elopment# financial institution for

In India 2+B+9D works for poorest of the poor# I like to know how 2+B+9D works for poor farmers0 artisans0 etc# directly or indirectly through 6arious agencies like commercial 5anks0 cooperati6e

5anks0 regional rural 5anks0 primary agriculture cooperati6e societies0 etc#

I like to know much more a5out go6ernment : sponsored schemes for rural masses0 'elf- *eld .roups ( '*.s!0 8isan Credit Card ( 8CC ! 'chemes0 *orticulture0 fisheries0 etc# 2+B+9D pro6ides training on water land de6elopment0 it helps artisans and small farmers in marketing of their goods and product#

E/CUTIVE SUMMARY

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD ) +C"0 1G11 was passed 5y the

Indian parliament and NABARD was esta5lished on 13 4uly 1G13 with an initial capital of )s# 1;; crore# "he capital is enhanced to 9s# 3;;; crore su5scri5ed 5y go6t# of India and reser6e 5ank of iadia ( 9BI ! 0 it operates through its head office at um5ai0 31 regional

offices situated in state capitals and <G1 district offices at districts#

NABARD is set up as an apeF De6elopment Bank with a mandate for facilitating credit flow for promotion and de6elopment of

agriculture0 small- scale industries0 cottage and 6illage industries0 handicrafts and other rural areas0 promote integrated and sustaina5le rural de6elopment and secure prosperity of rural areas#

CONTENTS

SERI AL NO. ;1# ;3# ;<# ;?# ;B# ;D# ;E#

PARTICULARS I2"9,D("I,2 .)2)'I' ,/ 2+B+9D I''I,2 ,/ 2+B+9D /(2C"I,2 ,/ 2+B+9D '(B'IDI+9I)' ,/

PAGE NO. 11 1? 1E 1G 31 <; <3

2+B+9D /I2+2CI+- P,'I"I,2 ,/ 2+B+9D ,9.+2IH+"I,2+-

'"9(C"(9) ;1# ;G# 1;# 11# 13# 1<# 2+B+9D +2+.) )2" 2+B+9D C,2"+C"' 2+B+9D 9)',(9)C)' 2+B+9D I,98I2. 2+B+9D C,2C-('I,2 +22)J(9)

,/ ,/ ,/ ,/ ,/ <? <D <1 ?; E1 1;

C-012

INTRODUCTION
NABARD is set up as an apeF De6elopment Bank with a mandate for facilitating credit flow for promotion and de6elopment of

agriculture0 small : scale industries0 cottage and 6illage industries0 handicrafts and other rural crafts# It also has the mandate to support all other allied economic acti6ities in rural areas0 promote

integrated and sustaina5le rural de6elopment and secure prosperity of rural areas# In discharging its role as a facilitator for rural areas# In

discharging its role as a facilitator for rural prosperity NABARD is entrusted with :

Pro6iding refinance to lending institutions in rural areas Bringing a5out or promoting institutional de6elopment and )6aluating0 monitoring and inspecting the client 5ansk#

NABARD %!'*,

Initiates measures toward institution : 5uilding for impro6ing a5sorpti6e capacity of the credit deli6ery system 0 including monitoring0 formulation of reha5ilitation schemes0 restructuring of credit institutions0 training of personnel0 etc# Coordinates the rural financing acti6ities of all the institutions engaged in de6elopmental work at the field le6el and maintains liaison with the go6ernment of India0 'tate go6ernments0 the institutions

9eser6e Bank of India and other national le6el concerned with policy formulation#

 Prepares0 on annual 5asis0 rural credit plans for all the districts in the country # "hese plans from the 5ase for annual credit plans of all rural financial institutions# (ndertakes monitoring and e6aluation of pro7ects refinanced 5y it#

Promotes research in the fields of rural 5anking# +griculture and rural de6elopment

/unction as a regulatory authority 0 super6ising 0 monitoring and regional rural 5anks#

CHP. 3

GENESIS OF NABARD
"he Committee to 9e6iew +rrangements for Institutional Credit for +griculture and 9ural De6elopment ( C9+/IC+9D ! set up 5y the 9BI under the Chairmanship of 'hri B 'i6araman in its report

su5mitted to .o6ernor0 9eser6e Bank of India on 2o6em5er 310 1GEG

recommended the esta5lishment of 2+B+9D# "he through the +ct D1 of 110 appro6ed its setting up#

Parliament

"he

Committee after

re6iewing the arrangements came to the

conclusion that a new arrangement would 5e necessary at the national le6el for achie6ing the desired focus and thrust towards integration of credit acti6ities in the conteFt of the strategy for Integrated 9ural De6elopment# +gainst the 5ackdrop of the massi6e credit needs of rural de6elopment and the need to uplift the weaker sections in the rural de6elopment and the need to uplift the weaker sections in the rural areas within a gi6e time hori@on the arrangement called for a separate institutional set up 'imilarly# "he 9eser6e Bank had

onerous responsi5ilities to discharge in respect of its many 5asic functions of central 5anking in monetary and credit regulations and was not therefore in a position to de6ote undi6ided attention to the operational details of the emerging compleF credit pro5lems# "his pa6ed the way for the esta5lishment of NABARD.

CRAFICARD also found it prudent to integrate short term0 medium term and long- term credit structure for the agriculture sector 5y

esta5lishing a new

5ank# 2+B+9D

is the result

of this

recommendation# It was set up with an initial capital of 9s# 1;; crore0 which was enhanced to 9s# 30;;; crore0 fully su5scri5ed 5y the .o6ernment of India and the 9BI#

CHP. 4

 MISSION
Promoting sustaina5le and equita5le agriculture and rural de6elopment through effecti6e credit support0 related ser6ices0 institution 5uilding and other inno6ati6e initiati6es#

Promoting sustaina5le and equita5le agriculture and rural de6elopment through effecti6e credit support0 related ser6ices0 institution 5uilding and other inno6ati6e initiati6es#

C*P#?

