Lead bank scheme
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Under the Lead Bank Scheme introduced in 1969: 1) Specific districts are allotted to commercial banks, which take the lead role in expanding banking and credit facilities. 2) As the lead bank, it is responsible for coordinating credit institutions to develop banking and provide credit in its allotted district. 3) The lead bank's functions include surveying potential banking areas, identifying credit needs, and formulating credit plans to generate employment and increase productivity and incomes.
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Lead bank scheme
Lead Bank Scheme:
The complete details of the lead bank scheme are available here. In the banking awareness section, you have to prepare more topics. Only then you can crack your dream bank exams with ease. The lead bank scheme is Aim:
The Lead Bank Scheme, introduced towards the end of 1969, envisages the assignment of lead roles to individual banks (both in the public sector and private sector) for the districts allotted to them.
Recommendation:
The Lead Bank Scheme was introduced by RBI on the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee).
Role:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Objectives:
Here are the objectives of the lead bank scheme.
1) Eradication of unemployment and underemployment.
2) Provision of some of the basic needs of the people who belong to poor sections of the society.
3) Appreciable rise in the standard of living for the poorest of the poor.
4) Another objective was to help in removing regional imbalances through appropriate credit deployment.
5) The main objective was to extend banking facilities to unbanked areas
6) It was observed in the studies by the committee that there are certain credit gaps in a various sector which need to be address and a credit plan is needed.
Functions:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Grant of Educational Loans
Progress under SHGs- bank linkage
Review of Performance of banks under Annual Credit Plan (ACP)
Survey resources and development of banking in the area.
Survey the dependency on money lenders by industrial units, farms, etc.,
Survey the facilities for storing (fertilizers & agricultural inputs), marketing, credit facilities for marketing.
Offering training to staff for advice to small borrowers & farmers in priority sectors
Advantages:
Spread the availability of banking facilities all over the country.
Interlink the Commercial and Cooperative Banks.
More effective Branch Expansion.
Better relationship between Govt. and Banks.
Integration of credit activities of banks.
Bottlenecks in the development of a District can be located and removed.
Lead Bank Scheme would assist in the implementation of the District Plan
Kisan credit card
Kisan Credit Card is a credit card provided by banks to farmers in India to enable them to access affordable credit. Studies have shown Kisan Credit Cards have increased crop yields, farm incomes, and cropping intensity for beneficiary farmers. One study found wheat crop yields increased by 82% and incomes increased by 75% due to access to credit through Kisan Credit Cards. Another study found beneficiary farmers had a higher cropping intensity of 233% compared to 208% for non-beneficiary farmers, and beneficiary farmers allocated more land to commercial crops. Access to credit through Kisan Credit Cards also enables farmers to purchase higher quantities of inputs like seeds, fertilizers and employ more farm labor, thereby increasing productivity and incomes.
Agriculture credit
Agricultural credit is an important input for agricultural development programs in India. It is needed to purchase seeds, fertilizers, equipment and manage risks. However, small and marginal farmers often do not receive enough institutional credit. Some reasons for this are loose definitions that allow large companies access to subsidized loans, and non-compliance by banks with targets for lending to small farmers. Reforms are needed to streamline the system and better facilitate credit to small farmers through organizations and technology.
Kisan Credit Card
The document discusses the Kisan Credit Card (KCC) scheme in India. KCC was introduced in 1998-99 by the Reserve Bank of India and NABARD to provide easy access to credit for farmers. It functions as a revolving cash credit facility with a limit set based on landholding and crops. Farmers can withdraw funds for agricultural inputs and household needs. Key features include flexibility in repayment if crops fail and insurance coverage. Over 750 million cards have been issued, aiming to improve farmers' access to formal credit sources.
Credit analysis
The document discusses guidelines for bankers to analyze credit applications from farmers in India. It outlines factors to consider like returns from investment, repayment capacity, and risk bearing ability. Repayment capacity depends on gross returns, expenses, consumption, other loans, skills. It also discusses the 5 Cs, 7 Ps, and different repayment plans for loans like lump sum, amortized decreasing/even, and variable plans. The key points are evaluating the viability and risks of proposed investments, a farmer's ability to repay based on their financial situation, and choosing appropriate loan repayment structures.
Needs and Sources of Credit in Indian Agriculture
This document discusses the need for and sources of credit in Indian agriculture. It notes that agricultural credit is a crucial input, and that the major historical source was private moneylenders who charged high interest rates. To address this, a multi-agency approach using cooperatives, commercial banks, and regional rural banks now provides cheaper and more adequate credit to farmers. It then outlines the various financial needs of Indian farmers and the roles of credit. Finally, it details the major institutional sources of agricultural credit in India, including cooperatives, commercial banks, land development banks, regional rural banks, government loan schemes, and NABARD.
