The document discusses the role of banks in providing agricultural credit in India. It notes that while India's economy has grown rapidly, its dependence on agricultural performance remains high. Access to banking services in rural and agricultural areas remains limited. The document then outlines various agricultural credit schemes provided by banks in India, including short term crop loans, term loans, and the Kisan Credit Card scheme. It also discusses the challenges in expanding rural and agricultural credit like lack of infrastructure and focus on urban sectors.
I explained What is rural development bank? Major kinds, current status of rural development bank, objectives and functions of Rural development bank, major problem of Rural development bank
Banking Sector in Rural India - Challenges and OpportunitiesAkshay Panwar
This dissertation examines the situation of the Banking Sector in Rural India through studying the obstacles and bottlenecks that have caused underdevelopment of banking services and products in rural Indian areas. Contrary popular belief lack of capital to invest for improving banking is not only the reason why the sector is underdeveloped. Banking has been affected by challenges such as technology displacement and radical innovation of technology, vast demographic of India, lack of liquidity, lack of services understanding amongst customers, weak policies and the unwillingness of talented bank employees to work in rural India.
As a result, it is going to take time, investments, overall development of villages and introduction of innovative schemes and policies to change the state of banking in Rural India. There have been several research papers published and survey groups that have tried to explore Rural Banking but the market and economy keeps constantly changing alongside a
lot more about Rural Banking yet to be explored.
We took the above variables in account and developed a theoretical framework containing the dependent and independent variables along with the null and alternate hypotheses that had to be proved true or false depending upon the data collection.
We prepared two questionnaires targeted to Bankers and customers in Rural India to get perspectives and insights from the service providers and from users. Stratified sampling was
used to gather appropriate data.
The data collected was analysed using the SPSS software for which a set of analysis techniques were applied and the data was interpreted which helped in proving the corresponding null or alternate hypotheses true as per the requirement of the research.
A Project Report on NPA Management in J & K BankRaoufnaikoo
This document is a summer training project report submitted by Ab. Raouf Naikoo to Punjabi University in partial fulfillment of an MBA degree. The report focuses on NPA (non-performing asset) management at J&K Bank in Kashmir. It includes an introduction to the banking industry and J&K Bank, background information on NPAs, a literature review, research methodology, data analysis, findings, and suggestions. The report was completed under the guidance of Mr. Tariq Ahmad, Deputy Branch Head at J&K Bank Kulgam.
NABARD is the apex development bank of India that was established in 1982 to provide credit and related services for agriculture and rural development. It replaced the agricultural credit departments of the RBI and provides refinancing support to rural financial institutions. NABARD also works to enhance access to financial services in rural areas through programs like self-help group bank linkage and develops rural infrastructure through funds like RIDF.
Microcredit is a system that provides small loans to poor individuals without collateral to start self-employment projects. Muhammad Yunus pioneered microcredit by providing small loans to 42 poor women in Bangladesh in 1976. This led to the founding of Grameen Bank in 1983, which has since loaned over $6 billion to over 7 million people, mostly women. Microcredit works by providing loans in small group through community support and accountability. It has significantly reduced poverty by generating income and empowering the poor, especially women. However, some critiques argue it can increase debt cycles and over-dependence on loans.
This document discusses social banking and microfinance in India. It outlines the objectives of social banking as providing credit to small farmers, traders, and cottage industries. Major social banking schemes discussed include the Lead Bank Scheme, Service Area Approach, Village Adoption Scheme, and Differential Rate of Interest Scheme. The document also describes priority sector lending and microfinance through self-help group bank linkage programs. The Lead Bank Scheme designates a bank in each district to coordinate banking institutions. Under the Service Area Approach, banks are allocated specific rural or semi-urban villages.
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
A PPT ON MICRO FINANCE BY :- GAURAV BHUTGaurav Bhut
Microfinance in India provides financial services to the poor who lack access to traditional banking. It began as social initiatives but is now a profitable sector. Key challenges include high transaction costs due to information asymmetry about clients and their loan usage. Most clients are rural with low literacy and lack collateral. Staff training and motivation are also issues. Government programs and microfinance institutions have expanded access but large gaps remain, with 500 million people still unserved. Future growth requires addressing demand, scaling up, using technology, and offering more products like insurance to increase impact.
I explained What is rural development bank? Major kinds, current status of rural development bank, objectives and functions of Rural development bank, major problem of Rural development bank
Banking Sector in Rural India - Challenges and OpportunitiesAkshay Panwar
This dissertation examines the situation of the Banking Sector in Rural India through studying the obstacles and bottlenecks that have caused underdevelopment of banking services and products in rural Indian areas. Contrary popular belief lack of capital to invest for improving banking is not only the reason why the sector is underdeveloped. Banking has been affected by challenges such as technology displacement and radical innovation of technology, vast demographic of India, lack of liquidity, lack of services understanding amongst customers, weak policies and the unwillingness of talented bank employees to work in rural India.
As a result, it is going to take time, investments, overall development of villages and introduction of innovative schemes and policies to change the state of banking in Rural India. There have been several research papers published and survey groups that have tried to explore Rural Banking but the market and economy keeps constantly changing alongside a
lot more about Rural Banking yet to be explored.
We took the above variables in account and developed a theoretical framework containing the dependent and independent variables along with the null and alternate hypotheses that had to be proved true or false depending upon the data collection.
We prepared two questionnaires targeted to Bankers and customers in Rural India to get perspectives and insights from the service providers and from users. Stratified sampling was
used to gather appropriate data.
The data collected was analysed using the SPSS software for which a set of analysis techniques were applied and the data was interpreted which helped in proving the corresponding null or alternate hypotheses true as per the requirement of the research.
A Project Report on NPA Management in J & K BankRaoufnaikoo
This document is a summer training project report submitted by Ab. Raouf Naikoo to Punjabi University in partial fulfillment of an MBA degree. The report focuses on NPA (non-performing asset) management at J&K Bank in Kashmir. It includes an introduction to the banking industry and J&K Bank, background information on NPAs, a literature review, research methodology, data analysis, findings, and suggestions. The report was completed under the guidance of Mr. Tariq Ahmad, Deputy Branch Head at J&K Bank Kulgam.
NABARD is the apex development bank of India that was established in 1982 to provide credit and related services for agriculture and rural development. It replaced the agricultural credit departments of the RBI and provides refinancing support to rural financial institutions. NABARD also works to enhance access to financial services in rural areas through programs like self-help group bank linkage and develops rural infrastructure through funds like RIDF.
Microcredit is a system that provides small loans to poor individuals without collateral to start self-employment projects. Muhammad Yunus pioneered microcredit by providing small loans to 42 poor women in Bangladesh in 1976. This led to the founding of Grameen Bank in 1983, which has since loaned over $6 billion to over 7 million people, mostly women. Microcredit works by providing loans in small group through community support and accountability. It has significantly reduced poverty by generating income and empowering the poor, especially women. However, some critiques argue it can increase debt cycles and over-dependence on loans.
This document discusses social banking and microfinance in India. It outlines the objectives of social banking as providing credit to small farmers, traders, and cottage industries. Major social banking schemes discussed include the Lead Bank Scheme, Service Area Approach, Village Adoption Scheme, and Differential Rate of Interest Scheme. The document also describes priority sector lending and microfinance through self-help group bank linkage programs. The Lead Bank Scheme designates a bank in each district to coordinate banking institutions. Under the Service Area Approach, banks are allocated specific rural or semi-urban villages.
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
A PPT ON MICRO FINANCE BY :- GAURAV BHUTGaurav Bhut
Microfinance in India provides financial services to the poor who lack access to traditional banking. It began as social initiatives but is now a profitable sector. Key challenges include high transaction costs due to information asymmetry about clients and their loan usage. Most clients are rural with low literacy and lack collateral. Staff training and motivation are also issues. Government programs and microfinance institutions have expanded access but large gaps remain, with 500 million people still unserved. Future growth requires addressing demand, scaling up, using technology, and offering more products like insurance to increase impact.
This document provides an evaluation of non-performing assets (NPAs) at the George Town branch of South Indian Bank in Chennai. It begins with an introduction to South Indian Bank and the George Town branch. The document then covers credit appraisal processes, monitoring and recovery of loans, definitions and types of NPAs, RBI guidelines on NPA classification and provisioning, causes and impacts of NPAs, and preventive and recovery measures for NPAs. The objective of the study is to analyze NPAs at South Indian Bank and the methodology used to conduct the analysis.
NABARD was established in 1982 to provide credit and promote rural development. It refinances rural banks and cooperatives to support agriculture and rural activities. NABARD operates nationwide through regional offices and district offices, and promotes programs like self-help groups and watershed development. Its objectives are to provide refinancing and institutional support to eligible banks and cooperatives, improve rural credit delivery, and coordinate rural development activities.
NABARD plays a key role in India's rural development through various financial and developmental functions. It provides short-term and long-term refinance to banks and cooperatives to boost agricultural and rural development. It also engages in direct financing. Additionally, NABARD plays an important developmental role through institutional development, research, and promoting financial inclusion. It has contributed significantly to increasing agricultural production and rural prosperity in India since its establishment.
NABARD is India's apex development bank that was established in 1982 by an act of Parliament to uplift rural India by increasing credit flow. It replaced the Agriculture Credit Department and Rural Planning and Credit Cell of the Reserve Bank of India. NABARD refinances rural banks and cooperatives, regulates cooperative banks and regional rural banks, and promotes initiatives like self-help groups and watershed development projects.
Business Development Strategies in DCCB (Dr. Rajiv P. Kumar)Dr. Rajiv P. Kumar
This document provides an overview of business diversification strategies in cooperative banks in India. It begins with introducing cooperative banks and how they differ from commercial banks. It then discusses the history and role of cooperative banks in India. The document outlines some of the challenges faced by cooperative banks that have led them to pursue diversification strategies. It identifies reasons for cooperative banks to diversify their business and lists some of the advantages and disadvantages of diversification. Finally, it describes different types of business diversification strategies cooperative banks can pursue, including horizontal, vertical, concentric, and conglomerate diversification.
Nabard & its innovative function in promoting ruralSumit Kulkarni
NABARD was established in 1982 as an apex development bank in India to facilitate credit flow to rural areas for promoting agriculture and rural development. It provides refinancing support and training to rural financial institutions. Some of NABARD's innovative functions include the EShakti project for digitizing self-help groups, the Rural Innovation Fund to support unconventional rural livelihood projects, and an action research project providing repeated microcredit to help rural households move out of poverty.