ROLE & FUNCTIONS OF NABARD C9)DI" /(2C"I,2' NABARD5s credit functions co6er planning 0 dispensation and monitoring of credit# "his acti6ity in6ol6es: /raming policy and guidelines for rural financial institutions# Pro6iding credit facilities to issuing organi@ations# Preparation of potential : linked credit plans annually for all districts for identification of credit potential onitoring the flow of ground le6el rural credit#

DECELOPMENT AND PROMOTIANAL FUNCTIONS. Credit is a critical factor in de6elopment of agriculture and rural sector as it ena5les in6estment is capital formation and technological up gradation# *ence strengthening of rural financial institutions0

which deli6er credit to the rural financial institutions0 which deli6er credit to the sector0 has Credit is a critical factor in de6elopment in agriculture and rural sector as it ena5les in6estment is capital formation and technological up gradation# *ence strengthening of rural financial institution0 which deli6er credit to the rural financial institution0 which deli6er credit to the rural sector#

make credit more producti6e0 2+B+9D has 5een undertaking a num5er of de6elopment and promotional acti6ities such as : *elp cooperati6e 5anks and 9egional 9ural Banks to de6elopment actions plans for themsel6es# )nter into o( ( emorandum of (nderstanding ! with state go6ernment and cooperati6e 5anks specifying their respecti6e o5ligations to impro6e the affairs of the 5anks in a stipulated timeframe# prepare

 *elp 9egional 9ural Banks and the sponsor 5anks to enter into o(s specifying their respecti6e o5ligations to impro6e the affairs of the 9egional 9ural Banks in a stipulated timeframe# onitor implementation of de6elopment action plans of 5anks and fulfillment of o5ligations under o(s#

Pro6ide financial assistance to cooperati6e and 9egional 9ural Banks for esta5lishment of technical0 monitoring and e6aluations cells# Pro6ide organi@ation de6elopment inter6ention (,DI ! through reputed training institutes De6elopment like Bankers Institute of 9ural (BI9D!0 -ucknow0 2ational Bank 'taff College0

8ucknow and College of +griculture Banking 0 Pune0 etc# Pro6ide financial assistance to cooperati6e 5anks for 5uilding impro6ed management information system0 computeri@ation of operations and de6elopment of human resources#

S&0# 6is! , F&)$%i!) +s an apeF 5ank in6ol6ed in refinancing credit needs of ma7or

financial Institutions in the country engaged in offering financial assistance to agriculture and rural de6elopment operations and programmes0 NABARD has 5een sharing with the 9eser6e Bank of India certain super6isory functions in respect of cooperati6e 5anks and 9egional 9ural Banks (99Bs!#

+s part of these functions0 it (ndertakes inspection of 9egional 9ural Banks ( 99Bs! and cooperati6e 5anks ( other than ur5anK primary cooperati6e 5anks! under the pro6isions of Banking 9egulation +ct1G?G# (ndertakes inspection of 'tate Cooperati6e +griculture and 9ural De6elopment Banks ( SCARDBs) and apeF non-credit cooperati6e societies no a 6oluntary 5asis# (ndertakes Portfolio inspections0 system study 05esides off- site sur6eillance of cooperati6e 5anks and 9egional 9ural Banks 99Bs! Pro6ide recommendations to 9eser6e Bank of India on opening of new 5ranches 5y 'tate Cooperati6e Banks and 9egional 9ural Banks ( 99Bs! +dministering the Credit CCBs# onitoring +rrangements in 'CBs and

I)s%i%&%i!)*7 *)' C*0*$i%, B&i7'i)8 O9"#$%i6# "he rural financial system in the country calls for a strong and efficient credit deli6ery system0 capa5le of taking care of the eFpanding and di6ers credit de6elopment# co-operati6e needs of agriculture and rural is ore then B;L of the rural credit is dis5ursed 5y the Banks and 9egional 9ural Banks# 2+B+9D

responsi5le for regulating and super6ising the functions of Cooperati6e 5anks and 9egional 9ural Banks# *elp cooperati6e 5anks and 99Bs ", Prepare de6elopment actions plans for themsel6es# )nter into o( with state go6ernments and cooperati6e 5anks specifying their respecti6e o5ligations to impro6e the affairs of the 5anks in a stipulated timeframe# *elp 99Bs and the sponsor 5anks to enter into 'pecifying their respecti6e o5ligations onitor implementation of de6elopment action plans of 5anks and fulfillment of o5ligations under o(s# o(s#

Pro6ide organi@ation de6elopment inter6ention (,DI! through reputed training institutes like Bankers Institute of 9ulal De6elopment (BI9D!0 -ucknow0 2ational Bank 'taff Collage of +griculture Banking0 Pune etc# Pro6ide financial support for the training institutes of cooperati6e 5anks# Pro6ide training for senior and middle le6el eFecuti6es of commercial 5anks0 99Bs and cooperati6e 5anks# Create awareness among the 5orrowers on ethics of repayment through &ikas &olunteer &ahiniK /armerAs clu5s# Pro6ide financial assistance to cooperati6e 5anks for 5uilding impro6ed management information system0 computeri@ation of operations0 de6elopment of human resources0 etc#

9ole in "raining 2ational Bank 'taff Collage0 -ucknow#

2ational Bank "raining Centre0 -ucknow# Honal "raining Centre0 *ydera5ad# 9egional "raining Centre0 Bolapur# Bankers Institute of 9ural De6elopment (BI9D!0 -ucknow#

"he pro6isions of the +ct as stated 5elow 6ery clearly indicate the nature and scope of the de6elopmental mandate of the Bank and its role in training and capacity 5uilding with the underlying 5elief that the process of de6elopment cannot 5e accomplished 5y creditK refinance alone# "he pro6ision of the act as stated 5elow 6ery clearly indicate the nature and scope of the de6elopment mandate of the 5ank and its role in training and capacity 5uilding with the underlying 5elief that the process of de6elopment canAt 5e accomplished 5y credit loan#

 agriculture and rural de6elopment acti6itiesM ay pro6ide consultancy ser6ices in the field of agriculture and rural de6elopment and other relati6e matter in or outside India 0 on such terms and against and remuneration

In this conteFt 0 the role of training in NABARD and the role played 5y it for capacity 5uilding in client institution 0 partner agencies and other de6elopmental agencies important# /or maintaining C)Fpert 'taffA0 the 5ank need pro6ide continuous eFposure to it officer and staff of upscaling their knowledge and skills in core areas # howe6er0 in the initial years the 5ank had requited eFpert staff from 6arious technical disciplines and created a separate cadre of officers# these officers were in6ol6e in formulating0 appraising0 monitoring and e6aluating different agriculture pro7ect implemented 5y deferent credit agencies# "hese officers 0 irrespected of their academic 5ackground0 were imparted similar type of training as all other officers #their placement and there regular 7o5 rotation helped in grooming them to take up assorts assignment0 get in6ol6ed in a 6erity of roles and function including credit0 de6elopmental0 promotional0 super6isory and necessary support and information for decision making# "he 5ank also had access to their speciali@ed skill which were utili@ed when e6er needed # In pursuance of the 5ankAs mandate as stated in the +ct0 the 5ank pro6ides training facilities for the 9/Is and agencies in6ol6ed in rural de6elopment through BIRD and the two 9"Cs# Iith a 6iew to 5road 5ase training and capacity 5uilding efforts 0the 5ank encourages these 9/Is to set up their own training system and pro6ided these training institute the necessary support to conduct meaningful and quality training # option and a6enues for strengthening the training# Inter6ention at the client le6el are continuously eFamined so that the human resources in these institution are de6eloped to take on the challenges0 reckon with the competition0 impro6e customer ser6ice 0