Chapter 1 Introduction, Scope and Nature of Agricultural finance
This document discusses the meaning, definitions, nature, scope and significance of agricultural finance. It defines agricultural finance as the economic study of farmers borrowing funds and the organizations that lend to agriculture. Agricultural finance can be examined at both the macro and micro level. At the macro level, it deals with total credit needs for the agricultural sector, while at the micro level it focuses on financial management of individual farm businesses. Agricultural finance plays a vital role in agro-socioeconomic development by increasing productivity, farm income, and reducing economic imbalances. It is also important for supporting infrastructure and technology adoption to modernize traditional agriculture.
Lecture 17 farm budgeting
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
Recommended
Lead bank scheme
Lead Bank Scheme:
The complete details of the lead bank scheme are available here. In the banking awareness section, you have to prepare more topics. Only then you can crack your dream bank exams with ease. The lead bank scheme is Aim:
The Lead Bank Scheme, introduced towards the end of 1969, envisages the assignment of lead roles to individual banks (both in the public sector and private sector) for the districts allotted to them.
Recommendation:
The Lead Bank Scheme was introduced by RBI on the basis of the recommendations of both the Gadgil Study Group and Banker’s Committee (Nariman Committee).
Role:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Objectives:
Here are the objectives of the lead bank scheme.
1) Eradication of unemployment and underemployment.
2) Provision of some of the basic needs of the people who belong to poor sections of the society.
3) Appreciable rise in the standard of living for the poorest of the poor.
4) Another objective was to help in removing regional imbalances through appropriate credit deployment.
5) The main objective was to extend banking facilities to unbanked areas
6) It was observed in the studies by the committee that there are certain credit gaps in a various sector which need to be address and a credit plan is needed.
Functions:
The function of the lead banks is to coordinate the efforts of all other banks, financial institutions, and other development agencies for bringing about the overall development of the districts, especially in the rural and semi-urban areas.
Grant of Educational Loans
Progress under SHGs- bank linkage
Review of Performance of banks under Annual Credit Plan (ACP)
Survey resources and development of banking in the area.
Survey the dependency on money lenders by industrial units, farms, etc.,
Survey the facilities for storing (fertilizers & agricultural inputs), marketing, credit facilities for marketing.
Offering training to staff for advice to small borrowers & farmers in priority sectors
Advantages:
Spread the availability of banking facilities all over the country.
Interlink the Commercial and Cooperative Banks.
More effective Branch Expansion.
Better relationship between Govt. and Banks.
Integration of credit activities of banks.
Bottlenecks in the development of a District can be located and removed.
Lead Bank Scheme would assist in the implementation of the District Plan
Kisan credit card
Kisan Credit Card is a credit card provided by banks to farmers in India to enable them to access affordable credit. Studies have shown Kisan Credit Cards have increased crop yields, farm incomes, and cropping intensity for beneficiary farmers. One study found wheat crop yields increased by 82% and incomes increased by 75% due to access to credit through Kisan Credit Cards. Another study found beneficiary farmers had a higher cropping intensity of 233% compared to 208% for non-beneficiary farmers, and beneficiary farmers allocated more land to commercial crops. Access to credit through Kisan Credit Cards also enables farmers to purchase higher quantities of inputs like seeds, fertilizers and employ more farm labor, thereby increasing productivity and incomes.
Agriculture credit
Agricultural credit is an important input for agricultural development programs in India. It is needed to purchase seeds, fertilizers, equipment and manage risks. However, small and marginal farmers often do not receive enough institutional credit. Some reasons for this are loose definitions that allow large companies access to subsidized loans, and non-compliance by banks with targets for lending to small farmers. Reforms are needed to streamline the system and better facilitate credit to small farmers through organizations and technology.
Kisan Credit Card
The document discusses the Kisan Credit Card (KCC) scheme in India. KCC was introduced in 1998-99 by the Reserve Bank of India and NABARD to provide easy access to credit for farmers. It functions as a revolving cash credit facility with a limit set based on landholding and crops. Farmers can withdraw funds for agricultural inputs and household needs. Key features include flexibility in repayment if crops fail and insurance coverage. Over 750 million cards have been issued, aiming to improve farmers' access to formal credit sources.
Credit analysis
The document discusses guidelines for bankers to analyze credit applications from farmers in India. It outlines factors to consider like returns from investment, repayment capacity, and risk bearing ability. Repayment capacity depends on gross returns, expenses, consumption, other loans, skills. It also discusses the 5 Cs, 7 Ps, and different repayment plans for loans like lump sum, amortized decreasing/even, and variable plans. The key points are evaluating the viability and risks of proposed investments, a farmer's ability to repay based on their financial situation, and choosing appropriate loan repayment structures.