Investment mechanism of al arafah islami bank limitedEakiSikder
This document provides an overview of Al-Arafah Islami Bank Limited (AIBL), an Islamic commercial bank in Bangladesh. It discusses AIBL's history, being established in 1995 to provide banking services based on Islamic principles. It has over 100 branches and 3,400 employees. The document outlines AIBL's objectives, which include establishing an interest-free economy, supporting economic growth, reducing poverty through social initiatives, and achieving rewards in the afterlife. It also provides basic corporate information about AIBL's leadership and address.
This report analyzes customer satisfaction with banking deposit products from State Bank of India (SBI). The report includes an introduction on the importance of customer satisfaction. It then outlines the objectives, research methodology, scope and limitations of the study. Key findings from data analysis include that most customers are satisfied with SBI's services and prefer its low interest rates and longer repayment periods. Suggestions for SBI include improving customer awareness, disclosing any hidden fees, and focusing more on retaining existing customers through better customer service.
rural banking india: initiatives taken by sbiamangarg2510
Rural banking in India aims to promote financial inclusion through various initiatives by the State Bank of India and Reserve Bank of India. The State Bank of India has established over 6,473 rural and semi-urban branches and works with 30 regional rural banks to expand access to banking services. It has also launched programs like tiny accounts, smart cards, and self-help groups to provide savings and credit options tailored to rural communities. The Reserve Bank of India has implemented priority sector lending, Kisan credit cards, regional rural banks, and a financial inclusion plan to boost rural credit and extend banking connectivity across India. Significant progress has been achieved, though expanding access through new technologies and education remains an ongoing priority.
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.
This document is an internship report submitted to Visvesvaraya Technological University in partial fulfillment of an MBA degree. It focuses on studying non-performing assets at Thyagaraja Co-operative Bank in Bangalore from April to June 2014. The report includes an introduction to the topic, objectives of the study, methodology used, and literature review. It also provides background on the banking industry and Thyagaraja Co-operative Bank. The report analyzes NPA levels over multiple years, compares NPA across bank regions, and examines implications of high NPA. It concludes with findings from the analysis and recommendations to resolve problem loans and maintain healthy NPA levels.
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.
The document discusses the history and functions of rural credit in India. It notes that rural credit is aimed at impacting rural populations through lending programs and lines of credit for farmers and agricultural work. In India, rural credit originated with the creation of a network of rural credit cooperatives in the 1950s to channel credit between the state and rural communes. In the late 1970s, as economic reforms enabled private enterprise, rural credit cooperatives began functioning as grassroots banks providing credit and savings services to rural communities. Today, rural credit supports individuals, businesses, and development projects that benefit rural areas through loans, mortgages, and other financing adapted to farmers' agricultural cycles.
The document analyzes various macro environmental factors using the PEST framework. It discusses the political, economic, social, and technological landscape that banks operate within. Politically, regulatory changes are needed to modernize the banking system and increase self-regulation. Economically, India has grown from shortages to plentiful goods and services. Socially, rural areas remain an important market. Technologically, information sharing and new players could change the banking industry.
This document provides an overview of public sector banks in India. It discusses the history of banking in India beginning with banks established by the British East India Company in the early 19th century. It notes that many major banks were nationalized by the government in 1969 and 1980. The document defines public sector banks as those where the government holds over 50% stake and are listed on stock exchanges. It then outlines various banking services provided by public sector banks like deposits, credits, general services, customized services and products.
Grameen Banking provides small, collateral-free loans known as microcredit to impoverished individuals, especially women, in rural Bangladesh. The bank was founded in 1976 by Muhammad Yunus and transformed into an independent bank in 1983. It utilizes group lending and peer pressure through "joint liability groups" to achieve repayment rates over 99%. The bank has made over $4.7 billion in loans, inspiring similar models in over 40 countries. It has received several awards including the Nobel Peace Prize for its success in reducing poverty. Critics argue it can trap borrowers in debt and impose social rules, but the bank denies forcing views on clients.
HDFC Bank was incorporated in 1994 in Mumbai, India and aims to be the preferred banking provider. It has over 1416 branches and 3382 ATMs across India. The most popular product is the savings account, used by 44% of customers. 30% of customers open accounts due to special offers while credibility and staff play important roles. The internship project analyzed HDFC Bank's products and services and found that savings accounts are most common, with ATMs being the most used digital service. It provided recommendations such as decreasing fees and improving knowledge of digital banking.
The Report is based on the analysis of Foreign Exchange Operations AT DCB Bank. It involves the complete transaction process of Inward and Outward Remittance. The Documentation required for this purpose. These transactions are mainly involved for the individuals who are in the Export and Import Business.
The webinar will provide enriching insights of Credit appraisal, why it is required and the advantages of the same. The key areas of elucidation will include banker's preference for credit appraisal, traditional method Vs current trends, understanding various business models. The discussion shall also include the role of Chartered Accountants in credit appraisal, the edge CA's have over others and also the added advantages it brings in to their professional practise.
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.
Cooperative banking provides an introduction to cooperative banks in India. Cooperative banks are financial institutions owned by members who are both customers and owners. They were established to provide financial services like loans and deposits to help people avoid money lenders' high interest rates. Cooperative banks differ from private banks in their organization, goals, values and governance. They mainly focus on local communities and micro-banking for low and middle income groups. Cooperative banks play an important role in rural financing and increasing access to institutional credit for farmers and small businesses. They are more important in India than other countries due to their outreach and role in development schemes.
This document provides an evaluation of non-performing assets (NPAs) at the George Town branch of South Indian Bank in Chennai. It begins with an introduction to South Indian Bank and the George Town branch. The document then covers credit appraisal processes, monitoring and recovery of loans, definitions and types of NPAs, RBI guidelines on NPA classification and provisioning, causes and impacts of NPAs, and preventive and recovery measures for NPAs. The objective of the study is to analyze NPAs at South Indian Bank and the methodology used to conduct the analysis.
NABARD was established in 1982 to provide credit and promote rural development. It refinances rural banks and cooperatives to support agriculture and rural activities. NABARD operates nationwide through regional offices and district offices, and promotes programs like self-help groups and watershed development. Its objectives are to provide refinancing and institutional support to eligible banks and cooperatives, improve rural credit delivery, and coordinate rural development activities.
NABARD plays a key role in India's rural development through various financial and developmental functions. It provides short-term and long-term refinance to banks and cooperatives to boost agricultural and rural development. It also engages in direct financing. Additionally, NABARD plays an important developmental role through institutional development, research, and promoting financial inclusion. It has contributed significantly to increasing agricultural production and rural prosperity in India since its establishment.
NABARD is India's apex development bank that was established in 1982 by an act of Parliament to uplift rural India by increasing credit flow. It replaced the Agriculture Credit Department and Rural Planning and Credit Cell of the Reserve Bank of India. NABARD refinances rural banks and cooperatives, regulates cooperative banks and regional rural banks, and promotes initiatives like self-help groups and watershed development projects.
Business Development Strategies in DCCB (Dr. Rajiv P. Kumar)Dr. Rajiv P. Kumar
This document provides an overview of business diversification strategies in cooperative banks in India. It begins with introducing cooperative banks and how they differ from commercial banks. It then discusses the history and role of cooperative banks in India. The document outlines some of the challenges faced by cooperative banks that have led them to pursue diversification strategies. It identifies reasons for cooperative banks to diversify their business and lists some of the advantages and disadvantages of diversification. Finally, it describes different types of business diversification strategies cooperative banks can pursue, including horizontal, vertical, concentric, and conglomerate diversification.
Nabard & its innovative function in promoting ruralSumit Kulkarni
NABARD was established in 1982 as an apex development bank in India to facilitate credit flow to rural areas for promoting agriculture and rural development. It provides refinancing support and training to rural financial institutions. Some of NABARD's innovative functions include the EShakti project for digitizing self-help groups, the Rural Innovation Fund to support unconventional rural livelihood projects, and an action research project providing repeated microcredit to help rural households move out of poverty.
Investment mechanism of al arafah islami bank limitedEakiSikder
This document provides an overview of Al-Arafah Islami Bank Limited (AIBL), an Islamic commercial bank in Bangladesh. It discusses AIBL's history, being established in 1995 to provide banking services based on Islamic principles. It has over 100 branches and 3,400 employees. The document outlines AIBL's objectives, which include establishing an interest-free economy, supporting economic growth, reducing poverty through social initiatives, and achieving rewards in the afterlife. It also provides basic corporate information about AIBL's leadership and address.
This report analyzes customer satisfaction with banking deposit products from State Bank of India (SBI). The report includes an introduction on the importance of customer satisfaction. It then outlines the objectives, research methodology, scope and limitations of the study. Key findings from data analysis include that most customers are satisfied with SBI's services and prefer its low interest rates and longer repayment periods. Suggestions for SBI include improving customer awareness, disclosing any hidden fees, and focusing more on retaining existing customers through better customer service.
rural banking india: initiatives taken by sbiamangarg2510
Rural banking in India aims to promote financial inclusion through various initiatives by the State Bank of India and Reserve Bank of India. The State Bank of India has established over 6,473 rural and semi-urban branches and works with 30 regional rural banks to expand access to banking services. It has also launched programs like tiny accounts, smart cards, and self-help groups to provide savings and credit options tailored to rural communities. The Reserve Bank of India has implemented priority sector lending, Kisan credit cards, regional rural banks, and a financial inclusion plan to boost rural credit and extend banking connectivity across India. Significant progress has been achieved, though expanding access through new technologies and education remains an ongoing priority.
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.
This document is an internship report submitted to Visvesvaraya Technological University in partial fulfillment of an MBA degree. It focuses on studying non-performing assets at Thyagaraja Co-operative Bank in Bangalore from April to June 2014. The report includes an introduction to the topic, objectives of the study, methodology used, and literature review. It also provides background on the banking industry and Thyagaraja Co-operative Bank. The report analyzes NPA levels over multiple years, compares NPA across bank regions, and examines implications of high NPA. It concludes with findings from the analysis and recommendations to resolve problem loans and maintain healthy NPA levels.
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.
The document discusses the history and functions of rural credit in India. It notes that rural credit is aimed at impacting rural populations through lending programs and lines of credit for farmers and agricultural work. In India, rural credit originated with the creation of a network of rural credit cooperatives in the 1950s to channel credit between the state and rural communes. In the late 1970s, as economic reforms enabled private enterprise, rural credit cooperatives began functioning as grassroots banks providing credit and savings services to rural communities. Today, rural credit supports individuals, businesses, and development projects that benefit rural areas through loans, mortgages, and other financing adapted to farmers' agricultural cycles.
The document analyzes various macro environmental factors using the PEST framework. It discusses the political, economic, social, and technological landscape that banks operate within. Politically, regulatory changes are needed to modernize the banking system and increase self-regulation. Economically, India has grown from shortages to plentiful goods and services. Socially, rural areas remain an important market. Technologically, information sharing and new players could change the banking industry.