eFpend outreach0 de6elop suita5le product and there5y contri5ute to rural de6elopment# As NABARD 0 i+* i7, :&)$%i!) %- !&8- !%-# *8#)$i#s; %-# )##' !: %-# $7i#)% i)s%i%&%i!) 7* 8#7, '#%# +i)# %-# <)!=7#'8# *)' s<i77 #>&i #+#)% !: NABARD !::i$# s. NABARD endea6ors to 5lend the eFperience of client 5ank training with the training for NABARD officers so as to make training meaningful and rele6ant to their roles# )fforts are also made to 5lend study finding with the outcome from training to periodically measure o6erall impact on the in6estment made in the training efforts#

CHP1

SUBSIDIARIES OF NABARD

NABARD C!)s&7%*)$, s# 6i$# (N*9$!)s) NABARD Consultancy 'er6ices (NABCONS) is a wholly owned su5sidiary promoted 5y the national 5ank for agriculture and 9ural De6elopment (NABARD) and is engaged in pro6iding consultancy in all spheres of agriculture 0rural de6elopment and allied areas# N*9$!)s le6erages on the core competence of the NABARD in the areas of agriculture and rural de6elopment 0especially multidisciplinary pro7ect0

<

5anking

institution

de6elopment0

infrastructure

training

0etc#0internali@ed for more than two decades # "he company is registered under the companyAs +ct0 1GBD0 with an authori@ed capital of 9s 3B; million ((' NB#EB million ! and paid up capital of 9s B; million ((' N1#1B million! #In tune with NABARD5s mission to 5ring a5out rural prosperity 02a5cons has more than 7ust commercial interest in the assignment it undertaskes# B*)<# s I)s%i%&%# !: R& *7 D#6#7!0+#)% (BIRD) )sta5lished in 1G1<0 at -ucknow0 is an autonomous institute promoted and funded 5y NABARD .BIRD was esta5lished primarily to cater to the training needs of 99B personnel# "he institute 0has0 since 1 st +pril 1GG305een catering to the training and information needs of rural 5ankers through its tropical training programsKseminars# the institute mandate also includes 9esearch and consultancy in the related area#

CHP.?

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FINANCIAL POSITION OF NABARD

NABARD is a De6elopmental /inancial Institution (D/I!# "he

comparati6e financial position for the pre6ious financial years is shown 5elow

<

particular "otal +sset 2et worth +d6ances Pre-taF Profit

3;;E-;1 (9s in 5illion ! DED 3<E B11 11#EB

3;;1-;G 113 3?D DGB 11#ED

CHP1@

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ORGANIAATION STRUCTURE OF NABARD

2+B+9D function through its head office at
um5ai and operates all o6er the country through its 31 9egional office and 1 su5- office 0located in the capital of all the states K union territories# It has <ED District officer +cross the country 0 and one special cell at 'rinagar It also has siF training esta5lishments in different parts of the country 0 +2D one special cell at 'rinagar# It also has siF training esta5lishedment in deferent parts of the country for capacity 5uilding and enhancement of the skill of its man power and also of other organi@ations such as 5anks0 2.,s0 etc#0 who are equal partners in rural de6elopment#

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CHP1B

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MANAGEMENT OF NABARD

"he company is managed 5y an independent 5oard of Director and headed 5y a chief )Fecuti6e officer0 supported 5y a professional and competent team to look after the work of coordination 0marketing 0administration 0client ser6ice 0rtc# "he company is managed 5y an independent Board of Director and headed 5y an C),0 supported 5y a professional and competent team to look after the work of co-ordination0 marketing0 administration0 client ser6ice etc#

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CHP1C

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<

CHP12D

RESOURCES C+PI"+- +2D ,I2)D /(2D' "he capital of 2+B+9D together with reser6es and other owned funds aggregate o6er 9s#1?3 5illion (9s#1?3;; crore!# OTHER RESOURCE Domestic 'hort "erms .eneral -ine ,f Credit /rom 9BI arket 5orrowing from the go6ernment of India and any other organi@ations appro6ed 5y the central .o6ernment# "erm deposits including special deposits# International 5orrowing K .rants from : Iorld 5ank group 'wiss agency for de6elopment and (I/+D!0 8/I0 'DC ,ther international agencies like ,P)C0 ))C and counties like (8 0 etc

CHP122

MINOR IRRIGATION

Iater Is

ost )ssential single input required for increasing the distri5ute and seasonal in character

agriculture producti6ity# India recei6es a5out 13; cm # a6erage annual rainfall 0 which is une6enly Importance Irrigation schemes Kpro7ect with culture command area less then 3;;; ha# 9ae classified under minor irrigation category minor irrigation pro7ects ha6e comparati6ely more ad6antages like small in6estments0 less en6ironmental ha@ard0 complete early0 easy to manage 0 operation under farmersA control0 quick returns 0etc#Due to these positi6e features minor irrigation schemes Kpro7ects are financed 5y the eligi5le financial warranting need for de6elopment of irrigation

institution also# "he ultimate potential for minor irrigation is of the order of 11#? #ha# of which 1;L is from ground water resources# "herefore 0 the ground water 5ased schemes assume greater importance under irrigation sector 0which is e6ident from the fact that B;L of total irrigated area in the country is supported 5y ground water resources# ,ut of total annually replenisha5le ground water resources of ?< a 5alance of 3< # ha# a5out 3; #ha#m #(?D#<L! are presently utili@ed 5y wells and 5ore : wells lea6ing #ha# m a6aila5le for eFploitation# De6elopment of these 6ast resources howe6er needs scientific approach so that structures are cost effecti6e0 sustaina5le and yield adequate economic returns to farmers#

C!)% i9&%i!) O: NABARD C #'i% 2+B+9D since its inception ha6e accorded top priority to minor irrigation de6elopment keeping in 6iew the national water policy 1G1E and o57ecti6es of increasing agricultural production #

 PLANTATION AND HORTIULTURE

P7*)%*%i!) A)' H! %i$&7%& # B !*'7, $!6# s '#6#7!0+#)% /ruit Crops ango0 .rape0 -itchi0 +pple0 .ua6a0 Pomegranate0 Banana0 Citrus etc# Plantation crops "ea0 Coffee0 Coconut 09u55er0 ,il Palm0 Betel &ine etc# ,rnamental crops 9ose0 4asmine 0 .er5era 0.ladiolus0 /oliage Plants etc# edicinal plants