Needs and Sources of Credit in Indian Agriculture
This document discusses the need for and sources of credit in Indian agriculture. It notes that agricultural credit is a crucial input, and that the major historical source was private moneylenders who charged high interest rates. To address this, a multi-agency approach using cooperatives, commercial banks, and regional rural banks now provides cheaper and more adequate credit to farmers. It then outlines the various financial needs of Indian farmers and the roles of credit. Finally, it details the major institutional sources of agricultural credit in India, including cooperatives, commercial banks, land development banks, regional rural banks, government loan schemes, and NABARD.
Chapter 1 Introduction, Scope and Nature of Agricultural finance
This document discusses the meaning, definitions, nature, scope and significance of agricultural finance. It defines agricultural finance as the economic study of farmers borrowing funds and the organizations that lend to agriculture. Agricultural finance can be examined at both the macro and micro level. At the macro level, it deals with total credit needs for the agricultural sector, while at the micro level it focuses on financial management of individual farm businesses. Agricultural finance plays a vital role in agro-socioeconomic development by increasing productivity, farm income, and reducing economic imbalances. It is also important for supporting infrastructure and technology adoption to modernize traditional agriculture.
Lecture 17 farm budgeting
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
Agricultural finance
Agriculture contributes around 15% to India's GDP but employs over 50% of the population. Rural areas are home to over 70% of India's population, many of whom are poor farmers dependent on agriculture. The government prioritizes raising agricultural productivity to reduce poverty. Formal agricultural financing through banks has grown over time from money lenders to include cooperative banks, nationalized banks, regional rural banks, and now a multi-agency approach including public, private, and foreign banks. Key agricultural financing products include crop loans and Kisan Credit Cards (KCC), which consolidate short and long-term credit needs. However, many small and marginal farmers still lack adequate access to agricultural credit.
Agriculture finance
Agricultural finance deals with the study of credit provision and liquidity services for farm borrowers. It examines the financial intermediaries that provide loan funds to agriculture and how these intermediaries obtain funds. Agricultural finance can be examined at both the macro and micro level. At the macro level, it considers total credit needs and terms for the agricultural sector. At the micro level, it focuses on financial management of individual farm units. Common sources of agricultural finance include money lenders, traders, cooperatives, commercial banks, and microfinance organizations. Loans are classified by time period, purpose, and security. Weaknesses in rural credit systems include a lack of motivation, high interest rates, and poor recovery rates. Suggestions for
Agricultural marketing institutions
Marketing institutions play an important role in the development of agricultural marketing by establishing rules and regulations, organizations, market infrastructure, and price administration. The document outlines various public sector institutions like the Directorate of Marketing and Inspection, Commission for Agricultural Costs and Prices, Food Corporation of India, and specialized commodity boards that work to regulate and promote agricultural marketing. It also discusses the roles of cooperative sector institutions and associations in providing services to farmers and traders.
Agricultural finance
Introduction to Agricultural Finance along with it's meaning, definition, scope, and significance in Agriculture.
pacs.pptx
This document discusses Primary Agricultural Credit Societies (PACS) in India. It begins by explaining that PACS operate at the village level and are the primary providers of short-term credit to farmers. It then defines PACS and discusses their organizational structure, capital sources, functions, and significance. The document notes that PACS play an important role in rural credit but also face issues like inadequate coverage, resources, and overdues. It concludes by suggesting ways for PACS to expand their services and strengthen rural economies, such as becoming multi-service centers.
Role of NAFED
NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) was established on Gandhi Jayanti to benefit farmers in agriculture. NAFED operates under the multi-state cooperative societies act and plays a huge role in marketing agricultural products in India, which accounts for 30% of GDP. NAFED provides facilities and benefits to cooperative societies, purchases, sells, and stores agricultural products, and connects societies to international agencies to directly benefit members.
Agriculture finance
1) The document discusses the history and sources of agricultural financing in India. It notes that historically farmers relied on moneylenders but financing expanded with the establishment of cooperative banks and nationalization of commercial banks in the 20th century.
2) Today agricultural financing comes from multiple sources including cooperative societies, commercial banks, land development banks, regional rural banks, and government loan schemes. NABARD also plays a key role in refinancing agricultural loans.
3) The document analyzes the productive and unproductive needs for agricultural financing, as well as the short, medium, and long term loan needs of farmers. Overall it provides an overview of the development and current state of agricultural financing systems in India.
