The document provides historical background on regional rural banks (RRBs) in India. It notes that according to a 1951-52 survey, only 7.3% of rural credit came from institutional sources like cooperatives and banks, while 92.7% came from non-institutional sources like money lenders. RRBs were established in 1975 to provide credit and other facilities specifically to small and marginal farmers, agricultural laborers, artisans and small entrepreneurs to promote development in rural areas. Currently there are 82 RRBs operating across various states in India.
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.
The document discusses rural financing and development in India. It notes that about 50% of Indian villages have poor socioeconomic conditions and lack basic infrastructure. Rural populations rely on informal credit sources like money lenders who charge high interest rates, trapping borrowers in debt. Several reforms were introduced to improve access to formal credit, including NABARD, regional rural banks, self-help groups, and microfinance institutions which provide loans at lower rates. Rural marketing also plays an important role, with companies like Amul and Coca-Cola directly targeting vast rural consumer bases through extensive rural distribution networks.
Agricultural credit is a vital input for Pakistan's economy, as the agricultural sector accounts for 25.3% of GDP. It is needed to purchase inputs, machinery, make improvements, and manage risks for farmers. The major sources of agricultural credit are non-institutional sources like money lenders and institutional sources like commercial banks and the Agricultural Development Bank. During 2013-14, banks disbursed Rs. 255.7 billion in agricultural credit, achieving 67.3% of the annual target of Rs. 380 billion. The share of credit going to the non-farm sector increased to 45.6% as banks diversified lending.
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.
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
1. A production function shows the maximum output that can be produced from a given set of inputs over a period of time. It can be expressed as an equation, table, or graph.
2. The Cobb-Douglas production function is an important example that was formulated by Paul Douglas and Charles Cobb. It expresses output as a power function of labor and capital inputs.
3. The law of variable proportions states that as one variable input is increased, initially average and marginal products will increase until diminishing returns set in, after which average and marginal products will decrease.
The document discusses the economic implications of elasticity of substitution. It is introduced as a measure of how easily one input can be substituted for another when their prices change. Elasticity of substitution has various applications, including interpreting the substitutability of inputs, production theory involving profit maximization and cost minimization, and specifying common production functions like Cobb-Douglas, constant elasticity of substitution, and translog that determine the elasticity between input pairs. The document provides mathematical expressions and diagrams to explain these concepts.
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 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.
The document discusses rural financing and development in India. It notes that about 50% of Indian villages have poor socioeconomic conditions and lack basic infrastructure. Rural populations rely on informal credit sources like money lenders who charge high interest rates, trapping borrowers in debt. Several reforms were introduced to improve access to formal credit, including NABARD, regional rural banks, self-help groups, and microfinance institutions which provide loans at lower rates. Rural marketing also plays an important role, with companies like Amul and Coca-Cola directly targeting vast rural consumer bases through extensive rural distribution networks.
Agricultural credit is a vital input for Pakistan's economy, as the agricultural sector accounts for 25.3% of GDP. It is needed to purchase inputs, machinery, make improvements, and manage risks for farmers. The major sources of agricultural credit are non-institutional sources like money lenders and institutional sources like commercial banks and the Agricultural Development Bank. During 2013-14, banks disbursed Rs. 255.7 billion in agricultural credit, achieving 67.3% of the annual target of Rs. 380 billion. The share of credit going to the non-farm sector increased to 45.6% as banks diversified lending.
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.
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
1. A production function shows the maximum output that can be produced from a given set of inputs over a period of time. It can be expressed as an equation, table, or graph.
2. The Cobb-Douglas production function is an important example that was formulated by Paul Douglas and Charles Cobb. It expresses output as a power function of labor and capital inputs.
3. The law of variable proportions states that as one variable input is increased, initially average and marginal products will increase until diminishing returns set in, after which average and marginal products will decrease.
The document discusses the economic implications of elasticity of substitution. It is introduced as a measure of how easily one input can be substituted for another when their prices change. Elasticity of substitution has various applications, including interpreting the substitutability of inputs, production theory involving profit maximization and cost minimization, and specifying common production functions like Cobb-Douglas, constant elasticity of substitution, and translog that determine the elasticity between input pairs. The document provides mathematical expressions and diagrams to explain these concepts.
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.
Credit co-operatives are financial organizations owned and controlled by members who save money as a group. They provide financial services like loans, deposits, and insurance to low-income individuals. The document discusses the history and development of credit co-operatives in India, beginning with the Rochdale Pioneers in England in 1844. It outlines the objectives and workings of credit co-operatives in India, including their focus on the social and economic betterment of members. Examples are given of some large multi-state credit co-operative societies operating in India.
This document discusses agricultural credit and the agricultural credit market in Pakistan. It defines agricultural credit as loans obtained to promote and develop agriculture. The objectives of agricultural credit are to accelerate economic growth, reduce unemployment, increase exports, and ensure food security. Sources of credit include institutional sources like banks and cooperatives as well as non-institutional sources like moneylenders. Farmers' credit needs are examined based on time (short, medium, long term) and purpose (productive, unproductive, consumption). Efficiency of the agricultural credit market requires increasing access to credit, lowering interest rates, targeting access, streamlining procedures, and increasing farmer awareness.