.uggul0 Pippali0 +onla0 -sa5gol0 Dioscorea 0 9auwolfia0 PeFiwinkle0etc Ess#)%i*7 !i7s E * !+*%i$ 07*)%s Citronella0 Palma 9osa0 &elti6er0 int 0etc

 V#8#%*97# $ !0s Parwal0 8undura0 'quash +nd ,ther &egeta5les etc !%-# s sericulture 0+piculture0 ushroo > production and related acti6ities#

TYPES OF SUPPORT 9efinance support from 2+B+9D to all the eligi5le financial institution is a6aila5le in respect of acti6ities like 2ew plantingK replantingK intensi6e culti6ation of plantation and horticulture crops 0 9e7u6enation of old orchards 1 plantation Integrated horticulture de6elopment iFed orchards0

Bee keeping0 honey eFtraction ul5erry culti6ation 0 cocoon rearing 0 grain age etc#

Post har6est infrastructure facilities like pre cooling 0cold storage etc# Processing units for fruits and 6egeta5les0 plantation crops 0spices 0medicinal and aromatic plants etc# Infrastructure required eFport oriented plantation and horticulture pro7ect Protect culti6ation and acti6ities like production0 processing compost 0manufacturing spawn production etc I))!6*%#' E T &s% A #*s Dry land horticulture

edicinal plants

'eed production /ruit and 6egeta5le processing -K mushroom /loriculture 'pirulina algae ,rganic farming .reen house culti6ation *ydroponics Plasticulture

L*)' '#6#7!0+#)% ;s!i7 $!)s# 6*%i!) *)' =*%# +*)*8#+#)%

7udicious use of land and water resource 0 soil health impro6ement and reclamation of degraded lands are prerequisites for increase agriculture production # to promote sustaina5le agriculture0 2+B+9D is making a6aila5le refinance for this sector on priority## S!i7 A)' .*%# C!)s# 6*%i!)

"o pre6ent soil and water erosion and reclaim already damaged lands0 financial help from 5anks can 5e a6ailed of 5y indi6idual farmers from measures like land lea6ing 0terracing O-contour trenchingP 'tone wallsKre6etmentsP .ully control measure > construction of farm ponds K nala 5onds Kcheck dams0 construction of water ways 0>sposal drains 0 silt application0 integrated measures etc# .*%# s-#' D#6#7!0+#)% 9ain :fed farming on watershed 5asis is identified as the key area of de6elopment needed for increasing food grain production and income in fragile ecosystems 02+B+9D gi6es top priority for this sector 5y gi6ing 1;;L refinance to implementing is usually needed are: S!i7F C!)s# 6*%i!) .! <s Contour 5unds 0 graded 5unds0 graded 5order strips0 5ench terracing 0@ing

.*%# R#s!& $# D#67!0+#)% /arms Ponds0 2ala Bunds K Percolation "anks0 'topK Check D+ ' C !0 P !'&$%i!) Impro6ed agronomic packages 0 crop replacementP Di6ersification 0 integrated pest anagement organic manure production etc A7%# )*%# 7*)' &s# s,s%#+ /or ara5le lands : +/.9I-horticulture 0alley cropping /or marginal lands: pastures and animals production 0sil6i-pastures 0tree farming0 sil6i : horticulture #

 I+0 !6#' E>&i0+#)%EI+07#+#)% 'eed cum fertili@ed drills0 plant protection equipment# .*%# M*)*8#+#)% (nder irrigation pro7ect0 poor water management and land de6elopment0 results in water logging and land degradation leading to salinity #to pre6ent this 0on farm De6elopment (,/D!measure like land lea6ing and drainage channel are required# Credit schemes for this su5sector can 5e drawn with tie up for eFtension support # /or efficient use of water under non-command area de6elopment areas such as minor irrigation structures0 lift irrigation schemes0 5ank finance can 5e a6ailed for ,/D works under automatic refinance facility from 2+B+9D# ANIMAL HUSBANDRY

+2I +- *('B+2D9$ in India is closely interwo6en with agriculture0 and plays an important complimentary role in the rural economy# it pro6ides high quality human food(milk0 meat and eggs!0wool0 fi5re and manure 0in addition to gainful employment and supplementary income to the 6ast ma7ority of rural population 0 the

contri5ution of li6estock sector is a5out 3BL of the 6alue of IndiaAs totalM agriculture output# +2I +- *('B+2D+9$ in India is closely interwo6en with agriculture0 and plays an important complimentary role in the rural economy# It pro6ide high quality human food milk to the eF

India ranks seconds with its milk production of E1 million tones# "he production of eggs and 5roilers was 31D;; million and BD; million respecti6ely in the world # "he refinance assistance for animal hus5andry acti6ities showed a positi6e growth o6er the years #it was a5out 9s#3<#;D crores in 3;;D -;E0which rose to 9s# E1B#E3 crores during 3;;E-;1# this clearly indicates the importance gi6e 5y the national 5ank to the sector S0#$% &+ O: A$%i6i%i#s "he acti6ities for which financial assistance is a6aila5le under li6estock sector are 5riefly gi6en 5elow #: D#6#7!0+#)% !: :!&)'*%i!) s%!$< /ro@en semen 5anks and artificial insemination centers

 Pure line and granted parent poultry 5reeding /odder Kgrass seed production M&7%i07i$*%i!) !E0 !8#), Cattle and 5uffalo and calf rearing -ayerKBroiler parent poultry 5reeding PigKra55it 5reeding C!++# $i*7 :* +i)8 'mall0 mini and commercial dairy units Poultry layerKBroiler0 Duck and Quail farming 'heep0 .oat0 9a55it Pig farming F!''# *)' :##' '#6#7!0+#)% .o *arland (&illage common garaging land ! de6elopment 'il6ipastoral de6elopment -ucerne(perennial! culti6ation Cattle and poultry feed plant M* <#%i)8 -iquid milk plant including chilling centers Composite milk plants for manufacture of milk products anufacture of indigenous milk products )gg K 5roiler carts 0 Broiler dressing and processing plants Iool processing centers 'huttle cock manufacturing units from poultry feature A)i+*7 H#*7%Production of 'P/ eggs and li6estock 6accines anufacturing of animal health product and medicines Pri6ate &eterinary Clinics and disease diagnostic