Agricultural finance
This document provides an overview of agricultural finance in India. It begins with the historical context of agricultural lending, originally done by moneylenders, and the subsequent development of institutional lenders after policy reforms in the 1930s. It then covers various classifications of agricultural finance based on time, purpose, security, and lender/borrower type. The main sources of agricultural credit in India are discussed, including cooperative societies, commercial banks, land development banks, microfinance institutions, and government schemes. Weaknesses in the rural credit system are outlined along with suggestions for improving access to institutional finance. Agency-wise credit data from 2005-2017 demonstrates the growing role of commercial banks in agricultural lending.
District credit plans
The document discusses the Lead Bank Scheme and District Credit Plans in India. It provides background on the Lead Bank Scheme, including its objectives to provide credit to rural areas and prepare credit plans. It explains that under the scheme, banks with large rural branch networks in a district are designated as the lead bank. It also summarizes the key aspects of District Credit Plans, which are developed by lead banks to provide financing for viable agriculture, industry and service sector schemes based on the economic activities and potential of a district. Examples are provided of early District Credit Plans implemented in Jaintia Hills district.
Farm credit appraisal techniques
This document discusses various methods for analyzing agricultural credit and farm finance, including net present value (NPV) analysis, benefit-cost ratio (BCR) analysis, and internal rate of return (IRR) analysis. It provides examples of calculating NPV, BCR, and IRR for a fish farming project. It also discusses limitations of different methods and the importance of sensitivity analysis and considering distributional impacts.
Nafed
NAFED is India's largest agricultural marketing organization established in 1958 to promote cooperative marketing of farm products. It procures and markets agricultural commodities across India through its network of regional and state offices. NAFED aims to stabilize agricultural prices, facilitate domestic and international trade of farm goods, provide warehousing and cold storage, undertake marketing research, and implement government price support programs to benefit farmers.
agriculture_credit
This document discusses agricultural credit and its importance for farmers. It covers the need for agricultural credit to purchase new inputs, implements, manage risk, and make improvements. The document also outlines different types of agricultural credit, including short-term, medium-term, and long-term credit. Sources of agricultural credit are discussed, including non-institutional sources like money lenders and institutional sources like agricultural development banks and commercial banks. Problems obtaining credit like high interest rates and complicated procedures are summarized. Finally, remedial measures are proposed such as making the loan process easier and establishing more agricultural development banks.
Agriculture price policy
The document discusses India's agricultural price policy and related programs. It provides background on how the policy emerged in response to food scarcity issues. It then describes the objectives of price policy, the need for such a policy, its main features including the institutions involved like CACP and FCI. It also discusses factors considered in price setting, effects of the policy, and shortcomings like limited coverage and ineffective PDS. Suggestions are provided to improve the policy including expanding coverage and improving productivity.
Financial inclusion
This document discusses financial inclusion, credit widening, and credit deepening. It defines financial inclusion as providing access to affordable financial services like banking, credit, insurance to disadvantaged and low-income groups. It summarizes schemes launched in India to promote financial inclusion like PMJDY and steps taken by RBI like appointing business correspondents. Financial deepening is defined as offering a wider range of financial products and services from various financial institutions. Financial widening means accumulating financial assets at a faster pace than non-financial wealth.
Cooperative farming
The document discusses cooperative farming and farmers cooperatives in Pakistan. It outlines the main types of cooperatives including agricultural supply, marketing, and multi-purpose cooperatives. It also summarizes the history and development of cooperatives in Pakistan from their origin in 1904 to their current forms today. Key findings from surveys of cooperatives in Pakistan are presented, showing most members are literate but do not have higher literacy than non-members. Cooperative credit is found to increase fertilizer use and crop yields for member farmers compared to non-members.
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By, Miss. Raksha Anil Hingankar.
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Factor factor Relationship
This document discusses factor-factor relationships in production. It introduces key concepts like iso-quants, which represent all input combinations that produce the same output level, and marginal rate of technical substitution, which is the rate at which one input can be substituted for another while maintaining output. It also discusses substitutes and complements, iso-cost lines, and iso-clines, which connect the least-cost combinations of inputs for different output levels. The goal of factor-factor analysis is to minimize input costs while achieving a given level of output.
CROP INSURANCE SCHEME
Crop insurance schemes have evolved in India over several decades to protect farmers from risks of crop failure. The current National Agricultural Insurance Scheme (NAIS) was launched in 1999 and makes crop insurance compulsory for loan-taking farmers. It covers lower premiums but has limitations like delayed claims, low compensation levels, and exclusion of certain risks. The Modified NAIS launched in 2010 uses actuarial premiums with government subsidies to make premiums affordable for farmers. It aims to address some issues but challenges remain in accurately designing insurance indices and assessing losses. Improving coverage levels, reducing assessment costs, and faster compensation are suggested to strengthen crop insurance for farmers.