This document provides an overview of public sector banks in India. It discusses the history of banking in India beginning with banks established by the British East India Company in the early 19th century. It notes that many major banks were nationalized by the government in 1969 and 1980. The document defines public sector banks as those where the government holds over 50% stake and are listed on stock exchanges. It then outlines various banking services provided by public sector banks like deposits, credits, general services, customized services and products.
Grameen Banking provides small, collateral-free loans known as microcredit to impoverished individuals, especially women, in rural Bangladesh. The bank was founded in 1976 by Muhammad Yunus and transformed into an independent bank in 1983. It utilizes group lending and peer pressure through "joint liability groups" to achieve repayment rates over 99%. The bank has made over $4.7 billion in loans, inspiring similar models in over 40 countries. It has received several awards including the Nobel Peace Prize for its success in reducing poverty. Critics argue it can trap borrowers in debt and impose social rules, but the bank denies forcing views on clients.
HDFC Bank was incorporated in 1994 in Mumbai, India and aims to be the preferred banking provider. It has over 1416 branches and 3382 ATMs across India. The most popular product is the savings account, used by 44% of customers. 30% of customers open accounts due to special offers while credibility and staff play important roles. The internship project analyzed HDFC Bank's products and services and found that savings accounts are most common, with ATMs being the most used digital service. It provided recommendations such as decreasing fees and improving knowledge of digital banking.
The Report is based on the analysis of Foreign Exchange Operations AT DCB Bank. It involves the complete transaction process of Inward and Outward Remittance. The Documentation required for this purpose. These transactions are mainly involved for the individuals who are in the Export and Import Business.
The webinar will provide enriching insights of Credit appraisal, why it is required and the advantages of the same. The key areas of elucidation will include banker's preference for credit appraisal, traditional method Vs current trends, understanding various business models. The discussion shall also include the role of Chartered Accountants in credit appraisal, the edge CA's have over others and also the added advantages it brings in to their professional practise.
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.
Cooperative banking provides an introduction to cooperative banks in India. Cooperative banks are financial institutions owned by members who are both customers and owners. They were established to provide financial services like loans and deposits to help people avoid money lenders' high interest rates. Cooperative banks differ from private banks in their organization, goals, values and governance. They mainly focus on local communities and micro-banking for low and middle income groups. Cooperative banks play an important role in rural financing and increasing access to institutional credit for farmers and small businesses. They are more important in India than other countries due to their outreach and role in development schemes.
The National Bank for Agriculture and Rural Development (NABARD) is India's apex development bank that was established in 1982 to promote rural development. It serves as a refinancing body for institutions providing investment and production credit in rural areas. NABARD also works to build the capacity of institutions involved in rural financing and coordinates their activities. It monitors projects it refinances, regulates rural finance institutions, and provides training.
This document discusses strategies for retail banks to expand into rural markets in India. It recommends that banks segment the rural market geographically and demographically. It also suggests that banks expand their reach through partnerships with India Post and NGOs/MFIs. Additionally, it advises banks to use low-cost technologies like kiosk banking with biometric authentication to better serve rural customers in a cost-effective manner. The document also calls for educating rural customers and focusing on microfinance through self-help groups.
This document summarizes a study on customer satisfaction and Know Your Customer (KYC) practices at the Amritsar Central Co-operative Bank Ltd. Key findings include:
- The majority of respondents were aware of and satisfied with the bank's savings accounts and services. Most customers visited 1-4 times per month.
- However, some respondents reported dissatisfaction with staff behavior and long transaction times.
- The study recommends improving ATM access, advertising, and properly explaining products and services to increase customer satisfaction and awareness of KYC practices.
Cooperative marketing allows individuals to earn income by referring customers to products and services. It enables people to work together cooperatively to build their own customer networks and earn a percentage of the revenue from purchases. With minimal time and investment, one can develop a source of regular monthly income by acquiring customers and helping others to do the same through referrals. Cooperative marketing provides financial benefits like security, independence, and potentially early retirement as networks of recurring customers are established.
This document is a prescreening questionnaire for a human resources position. It requests information from applicants such as their name, eligibility to work in the US, education history, work experience, skills, and compensation requirements. Applicants are asked to describe how their background meets the position requirements, which include 5 years of HR experience, experience in a manufacturing environment, and strong knowledge of employment laws. They are also asked to rate their skills in areas like managing priorities, benefits administration, and using software programs. The questionnaire aims to assess candidates' qualifications for the HR generalist role.
This document contains questions from an HR questionnaire for a pre-implementation review. It seeks information about the goals, users, and key processes for an HR transformation project. Specifically, it asks about the current and planned HR modules, key issues with the current system, user roles and responsibilities, and workflows and processes for personnel administration, claims, time attendance, appraisal, training, and payroll. The questionnaire aims to understand system usage and gather requirements to plan a new HR system implementation.
1) The document discusses mutual funds in India, including what they are, how they operate, and their classification. It defines mutual funds and describes how they pool investor money and are professionally managed.
2) Mutual funds have different schemes to meet investor needs and risk tolerances, including open-ended, closed-ended, and interval funds. They also have schemes based on investment objectives like growth, income, or balanced.
3) The document provides examples of different types of mutual fund schemes in India and discusses their key characteristics. It aims to analyze the performance of the SBI Magnum Tax Gain Scheme.
This presentaiton contains about what are the banks products and what are strategies should made by the bank to promote the bank products in rural area...
This document provides an overview of the retail market in India. It discusses different types of retail formats including department stores, discount stores, warehouse stores, convenience stores, hypermarkets, supermarkets, and e-tailers. It also covers various retail marketing techniques like internet marketing, direct marketing, word-of-mouth marketing, and public relations marketing. Additionally, it introduces the 7Ps of marketing which are important considerations for retailers - product, price, promotion, place, people, process, and physical evidence. The document aims to give readers an understanding of the Indian retail landscape and key aspects of retail marketing.
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.
The document is a project report on marketing and promotion of Xtra POWER Fleet Card loyalty program submitted to Indian Oil Corporation Limited (IOC). It discusses objectives of studying IOC's loyalty program in Durgapur region of West Bengal and obtaining customer feedback. Primary data was collected through questionnaires distributed at IOC retail outlets in Durgapur and nearby areas. Secondary data was collected from IOC's annual reports, websites, pamphlets, and sales reports. The sample size for retailers was 8 and for customers was 200.
This document provides an overview of rural banking in India. It discusses the various products offered by rural banks, including agriculture credits, financial inclusion programs, and loans for MSMEs and deposits. It then covers the sources of rural finance such as nationalized banks, cooperative banks, and NABARD. NABARD plays an important role in facilitating credit flow for rural development through refinance functions, direct financing, developmental activities, and supervising rural financial institutions.
The document discusses cooperative marketing in India. It begins by providing context on the origins of cooperatives in Europe in the 1800s. It then defines cooperative marketing and outlines the role of cooperatives in areas like technology transfer, fertilizer distribution, irrigation, and agricultural credit. The document describes the structure of cooperative marketing societies from the base to state levels and lists their functions. Finally, it discusses the progress of cooperative marketing in India, reasons for slow progress, and provides suggestions to strengthen cooperative marketing societies.
This document provides an overview of the research methodology for a study comparing private sector banks and public sector banks. The objectives are to find the most preferred banking sector and factors influencing customer choice. A questionnaire was used to collect primary data, and secondary data came from sources like books and the internet. The literature review discusses several previous studies on public and private sector bank performance and customer satisfaction. The data analysis will examine two variables and test hypotheses using chi-square tests. Tables and figures will present the results.
The document summarizes an internship report on analyzing the air compressor at an LPG bottling plant in Budge Budge, India. It describes the plant's production of filling 1200 cylinders per day. It also outlines the plant's storage facilities including bullet tanks and cylinders. Safety procedures for loading/unloading tankers are explained. The document also provides details on the pump house, compressor operation, and safety equipment used.
banking in rural india : initiatives taken by sbiamangarg2510
Rural banking in India is important given that 69% of India's population lives in rural areas. State Bank of India has taken several initiatives to promote rural banking such as opening rural and semi-urban branches, partnering with regional rural banks, and developing programs like Kisan Credit Cards, self-help groups, and projects using smart cards and business correspondents. Overall, initiatives by the Reserve Bank of India and individual banks have helped increase access to banking in rural India, with the number of bank accounts, loans, and credit growing substantially in recent years. However, there is still progress needed to fully cover India's rural population with banking services.
The document discusses the Indian banking sector. It provides definitions and descriptions of the different types of banks in India including public sector banks which are government owned, private sector banks which are privately owned and focus on profit, and cooperative banks which are owned by customers. It also discusses the history of banking in India and lists the top 10 banks. It then provides more detail about the public sector bank State Bank of India and the private sector bank HDFC Bank, discussing their services, financials, and ratings/reviews.
Summer Training Report - Indian Oil Corporation LimitedAneesh Bhandari
This document contains information about an internship project at Indian Oil Corporation Limited. It includes:
- An overview of two projects conducted - studying IOCL's value-added fuel brands and designing a sales promotion campaign for fuels in Delhi.
- Background on IOCL as an organization, details of the internship, and findings from research conducted including consumer behavior, past campaigns, and potential new campaign designs.
- Sections on the branding, positioning, budgeting, communications and limitations regarding IOCL's fuel brands.
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.
1. The document discusses the role of Regional Rural Banks (RRBs) in providing credit to rural areas in India, specifically Jammu and Kashmir. RRBs were established to fulfill credit needs that commercial banks and cooperatives were not addressing.
2. It provides background on the rural credit system in India and need for institutional credit among farmers. RRBs aim to provide financial assistance to small and marginal farmers.
3. The document examines the progress of three RRBs operating in Jammu and Kashmir - Jammu Rural Bank, Kamraj Rural Bank, and Ellaquai Dehati Bank. It explores trends in RRB development and constraints they face like non-performing assets.
Macroeconomics Role Of Institutional Credit For Economic GrowthSpartanski
The document discusses the importance of institutional credit for agricultural growth and economic development in India. It notes that historically, agriculture has relied on informal credit sources that charge very high interest rates. The document outlines the establishment of institutional credit for agriculture in India via programs like priority sector lending and the Kisan credit card scheme. It finds that increased access to institutional credit is linked to higher agricultural productivity, food production and reduced farmer debt. However, it also flags issues like declining credit to agriculture from commercial banks and a need for expanded access to affordable credit via microfinance and technological solutions.