I): *s% &$%& *7 T#$-)!7!8i#s ilk tankersK milk 6anKmilk houses Kmilk tester +utomatic milk collection station 5ulk milk cooling units Iork animals pack animals and animal dri6en carts I))!6*%i6# %#$-)!7!8i#s ilking machines 0 chaff cutters and silo pits )n6ironment controlled poultry houses 0 .as 5rooders and nipple drinkers +utomatic feeding Kwatering system0 )ffluent treatment K rendering plants P!%#)%i*7E % &s% * #*s Pri6ate 6eterinary clinics K o5il +I units anufacturing of indigenous milk products 'tall fed goat rearing under semi- intensi6e system 9am lam :fattening $ak farming ule 5reeding cum rearing 'al6age of dry pregnant 5uffaloes city sta5les Processing of wool 0skins and other animal 5y : product R#s#* $- *)' '#6#7!0+#)% *$%i6i%i#s s&00! %#' "echno economic feasi5ility study of cross 5reeding /armersA adoption of urea treatment of paddy straw Con6ersion of 5iodegrada5le aquatic waste as li6estock feed Con6ersion of agro industrial 5y :products for ruminates 'tandardi@ation of management practices of 9a55it )Fpansion of training facilities and research acti6ities

DEVELOPMENT OF FISHERIES

India with a total fish production of 960 million tones in 2008-09 occupies the sixth position in the world and contributes a little over four percent of the world fish production. Of the total fish produced it is estimated that about 29% is accounted b a!uaculture and Indian ran"s

second in the world in a!uaculture production contributin# to about 9% of the total. $orld production throu#h a!uaculture. %he export earnin#s from marine products in 2009-20&0 was to tune of 's. 8096 crores which is more than nine times the export made in 2006-0( of 's. ()& crores. *xport of marine products accounted for about 8% of our #ross national exports durin# 2008-2009. fisher sector in India has been providin# emplo ment to about +9.60 la"hs full time or part time fishermen. In addition another six million people are en#a#ed in fisher related

ancillar activities. %he contribution of fisher sector to the ,ross -omestic .roduct of the countr &.) percent. is approximatel

%he fisheries sector has #rown at a stead pace of 6% per annum durin# the /III five ear plan. %he sector can pla

an important role as a source of food securit .

-urin# the period2006-0(0 the annual #rowth rate in food #rain production fell from 6.6% to 0.8% thus it is imperative that the increasin# deficit in food suppl be

supplemented with increasin# production utili1in# other resources.

India has an estimated fish production potential of 8.2 million tones followin# conventional production is

technolo# . 3s a#ainst the said potential0 the countr currentl harnessin# merel +.6 million tones offish.

In view of the importance of the sector in the national econom 0 the 4353'- has pla ed a pivotal 6 role in the development of the sector. %he ban" has so far provided refinance assistance to the tune of 's. 6&)2& la"hs.

 Spectrum of activities

3ll the activities sub7ect to their techno- economic feasibilit are covered under 4353'-89 refinance

assistance. 3n illustrative list is #iven below.

Marine Fisheries A !apture Fisheries %raditional boats :otori1ation of traditional crafts :echani1ed fishin# vessels -eep sea fishin#

" !u#ture Fisheries :ari culture in coastal waters Open sea culture in ca#es etc. In#an$ Fisheries

A !apture Fisheries

 ;rafts< #ears for fishin# in reservoirs < rivers " !u#ture Fisheries ;omposite fish culture =ish seed hatcher ;ulture of air breathin# fishes culture of trout Inte#rated fish culture 9ewa#e fed fisheries 'unnin# water fish culture Ornamental fish breedin# =resh water prawn hatcher :onoculture< pol culture of freshwater prawan > fish %ilapia culture Research % Deve#opment Activities

5reedin# and larval rearin# of air breathin# fish. -evelopment of fibrocement catamaran. .ilot pro7ect for demonstration of commercial

feasibilit of freshwater prawn

hatcher .

 -evelopment of hatcher

technolo#

for freshwater

prawn macro brachium malcolmsonii.

!OLD STORA&E FOR PLANTATION AND HORTI!'LT'RE PROD'!E

INTROD'!TION

India is the lar#est producer of fruits and second lar#est producer of ve#etables in the world. In spite of that per capita availabilit of fruits and ve#etables is !uite low

because of post harvest losses which account for about0 2+% to )0% of production. 5esides0 !ualit !uantit reaches of produce also deteriorates b the consumer. %his is mainl of a si1able the time it because of

perishable nature of the produce which re!uires a cold chain arran#ement to maintain the !ualit and extend the shelf- life if consumption is not meant immediatel after

harvest. In the absence of a cold stora#e and related cold

chain facilities0 the farmers are bein# forced to sell their produce immediatel after harvest which results in #lut 9ituations and low price reali1ation. 9ometime farmers do not even #et their harvestin# and transportation costs what to tal" of the cost of .roduction or profit. 3s a result0 our production is not #ettin# stabili1ed and the farmers after burnin# fin#ers in one crop switch over to another crop in the subse!uent ear and the vicious c cle

continues. Our farmers continue to remain poor even thou#h the ta"e ris" of cultivatin# hi#h value fruits and ear after ear. 3 cold stora#e facilit

ve#etable crops

accessible to them will #o a lon# wa in removin# the ris" of -istress sale to ensure better returns. %his document endeavors to provide information on various broad

technical and financial aspects of a cold stora#e unit to enable the financin# ban"s and entrepreneurs in

formulation and implementation such pro7ects. Status of co#$ stora(e an$ its potentia# in In$ia %he estimated annual production of fruit and ve#etable in the countr is about &)0 million tones . this account for

&8% of our a#riculture output. -ue to diverse a#ro climatic condition and better availabilit of pac"a#e of practice 0

the production is #raduall risin# 03lthou#h0 there is a vast scope for increasin# the production 0 the lac" of cold stora#e and cold chain facilities are become ma7or bottlenec" in tappin# the potential 0the cold stora#e facilities now available are mostl for a sin#le commodit

li"e potato0 oran#e0 apple 0 #rapes 0 pome#ranates flowers etc.which results in poor capacit utili1ation. .resent availabilit of cold stora#e capacit is onl . &0).+

la"h tonnes0 out of which units havin# about 8 la"h tonnes capacit are non functional .3lthou#h 90% of these units

are made to store onl potato even then it does not meet the re!uirement of the sin#le crop0 the production of which is about )00 la"h tonnes. Out of +22) cold stora#e units setup till 200(0 20&2 units were for potato022( units were for multipurpose use0 &2&) units were for fruits and

ve#etables and remainin# were for products li"e meet 0 fish 0 mil" etc . Stora(e foo$ an$ stora(e con$ition

=ood and man

other commodities can be preserved b

stora#e at law temperature0 which retards the activities of micro or#anism. :icro or#anism are the spoila#e a#ent and consist of bacteria0 east and molds. ?ow temperature does not destro spoila#e a#ent as does hi#h temperature0 but #reatl reduce their reduce their activities0 providin# a practical wa of preservin# perishable foods in their

natural state which otherwise is not possible throu#h heatin# .the law temperature necessar of preservation

depends on the stora#e time re!uired often referred to as short or lon# term shorta#e and t pe of product. In (enera#) three are the three (roup of pro$uction * =ood that are alive at the time o0f stora#e 0 distribution and sale e.# fruit and ve#etables. =ood that are no lon#er alive and have been processed in some form e.# meat and fish products and ;ommodities that benefit from stora#e at controlled temperature e0# beer0 tobacco0 "han sari0 etc ?ivin# food such as fruits and ve#etables have some natural protection a#ainst the activities of micro or#anism.