Regional Rural Banks (RRBs) were established in India in 1975 to provide banking facilities to rural areas. They are jointly owned by the central government, state government and sponsoring commercial bank. RRBs focus on providing credit and banking services to small and marginal farmers, agricultural laborers and small businesses in rural areas. They accept deposits and offer loans, remittance facilities, and other banking services. However, over time RRBs have faced issues like inadequate finances, high loan defaults, and lack of coordination with other financial institutions which has impacted their effectiveness in developing rural regions of India.
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.
1. Say's law of markets states that supply creates its own demand and that full employment is the norm in economies.
2. The document outlines the key assumptions and implications of Say's law, including that production generates income to purchase goods, saving and investment automatically equalize, and wages adjust to maintain full employment.
3. Keynes criticized Say's law for failing to account for the possibility of overproduction and unemployment, and argued that demand does not necessarily increase with supply and that intervention may be needed to stimulate demand.
The document provides information about the Kisan Credit Card scheme in India. It was introduced in 1998 by Indian banks to provide affordable credit to farmers. Key points include:
- The Kisan Credit Card provides term loans and meets agricultural credit needs. Eligible farmers can receive loans at a 7% interest rate.
- Features include interest subsidies to make loans effectively 4% annually, free ATM cards, crop insurance coverage, and loans assessed based on cost of cultivation.
- To apply, farmers need identity proof, address proof, and can visit their local participating bank branch. Repayment is only required after harvest.
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.
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.
This document discusses project appraisal and its key aspects. It defines project appraisal as the pre-investment analysis of an investment project to determine its commercial and socio-economic feasibility. It distinguishes project appraisal from project evaluation, noting that appraisal occurs before investment while evaluation assesses post-investment performance. The document outlines the needs for project appraisal from the perspectives of individuals, lenders, and nations. It describes the different aspects of project appraisal, including technical, marketing, financial, managerial, and environmental considerations.
The document summarizes key aspects of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme launched in India in 2016. Some key points:
- PMFBY aims to provide insurance coverage and financial support to farmers against crop failures from natural calamities at lower premium rates than previous schemes.
- It covers yields losses for notified crops as well as some post-harvest losses. Premium rates are 2% for kharif crops, 1% for rabi crops, and 5% for horticulture.
- The government will bear most of the costs, even up to 90% of the premium. Smart technology will be used to assess claims quickly
The document discusses rural credit in India. It explains that rural economies depend on credit between agricultural seasons as there is a long gap between sowing seeds and generating income. It then outlines the history of rural credit in India, including exploitative moneylenders prior to independence and the establishment of institutions like NABARD to regulate rural financing. Today, rural credit is provided by various institutions at lower interest rates. The document also categorizes rural credit into short term loans (under 1 year), medium term loans (2-5 years), and long term loans (5-20 years) and explains their purposes. Finally, it lists reasons for rural credit needs like long gestation periods of crops and funds required for inputs and personal expenses
The document discusses the money multiplier concept in India. It explains that the money multiplier is the amount of money banks can generate from each rupee of required reserves, depending on the reserve ratio set by the RBI. A higher reserve ratio means a lower money multiplier and less money generated in the banking system. The document provides examples of how the money multiplier works and factors that affect its size. It also outlines the various monetary policy tools used by the RBI, including required reserve ratios, policy rates, and open market operations.
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
Analysis of Rural Indebtedness in IndiaAdrijaDutta2
Despite the several farm waiver schemes announced by the Central and State Governments over the
years, rural indebtedness in India continues to increase. Here are the reasons for it.
(Images used in presentation do not belong to the author, they are relevant available pictures from varied owners across digital media.)
Agricultural economics combines technical agricultural aspects with business principles of management, marketing, and finance. It originally focused on maximizing crop and livestock yields while maintaining soil health but has expanded significantly. Agricultural economics studies optimal resource allocation for farmers and can be traced back to land economics. It remains an important part of India's economy, accounting for around 18% of GDP and providing livelihoods for many. However, Indian agriculture faces challenges including monsoon dependence, population pressure on land, and structural deficiencies.
Agriculture is the backbone of the Indian economy, contributing 16% to GDP and providing employment to over half of the workforce. It produces food for over 1 billion people and supplies raw materials to industries. Agriculture is the largest source of foreign exchange through exports of tea, cotton, spices and other commodities. While its economic contribution is declining with industrialization, agriculture will remain vital to India's development as the primary occupation in rural areas and source of food security.
This document provides an overview of money and banking concepts. It defines money's primary functions as a medium of exchange and unit of account, and secondary functions as a store of value, standard for deferred payments, and means to easily transfer value. Money is classified as full-bodied, representative full-bodied, and credit money based on the relationship between its value as money and commodity value. Representative money includes convertible and inconvertible paper money. Credit money encompasses token coins, representative token money, circulating promissory notes, and demand deposits in banks. Key terms and characteristics of money are also introduced. The next session will cover characteristics of money in more detail.