This document provides a historical overview of microfinance initiatives in India since independence. It discusses early committees and surveys that examined rural credit needs and access. Major initiatives are described, including self-help groups, programs through NABARD and SIDBI, and the SHG-Bank linkage model. The document also outlines the current status and infrastructure of microfinance provision in India, noting that while access to formal credit has increased, the majority of marginal farmers and landless laborers still rely on informal sources. Overall it traces the evolution of microfinance policy and models in India over several decades.
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.)
Effective Utilization of Banking Credit: A bird’s eye viewRHIMRJ Journal
India is an agricultural country and it plays a significant role in the development of our economy. Approximately two
third of the Indian Population is depend on agriculture sector. According to the data released by National Sample Survey
(NSS) reflects that about 65 to 70 per cent of all agricultural holdings belonged to the smaller size groups of families. These
small and marginal farmers required credit facility. Agricultural credit appears to be an essential input to take the advantage
of modern technology in agriculture sector for enhancing productivity. That is the reason credit has been taking a crucial role
in designing strategies for the development of agriculture. This paper put emphasis on proper planning for effective utilization
of credit facilities.
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.
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.
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.
A Review of Bank Loans to Farmers: Implications for Agricultural Diversificat...CrimsonpublishersMCDA
This document reviews bank loans to farmers and their implications for agricultural diversification in Nigeria. It finds that loans to farmers carry more risks than other business loans due to unfavorable cost-price relationships in agriculture and the difficulty of obtaining farm operation information. It also finds that commercial banks consider factors like a farmer's ability to manage operations and generate positive cash flow. The document recommends that the government and banks take actions to address risk factors and information problems, ensure banks have well-trained farm representatives, focus on loans that meet standards, and help farmers improve soil productivity and cash flows. The overall aim is to enhance agricultural productivity and diversification in Nigeria.
- 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.
Agriculture sector is playing a significant role in the
development of rural areas in our country. Agriculture is the
main occupation and still is a strong means of livelihood and
there is necessity for ensuring sustainability in these
livelihoods. Agriculture and allied sectors contribute nearly
22% of GDP of India and further 9.93% contribution in total
export of India.
Rural indebtedness, agricultural distress,
dependency on private money lenders, and farmers suicides
are common features surrounding Indian Agriculture. For
more than 100 years RBI and Central Government have been
making efforts to enhance institutional credit in rural areas
particularly to assist agricultural operations. But economic
survey (GOI) 2010 shows that out of 27 public sector banks,
only 14 sector banks achieved the agricultural credit target of
18% agricultural credit and in case of private sector banks
only 8 achieved the target of 18% for lending to agriculture
in 2009.
Brexit refers to the UK's decision to leave the European Union after a 2016 referendum. While this creates uncertainty for UK businesses and those tied to the UK, the actual effects on India will be seen over the long run. In the short term, sectors like IT, automobiles, and pharmaceuticals that rely on the UK market saw declines. However, Brexit may also create opportunities for India such as cheaper UK exports and travel, and strengthening economic ties between the two nations. Overall, the impact on India is expected to be mixed, with both challenges and benefits emerging over the long run depending on how trade relations are restructured.
In this issue of paradise 3.0 magazine.we the editorial team is proud to publish the articles to build
our next generation in a smarter way and empowering people with the touch of the button with the
power of technology.
The document summarizes priority sector lending in India. It defines priority sectors as areas of the economy that are prioritized for funding by the government and central bank. Banks are directed to provide loans to these sectors at reduced interest rates to promote their development. The priority sectors include agriculture, small businesses, education and housing. The document outlines the sectors and challenges they face, as well as the role of priority sector lending in addressing issues like unemployment and poverty. It discusses targets for priority sector lending and how the Reserve Bank of India monitors compliance.
This document proposes a cooperative model for small and marginal farmers in India. The key points are:
1. Small farmers would form cooperatives to gain economic power and bargaining position. Cooperatives would be formed at the village, district, and state levels with elected representatives.
2. Cooperatives would integrate production, financing, and marketing to establish a direct link between farmers and consumers while eliminating middlemen.
3. The model is based on cooperative principles like voluntary membership and one member one vote. It aims to provide credit, storage, processing and help commercialize agriculture.
4. Successful cooperative models in other countries like Philippines are cited which could be emulated to develop the agricultural sector in India for the
The document discusses the importance of agricultural credit on productivity. It provides several studies that show a positive relationship between credit and agricultural output, income, and GDP growth. However, farmers in Bangladesh face many problems accessing formal credit due to long procedures, lack of rural branch access, high interest rates, and lack of cooperation between institutions. The document recommends simplifying credit procedures, increasing rural branch access, targeting the poorest farmers, expanding credit to non-crop areas like livestock, and improving monitoring to ensure credit reaches farmers.
The document discusses rural banking in India and the need to address it for sustainable growth. It notes that over 500 million Indians still lack bank accounts and that rural areas represent about 50% of India's GDP. While banking networks have expanded, rural banking still faces challenges of regulation designed for urban areas and high staffing needs for distribution in rural contexts. Microfinance and self-help groups are discussed as approaches to expanding rural access to financial services.
This document provides information about credit rating agencies (CRAs) in India. It discusses the key CRAs operating in India - CRISIL, ICRA, CARE, and Duff & Phelps. It outlines the credit rating process, including data gathering, management meetings, rating committee assignment, publication, and ongoing surveillance. It also discusses the importance of CRAs in helping investors assess risk and helping companies raise capital, as well as how CRAs are regulated in India by the Securities and Exchange Board of India (SEBI).
Finance is essential for businesses and can come from internal or external sources. Internal sources include personal savings and retained profits. External sources are from outside the business and include ownership capital from shareholders and non-ownership capital from lenders like banks. Different sources have different benefits and costs. Long-term sources include equity shares, preference shares, and debentures, while short-term sources include trade credit and overdraft facilities. Debentures are debt instruments that allow companies to borrow money from the public over a long period at a fixed interest rate. They do not confer ownership or voting rights but are often secured against company assets.
The securities contracts regulation act hardcopyDharmik
This document provides an overview of the Securities Contracts Regulation Act (SCRA) presented by a group of students. It defines securities and discusses key aspects of the SCRA, including:
- The SCRA empowers the central government or SEBI to recognize stock exchanges, approve exchange rules/bylaws, regulate listings, and register intermediaries.
- Contracts must occur through a recognized stock exchange in notified states/areas to be legal. Contracts in violation of exchange rules are void.
- The government can prohibit contracts in certain securities to prevent speculation and require licensing of dealers in some non-notified states.
- Listing on an exchange provides liquidity, mobilizes
Singhania system technologist pvt ltd.hard copyDharmik
Singhania System Technologists Pvt. Ltd is an Indian company established in 2000 that provides combustion solutions and products to various industries. It has over 400 installations in India and abroad. The company aims to meet customer requirements through quality products and services. It has various departments including managing director, human resources, accounting, purchase, and technical. The company motivates its 67 employees through leadership development programs and good organizational culture.
This document provides an overview of secondary markets, including:
1) It defines a secondary market as a market where securities are traded after being initially offered to the public, and describes how it comprises equity and debt markets.
2) Key characteristics of secondary markets are discussed, including trading on exchanges and over-the-counter, realizing capital gains, and providing liquidity.
3) The roles of brokers and sub-brokers in facilitating secondary market trades are outlined.
4) Risk management processes used by SEBI like varying margins and circuit breakers are summarized.
Rbi catalyst in the economic growth in india - hard copyDharmik
The Reserve Bank of India (RBI) plays a catalytic role in India's economic growth through its traditional and developmental functions. As the central bank, RBI regulates money supply and credit through tools like bank rate, cash reserve ratio, and moral suasion. It also promotes growth by developing the agricultural, industrial, and financial sectors through specialized institutions. Recent data shows increasing savings, investment, manufacturing growth, and corporate profits, indicating higher and sustainable economic expansion. However, there are some doubts about the inclusive nature of this growth.
National Insurance Company Ltd. and Metlife Insurance Company Ltd. were the topics of a presentation for a 5th semester T.Y.B.F.M. insurance fund management class at K.E.S’s SHROFF College of Arts & Commerce. The presentation was submitted to Prof. Mandar for the 2012-13 academic year and was prepared by a group consisting of 7 students including Priyank Darji, Hardik Nathwani, Shashank Pai, Sagar Panchal, Dharmik Patel, Kush Shah, and Siddarth Tawde.
This document provides information about a group presentation on loans and project appraisal given by six students to their professor. It defines what a loan is, discusses different types of loans including term loans, secured and unsecured loans, and home loans. It also outlines the features of term loans, types of restrictive covenants lenders place on borrowers, and how collateral like liens or mortgages can be used to secure loans.
The bond market facilitates the issuance and trading of debt securities between savers and organizations requiring capital. It includes government and corporate bonds. The international bond market allows entities to raise funds outside their domestic market, issuing bonds in foreign currencies. Eurobonds are a type of international bond issued in currencies other than the issuer's domestic currency, giving flexibility in choice of market. They are issued by international syndicates and have small denominations and high liquidity.
Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods company. It has a turnover of Rs. 17,523 crores and touches the lives of two out of three Indians. HUL focuses on sustainability through its brands, employees, society, and investors. It engages in various corporate social responsibility activities related to health, hygiene, education, and women's empowerment. HUL aims to integrate social, economic, and environmental considerations into its business and brands.
The document discusses group decision making processes. It defines group decision making as when multiple individuals collectively analyze problems, consider alternative solutions, and select a solution. The document outlines several key aspects of group decision making, including:
- Groups can range in size from 2-7 people and members may be demographically similar or diverse.
- Groups use structured or unstructured processes to discuss alternatives and arrive at decisions.
- Factors like group size, composition, and external pressures impact group functioning.
- Common group decision making methods include brainstorming, consensus building, and nominal group technique.
- Group decision making has advantages like tapping diverse expertise but also risks like groupthink.
This document contains a presentation on fundamental analysis given by a group of students at K.E.S’s SHROFF College of Arts & Commerce. The presentation covers various aspects of fundamental analysis including meaning, tools, qualitative factors related to companies and industries, and an introduction to financial statements. Fundamental analysis involves analyzing the financial statements and health of a business, its management and competitive advantage, as well as the markets and economy. The presentation defines key terms and ratios used in fundamental analysis such as P/E ratio, dividend yield, and discusses how to analyze industries and companies.
1. The document discusses ethics in the insurance sector and provides an overview of the Indian insurance industry. It defines key concepts like ethics, different types of insurance (life and general), and the financial system of insurance planning.
2. It explains the history and regulations of insurance in India, including the nationalization of life and general insurance. It also outlines the roles and responsibilities of various entities in the insurance sector like agents, brokers, and companies.
3. The conclusion emphasizes the growing opportunities and importance of the insurance industry in India's economic development by helping customers meet their long-term financial needs.