%he best method of preservin# these items is to "eep the product alive and at the same time retard the natural en1 me activities which will retard the ripenin# or maturit .

.reservation of non @livin# foods is more difficult since the are susceptical top spoila#e. %he problem is to and putrefaction. ?on# be

preserve dead tissues from deca

terms stora#e of meat and fish product can onl

achieved b free1in# and then b storin# it at temperature below -&+ c onl certain fruit and ve#etable can benefit

from free1in#. Aowever 0for fruits and ve#etable one should be ver careful about the recommended stora#e a deviation from which will

temperature and humidit

have adverse effect on the stored product leadin# to even loss the entire commodit .

.roducts such as apples0 tomatoes 0 arran#es etc. cannot be fro1en and close control of temperature is necessar for lon# term stora#e. 9ome product can be benefited b

storin#

under

controlled

atmosphere

and

modified

atmosphere condition . -air products are produced from animal fats and suffer from the

therefore non livin# foodstuffs. %he

oxidation and brea"down of their fats0 causin# rancidit . .ac"a#in# to exclude air and hence ox #en can extend stora#e life of such foodstuffs. Techno#o(+ 3 cold stora#e unit incorporates a refri#eration s stem to maintain the desired room environment for the

commodities to e stored .3 refri#eration s stem wor"s on two principles. /apor absorption B/39C. 3nd /apor compression B/39C /390 althou#h comparativel costlier0 is !uite

economical in operation and ade!uatel

compensates

the hi#her initial investment. $herever possible such a s stem should be selected to conserve on ener# and

operational cost. Aowever it has its own limitation when temperature re!uirement is below &0oe and man of

the fruit and ve#etables expect seeds0 man#o 0etc re!uire lower than &0eo for lon# stora#e . /390 is comparativel cheaper than /39 . there are

three t pes of vest s stem available dependin# upon the coolin# arran#ement in the stora#e rooms i.e.0 t pe 0bun"er t pe and fin coil t pe diffuser t pe is comparativel costlier and is selected onl when the

stora#e room hei#ht are low .the operational cost of such units is also hi#her .bun"er t pe is the cheapest and is preferred when stora#e room hei#ht normall exceed &&.+ m. its operational cost is also low . fin coil t pe 0 althou#h about +% costlier than the bun"er t pe 0 is ver ener# efficient with low operational cost and for stora#e produce .such

hi#her space availabilit

s stem is used for units with room hei#ht of +3m onward. In a refri#eration s stem 0refri#erants are used to pic" up heat b evaporation at a lower temperature and

pressure from the stora#e space and #ive up the heat b condensation at a hi#her temperature and pressure

in a condenser. =reon used to be a common refri#erant but as it causes environmental de#radation Dits used is doin# to be banned b the ear 2008.therefore 3monia is bein# increasin#l used and preferred for horticulture

and plantation produce cold stora#e units. 3lthou#h several t pes of compressors and condensers are available 0medium speed reciprocatin# compressors and atmospheric condensers are preferred because of the relativel maintenance . $hile selectin# si1e of the e!uipment 0 care should be ta"en to asses all loads and proper provision should be made to ta"e care of the pea" demand durin# the summer loadin# and a#in# of the e!uipment . heat load factors normall consi$ere$ in a co#$ stora(e are* $all 0floor and ceilin# heat #ains due to conduction $all and ceilin# heat #ains from solar radiation ?oad due to in#ression of air b fre!uent door openin#s and durin# air char#es . Ph+sica# an$ financia# out#av lower cost0ene# efficienc and ease in

%he followin# ph sical provision with their costs are consider for a cold stora#e unitE ?and sit development includin# levelin# 0fencin#0 road 0draina#e etc . ;ivil structure includin# main cold stora#e buildin# rac" provision 0dr in# shed machiner room 0store for consumables0 #enerator room 0office 0securit cabin 0etc. Insulation of main store buildin# :achiner for coolin# 0air movement 0loadin#

0#radin# and wei#hin# *lectric suppl of arran#ement includin# installation and deposit for re!uisite

transformer

connection 9tand b electric sull arran#ement <-, set $ater suppl arran#ement and treatment plant 0 if re!uired pollution control and waste disposal e!uipment

 :iscellaneous

fixed

assets

includin#

office

e!uipment and furniture .reliminar and preoperative expensive ;ontin#enc $herever mar"et is their for ice 0an ice plant of the suitable si1e ma be incorporative for better

utili1ation of the facilities and hi#her income .if an ice plant included with the cold stora#e 0the additional investment for ice plant ma included in the financial outla . $hile decidin# the ph sical provisions0 care ma be ta"en to ma"e the unit a multi commodit multi chamber s stem for better and also be

capacit

utili1ation ,eneral ?andin# %erms 4353'provides refinance support to various

.financin# ban"s includin# commercial ban"B;5sC 0 'e#ional rural ban"s B''5sC0state co-operative ban"s B9;5Cand state cooperative a#riculture and rural

development ban"s B9;3'-5sC for financin# cold stora#es under its normal refinancin# pro#ramme .the #eneral terms and condition relatin# to the 4353'-8s refinance support are indicated below E E#i(i,#e "orro-ers . institution for Refinance "he ad6ances made to indi6irluals 0group of indi6idual0 cooperati6e societies 0 proprietary Kpartnership concern and 7oint sector companies 5y CBs and 'CBs for cold storage units chain are eligi5le for refinance from 2+B+9D #5esides this 0the ad6ances granted to indi6idual for cold storages and allied purposes granted 5y 'C+9Ds and 99Bs are also eligi5le for refinance 2+B+9D#