Agricultural credit institution
The document discusses different types of banks in India including cooperative banks, commercial banks, and regional rural banks (RRBs). It notes that cooperative banks are owned by their members and regulated by state laws as well as the Reserve Bank of India. Commercial banks include public sector banks, private banks, and foreign banks. RRBs were established to provide credit to rural areas and weaker sections of society. They are jointly owned by the central government, state government, and a sponsoring commercial bank.
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Agriculture contributes around 15% to India's GDP but employs over 50% of the population. Rural areas are home to over 70% of India's population, many of whom are poor farmers dependent on agriculture. The government prioritizes raising agricultural productivity to reduce poverty. Formal agricultural financing through banks has grown over time from money lenders to include cooperative banks, nationalized banks, regional rural banks, and now a multi-agency approach including public, private, and foreign banks. Key agricultural financing products include crop loans and Kisan Credit Cards (KCC), which consolidate short and long-term credit needs. However, many small and marginal farmers still lack adequate access to agricultural credit.
Agriculture finance
Agricultural finance deals with the study of credit provision and liquidity services for farm borrowers. It examines the financial intermediaries that provide loan funds to agriculture and how these intermediaries obtain funds. Agricultural finance can be examined at both the macro and micro level. At the macro level, it considers total credit needs and terms for the agricultural sector. At the micro level, it focuses on financial management of individual farm units. Common sources of agricultural finance include money lenders, traders, cooperatives, commercial banks, and microfinance organizations. Loans are classified by time period, purpose, and security. Weaknesses in rural credit systems include a lack of motivation, high interest rates, and poor recovery rates. Suggestions for
Agricultural marketing institutions
Marketing institutions play an important role in the development of agricultural marketing by establishing rules and regulations, organizations, market infrastructure, and price administration. The document outlines various public sector institutions like the Directorate of Marketing and Inspection, Commission for Agricultural Costs and Prices, Food Corporation of India, and specialized commodity boards that work to regulate and promote agricultural marketing. It also discusses the roles of cooperative sector institutions and associations in providing services to farmers and traders.
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Introduction to Agricultural Finance along with it's meaning, definition, scope, and significance in Agriculture.
pacs.pptx
This document discusses Primary Agricultural Credit Societies (PACS) in India. It begins by explaining that PACS operate at the village level and are the primary providers of short-term credit to farmers. It then defines PACS and discusses their organizational structure, capital sources, functions, and significance. The document notes that PACS play an important role in rural credit but also face issues like inadequate coverage, resources, and overdues. It concludes by suggesting ways for PACS to expand their services and strengthen rural economies, such as becoming multi-service centers.
Role of NAFED
NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) was established on Gandhi Jayanti to benefit farmers in agriculture. NAFED operates under the multi-state cooperative societies act and plays a huge role in marketing agricultural products in India, which accounts for 30% of GDP. NAFED provides facilities and benefits to cooperative societies, purchases, sells, and stores agricultural products, and connects societies to international agencies to directly benefit members.
Agriculture finance
1) The document discusses the history and sources of agricultural financing in India. It notes that historically farmers relied on moneylenders but financing expanded with the establishment of cooperative banks and nationalization of commercial banks in the 20th century.
2) Today agricultural financing comes from multiple sources including cooperative societies, commercial banks, land development banks, regional rural banks, and government loan schemes. NABARD also plays a key role in refinancing agricultural loans.
3) The document analyzes the productive and unproductive needs for agricultural financing, as well as the short, medium, and long term loan needs of farmers. Overall it provides an overview of the development and current state of agricultural financing systems in India.
Agricultural finance
This document provides an overview of agricultural finance in India. It begins with the historical context of agricultural lending, originally done by moneylenders, and the subsequent development of institutional lenders after policy reforms in the 1930s. It then covers various classifications of agricultural finance based on time, purpose, security, and lender/borrower type. The main sources of agricultural credit in India are discussed, including cooperative societies, commercial banks, land development banks, microfinance institutions, and government schemes. Weaknesses in the rural credit system are outlined along with suggestions for improving access to institutional finance. Agency-wise credit data from 2005-2017 demonstrates the growing role of commercial banks in agricultural lending.
District credit plans
The document discusses the Lead Bank Scheme and District Credit Plans in India. It provides background on the Lead Bank Scheme, including its objectives to provide credit to rural areas and prepare credit plans. It explains that under the scheme, banks with large rural branch networks in a district are designated as the lead bank. It also summarizes the key aspects of District Credit Plans, which are developed by lead banks to provide financing for viable agriculture, industry and service sector schemes based on the economic activities and potential of a district. Examples are provided of early District Credit Plans implemented in Jaintia Hills district.