The document discusses equity markets and capital markets in India. It provides information on primary and secondary markets, and the types of investors and companies that participate in equity markets like investment companies, portfolio management companies, mutual funds, insurance companies, and institutional investors. It also discusses the key players that facilitate equity trading like share brokers, depository participants, and registrars. The growth of the Indian economy and equity markets is summarized.
This document provides information about credit rating agencies (CRAs) in India. It discusses the key CRAs operating in India - CRISIL, ICRA, CARE, and Duff & Phelps. It outlines the credit rating process, including data gathering, management meetings, rating committee assignment, publication, and ongoing surveillance. It also discusses the importance of CRAs in helping investors assess risk and helping companies access financing. The regulator SEBI lays down governance guidelines for CRAs in India.
The document discusses the American financial crisis of 2007-2008. It provides background on the subprime mortgage crisis in the United States, which began with rising mortgage defaults in 2007 and led to a global financial crisis. Risky subprime loans were packaged and sold as complex financial derivatives. This caused systemic banking crises as losses mounted. The crisis spread from the housing market to the broader economy, shaking global financial stability. Key factors that contributed to the crisis included reckless lending practices, a culture of greed, cheap credit availability, and the bundling of risky subprime assets into complex securities.
Tata Motors launched the Tata Nano in 2008 as the most affordable car in the world, starting at about $2,500. The 3-door hatchback seats 4-5 people and gets about 35 mpg. It faced some opposition over environmental concerns but was praised as an eco-friendly and affordable people's car. While the Nano provided opportunities for India's economy and auto market, Tata Motors also faced challenges including relocating production from West Bengal state due to land disputes. However, the Nano demonstrated Tata's innovative engineering and helped establish India as a center for affordable vehicles.
The document discusses creativity in advertising. It defines creativity and outlines its objectives. Creativity involves generating novel and useful ideas through processes like divergent and convergent thinking. In advertising specifically, creativity is key to developing attention-grabbing campaigns that can decide the fate of a product. The document also examines techniques that can be used to enhance creativity, such as combining unrelated ideas and suspending judgment of ideas initially. Fostering creativity in organizations can lead to benefits like innovation, improved products/services, and increased productivity.
Advertising campaign and creativity in advertisingDharmik
This document provides an overview of a term paper submitted by Sevya Kumari for her Master's degree program. The term paper focuses on advertising campaigns and creativity in advertising. It includes sections on advertising campaigning, the creative process in advertising, and various case studies of successful advertising campaigns. The document outlines the contents of the term paper, which examines topics such as the different types of advertising campaigns, the steps involved in campaign planning and creation, and elements of creative advertising including appeals, copywriting, and visualization.
Creativity is defined in multiple ways but generally refers to generating imaginative and novel ideas, solutions, or interpretations. It can involve combining existing ideas in new ways or transforming existing structures. Creativity research often defines it as involving ideas, products, or solutions that are both novel and appropriate or useful. There are different types of creativity such as combinational, exploratory, and transformational creativity. While creativity is difficult to define, it typically involves applying imagination and unconventional thinking to generate new ideas or approaches.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
1. ROLE OF BANK IN
AGRICULTURE -1 -
INTRODUCTION
In the last few year, the Indian economy has emerged as one of the
fastest growing economics in the world . however, the vulnerability of the
Indian economy with respect to the performance of the agriculture sector
despite other microeconomic indicators and sectors gaining in strength is
well known. For example, the Indian economy grew at an estimated 3.7 per
cent in 2002-03 against 5.6 per cent during 2001-02. this was largely
because of the negative growth of 4.4 per cent in the agriculture sector .
Many economists and policy- makers increasingly believe that the future
growth of the domestics economy , to large extent , will depend on the
robust performance of the agriculture and rural sector . The manufacturing
2. ROLE OF BANK IN
AGRICULTURE -2 -
and service sectors cannot sustain the economy, for growth if the rural sector
underperformance.
The contribution of the banking and financial sector to the current
economics growth of the Indian economy is very significant. This is
reflected in the growth in aggregated deposits and advances for scheduled
commercial banks , which stood at 15.4 per cent and 27.9 per cent during
2004-2005. however the access of banking service to the rural, agriculture
and the common man in general is not as promising.
As Mr. V. Leeladhar(deputy governor, RBI, on the occasion of the
commemorative lecture at the fed bank hormis memorial foundation,
ernakulam) said “despite making significant improvement in all the areas
relating to financial viability, profitability and competitiveness, there are
concerns that banks have not been able to included vast segment of the
population, especially the underprivileged sections of the society, into the
fold of basis banking services.”
The focus of Indian banks on financial inclusion i.e. delivery of
banking services at an affordable cost of the low-in-come groups has been
dismal. In India, the focus of the financial inclusion at present is more or less
confined to ensuring agriculture bare minimum access to agriculture saving
bank account without frill to all. Having agriculture current account/ saving
account on its own, cannot be regarded as an accurate indicators of financial
inclusion.
3. ROLE OF BANK IN
AGRICULTURE -3 -
NEED FOR BANKING IN RURAL AND AGRICULTURE
AREAS
The rural population in India suffer from agriculture great deal of
indebtedness and is subject to exploitation in the credit market due to high
interest rates and the lack of convenient access to credit. Rural household
need credit for investing in agriculture and smoothening out seasonal
fluctuations in earning. Since cash flows and saving in rural areas for the
majority of households are small, rural households typically tend to rely on
credit for other consumption needs like education, food, housing , household
function, etc. rural household need access to financial institutions that can
provide them with credit at lower rates and at reasonable terms than the
traditional money-lender and thereby help them avoid debt-traps that are
common in rural India.
4. ROLE OF BANK IN
AGRICULTURE -4 -
Table
Change in farmers reliance on the banking system
Source: statistical tables relating to bank in India
(RBI)
Year Farmer
Deposits
(Rs Crore)
Farmer
Borrowing
(Rs Crore)
Total
(Rs Crore)
1992 26211 17835 273
1993 29825 19493 257
1994 36583 19669 251
1995 43341 21334 198
1996 47433 23813 194
1997 53611 27448 188
1998 57442 29442 173
1999 78881 33094 169
2000 91009 36466 162
2001 99812 43420 195
2002 108233 47430 197
Post reform, the banking system has mobilized more deposits from farmers
and extended less credit to a decline number of farmers, These are
reflected in the figure for farmer borrowing and deposits in the last
decade as in Table
CHALLENGES FOR RURAL AND AGRICULTURE
CREDIT
5. ROLE OF BANK IN
AGRICULTURE -5 -
Agriculture is agriculture matter of livelihood and food security, with
nearly 60 per cent of the population depending on it. At the same time, to
withstand the global competition, enhanced productivity and sustainability
of the agriculture sector has become imperative. In addition, the majority of
the country’s for population, more so marginal and disadvantaged sections
of society, stay in villages. Hence, the role of banks in the enhancement of
agriculture productivity, expansion of rural credit and poverty eradication
assumes high priority.
Despite decades of efforts and experimentation in banking, the
organized financial sector is still not able to meet the credit gap in the rural
sector. The lower levels of per capita income, lack of infrastructure in the
rural areas, focus in the urban sector and lack of proper connectivity were
the main hindrances for banks to venture into rural areas. Directed lending,
cumbersome procedure, delay in sanctioning loans and lack of statutory
backing for recoveries were other major impediments to the growth of
banking in the rural sectors.
The focus in the past has always been to make available cheaper
credit. When bank are forced to lend cheap, there has been agriculture
tendency for a scramble for credit by the non-target group of beneficiaries.
While interest rates of scheduled banks for advances over Rs.2 lakh is
completely deregulated, loans up to Rs.2 lakh are subject to maximum of
prime lending rate (PLR). In the process of recovering the opportunity lost
on income, the banks used to charge a high rate of interest for loans above 2
lakhs. This led to willful defaulting. This has really damaged the credit
culture and structure ion the rural sector resulting in shutting down of non-
viable outlets of rural branches of commercial banks, co-operative banks and
RRBs in last few years.
6. ROLE OF BANK IN
AGRICULTURE -6 -
NEW AREAS OF CONTRACT FARMING
1. Jatrophe:
7. ROLE OF BANK IN
AGRICULTURE -7 -
SBI has tied up with growell agro forest Trees Corporation, which
agrees to buy Jatrophe from farmers. The bank will finance 1300 farmers
from 46 villages covering 5,200acres.
2. Seed plantation:
Corporate want one set of farmers to grow hi-grade set of seeds, which are
subsequently purchased and sold to another set of farmers for the cultivation
of high-grade crops. This trend is catching as in oil seeds, groundnuts,
cotton, pulses and vegetables.
3. Farm forest:
The paper industry is banking on this largely due to the restriction on
cutting down of trees. SBI has tied up with ballarapur paper industries
according to which the farmers grow bamboos and eucalyptus trees for the
company. The agreement covers 2000 farmers who are growing the trees in
over 5000 acres.
4. White card scheme:
The RBI has introduced such a scheme in which fund are provided to
the farmer to buy cows or reconstruct a cowshed, provided the farmer ties up
with the milk-collecting agency. The bank has disbursed up to Rs 35 crore
under the white card scheme and covers 10,000 farmers.
The current contract farming corporates include Himalaya Health
Care, Mysore SNC oil company, Sami Labs Pvt. Ltd., Ion Exchange UB,
Satram Overseas (Basmati Rice) Amira Foods, Appachi Cotton
Company/for Mandm, Cadbury, Godrej, ACE Agrotech, Larsen and Toubro,
BECCO, Reliance Group, JK paper, Shakti Sugar, etc.
8. ROLE OF BANK IN
AGRICULTURE -8 -
FARM CREDIT TO FARMERS
NABARD has launched agriculture pilot project in Tamilnadu to
disburse fund through self help groups using the existing post office
9. ROLE OF BANK IN
AGRICULTURE -9 -
network. The bank hopes to initiate the scheme in three districts of the state.
Post office will be used to offer credit to farmers and customer in rural areas.
For post office facing agriculture dwinding shares of activity in recent years,
this offers agriculture chance to re-invest themselves through productive use
of agriculture one lakh plus countrywide network. The NABARD had to
face agriculture services of hiccup in launching the scheme. The stumbling
block appeared in the postal act itself. Since the act does not allowe post
office to take credit risk while post office would act as agents on the fee
basis. This is one way of increasing the banking sectors outreach currently
restricted to only 43.4 million of the 148 million rural households
PROBLEM FACE BY FARMER
10. ROLE OF BANK IN
AGRICULTURE -10 -
1. Moneylenders generally lends on the basis of personal security and is
prepared to adjust his term to the borrower’s needs provided that a
sufficient high rate of interest is paid for the loan
2. The rates of interest are high by standard and accounts are
manipulated frequently without the knowledge of the borrower’s.