What is a regional rural bank ? What is the shareholding pattern of RRB? What are its role and functions ? The organizational structure of RRBs. List and objectives of RRBs. It is a presentation presented by 5 .
This document discusses India's agriculture pricing policy. It outlines the objectives of the policy which include raising farmer productivity and incomes. The key elements are fixing prices for agricultural products, inputs, and balancing consumer and farmer interests. Instruments used include minimum support prices, market intervention schemes, and the public distribution system to ensure stable supplies and prices. The policy aims to incentivize production through stable incomes while protecting consumers.
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.
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.
This document provides an overview of the banking system in India. It defines banking and outlines the key laws and institutions that govern banking operations, including the Reserve Bank of India Act and the Banking Regulation Act. It describes the structure of banks in India, categorizing them as commercial banks, cooperative banks, and development banks. It provides details on the various types of commercial banks, cooperative banks, and development banks in India. It also summarizes the major functions and roles of the Reserve Bank of India in regulating the banking system.
Credit co-operatives are financial organizations owned and controlled by members who save money as a group. They provide financial services like loans, deposits, and insurance to low-income individuals. The document discusses the history and development of credit co-operatives in India, beginning with the Rochdale Pioneers in England in 1844. It outlines the objectives and workings of credit co-operatives in India, including their focus on the social and economic betterment of members. Examples are given of some large multi-state credit co-operative societies operating in India.
This document discusses agricultural credit and the agricultural credit market in Pakistan. It defines agricultural credit as loans obtained to promote and develop agriculture. The objectives of agricultural credit are to accelerate economic growth, reduce unemployment, increase exports, and ensure food security. Sources of credit include institutional sources like banks and cooperatives as well as non-institutional sources like moneylenders. Farmers' credit needs are examined based on time (short, medium, long term) and purpose (productive, unproductive, consumption). Efficiency of the agricultural credit market requires increasing access to credit, lowering interest rates, targeting access, streamlining procedures, and increasing farmer awareness.
Regional Rural Banks (RRBs) were established in India in 1975 to provide banking facilities to rural areas. They are jointly owned by the central government, state government and sponsoring commercial bank. RRBs focus on providing credit and banking services to small and marginal farmers, agricultural laborers and small businesses in rural areas. They accept deposits and offer loans, remittance facilities, and other banking services. However, over time RRBs have faced issues like inadequate finances, high loan defaults, and lack of coordination with other financial institutions which has impacted their effectiveness in developing rural regions of India.
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.
1. Say's law of markets states that supply creates its own demand and that full employment is the norm in economies.
2. The document outlines the key assumptions and implications of Say's law, including that production generates income to purchase goods, saving and investment automatically equalize, and wages adjust to maintain full employment.
3. Keynes criticized Say's law for failing to account for the possibility of overproduction and unemployment, and argued that demand does not necessarily increase with supply and that intervention may be needed to stimulate demand.
The document provides information about the Kisan Credit Card scheme in India. It was introduced in 1998 by Indian banks to provide affordable credit to farmers. Key points include:
- The Kisan Credit Card provides term loans and meets agricultural credit needs. Eligible farmers can receive loans at a 7% interest rate.
- Features include interest subsidies to make loans effectively 4% annually, free ATM cards, crop insurance coverage, and loans assessed based on cost of cultivation.
- To apply, farmers need identity proof, address proof, and can visit their local participating bank branch. Repayment is only required after harvest.
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.
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.
This document discusses project appraisal and its key aspects. It defines project appraisal as the pre-investment analysis of an investment project to determine its commercial and socio-economic feasibility. It distinguishes project appraisal from project evaluation, noting that appraisal occurs before investment while evaluation assesses post-investment performance. The document outlines the needs for project appraisal from the perspectives of individuals, lenders, and nations. It describes the different aspects of project appraisal, including technical, marketing, financial, managerial, and environmental considerations.
The document summarizes key aspects of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme launched in India in 2016. Some key points:
- PMFBY aims to provide insurance coverage and financial support to farmers against crop failures from natural calamities at lower premium rates than previous schemes.
- It covers yields losses for notified crops as well as some post-harvest losses. Premium rates are 2% for kharif crops, 1% for rabi crops, and 5% for horticulture.
- The government will bear most of the costs, even up to 90% of the premium. Smart technology will be used to assess claims quickly
The document discusses rural credit in India. It explains that rural economies depend on credit between agricultural seasons as there is a long gap between sowing seeds and generating income. It then outlines the history of rural credit in India, including exploitative moneylenders prior to independence and the establishment of institutions like NABARD to regulate rural financing. Today, rural credit is provided by various institutions at lower interest rates. The document also categorizes rural credit into short term loans (under 1 year), medium term loans (2-5 years), and long term loans (5-20 years) and explains their purposes. Finally, it lists reasons for rural credit needs like long gestation periods of crops and funds required for inputs and personal expenses
The document discusses the money multiplier concept in India. It explains that the money multiplier is the amount of money banks can generate from each rupee of required reserves, depending on the reserve ratio set by the RBI. A higher reserve ratio means a lower money multiplier and less money generated in the banking system. The document provides examples of how the money multiplier works and factors that affect its size. It also outlines the various monetary policy tools used by the RBI, including required reserve ratios, policy rates, and open market operations.