Farm credit appraisal techniques
This document discusses various methods for analyzing agricultural credit and farm finance, including net present value (NPV) analysis, benefit-cost ratio (BCR) analysis, and internal rate of return (IRR) analysis. It provides examples of calculating NPV, BCR, and IRR for a fish farming project. It also discusses limitations of different methods and the importance of sensitivity analysis and considering distributional impacts.
Nafed
NAFED is India's largest agricultural marketing organization established in 1958 to promote cooperative marketing of farm products. It procures and markets agricultural commodities across India through its network of regional and state offices. NAFED aims to stabilize agricultural prices, facilitate domestic and international trade of farm goods, provide warehousing and cold storage, undertake marketing research, and implement government price support programs to benefit farmers.
agriculture_credit
This document discusses agricultural credit and its importance for farmers. It covers the need for agricultural credit to purchase new inputs, implements, manage risk, and make improvements. The document also outlines different types of agricultural credit, including short-term, medium-term, and long-term credit. Sources of agricultural credit are discussed, including non-institutional sources like money lenders and institutional sources like agricultural development banks and commercial banks. Problems obtaining credit like high interest rates and complicated procedures are summarized. Finally, remedial measures are proposed such as making the loan process easier and establishing more agricultural development banks.
Agriculture price policy
The document discusses India's agricultural price policy and related programs. It provides background on how the policy emerged in response to food scarcity issues. It then describes the objectives of price policy, the need for such a policy, its main features including the institutions involved like CACP and FCI. It also discusses factors considered in price setting, effects of the policy, and shortcomings like limited coverage and ineffective PDS. Suggestions are provided to improve the policy including expanding coverage and improving productivity.
Financial inclusion
This document discusses financial inclusion, credit widening, and credit deepening. It defines financial inclusion as providing access to affordable financial services like banking, credit, insurance to disadvantaged and low-income groups. It summarizes schemes launched in India to promote financial inclusion like PMJDY and steps taken by RBI like appointing business correspondents. Financial deepening is defined as offering a wider range of financial products and services from various financial institutions. Financial widening means accumulating financial assets at a faster pace than non-financial wealth.
Cooperative farming
The document discusses cooperative farming and farmers cooperatives in Pakistan. It outlines the main types of cooperatives including agricultural supply, marketing, and multi-purpose cooperatives. It also summarizes the history and development of cooperatives in Pakistan from their origin in 1904 to their current forms today. Key findings from surveys of cooperatives in Pakistan are presented, showing most members are literate but do not have higher literacy than non-members. Cooperative credit is found to increase fertilizer use and crop yields for member farmers compared to non-members.
Lecture 12 economic principles applicable to farm management
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
Classification of credit in agriculture
The detail classification of credit in agriculture and need of credit in agriculture to Indian farmers.
ECON-242 Agriculture finance and co-operation.
By, Miss. Raksha Anil Hingankar.
Lecture 11 Farm Management Decisions
Farm management involves making strategic decisions about how to organize and operate a farm to maximize sustainable profits. There are three main types of farm management decisions: organizational decisions, which involve determining what and how much to produce, as well as strategic decisions about farm size and infrastructure; administrative decisions around financing, supervision, and record keeping; and marketing decisions regarding buying farm inputs and selling farm outputs, including when, where, and to whom to sell. Making good decisions is essential to the sustainable profitability and success of a farm business over time.
Factor factor Relationship
This document discusses factor-factor relationships in production. It introduces key concepts like iso-quants, which represent all input combinations that produce the same output level, and marginal rate of technical substitution, which is the rate at which one input can be substituted for another while maintaining output. It also discusses substitutes and complements, iso-cost lines, and iso-clines, which connect the least-cost combinations of inputs for different output levels. The goal of factor-factor analysis is to minimize input costs while achieving a given level of output.
CROP INSURANCE SCHEME
Crop insurance schemes have evolved in India over several decades to protect farmers from risks of crop failure. The current National Agricultural Insurance Scheme (NAIS) was launched in 1999 and makes crop insurance compulsory for loan-taking farmers. It covers lower premiums but has limitations like delayed claims, low compensation levels, and exclusion of certain risks. The Modified NAIS launched in 2010 uses actuarial premiums with government subsidies to make premiums affordable for farmers. It aims to address some issues but challenges remain in accurately designing insurance indices and assessing losses. Improving coverage levels, reducing assessment costs, and faster compensation are suggested to strengthen crop insurance for farmers.
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Banking.