3. Loans are available, particularly on the mortgage of crop from traders
and their agents.
4. The traders not only charge a high rate of interest, but also pay an
unusually low price for the crop.
5. Co-operative societies and commercial banks generally have been
relevant to lend for consumptions needs.
6. In short, in spite of the fact that the non-institutions sources of credit
indulge in malpractice and are responsible for quite a few serious
maladies prevailing in agrarian economy.
SOURCES OF AGRICULTURE CREDIT
11. ROLE OF BANK IN
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The various sources from which the peasantry procures loans can be into
two groups.
1. Non-institutional agencies
2. Institutional agencies
Non-institutional agencies
a) Local village moneylenders and their agents
b) Landlords
Institutional agencies
a. Co-operative societies
b. Commercials bank
c. Regional rural bank
d. Land development banks
e. Farmers services societies
f. NABARB, etc.
Sources of agriculture finance
There are two ways of agriculture finance
• Direct finance
• Indirect finance
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I. Direct finance to farmers for agriculture purpose
Short- term loans for raising crops, i.e., crops loans.
Institutional additions, advances up to Rs1 lakh to farmers against pledge of
agriculture produce for agriculture period not exceeding 6 months, where the
farmers were given crops loans for raising for produce provided borrowers
draw credit from one bank.
Medium and long-term loans
A. Purchase of agriculture implements and machinery
B. Development of irrigations potential
C. Reclamation and land development scheme
D. Construction of farm building and structures, etc.
E. Construction and running of storage facilities
F. Productions and processing hybrid seeds of crops
G. Payments of irrigation charges, etc.
H. Others types of direct finance to farmers
• Short-term loans
13. ROLE OF BANK IN
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• Medium-term
• Long-term loans
II. Indirect agriculture finance
Indirect agriculture finance include that finance which is not given directly
to the beneficiaries for any agriculture activity but indirectly helps such
beneficiaries, either by getting finance indirectly through agencies like
primary agriculture credit societies (PACS) ,farmers service societies (FSS),
large area multipurpose societies(LAMPS) , etc.
1. Activities cover under indirect agriculture finance:
(a) Credit for financing distributions of fertilizers, pesticides, seeds, etc.
(b) Credit limit up to Rs. 15 lakhs granted for financing distributions of
inputs for allied activities, such as cattle feed, poultry feed, etc.
2. Loans to electricity boards for reimbursing the expenditure already
incurred by them for providing low tension connections from step-
down point to individual farmers for energizing their wells.
3. Loans to farmers through PACS, FSS and LAMPS.
4. Deposits held by the bank institutional rural infrastrutural
development fund (RIDF) maintained with NABARB
14. ROLE OF BANK IN
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5. 50 per cent of the amount of refinance granted by the sponsor banks to
RRBs.
6. Subscriptions to bonds issued by rural electrification corporation
(REC) exclusively for financing pump set energination programme
institutional rural and semi- urban areas.
7. Subscriptions to bonds issued by NABARB with the objective of
financing exclusively agriculture activities.
8. Others types of indirect finance
AGRICULTURE ADVANCES: SHORT TERM CROP LOANS:
15. ROLE OF BANK IN
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Till recently, the following schemes were in vogue in the bank to meet short-
term loan requirements of the farmers: -
Agriculture
a) Crop finance: demand loans / annual cash credit
b) India green card scheme to meet requirements of working funds for
crop inputs , inputs for allied agriculture activities and / or other non-
farm activities.
Agriculture advances –interest rate
Size of credit Short term
Upto Rs.25,000 8.75% P.A
Over Rs. 25,000 to Rs. 50,000 8.75% P.A
Over Rs. 50,000 to 2.00 lac 10.00% P.A
Over Rs. 2.00lac to 25.00lac 11.25%P.A
Over Rs. 25.00lac Based on credit
Size of credit Term loans
Upto Rs.25, 000 9.25% P.A
Upto Rs. 2.00lac 10.25% P.A
Over Rs. 2.00lac to 25.00lac 10.50% P.A
Over Rs. 25.00lac Based on credit
Loans to self help groups
Direct loans Upto Rs. 2.00lac to 8.00% P.A
16. ROLE OF BANK IN
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SHGs
Direct loans above Rs. 2.00lac to
SHGs
9.75% P.A
ROLE OF CREDIT
Credit is the financial stimulant for augmenting production and productivity
in agriculture operation and in the process causes rural development in all
spheres. Efficient credit delivery system must exit. It was realized around the
60’s(when the concept of priority sectors was born) that provision of rural
finance in the right dose, in right time and the right segment could accelerate
the growth of agriculture and rural development. Hence it was considered
17. ROLE OF BANK IN
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that institutions credit should be increasingly used as an important vehicles
to achieve.
Expansion of institutional structure (by creating new institutions such as
regional rural banks , etc. ) because co-operative credit system was
inadequate.
Directed lending
Cheaper rate of interest (concessional/subsidiary)
Provision of low cost credit in rural areas of their operation compared to
commercial bank
Credit to weaker sections under special programme.
DIFFERENCE BETWEEN INDUSTRIAL BANK AND
AGRICULTURE BANK
Industrial bank provide long-term finance to trade and industry. While
the agriculture bank provide long-term finance to farmers and
agriculture.
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The main aim of industrial bank is to help in the development of trade
and industry. The aim of agriculture bank is to help in the
development of land and agriculture.
Industrial bank accepts fixed assets as security. Agriculture bank
accepts land as security.
Industrial bank is given for the promotion of an industrial unit or for
expansion, amalgamation, etc. agriculture banks are given for
purchase of machinery, constructions of wells, irrigation, etc.
It operates in the urban areas. it operate in the rural areas.
Agriculture bank charge low interest rate on agriculture advances as
compared to industrial bank .
KISAN CREDIT CARD
This scheme was introduced
by NABARB institutional
19. ROLE OF BANK IN
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1988-99 to help farmers to get credit from banks. Important feature of Kisan
Credit Card are given as follows.
Farmers eligible for productions credit of Rs. 5000 or more are eligible for
issue of Kisan Credit Card
Eligible farmers are to be provided with agriculture Kisan Credit Card and
pass book or card-cum pass- book.
Provision of revolving cash credit facility involving any number of
withdrawal and repayments within the limit.
Entire productions credit needs for full year plus ancillary activities releted
to crops productions considered while fixing limit. Institutional due course,
all activities and non- farm credit needs will also be covereds.
Limit to be fixing on the basis of operational land holding cropping pattern
and scale of finance
Card valid for 3 years subject to annual review.
Each withdrawal to be repaid within 12 months.
As incentive for good performance, credit limit could be enhanced to take
care of increase institutional cost, change institutional cropping pattern etc.
Security, margin, rate of interest as per RBI norms
20. ROLE OF BANK IN
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KISAN CREDIT CARD
A unique scheme for farmers under which they can draw
loan amount in cash for crop production as well as domestic
needs from the card issuing branch within the sanctioned
limit. The details are as under:
1. Eligibility : Farmers having agricultural land &
Pattaholders (i.e. land allotees). Card is also issued in
joint names where land is owned jointly.
2. Loan Limit : Limit is fixed to meet the cost of
cultivation of crops based on land holding and also for
domestic needs. There is no minimum or maximum
loan limit.
3. Card : A common card named “Kisan Credit-cum-Kisan
Shakti Card” is issued to the farmers on fixation of
loan limit.
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4. Rate of interest :
i) Upto Rs.50,000/- 8.50% (fixed)
ii) Above Rs.50,000/- & upto
Rs.2.00 lacs
2% below PLR (i.e
11.25% p.a)
iii) Above Rs.2.00 lacs & upto
Rs.5.00 lacs
0.50% below PLR (i.e
12.75% p.a)
iv) Above Rs.5.00 lacs 0.50% above PLR (i.e
13.75% p.a )
5. Security :
a. For loans upto Rs.50,000/- : Hypothecation
of crops & movable assets.
b. For loans above Rs.50,000/-:
i. Hypothecation of crops & movable
assets.
ii. Mortgage of land or charge on land
as per Agricultural Credit Operation
Act of the states concerned.
or
Charge/ lien over liquid securities in the
form of Fixed Deposit/ NSC/ Kisan
22. ROLE OF BANK IN
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Vikash Patra etc. providing full cover to
the limit granted.
6. Repayment :
i. The aggregate credit into the KCC account
during the 12 months period should at least
be equal to the maximum outstanding in the
account
And
ii. No drawal in the account shall remain
outstanding for more than 12 months
1. Validity : Card is valid for 3 years subject to annual
review.
2. Features :
• No admission/membership fee is levied by the Bank.
• A pass book is issued along with card to record
transactions.
• Cardholders are covered under Personal Accident
Insurance Scheme with sum assured for Rs.50,000/-
against death/permanent total disability/loss of two
limbs/eyes or one limb & one eye and Rs.25,000/- for
23. ROLE OF BANK IN
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loss of one limb/eye on payment of premium of Rs.5/-
p.a. by the cardholder.
• Specified crops in notified areas grown under Kisan
Credit Card is covered under Rashtriya Krishi Bima
Yojna subject to notification issued by the State
Government concerned. 1
Kisan Shakti Yojana
A new scheme designed & launched by the Bank on
24.04.2004 (Bank’s 140th Establishment Day), envisages to
provide farm investment credits as well as
personal/domestic loans including repayment of debt to
money lenders. The details are as under:
1. Eligibility : All existing Kisan Credit Card holders and
all other farmers who are eligible for Kisan Credit
Cards.
2. Loan Limit : The permissible loan limit will be 50% of
the value of land OR 5 times of net Farm Income
whichever is lower, LESS outstanding amount, if
1
24. ROLE OF BANK IN
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any, in Agril. Term Loan account(s) subject to
maximum Rs.5.00 lacs.Maximum 50% of the loan
limit may be utilised for personal/domestic
purposes.
3. Issuance of Card : After fixation of the loan limit, a
“Kisan Credit – cum – Kisan Shakti Card” along
with a loan pass book is issued to the borrowers.
4. Margin : No margin is required.
5. Rate of interest :
i) Upto Rs.50,000/- 8.50% (fixed)
ii) Above Rs.50,000/- & upto
Rs.2.00 lacs
1% below PLR (i.e
10.00% p.a)
iii) Above Rs.2.00lacs & upto
Rs.5.00lacs
0.25% below PLR (i.e
10.75% p.a)
6. Security :
a. For aggregate limit under Kisan Credit Card, Kisan
Shakti Yojana & existing Agril. Term Loan upto
Rs.50,000/-:
Hypothecation of farm as well as household
assets to be purchased out of the loan
amount.