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
Analysis of Rural Indebtedness in IndiaAdrijaDutta2
Despite the several farm waiver schemes announced by the Central and State Governments over the
years, rural indebtedness in India continues to increase. Here are the reasons for it.
(Images used in presentation do not belong to the author, they are relevant available pictures from varied owners across digital media.)
Agricultural economics combines technical agricultural aspects with business principles of management, marketing, and finance. It originally focused on maximizing crop and livestock yields while maintaining soil health but has expanded significantly. Agricultural economics studies optimal resource allocation for farmers and can be traced back to land economics. It remains an important part of India's economy, accounting for around 18% of GDP and providing livelihoods for many. However, Indian agriculture faces challenges including monsoon dependence, population pressure on land, and structural deficiencies.
Agriculture is the backbone of the Indian economy, contributing 16% to GDP and providing employment to over half of the workforce. It produces food for over 1 billion people and supplies raw materials to industries. Agriculture is the largest source of foreign exchange through exports of tea, cotton, spices and other commodities. While its economic contribution is declining with industrialization, agriculture will remain vital to India's development as the primary occupation in rural areas and source of food security.
This document provides an overview of money and banking concepts. It defines money's primary functions as a medium of exchange and unit of account, and secondary functions as a store of value, standard for deferred payments, and means to easily transfer value. Money is classified as full-bodied, representative full-bodied, and credit money based on the relationship between its value as money and commodity value. Representative money includes convertible and inconvertible paper money. Credit money encompasses token coins, representative token money, circulating promissory notes, and demand deposits in banks. Key terms and characteristics of money are also introduced. The next session will cover characteristics of money in more detail.
What is a regional rural bank ? What is the shareholding pattern of RRB? What are its role and functions ? The organizational structure of RRBs. List and objectives of RRBs. It is a presentation presented by 5 .
This document discusses India's agriculture pricing policy. It outlines the objectives of the policy which include raising farmer productivity and incomes. The key elements are fixing prices for agricultural products, inputs, and balancing consumer and farmer interests. Instruments used include minimum support prices, market intervention schemes, and the public distribution system to ensure stable supplies and prices. The policy aims to incentivize production through stable incomes while protecting consumers.
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.
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.
This document provides an overview of the banking system in India. It defines banking and outlines the key laws and institutions that govern banking operations, including the Reserve Bank of India Act and the Banking Regulation Act. It describes the structure of banks in India, categorizing them as commercial banks, cooperative banks, and development banks. It provides details on the various types of commercial banks, cooperative banks, and development banks in India. It also summarizes the major functions and roles of the Reserve Bank of India in regulating the banking system.
This document discusses adoption of recommended doses of fertilizers based on soil testing by farmers in Karnataka. It finds that while fertilizer consumption has increased crop yields, it has also led to soil health issues in some cases. The study aims to analyze farmers' adoption of soil testing and application of recommended fertilizer doses. It involves a survey of farmers growing paddy and maize. Preliminary results show variations in fertilizer use and awareness of soil testing across districts and farm sizes. The study examines factors influencing fertilizer adoption and the impact of applying recommended doses on crop yields. It provides policy recommendations to promote balanced fertilizer use and sustainable soil management.
This document discusses how information and communication technologies (ICTs) like telecenters and mobile phones can support rural farmers. It outlines some challenges faced by telecenters in scaling up and achieving economic sustainability. However, the convergence of mobile phones and the internet provides new opportunities to address these challenges. The document proposes a "FarmerNet" platform that would allow farmers and traders to connect via mobile phones, telecenters, and microcredit to facilitate agricultural trading in a more scalable and sustainable manner.
This document provides sponsorship opportunities for the KISAN 2012 agriculture show happening in Pune, India from December 12-16, 2012. It outlines various sponsorship packages that include branding in different areas of the event like the welcome arch, entrance tickets, gardens, signage and more. Sponsorship amounts range from Rs. 50,000 for balloon advertisements to Rs. 5,00,000 for opportunities like aamantran invitations or entrance tickets. The event aims to connect farmers with new agricultural technologies, innovations and business opportunities.
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- KCC provides revolving cash credit for cultivation expenses, post-harvest storage, consumption needs, and term loans for investments like dairy animals or farm equipment.
- Eligible farmers include individuals, tenant farmers, sharecroppers, and joint liability groups.
- The limit is set for 5 years based on the scale of finance for expected crops plus escalation, with term loan components repayable over 9 years.
- Short term credit is repaid within 12 months while term loans are repaid in installments based on the activity and income generation.