Chapter4 schemesofbankingdevelopment-160928045401
The document discusses several key schemes and developments in the Indian banking industry, including the Lead Bank Scheme, deposit insurance, and mutual funds. The Lead Bank Scheme aims to promote rural development and ensure all areas are served by commercial and cooperative banks. It involves assigning lead banks to districts to coordinate credit and development efforts. The Deposit Insurance Corporation was established in 1962 to protect depositors from bank failures and promote confidence in the banking system. Mutual funds provide investors diversified exposure to various assets through a professionally managed pool of funds. They offer benefits like professional management and participation in large portfolios.
Chapter 4 schemes of banking development
schemes of banking development, Lead banking scheme, Mutual funds, deposit insurance scheme, modernization of banking industry, non banking financial companies
NABARD
NABARD is India's apex development bank that focuses on rural development. It provides refinancing support and develops rural infrastructure to promote agriculture and rural development. NABARD also regulates cooperative banks and rural banks. It works to expand financial inclusion through programs like self-help groups and credit cards for farmers. While NABARD has significantly contributed to rural development, it faces challenges in adequately financing some regions and maintaining its link to the central bank.
GENERAL BANKING.pptx
1. Banks accept deposits from customers and lend money to borrowers, playing an important role in the economy. The Reserve Bank of India regulates banking activities and monetary policy in India.
2. RBI was established in 1935 and nationalized in 1949. As the central bank, it formulates and implements monetary policy, regulates the financial system, manages foreign exchange reserves, acts as a bank for the government and banks, and plays a developmental role.
3. In addition to accepting deposits and lending loans, banks also perform agency, utility, and secondary functions for customers like money transfers, payments, and investments. Emerging trends in banking include financial inclusion, increased digitization and technology usage, and consolidation in the sector
Role of rbi & co operative movement
The document discusses the role of the Reserve Bank of India (RBI) in supporting the cooperative movement in India both before and after independence. Prior to independence, RBI's contributions were limited due to legal restrictions under British rule. After independence, RBI took steps like establishing committees, providing financing functions, and taking a promotional and advisory role to better support the agricultural and rural cooperative sectors in India. Key functions of RBI included providing short, medium, and long term financing, undertaking promotional activities, supervision of cooperatives, and performing regulatory functions.
15 dr kavita_kalkoti
- Rural banking in India has expanded significantly with over 30,000 rural branches now, however rural banking still only accounts for a small portion of overall banking profits and performance is often poor.
- Issues facing rural banks include an inability to close unprofitable branches, political pressure, and the negative impacts of loan waivers on the rural credit system and economy.
- Recommendations include increasing banker training and local knowledge, employing more local people, and utilizing specialists in rural sectors like agriculture to improve implementation and monitoring of rural banking programs.
2.5 CO-OPERATIVE BANKS.pptx
Cooperative banks were established in India in the early 1900s to provide agricultural credit to rural areas where it was inadequate. They aimed to substitute exploitative money lenders and integrate organized and unorganized credit. Cooperative banks continue operating in rural and agricultural financing alongside other institutions like commercial banks and RRBs. They are organized based on cooperation principles and operate on a no-profit basis. While weaker than commercial banks, the government has undertaken various initiatives to strengthen cooperative banks through organizations like NABARD.
rural-banking-150906131006-lva1-app6892 (1).pptx
Regional rural banks were established in 1975 to provide sufficient banking and credit facilities for agriculture and other rural sectors. They are jointly owned by the central government, state governments, and sponsor banks. Cooperative banks were also formed to provide financial services and prevent indebtness in rural areas. The National Bank for Agriculture and Rural Development was established in 1982 as the apex development bank to facilitate credit flow for rural development. Rural banking plays an important role in India's economic development by supporting the majority of the population living in rural areas and the agricultural sector, which remains the backbone of the economy.
Chapter 2 nationalization
The document discusses the nationalization of banks in India. It occurred in three phases from 1955 to 1980 when several large commercial banks were nationalized. The objectives of nationalization included achieving social welfare goals, controlling private monopolies, curbing interlocking directorates, and ensuring bank lending aligned with national priorities. While nationalization led to expansion of branches, deposits, credit and social services, public sector banks now face issues like low profitability, fraud, and challenges in priority sector lending. Overall, nationalization transformed Indian banking but ongoing reforms are still needed to address banks' problems and constraints.
Rural banking
Rural banking in India started with the establishment of the banking sector and focuses on serving rural and agricultural communities. Currently, over 500 million Indians do not have bank accounts, and rural areas have limited access to financial services. The major providers of rural banking are regional rural banks, cooperative banks, and the National Bank for Agricultural and Rural Development. These institutions provide credit and other services to promote rural economic development and help alleviate dependence on informal lenders. Rural banking remains an important area for expansion to fully include rural populations in India's economic progress.