M* 8i) +!)#, argin money of 1BLto 3BL of the pro7ect cost is normally insisted upon depending upon the status and financial health of a 5orrower # R*%# !: i)%# #s%#' "he rate of interested of the agriculture ad6ances including cold storage and god owns are stipulated 5y the financing 5anks su57ect to guidelines issued 5y the 9BI from time to time # the interest on 2+B+9DAs refinance to 6arious 5anks depends upon the loan amount # G&*)%&+ !: #:i)*)$# "he quantum of refinance to 6arious financing 5anks 6aries depending upon the category of the financing 5link# "he pre6ailing quantum of refinancing for 6arious agencies are as under #

C*0i%*7 i)6#s%+#)% s&9si', s$-#+# :! $!)s% &$%i!) E +!'# )iH*%i!) E #(0*)si!) !: $!7' s%! *8#s *)' s%! *8#s :! -! %i$&7%& # 0 !'&$# 2+B+9D pro6ides refinance support to 6arious eligi5le financing 5ank for financing cold storages under its normal refinance programme 0the guideline for which are issued from time top time # .o6ernment of India has sanctioned a capital in6estment su5sidy scheme for construction Kmoderni@ation P eFpansion of cold storages and storages for horticulture produce # the details of the scheme are placed at +nneFure &I# national 5ank of +griculture and rural de6elopment (2+B+9D! has 5een made a nodal agency for promoting the acti6ity through credit deli6ery system # it has 5een planed to create a additional capacity of 13 lakh tonnes of new units and reha5ilitation of 1 lakh tonnes of closed units under the scheme#

FORESTRY & .ASTELAND DEVLOPMENT

In the conteFt of the strategy to undertake massi6e need 5ased and time 5ound programmers in a forestation wastelands 02+B+9D has li5erali@ed its eFisting policy 5y eFtending refinance support to all 5anka5le wasteland de6elopment programmers to make a6aila5le credit through 5anking channel to the 7oint sector undertakings of pri6ate companies raising plantation for their raw material needs and for cooperati6e and pri6ate entrepreneurs raising such plantation to meet raw material needs of such user industries with appropriate market tie up #considering the

national importance of this sector 02+B+9D is acti6ely in6ol6ed in the following acti6ities# F* + :! #s% , 9aising of three on farm lands Kon 5unds and 5oundaries of agriculture field # the lands where farm forestry can 5e raised must 5e wastelands i #e the lands are lying 5arren and unutili@ed for many years A8 ! :! #s% , 9aising of trees in com5ination with crops on agricultural lands :this is the only forestry practice appro6ed 5y 2+B+9D where good agriculture land can 5e used for forestry plantation along with agriculture crops# *owe6er 0 num5er of species of trees that can 5e raised on ttAtis land are 6ery few 6i@ poplar 0 su5a5ul0 casuarinas 0 kadam 00)ucalyptus 0sissoo etc#

C!++# $i*7 :! #s% , 9aising forestry Kfarm forestry plantation 5y forest de6elopment corporation K user industries Kwasteland de6elopment corporation etc#on go6ernment wastelands 0 degraded forests and forest wasteland or pri6ate wastelands # C!++# $i*7 )& s# i#s 2+B+9D pro6ides refinance assistance for esta5lishing nurseries : on a small 5ut 6ia5le scale with special emphasis on de6elopment of

wastelands #the si@e of nursery may 5e such as will ordinarily 5e capa5le of producing a minimum of <;0;;; seedling there5y meeting the needs of 1; ha wastelands # .*s%#7*)'s '#6#7!0+#)% 2+B+9D will appro6e any farm forestry scheme where the primary o57ecti6e is to raise tree crops on wastelands for for producing firewood0 fodder 0small tim5er and other non :tim5er forestry produce # e#g farm forestry Kcommercial forestry Kcapti6e fuel wood plantations 5y tea estates Kpulpwood plantation K ply wood plantation Kfodder de6elopment scheme Ktree patta scheme K7humland reha5ilitation scheme Knursery de6elopment schemes K5am5oo plantation etc # wastelands can also 5e de6elopment scheme on watershed 5asis# R#$!++#)'#' T ## s0#$i#s "he commercially 6ia5le species recommended wasteland 0de6elopment "amarind0 +onla 0 Prosopis 0 Ber0 Ba5ul 0Cashew 0 'al6ador a0 Casuarinas 02eem 0 7o7o5a07atropha0 'u5a5ul0 'issoo 0 siris 0 "eakwood 0gamar0 forestry plantation R#0*,+#)% 0# i!' "he repayment period may 6ery from species to species depending upon the gestation period 0yield and income # to the eFtent possi5le 0 such loans are to 5e repaid within a maFimum period of 1B years0# it is desira5le to elia0 .:assia 0 Bam5oo 0 etc# Besides 0 kadam and popular also 5e raised under +gro for forestry and are 6i@ # )ucalyptus0 +cacia0 "erminalia 0

adopt a li5eral approach ensure that adequate portion of the income generated is left with the farmers 0 at least till the income generation is esta5lished # R#s#* $- & D#6#7!0+#)% )fforts on up gradation of technology in forestry % wasteland de6elopment : 2+B+9D has 5een pursuing research and de6elopment through in house and sponsored research through grant assistance from 9%D fund for transfer of technology from research la5s to the farmersA field# "he nota5le pro7ect are :2C-0 Pune :and IC/9)ODheradun #

AGRICULTURE ENGINEERING

IMPORTANCE oderni@ation In +griculture Is .radually getting its due importance in our country and engineering inputs are playing a key role in the moderni@ation # optimi@ing the use of 6arious inputs like seed 0 fertili@ed 0pesticides and water through modem engineering inputs like farm machinery 0 farm0 power processing 0 structures and marketing

system is 5ecoming possi5le # the 5ack 5reaking agricultural operation are getting simpler and the profession has started paying # as a result 0 agriculture is finding its acceptance amongst educated youth and day 5y day its face is changing # 2+B+9D the apeF 5ank for agriculture and rural de6elopment 0 is playing a proacti6e role moderni@ation the Indian agriculture and its allied acti6ities # it )ndea6ourAs to support entire gamut of de6elopment works right from land de6elopment to marketing a produce through engineering inputs# F* + 0!=# "he 5ank supports the farmers to acquire prime mo6ers like tractor 0power tillers 0 com5ine har6esters 0 diesel engines and electrical motors # F* + M*$-i)# , "he 5ank supports matching equipment for all power sources to carry out land de6elopment 0 land preparation 0 sowing K planting 0 inter culture 0 threshing K cleaning and transport # P!s% H* 6#s% %#$-)!7!8, E A8 ! 0 !$#ssi)8 Post har6est technology K agro processing for reduction of losses 06alue addition and employment generation is a priority area for 2+B+9DAs refinance support 0almost all post har6est acti6ities are 5eing supported 5y the 5ank # + few eFamples are : /ruit and 6egeta5le processing ,il eFtraction and processing ,leo resins K spice oils K spice processing