Working capital management ppt @ bec doms bagalkot mbaBabasab Patil
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Kisan call center and agribusines clinicRAJESH YADAV
This document discusses Kisan Call Centers and AgriBusiness Clinics in India. It provides details on:
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- The infrastructure of Kisan Call Centers including three levels - call center operators, subject matter experts, and a dedicated response cell.
- AgriBusiness Clinics and Agribusiness Centers, a program to support agriculture graduates to establish their own consulting businesses providing extension services to farmers. It provides training, startup loans, and subsidies.
The goal is to better transfer agricultural technologies and information to India
NRI banking refers to banking services provided to non-resident Indians. The Royal Bank of Scotland provides various NRI banking services including money transfer/remittance through wire transfers or checks, NRE and NRO savings accounts, RFC and FCNR fixed deposits. These services allow NRIs to save and invest earnings from abroad, provide convenience and tax benefits, and help manage finances from overseas. Key terms, account opening requirements, interest rates, and fund transfer options are outlined for each account type.
India prospers if rural areas prosper. Through its credit and development initiatives, NABARD ensures that India's food needs are met season after season and year after year by focusing on rural development. NABARD provides refinancing, direct lending, and development support to promote sustainable agriculture and rural development. It works to strengthen rural financial institutions and ensure access to credit for farmers and rural communities.
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.
Role of Rural Finance Institution in Agriculture DevelopmentKamal Kumar
Commercial banks, regional rural banks, and cooperative institutions play an important role in providing financial services to rural India. They provide short, medium, and long term loans to farmers for agricultural operations, machinery, and infrastructure development. Regional rural banks specifically target small and marginal farmers, while cooperative societies like primary agricultural credit societies are village-level organizations that provide direct credit to farmers. National Bank for Agriculture and Rural Development (NABARD) regulates and provides refinancing support to rural banks and cooperatives. Together this rural financial system aims to improve agricultural productivity and rural development in India.
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.
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.
Regional Rural Banks (RRBs) were established in 1975 to provide basic banking services and financial assistance primarily to rural areas of India. RRBs offer loans and banking services to small farmers, agricultural laborers, artisans and small businesses at lower interest rates than other banks to promote rural economic development. They aim to provide affordable credit, save rural communities from moneylenders, cultivate banking habits, and increase employment opportunities in rural areas. RRBs are governed by a board of directors and managed by a chairman, general manager, and other officers. There are currently 82 RRBs operating across 619 districts in India.
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Rural banking in India faces several challenges. NABARD plays an important role by providing refinance to rural banks, promoting rural development, and supervising cooperative banks. It offers long-term and short-term loans for agriculture and allied activities, as well as financial products for rural infrastructure, MSMEs, and deposits. However, rural banking faces challenges like competition, high investment needs due to scattered customers, inadequate rural infrastructure, irregular repayments, operational difficulties in rural areas, and achieving profitability. NABARD aims to overcome these challenges and promote sustainable rural prosperity through its various developmental and financial functions.
NABARD
Functions of NABARD
Long term refinance
Interest rates
Developmental functions
Supervisory functions
Government sponsered schemes
NABARAD'S initiatives
The document discusses rural banking in India. It outlines the objectives of rural banking as poverty alleviation and financial intermediation. It describes the limited banking presence pre-independence, nationalization of banks post-independence, and the rural branch expansion program of the 1970s that increased rural access to banking. It also discusses the establishment of NABARD to provide rural credit and changes post-liberalization, along with ongoing challenges and opportunities in rural marketing.
This document provides information on various types of agricultural credit societies and cooperative credit movements in India. It discusses the classification of credit into short term, medium term, and long term. It also describes the different types of cooperative credit societies including primary agricultural credit societies, multipurpose cooperative societies, large sized credit societies, service cooperative societies/banks, and farmers service cooperative societies. The functions, management, and issues faced by primary agricultural credit societies and service cooperative societies/banks are explained. The roles of central cooperative banks, state cooperative banks, and organizations like the National Federation of State Cooperative Banks are summarized as well.
Meaning, Features of RRBs, Objectives of Regional Rural Banks, Formation and Development of Regional Rural Banks, Reform process of RRBs, For Development/ Promotion/ & Effectiveness of RRBs., Working of RRBs, Functions of RRBs, Structure of Rural Credit
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The basic reason for the financial assistance in rural areas.
Indian agriculture is characterized by low productivity, which leads to low income.
Due to low income and high level of consumption the investment made in agriculture is also low.
Rural Financial Markets and Agricultural CreditZain Khan
This document summarizes a presentation on rural finance and agricultural credit. It discusses the differences between rural and urban areas, defines rural finance and agricultural finance, and outlines challenges in rural lending such as lack of collateral and political interference. It also provides an overview of Pakistan's economy and agriculture sector, the history of rural financial institutions in Pakistan, and recommendations for best practices based on the Bank Rakyat Indonesia model.