Chapter 2 Nationalized banks
Phases of Nationalization Process in India, Objectives of Bank Nationalization, Achievements of Nationalized Banks, Problems and Constraints of Public Sector banks, Note on Non Performing Assets
Cooperative and commercial banks in india
Commercial banks provide services like deposits, loans, and investments to large businesses while cooperative banks are owned by their members who are both customers and owners. Recent trends in cooperative banks show that many are facing issues with minimum capital requirements and license cancellations, while commercial banks are adopting new technologies and pursuing financial inclusion. Both bank types play important roles in India's economic development through capital formation, banking services to various sectors, and expanding access to more customers.
Nababrd
NABARD is India's apex development bank that provides credit and related services to rural areas. It was established in 1982 to implement the National Bank for Agriculture and Rural Development Act. NABARD replaced previous institutions and aims to promote rural prosperity through credit provision, institutional development, and monitoring client banks. It works to increase agriculture and rural credit through refinancing banks and supporting rural infrastructure. NABARD also undertakes supervisory functions for cooperative banks and regional rural banks.
Unit 1 of Management of financial service
The document provides information on various topics related to the management of financial services and institutions in India. It discusses the role and functions of banks, the evolution of the banking system in India, various types of bank accounts, the nationalization of banks in 1969, the Indian banking structure, and the functions and objectives of the Reserve Bank of India (RBI).
Money & banking
Rural banking in India started with the establishment of the banking sector and focused on the agro sector. Some of the major banks operating in rural markets include SBI, Haryana State co-operative apex bank limited, NABARD, Sindhanur urban souharda co-operative bank, and united bank of India. Institutional sources of rural finance include cooperatives, commercial banks, and Regional Rural Banks, while non-institutional sources consist of moneylenders, traders, and landlords. The RBI and NABARD play important roles in expanding rural credit through commercial banks and initiatives like Kisan Credit Cards, microfinance, and agricultural insurance.
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Lead bank scheme
- 2. • The study group appointed by National Credit Council (NCC) in 1969 under the chairmanship of Prof. D. R. Gadgil recommended “Service Area Approach” for the development of financial structure. • But the scheme was stared in 1969 under Nariman’s committee recommendation. • Under the lead bank scheme, specific districts are allotted to each bank, which would take the lead role in identifying the potential areas for banking and expanding credit facilities. Lead bank is the leading bank among the commercial banks in a district i.e. having maximum number of bank branches in the district. Lead bank acts as a consortium leader for coordinating the efforts of all credit institutions in the each allotted district for the development of banking and expansion of credit facilities.
- 3. Functions The activities of lead bank can be dealt under two important phases Phase I: Survey of the lead district The RBI has mentioned the following functions of lead bank under phase-I • Surveying the potential areas for banking in the district. • Identifying the business establishments which are so far dependent on non – institutional agencies for credit and financing them so as to raise their income • Examining the available marketing facilities for agricultural and industrial products and linking credit with marketing. • Invoking cooperation among different banks in opening new bank branches. • Estimating the credit gaps in various sectors of district economy. • Developing contacts and maintaining liaison with the Government and other agencies.
- 4. Phase II-Preparation of credit Plans: RBI emphasized that the lead bank should • Formulate the bankable loaning schemes involving intensive use of labour, so as to generate additional employment. • Disburse loans to increase the productivity of land in Agriculture and allied activities, so as to increase the income level. • Give maximum credit to weaker sections of the society mainly for productive purposes. Therefore lead bank scheme expects the banker to become an important participant in the developmental process in the area of its operation in rural areas, and the service area approach put the banker in the position of implementing the development plans.
- 6. Established on 26th September, 1975 The objectives of RRBs are: • To develop rural economy. • To provide credit for agriculture and allied activities. • To encourage small scale industries, artisans in the villages. • To reduce the dependence of weaker sections (Marginal farmers, small farmers and rural artisans) on private money lenders. • To fill the gap created by the moratorium on borrowings from private money lenders. • To make backward and tribal areas economically better by opening new bank branches. • To help the financially poor people in their consumption needs.
- 7. Functioning of RRBs: Each RRB is being sponsored by a scheduled commercial bank. The operational area of each RRB is one or two districts. Each branch of RRB can serve a population of roughly 20,000 people. Authorized share capital of each RRB is Rs. one crore, contributed by central government, state government and sponsoring commercial bank in the ratio of 50:15:35. Issued capital for each RRB is Rs. 25 lakhs. The rate of interest charged by RRBs on the loans is same as that of Primary Agriculture Credit Societies (PACS), but they are allowed to offer 0.5 per cent interest more than that of commercial banks on its deposits. RRBs use local languages in their transactions. The cost of operation i.e. user charges are low as compared to that of commercial banks.