25. ROLE OF BANK IN
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b. For aggregate limit under Kisan Credit Card, Kisan
Shakti Yojana & existing Agril. Term Loan above
Rs.50,000/-:
i. Hypothecation of farm as well as
household assets to be purchased
out of the loan amount.
ii. Creation of charge/Mortgage of
lands.
7. Repayment Period : 7 years.
8. Mode of Disbursement : Loan amount is credited to
Savings Bank account of the borrower maintained with
the financing branch. A maximum period of one year will be
allowed to the borrowers to avail the sanctioned loan under the
scheme.
9. Restoration of Term Loan limit : The borrowers under the
scheme are allowed to deposit surplus fund in the loan
accounts and to draw funds within the sanctioned limit
to meet their urgent requirements after adjustment of
loan instalment(s) & interest due, if any, upto the date
of drawing.
10. Special features of the scheme :
• Farmers are free to utilize the loan
under the scheme at their own
choice/ options/discretion.
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• No margin is required.
• Granting of loan under the scheme
is simple and hassle free.
• 50% of the loan amount may be
utilized for personal/domestic
purposes including repayment of
debt to money lenders.
• Facility of restoration of Term Loan
limit is available on advance
repayment of loans.
Kisan ATM
As technology is spreading its wings across the length and breadth of the
country,
Agriculture need was felt by bank to provide its customer in rural areas with
an ATM
Which is easy to operate, does not warrant high level of literacy,
remembering PINS and can read out instructions on screen to get cash or
27. ROLE OF BANK IN
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services. As agriculture solutions to this bank plans to deploy kisan ATM in
rural arrears to serve the customers remote rural branches. The first such
ATM is installed at sivagangai branch Tamilnadu and inaugurated by
the Hon’ble finance Shri P. chidambaram.
Kisan ATM are users friendly cash dispensing machine, which are voice
enabled and work on bio-metric authentcations like finger print verifications.
Kisan ATM can communicate with the users in local language . To make the
operations easier kisan ATMs are provided with touch screen monitor. The
screen options glow as the instructions are read out to the customer and the
customer needs only to touch the options desired by him. The ATM also
have dip-type card reader and hence ensure that the machine never capture
the card inserted by the customer. All the above features make these
ATMs so easy and convenient that people with practically no exposure to
technology can use it comfortably.
Kisan ATM cards
Banks has issued agriculture new series of cards for the kisan ATMs. The
cards have an attractive design.
ATM function
The ATM will support the following functions:
28. ROLE OF BANK IN
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• Cash withdrawal
• Balance enquiry
ATM operation
Kisan ATM are meant to bring in 24*7 banking facilities with the state of art
technology, which was so far available only to metro and urban population
now within the reach of rural masses and thus providing an much needed
fillip for financial inclusion.
FREQUENTLY ASKED QUESTION/ AGRICULTURE
ADVANCES
1. What is Kisan Credit Card Scheme?
Scheme is in the nature of revolving cash credit.
2. What are the extra benefit/facilities extended through KCC
as compared to usuaql crop loan?
The credit needs of the farmer for entire year with his consumption
needs are taken into accounts at his option and as per his needs within
the limit.
3. Is it working satisfactory?
29. ROLE OF BANK IN
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The scheme is working satisfactory, we have issued 3,23.000 Kisan
Credit Card so far.
4. What are the benefit under PAIS and amount of premium
to be borne by a farmer?
• The risk covered under PAIS are as under:
• Death due to accident-claim at Rs 50,000
• Permanent total disability Rs50,000
• Loss of two limbs or two eyes or
• One limbs and one eye Rs50,000
• Loss of one limbs or one eyes Rs25,000
• The farmer has to pay Rs5/-per annum whereas the bank
bears Rs10/-p.
5. PAIS is covering KCC holders. Is there any other scheme to
cover all other farmers ?
SBI life scheme cover other farmer, where yearly premium is Rs480/-
and amount of claim of Rs2.00lacs for death due to accident are
covered, for Rs50,000claim amount a premium of Rs
6. Is there any other scheme like KCC to take care of farmers
investment credit requirements?
Kisan Star Card scheme where farmer can be sanctioned a maximum
loan upto Rs3.00lacs within.
7. What is the Kisan star Card Scheme and facilities offered to
farmers?
30. ROLE OF BANK IN
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Kisan star card scheme which is a hassle free scheme were farmers
can purchase agri Implements including his consumption requirement.
Maximum number of accounts permitted are 50.
8. What are the post harvest scheme available to avoid distress
sale?
Produce market loan for constructing rural godowns, cold storage,
smaller size farm receipts are also given.
9. How rural godowns scheme beneficial to farmers?
rural godowns scheme. The NABARD is giving subsidy upto25%.
The farmer can substitute to farmer can keep his own produce in the
godowns and avail produce market loan.
10.What are the margin for agriculture loan?
• No margin upto Rs 10,000
• For crop loans if scle of finance are determined taking into
account margin. Then no margin.
• For term loans above Rs 10,000/-15%to25% depending upon
the quantum of loans
11.Whether bank is giving collateral free loan to farmer, if so
to what extent?
• Upto Rs25,000/-No collateral security is asked, above Rs
25,000equitable mortgage of farm land not possible.
• For sugarcane growers with tie up arrangements with sugar factories
upto Rs 1.00lacs no collateral
31. ROLE OF BANK IN
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12.Whether bank are giving relief to drought-affected people,
if so what are they?
The existing short term loans are converted into term loan with
suitable instalments
Fresh crop loan are giving to rejuvenate existing crops or take
fresh crops.
Term loan instalments are postponed.
Loan are given for purchase of droght animals, milch animals.
Loan are given for repairs of farm machinery, seeds, wells etc.
13.What type of transportation loan are available from the
bank to the farmers?
Loan are given for purchase of tractors, power tiller, trailer,
harvesters, two wheelers ,,bullock.
14.What type of minor irrigation loan are available to
farmers?
1. What are the interest rate to agriculture loans under low interest rate
regime?
2. Bank is giving loans to farmers upto Rs25,000below PLR and
uptoRs2.00lacs at PLR rates that no farmers. Will have to pay more
than 2%above PLR for any type of loans.
15.Are banks giving produce marketing loans?
32. ROLE OF BANK IN
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Yes, the produce marketing loans are given to avoid distress sale of farm
produce
16.What are the benefit to the farmers?
The crop loan borrower are given loans tat the same interest rate at which
he was given crop loan
NATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT (NABARD)
In the light of recommendations of the Committee to Review
Arrangement for institutional Credit for Agriculture and Rural Development
the Government of India set-up the National Bank of Agriculture and Rural
Development (NABAD) on July 10,1982, to act as agency for promoting
integrated rural development and to provide all sorts of production and
investment credit for agriculture and rural development.
33. ROLE OF BANK IN
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Functions of the NABARD
The NABARD id essentially a development bank for promoting
agricultural and rural development. Its main function is provide refinance
credit to the state co-operative Banks. The Regional Rural Banks and other
financial institutions as may be approved by reserve Bank.
The NABARD provides refinance assistance to these institutions for
grinding loans for the following purpose:
1. For agricultural operations:
2. For marketing of agricultural produce.
3. For marketing and distribution of agricultural inputs, such as
improved seeds, fertilizers, pesticides etc:
4. For allied activities important for agricultural and rural
development:
For production and marketing activities for rural artisans, small scale
industries in the tiny and decentralized sector, village and cottage industries,
handicrafts and other rural craft.
The NABARD may grant refinance credit to the SCBs, RRBs etc,
against the security of stock and securities other than immovable
property and Promissory Notes supported by title to the goods.
In short, the main function of the NABARD is to provide by way
of refinance, credit to the rural sector for the promotion of agriculture,
34. ROLE OF BANK IN
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small scale industrial units, cottage and village industries, and
handicraft other rural crafts and allied productive in the rural Ares.
This is essential for the promotion of integrated rural development and
attainment of rural prosperity.
The NABARD is empowered to give short-term as well long-term
loans in a composite form. It can also make loans make loans and
advances to state Governments for maximum period of 20 years in
order to enable them to subscribe directly or indirectly to the share
capital of Co-operative credit societies.
The NABARD can also provide medium-term loans (for a period between
1 ½ years and 7 years) to the SCBs and RRBs for agricultural and rural
development.
Other miscellaneous functions of the NABARD include:
(1) Inspections of the RRBs and the co –operative societies
(other than primary cooperatives societies0, without any
prejudice to the authority of the reserve Bank in this regard.
35. ROLE OF BANK IN
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(2) The application for opening a branch by RRB or co-
operative society (other than a primary Co-operative
society) to be forwarded to the Reserve Bank through the
NABARD.
(3) When the returns are submitted by the RRBs and co-
operatives societies (other than primary Co-operative
societies) to the Reserve Bank, Copies of such returns
should also be furnished to the NABARD.
(4) The NABARD is empowered to obtain any information or
statement form the RRBs and the co-operative societies
(other than primary Co-operatives societies)
(5) The NABARD has to undertake research and training
programmers The R & D Department of the NABARD
should promote research in allied aspects and problems of
agricultural and rural development of the country. The NABARD
is authorized to maintain a R & D Fund for this purpose out of
profits earned by it every year.
The NABARD has to provide comprehensive training
programmers to its own staff as well as to the staff of SCBs, RRBs,
etc the training is to be meant for upgrading the technical skills and
competence of the staff.
36. ROLE OF BANK IN
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(6) The NABARD has to take over from the reserve Bank, the
responsibility of co-ordinating with the Government of
India, the planning Commission, state Government and
other agencies concerned with the development of rural
industrialization, and effectuating various policies and
programmer meant for providing finance to the rural
industries.
Organization and structure of NABARD
The NABARD is managed by b Board of Directors,
consisting of Chairman managing Director, 2 directors from
amongst experts in rural economics, rural development, etc,
3 directors with experience in the working of co-operative
banks, 3 directors from out of the directors of the RBI, 3
directors from amongst the official of government of India
and 2 directors from among the officials of Government of
India and 2 directors from among the officials of state
Government. They are appointed by the central
Government.
Working of NABARD
37. ROLE OF BANK IN
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During 1984-85,NABARD mobilized net resources amounting During
1984-85, NABARD sanctioned Rs. 1,233 crores to SCBs for
financing seasonal agricultural operations (i.e., short-term credit). It
also provided medium-term and long-term credit facilities for the
benefit of the agricultural sector. During 1984-85, its total outstanding
amounted to Rs.1,018 crores and limits sanctioned amounted to Rs.
1,688 crores.
The NABARD also sought to help the development and promotion of
agricultural investments in the less developed and/or underbanked
states:
In these areas, it distributed Rs. 455 crores, amounting to nearly 42
per cent of its total disbursements in 1984-85.