This document summarizes a presentation on rural financial markets and agricultural credit in Pakistan. It discusses the differences between rural and urban areas, defines rural and agricultural finance, and outlines challenges in rural financing including lack of collateral, natural risks, and political interference. It also provides an overview of Pakistan's economy and agriculture sector, the history of rural financial institutions, and recent government initiatives to expand agricultural credit.
This document discusses rural banking in India. It provides statistics on India's rural population and economy. It then discusses the current state of rural banking, including key challenges like financial exclusion and unprofitability. It also covers opportunities in the rural banking market and improving access. The conclusion is that commercial banks need a coordinated effort with the government and RBI to build an inclusive financial system and reach rural customers through partnerships with business correspondents and collaboration. Tailoring products and delivery models to rural needs is also important.
Rural banking in India aims to provide financial services to customers in rural areas. The objectives include saving rural people from money lenders, accelerating economic growth, and encouraging entrepreneurship. Currently, rural populations have limited access to services, with many relying on informal sources. Regional Rural Banks were established to increase credit flow, but commercial bank branches still only cover 7% of rural sectors. Microfinance is an important approach, with self-help groups being a major model. Issues include regional imbalances, poor management, lack of support, and ensuring sustainability. Expanding reach through partnerships and technology, as well as financial literacy, are keys to further progress.
The document summarizes the origins and functions of the National Bank for Agriculture and Rural Development (NABARD) in India. It was established in 1982 to provide credit and other support services to promote rural and agricultural development. Key points include that NABARD provides refinancing to rural banks, coordinates rural development programs, and promotes initiatives like microfinance and support for farmers through training centers.
10. NEED FOR THE EMERGENCE OF RRB
• All India Rural Credit Survey committee 1951-52
• 7.3% of rural credit was supplied by institutional
sources
• 92.7% by a host of non-institutional sources
All India Rural Credit
Survey committee
1951-52
7.3% institutional sources
92.7% by a host of non-institutional sources
11.
12.
13.
14. • 1st July 1975 GOI
• Chairman: Shri. M. Narasimham
• 2nd October 1975 RRB Established.
• RRB act 1976
• “With a view to developing rural economy by providing credit and
other facilities, particularly to the small and marginal
farmers, agricultural laborers, artisans and small
entrepreneurs, and for matters connected therewith and incidental
thereto for the purpose of development of
agriculture, trade, commerce, industry and other productive
activities in the rural areas.”
15. SL
N
O
Name of the RRB and
location
State Name of the
sponsoring
commercial banks
Jurisdiction in terms of
district
1 Haryana Kshethriya Grmina
Bank,Bhiwani
Haryana Punjab National
Bank
Bhiwani
2 Jaipur Nagaur Anchalik
Gramin Bank,Lavan
Rajasthan United Commercial
Bank
Jaipur and Nagaur
3 Gorkhpur Kshethriya
Gramin Bank, Gorakhpur
Uttar
Pradesh
State bank of India Gorakhpur and Deoria
4 Gaura Gramin Bank, Malda West Bengal United Bank of
India
Malda, West dinajpur
andMurshidabad
5 Pratama Bank, Moradabad Uttar
Pradesh
Syndiacate Bank Moradabad
Source: Rural Banking in India.
17. • To provide cheap and liberal credit facilities to small and
marginal farmers and other weaker sections of the
society.
• To save the rural poor from the money lenders.
• To act as a catalyst element and thereby accelerate the
economic growth in the particular region.
17
18. • To cultivate the banking habits among the rural people
and mobilize savings for the economic development of
rural areas.
• To increase employment opportunities by encouraging
trade and commerce in rural areas.
• To encourage entrepreneurship in rural areas.
• To develop underdeveloped regions and thereby to
remove economic disparity between regions.
18
19. • 1 to 5 districts with homogeneity in agro climatic
conditions and rural patrons.
• In branch office usually cover 1 or 3 blocks and be in
a position to finance 5 to 10 FSS.
20. • RRBs are jointly owned by
Government of India (GOI).
The State Government.
Sponsor Banks [27 scheduled commercial banks and
1 State Cooperative Bank].
• The issued capital of a RRB is shared by the owners in
the proportion of 60%, 20%, 20% respectively.
20
21. 21
CENTRAL GOVERNMENT
BOARD OF DIRECTORS
CHAIRMAN
GENERAL MANAGER
HEAD OFFICE
SENIOR
MANAGER
SM
(PLANNING)
SM
(ACCOUNTS)
SM
(LOANS)
SM
(ADMINISTR
ATORS)
SM
(AUDIT)
AREA MANAGER
Area OfficeBRANCH MANAGER
FIELD OFFICER
SPONSOR BANKSTATE GOVERNMENT
22. FUNCTIONS OF RRB
RRBs is to mobilize financial resources
RRBs charges lower rate of interest and thus they reduce
cost of credit in rural areas.
22
Carrying out government operations
Provides Para-Banking facilities
RRBs provides banking services at the doorsteps of the rural
people
23. MERGER OF RRBs
23
a. This will provide the RRBs with the infrastructure
of the branch and manpower.
b. The threat of non viable RRBs could be reduced.
c. The undesirable competition between CBs and
RRB will be minimized.