Dehydration )Ftraction of essential oils from flowers

 'eed processing including quality control and 9%D facility F* + s% &$%& # 2+B+9D supports creation of storage structure and related infrastructure for increasing the storage life of agriculture produce 0 maintaining its quality and gi6ing the farming community an opportunity to o6ercome the seasonal 6ariation of prices for 5etter returns # the structure 5eing supported in general are god owns 0 silos0 5ins and cold storage for 6ariation products # "he 5ank also supports appropriate stricture to li6ing animals like poultry 5irds 0goat0 house 0 dairy units 0farm roads 0fencing equipment shed and a host of other farm structures# M* <#%i)8 "he 5ank pro6ides supports for creating marketing network for farmer 5y promoting regulated market yards ha6ing facilities for grading 0 weighing and storage arrangement for 5etter price reali@ation # R& *7 E)# 8, "o tied o6er rural energy crisis 02+B+9D pro6ides supports for non : con6entional source of energy like 5io-gas 0 solar enegy 0 wind mills 0 5riquette making etc# Hi1%#$- 0 !"#$% 2ational 5ank supports hi-tech pro7ect in6ol6ing sophisticated engmeermg technology in acti6ities like mushroom production and processing 0 green house technology 0tissue culture 0 processing of milk 0meat 0fish etc

 KISAN CREDIT CARD SCHEME

G#)#sis H!)597# &)i!) :i)*)$# +i)is%# announced in his 5udget speech for 1GG1-GG that 2+B+9D would formulate a model scheme for issue of kisan credit cards to farmers 0 on the 5asis of their land holdings 0 for

uniform adoption 5y 5ank 0 so that the farmers may use them to readily purchase agriculture inputs such as seeds 0 fertili@er 0pesticides 0 etc # also draw cash for their production needs # 2+B+9D formulated a model kisan credit card scheme in consultation with ma7or 5anks # odel scheme circulated 5y 9BI to commercial 5anks and 5y 2+B+9D to cooperati6e 5anks and 99Bs in +ugust 5y 1GG10 with in structure the same in their respecti6e area of operation# 3. O9"#$%i6# +s a pioneering credit deli6ery inno6ation 0<is*) $ #'i% $* ' s$-#+# aims at pro6ision of adequate and timely support from the 5anking system to the farmers for their culti6ation needs including purchase of inputs in a fleFi5le and cost effecti6e manner# C!)%#)%s !: $ #'i% $* ' Beneficiaries co6ered under the scheme are issued with a credit card and 5ook or credit card cum pass 5ook in corporating the na me0 address 0 particulars of land holding 0 5orrowing limit 0 6alidity period 0 a passport si@e photograph of holder etc # which may ser6e 5oth as an identity card and facilitate recording of transactions on an ongoing 5asis # Borrowing is required to produce the card cum pass 5ook whene6er heKshe operates the account# S*7i#)% :#*%& # !: %-# <is*) $ #'i% $* ' (<$$)s$-#+# )ligi5le farmers to 5e pro6ided with a kisan credit card and a pass 5ook or cum :pass 5ook#

 9e6ol6ing cash credit facility in6ol6ing any num5er of drawals and repayment within the limit # -imit to 5e fiFed on the 5asis of operational land holding 0 cropping pattern and scale of finance # )ntire production credit needs for full years plus ancillary acti6ities related to crop production to 5e considered while fiFing limit# 'u5-limits may 5e fiFed at the discretion of Banks#

Card 6alid for < years su57ect to annual re6iew# +s incenti6e for good performance0 credit limit could 5e enhanced to take care for increase in costs0 change in cropping pattern0 etc# )ach drawal to 5e repaid with a maFimum period of 13 months# Con6ersionK reschedulement of loans also permissi5le in case of damage to crops due to natural calamities# 'ecurities0 margins0 rate of interest0etc# as per 9BI norms# ,perations may 5e through issuing 5ranch (and also P +C' in the co-operati6e Banks! through other designated 5ranches at the discretion of Bank# Iithdrawls through slipsKcheques accompanied 5y card and pass5ook# A'6*)%*8#s !: %-# <is*) $ #'i% $* ' s$-#+# +ccess to adequate and timely credit to farmers# /ull years credit requirement of the 5orrower taken of#

inimum

paper

work

and

simplification

of

documentation for drawal of funds from the 5ank# /leFi5ility to draw cash and 5uy inputs# +ssured a6aila5ility of credit at any time ena5ling reduced interest 5urden for the farmer#

CONCLUSION 2ational 5ank for agricultural and 9ural and De6elopment +ct01G11 was passed 5y the Indian parliament and 2+B+9D was esta5lished on 13 7uly 1G13 with an initial capital of 9'# 1;; crore# 2+B+9D inaugurated 5y 'mt# Indira .andhi0 the then prime inister of

India on ;B 2o6em5er 1G13# In her inaugural lecture she told I hope 2+B+9D will de6elop into a dynamic ser6ice institution and pro6ide leadership for 5anks and co-operati6e in 9ural De6elopment# It has to so

De6elop that the People regard it as a friend and a guide rather than a for5idding and a rigid instiution

BIBLIOGRAPHY

P9I +9$ D+"+ r# C#P r# 4#P ,,8+'*I anager0 Pu5lic 9elation Department! +C*+D, (+ssistant .eneral

(+ssistant .eneral manager0 Pu5lic 9elation Department!

')C,2D+9$ D+"+ B,,8' 1# 2+B+9D P9,/I-)-3;;E#

.EBILIOGRAPHY

www#na5ard#org
www#na5cons#com www#iran-na5ard#com

ANNE/TURE

1# +griculture 5eing the Priority 'ector0 what kind of financial assistance do you Pro6ide to this 'ectorR 3# *ow has 2+B+9D the 5ank thatAs 5een esta5lished for the of /inacing +griculture helped in de6elopment Purpose

%+gricultureR <# what kind of 5enefit are Pro6ided for agriculture loan that

are different from commercial loanR ?# when % 5y whom it was inauguratedR B# -et me know a5out staff strength of 2+B+9DR D# -et me know a5out office net work of 2+B+9DR E# what training facilities 2+B+9D is Pro6iding staff and officerR 1# what is kisan Credit CardR G# what are the new ser6ices which 2+B+9D is pro6iding at presentR