During 1986-87 (July-June), the NABARD mobilized Rs. 887 crores
as its aggregate net resources for providing rural credit.
The NABARD also successfully negotiated with the World Bank
regarding the NABARD Credit Project-I (NCP-I) and obtained a loan
assistance of US $ 375 million from the World Bank for the project
for a period of 3 years from July 1, 1986.
In fact, the NABARD has been associated with the implementation of
42 projects with external aid from the World Bank Group and other
International Aid Agencies, including bilateral assistance. On June
1987, US $ 2,622.1 million of total credit for these projects have been
routed through the NABARD.
38. ROLE OF BANK IN
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During 1989-90, the NABARD sanctioned short-term credit limits
aggregating to Rs. 2,807 crores for financing seasonal agricultural
operations. Its medium-term credit outstanding amounts to Rs. 19
crores at end- December 1989.
Recently, the NABARD has launched a 15-Point Programme for the
development of 30 Primary Agricultural Societies (PACs) and all
Large-size Adivasi Multi-Purpose Societies (LAMPS) in 15 selected
pilot project districts.
In 1987, the NABARD has also commenced a 10-point Action
Programme for rehabilitation of weak primary land development
banks and branches of state land development banks. The Action
Programme is concerned with: (1) investigation of overdues; (ii)
strengthening of organisation and management; (iii) review of loan
policies and procedures; and (iv) strengthening of the resources of the
LDBs.
During 1986-87 (July-June), the NABARD provided refinance credit
under the IRDP amounting to Rs. 379 crores.
Besides providing credit for agricultural and allied activities, the
NABARD also renders financial help to the non-agricultural sector
with the aim of promoting integrated rural development. It provides
financial assistance to small scale industries, cottage and village
industries, industrial co-operative societies etc., for meeting their
working capital and block capital requirements. It also provides
39. ROLE OF BANK IN
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medium-term finance for meeting their investment capital needs. The
NABARD has adopted liberal policies in this regard.
During 1986-87, the NABARD had inspected 178 CCBs, 86 RRBs, 7
SLDBs and 30 other institutions.
During 1986-87, the NABARD approved and assisted 5 research
proposals and 17 seminars and several conferences/symposia from its
R & D Fund, and spent Rs. 33.41 lakhs for these purposes.
Recently in 1988 onwards, the NABARD introduced certain policy
changes and schemes regarding farm short-term credit: (i) Financing
of seasonal agricultural operations; (ii) the scheme of fresh finance;
(iii) National Oilseeds Development Programme (NODP); and (iv)
Product Marketing Loan Scheme. Today, thus, the NABARD has
become a kingpin of rural development.
During 1989-90, the NABARD’s refinance assistance was of the order
of Rs. 549 crores.
The NABARD has been giving uniform scales for all States/Union
Territories for financing working capital and under the refinance
scheme for handlooms and powerlooms in the co-operative sector.
The responsibility of administering the Credit Authorisation Scheme
for co-operative banks rests with the NABARD.
During 1995-96, the total amount of refinance disbursements by
NABARD increased by less than 2 per cent to Rs. 3,064 crore from
that
40. ROLE OF BANK IN
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of the previous year. During 1995-96 a Rural Infrastructural
Development
Fund (RIDF) with an initial corpus of Rs. 2,000 crore was created
within NABARD for facilitating rural infrastructure projects.
During 1996-97, there was a turn around in the resource position of
the ABARD. It increased to Rs. 2,963 in 1996-97 as against Rs. 1,617
crore in the previous year. The NABARD’s and state governments
amounted to Rs. 3,881.15 in 1996-97.
Policy Initiatives by NABARD
Major thrust of NABARD during the year was on strengthening the rural
credit delivery system to support the growing credit needs of the agricultural
and rural sectors. Some of the important policy initiatives taken by
NABARD during the 1998-99 inc1ude (i) Introduction of Kisan Credit
Cards, (ii) augmenting flow of credit in1l areas served by weaker co-
operative banks, (iii) accelerating flow of credit to the handloom weavers
through financing State Handloom Development Corporations, (iv)
stimulating investment in minor irrigation and wasteland development,
lowering of interest rates on refinance, and (vi) giving special thrust on
micro credit development. NABARD also liberalized the terms and
conditions for providing long term loans to State Governments for
contributing the share capital of co-operative credit institutions.
The policy initiatives relating to the non-farm sector during the
year included (i) enhancing the ceiling under automatic refinance facility
41. ROLE OF BANK IN
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(ARF) and integrated loan scheme(ILS), (ii) liberalized the small road
transport operators’ (SORT) scheme and (iii) enlarging the scope of soft loan
assistance for margin money scheme.
(a) Kisan Credit Card Scheme
Pursuant to the announcement made in the Union Budget for 1998-
99. NABARD formulated a model ‘Kisan Credit Card’ scheme in
consultation with the Reserve Bank and major banks. The scheme aimed at
providing ready credit facilities to the farmers covering their entire
production credit needs for the full year plus an amount for ancillary
activities related to crop production. The model scheme was circulated by
the Reserve Bank to commercial banks and by NABARD to co-operative
banks and RRBs in August 1998. RRBs and co-operative banks together
issued 1.61 lakh cards covering credit facility of Rs.836.8 crore during the
year 1998-99.
In addition. NABARD introduced a system of ‘Flexi credit’ on a
pilot basis in three districts of Kerala to take care of the unique needs of the
farmers in the State who raise a wide mix of crops in small holdings around
the)T homes together with rearing of livestock.
(b) Increase in Quantity of P-finance
42. ROLE OF BANK IN
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In order to augment the flow of credit at the ground-level, the
ceiling for sanction of short-term credit limits by NABARD was enhanced
for different categories (based on audit classification) of CCBs. While the
policy of stipulating minimum levels of involvement (ML!) of own
resources by StCBs and CCBs in short-term agricultural lending was
continued, certain relaxations in the existing norms were made for those
banks which had hardly’ any eligibility for concessional refinance from
NABARD.
The stipulation of minimum coverage of small and marginal
farmers was modified with a view to increasing credit flow to sir all and
marginal farmers. Sir nihal’h. higher credit limits were provided to CCBs
operating in nihal areas, with due weightage for loans provided for the
consumption reeds of tribals. Efforts have also been made to increase the
flow of credit to Bihar. Jammu and Kashmir and the North-Eastern Region.
Considering the importance attached to the handloom sector,
NABARD continue to lay special emphasis on meeting the credit
requirements of 94 thrust districts spread over 23 States identified by the
Government of India for special development. With a view to supplementing
the efforts of Handloom Development Corporations set up by some of the
State Governments. NABARD in consultation with the Reserve Bank, has
decided to extend refinance support to commercial banks and StCBs in
respect of their working capital limits to these Corporations.
In order to channelise larger flow of credit to priority sector under
thrust area programmes, an upward revision in the quantum of refinance was
43. ROLE OF BANK IN
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made, inter alia, for dry land and wasteland development and minor p4ation
schemes:
C)Micro-Finance Innovations
NABARD’s efforts towards increasing the access of the rural poorformal
banking services through promotion and credit-linking If Help Groups
(SHGs) of the rural poor, and other micro-finance initiatives gathered
momentum during the last two years. As may as 18,678 additional SHGs
were linked to banks as against the target of linking 10,000 SHGs as
envisaged in the Union Budget, 1998-99. The amount of bank loati
disbursed through SHGs amounted to Rs.33.3 crore. NABARD continued to
provide 100 per cent refinance to banks at the rate of interest of .5 per cent
per annum. Refinance assistance at Rs.30.7 crore under the program during
1998-99 was much higher than that of Rs. 10.7 crore during 1997-98.
During the year, 52 new banks joined the linkage programme. In all, 2021
banks comprising 38 commercial banks, 129 RRBs and 35 co-operative
banks) have participated in the programme covering 24 States and Union
Territories. As many as 550 non-government organizations (NCOs) are
participated in the programme.
Bank yet to tap huge unmet credit card demand
44. ROLE OF BANK IN
AGRICULTURE -44 -
ANNEXURE
Bank yet to Tap huge unmet credit card demand
income distribution
72%
1%
18%
9% <Rs1lakh
>Rs10 lakh
Rs 1lakh-Rs 2.5
lakh
Rs2.5 lakh-Rs10
lakhj
call it India’s impending boom.
Three time as many people who have credit cards now wants to acquire them
over the next 12 month. And people who earn less than 1lakh a year account
almost three-quarters of the demand for new cards. According to survey
there are 321 million paid workers in India. While 17 million people say
they want to get a new credit card in the next year
geographical distribution
61%
12%
12%
12%
3%
rurul
super metros
other urban
class 1 town
other metro
45. ROLE OF BANK IN
AGRICULTURE -45 -
RECOMMENDATION
1. Establishment of storage facilities by way of godowns and cold
storage can also help the farms in getting better price realizations for
agriculture produce.
2. Adoptions of flexible delivery system
a) Union governments and central bank authorities are not
satisfied with bank effort in lending money to farmers for
agriculture developments. Even now the village money lender
still thrives because of the flexibility of credit that he offers. He
works as the ATM for the villager.
b) We needs rural branches, which can offers flexible working
hours to suit the requirements of the farmers.
3. Future trading through commodity exchange
a) The farmers can protect himself from the price change by
contracting to sell the expected produce in the future market at
agriculture specified price at the time. The resources are
committed for production.
b) The farmers may not understand derivatives and concept of
margins and mark-to-market would be cumbersome to graps.
Here banks, could play agriculture lending role by aggregating
the produce for farmers and hedging through their central office
46. ROLE OF BANK IN
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treasuries. Suitable change in the banking regulations Act are
requirements again to enable this scene.
4. Improved competitiveness, high quality and high safety farm.
Products and co-operative marketing scheme are essentials so that the
small produce will be benefited more credit instalments should not
merely focus on primary productions but also on augmentation of the
entire value chain such as food processing or value, additions for
commercial crops.
47. ROLE OF BANK IN
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CONCLUSION
Bank must strengthen their credit delivery system for rural India.
Fortunately, over the last few years, India has been paying special
attention to rural sector to achieve major growth in agriculture and rural
sectors the massive target of over three-fold increase in credit flow to
agriculture during the tenth plan period speaks volumes of the serious. I also
conclude that rapidly falling interest rate have made loans affordable to more
people, which means there’s still plenty room left for growth.
48. ROLE OF BANK IN
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BIBLIOGRAPHY
Website
1. www.State Bank of Hyderabad.com
2. www.Union Bank of India.com
3. www.SBI.com
Magazines
Journal of the institute of charted accountant
Newspaper
Mint
Books
The Indian banking system