• Merger will be Vertical or Horizontal
24. Year No
of
RRBs
No of
branches
Net
profit
(cr)
Profit/loss
making
RRBs
Deposits
(cr)
Loans &
Advances
(cr)
CD
ratio
(%)
Share
of agri
adv to
total
(%)
Gross
NPA
(%)
Net
NPA %
2005-06 133 14489 617 111/22 71329 38520 55.7 54.2 5.2
2006-07 96 14563 625 81/15 83144 47326 58.3 56.6 6.55 3.46
2007-08 90 14790 1027 82/8 99093 57568 59.5 56.3 6.1 3.36
2008-09 86 15524 1335 80/6 120189 65609 56.4 55.1 4.2 1.81
2009-10 82 14575 1884 79/3 145035 79157 57.6 54.8 3.72 1.62
2010-11 82 16024 1785 75/7 166232 94715 59.51 55.7 3.75 2.05
2011-12 82 16914 1886 79/3 186336 113035 63.3 53 5.03 2.98
2012-13 64 17,867 2,384 63/1 2,11,457 1,33,098 66.13 63 5.65 3.40
PERFORMANCE OF RRBs
Source: Reports on Trend and Progress Banking in India and NABARD
28. Census 2001 Census 2011
Households Total
number of
households
Number of
households
availing
banking
services
Percent Total
number of
households
Number of
households
availing
banking
services
Percent
Rural 138,271,559 41,639,949 30.1 167,826,730 91,369,805 54.4
Urban 53,692,376 26,590,693 49.5 78,865,937 53,444,983 67.8
Total 191,963,935 68,230,642 35.5 246,692,667 144,814,788 58.7
Source: Dept. of Financial Services Ministry of Finance, Government of India
29.
30. Year No of
Deposit
A/C’s
No of
No Frill
A/C’s
No of
Loan
A/C’s
GCC SHG KCC Tenant SSI/SCC/
Artisans/
Retails/T
rader
2006-07 669.88 34.54 164.97 1.083 6.52 82.84 1.08 35.74
2007-08 758.02 81.17 171.20 2.35 7.20 93.14 1.03 33.53
2008-09 935.54 153.81 170.66 3.22 8.04 67.87 0.95 19.64
2009-10 1,002.16 200.09 186.67 4.12 8.97 83.72 0.83 21.28
2010-11 1,157.47 200.94 205.62 5.2 8.62 96.55 1.91 28.15
2011-12 2,358.67 208.94 219.84 5.9 8.82 97.22 1.82 29.12
Source: Central Statistical information Department, NABARD.
31.
32. • August 1998 KCC emerged as a innovative credit
mechanism
• The co-operative banks and RRBs taken together had
issued 453.10 lakh KCCs.
33. • No need to apply for a loan for every crop.
• Reduces the interest burden from the farmer
• Helps to buy on cash-avail discount from dealers.
• Maximum credit limit based on agriculture income.
• Repayment only after harvest.
34. • Introduced September 2003
• 86,741 lakh SCCs were issued with an aggregate
credit limit of 359.67 crore.
• 13.96 lakh SCCs were issued by RRBs and Co-
operative institutions.
35. • Financing through SHGs reduces transaction costs
• Bank has to handle only a single SHG account
36. • The Group should be in existence for at least six
months.
• The Group should have actively promoted the savings
habit.
• The Groups could be either formal (registered) or
informal (unregistered).
• Membership of the group could be between 10 to 20
persons.
37. Farmers Clubs are grassroots level informal
forums. Such Clubs are organized by rural branches
of banks with the support and financial assistance of
NABARD for the mutual benefit of the banks and
rural people.
38. • Farmers Club (FC) Programme was redesigned to be
in line with „Farmer First‟ agenda in the development
strategy.
• The programme aims
• Agency-wise RRBs promoted the maximum number
of clubs (12,604), Commercial banks (8,471), co-
operative banks (5,237) and other agencies (1,914).
39. • Increase in deposits.
• Generation of new business avenues.
• Increase in the recoveries and decline in the non-
performing assets.
• Reduction in the transaction costs of financial
institutions/ Banks.
40. • RRBs will have a target of 60% of their outstanding
advances for priority sector.
• 25 % should be advanced to weaker sections of the
society.
41. • Whole sale or retail traders, distributors, cooperative
marketing societies
• Cold storage plants.
• Primary agricultural credit societies
• Agro industry corporations and other public sector bodies for
their agricultural development activities.
42. • Banks have been allowed to formulate their own
models or choose any intermediary for extending
micro credit.
• They may choose suitable branches/ pockets/ areas
where micro credit programmes can be implemented.
43. Chairman: Ashok Reddy
Nukala
No of District cover: 10
Malaprabha Grameena
Bank, Bijapur Grameena
Bank, Varada Grameena
Bank and Netravathi
Grameena Bank
12/09/2005
44. Particulars 31/03/2011 31/03/2012
No. of Branches. 451 500
No. of Staff 2271 2377
Total Deposits 5405.70 6186.50
Gross Advances 3640.81 4516.89
Advances to SC/ST Categories 436.25 563.22
Outstanding under Priority Sector Advance 3037.11 3842.25
Advance to Agriculture 2353.25 2916.22
Advance to Weaker Section Outstanding 1527.37 1895.51
Credit Disbursement 2177.84 2942.03
Credit Disbursement to Agriculture 1001.14 1533.59
NPA Outstanding 92.58 89.17
Total Income 574.96 745.81
Total Expenditure 446.78 581.62
profit 128.18 164.19
(Rs in Crores)
45. Schemes Purpose Eligibility Quantum
VIKAS RAITA MITRA
TRACTOR YOJANA
Tractors, Trailers, Power
Tillers, Implements, Second
Hand Tractors
All Farmers, as per
NABARD guidelines.
80 to 90% of cost.
VIKAS BHOOMI Purchase of Land for Agri-
Purpose
SF / MF /Tenant Farmers,
Big Farmer.
No margin up to Rs.50,000/-. 10
% Margin for loans above
Rs.50,000/- Max- Purchase for 5
Acres of lands.
VIKAS JALAVARDHINI Construction of water storing
structures in Agri. Land
SC /ST farmers Rs.30,700/- or Rs.34,200/- for
10 X10 X 3 Cu Mtr Model.
Rs.26,800/- for 8 X 8 X3 Cu Mtr
Model, Depending on Situation of
Land
VIKAS KISAN SAMRUDHI
CREDIT CARD
For production of crops and
agri. Investment credit ,
repayable in 5 years.
All Agriculturists As per Scale of Finance and
NABARD Unit Cost
VIKAS GRIHA Purchase of Plot &
construction of house
Salaried as well as all
income earning group
below 55 years of age
25 % for Plot with construction
up to 40 % based on the age of
the old house
VIKAS AGRI-CLINIC / Agri-
BUSINESS
To set up Agri clinics / Agri
business Centers
Agri –graduates Individuals -Rs.10 lakhs, Group -
Rs.50.00 lakhs,
Source: Karnataka Vikas Grameen Bank
46. Sl.No Particulars Amount
Rate of
Interest(%)
1 KCC/CROP LOANS-Applicable rate of interest up to one year from the date of disbursement or due date or date of
payment / renewal whichever is earlier
a). Upto Rs. 3 lakhs
b). Above Rs. 3 lakhs
7.00
14.25
2 Agri Term Loans, agriculture/allied activities including purchase of Agriculture land, commercial production of organic
inputs)
a) Up to Rs. 50,000/-
b) Rs.50,000/- to 2.00 lakhs
c) Above Rs.2,00,000/-
12.00
13.50
14.00
3 Purchase of 2/3/4 wheelers for agri purpose a. up to Rs. 50,000/-
b. Rs. 50,000/- to 2.00 lakh
c. Above Rs. 2,00,000
13.00
14.00
14.25
4 Small Scale Industries, Rural Artisans, Cottage Industries, Tertiary Sectors including loan to Retail Traders, Small
Business and Other Self Employed, Professionals and Medical Practitioners/ Swarojagar Credit Card.Rural
Godown,Cold storage,Other Non farm sectors
a) Up to Rs. 50,000/-
b) Rs.50,000/- to Rs.2,00,000/-
c) Above Rs.2,00,000/-
13.00
13.50
14.00
5 Ware House Receipt Loans:(other than Produce Loan) a) Up to Rs. 50,000/-with repayment period of
less than 6 months.
b) Rs.50,000/- to Rs.1,00,000/- with repayment
period of less than 6 months.
13.00
14.00
6 Jewel Loans / (VKCC JL) (Agriculture) with interest Subvention Up to Rs.3,00,000/- 7.00
7
Jewel Loans/ (Agriculture) Others Irrespective amount 13.50
Advances to Self Help Groups (Credit Linkage) a) Up to Rs.50,000/-
b) Above Rs.50,000/-
12.50
14.00
8 Education Loans a) Up to Rs.4,00,000/-
b) Above Rs.4,00,000/-
12.50
13.00
9 Tractor/ Trailors, agriculture Equipments Irrespective of loan amount 25% Margin 13.75
10 Rural Housing Loans/Public Housing loans and Farm House/House repairs up to 1.00 lakh in Rural/Semi Urban Areas
& Up to Rs. 2.00 lakh in Urban area and Rural Sanitation Facility
a) Up to Rs.2,00,000/-
b) Rs.2,00,001/ toRs.5,00,000/-
c)Rs.5,00,000/toRs.20,00,000/-
10.25
10.75
11.25
11 Loans under National Scheme for Rehabilitation of Scavengers a) Up to Rs.15000/-
b) Above Rs.15000/-
4.00
10.00
52. • To take banking to door steps of rural households
particularly in banking deprived rural area.
• To avail easy and cheaper credit to weaker rural
section who are dependent on private lenders.
• Encourage rural savings for productive activities and
to generate employment in rural areas.