NABARD and its Innovative function in promoting Rural Credit

1. NABARD & its
Innovative function in
promoting Rural Credit
Presented By
• Pallavi Shelke
• Achyut Dixit
• Sumit Kulkarni

2. National Bank for Agriculture and Rural
Development (NABARD)
 NABARD is set up as an apex Development Bank with a mandate for
facilitating credit flow for promotion and development of agriculture, small-
scale industries, cottage and village industries, handicrafts and other rural
crafts.
 It also has the mandate to support all other allied economic activities in rural
areas, promote integrated and sustainable rural development and secure
prosperity of rural areas.

3. History
 The Committee to Review Arrangements for Institutional Credit for
Agriculture and Rural Development (CRAFICARD), set up by the Reserve Bank
of India (RBI) under the Chairmanship of SHRI B. SIVARAMAN, conceived and
recommended the establishment of the National Bank for Agriculture and
Rural Development (NABARD).
 It was established on 12 July 1982 by a special act by the parliament and its
main focus was to uplift rural India by increasing the credit flow for elevation
of agriculture .

4. Roles Of NABARDS
 Serves as an apex financing agency for the institutions providing investment
and production credit for promoting the various developmental activities in
rural areas
 Takes measures towards institution building for improving absorptive capacity
of the credit delivery system, including monitoring, formulation of
rehabilitation schemes, restructuring of credit institutions, training of
personnel, etc.
 Co-ordinates the rural financing activities of all institutions engaged in
developmental work at the field level and maintains liaison with Government
of India, state governments, Reserve Bank of India (RBI) and other national
level institutions concerned with policy formulation

5. Roles Of NABARDS
 Undertakes monitoring and evaluation of projects refinanced by it.
 NABARD refinances the financial institutions which finances the rural sector.
 NABARD partakes in development of institutions which help the rural
economy.
 NABARD also keeps a check on its client institutes.

6. Roles Of NABARDS
 It regulates the institutions which provide financial help to the rural economy.
 It provides training facilities to the institutions working in the field of rural
upliftment.
 It regulates the cooperative banks and the RRB’s, and manages talent
acquisition through IBPS CWE.

7. Function
 Financial
 Refinance
 Direct Finance
 Developmental
 Industrial Development
 Farm Sector
 Non Farm Sector
 Financial Inclusion
 Micro Credit Innovations
 Research and Development
 Core Banking Solution to Cooperative Bank
 Climate Change
 Supervisory

8. Financial Function-Refinance
 Short and Medium term loans
 NABARD has taken an initiative for supporting producer organizations
 In order to give a special focus, the “Producers Organization Development
Fund”(PODF) has been set up
 Long term loans
 It induces technological upgradation resulting in increased production, productivity
and incremental income to farmers and entrepreneurs.
 The credit is normally provided for a period of 3 to 15 years.

9. Financial Function-Refinance
 Long term loan
 It is intended to create income generating assets in the following sectors:
 Agriculture and allied activities
 Artisans, small scale industries, Non-Farm Sector (Small and Micro Enterprises), handicrafts, handlooms, power looms, etc.
 Activities of voluntary agencies and self help groups working among the rural poor
 Eligible Institutions
 State Co-operative Agriculture & Rural Development Banks (SCARDBs)
 Regional Rural Banks (RRBs)
 State Co-operative Banks (SCBs)
 Commercial Banks (CBs)
 State Agricultural Development Finance Companies (ADFCs)
 Scheduled Primary Urban Co-operative Banks (PUCBs)
 North East Development Finance Corporation (NEDFC)
 Non-Banking Financial Companies (NBFCs)

10. Financial Function-Refinance
 Eligible schemes for Refinance under Non-farm Sector
 Composite Loan Scheme (CLS)
 Integrated Loan Scheme (ILS)
 Self Employment Scheme for Ex servicemen (SEMFEX)
 Soft Loan Assistance for Margin Money (SLAMM)
 Small Road and Water Transport Operators (SRWTO)

11. Financial Function-Direct Finance
 Loans for Food Park and Food Processing Units
 Loans for Warehouse, Cold Storage and Cold Storage Infrastructure
 Credit facility to Marketing Federation
 Rural Infrastructure Development Fund
 Direct Refinance to Cooperative Banks
 Financing and supporting Producer Organization

12. Developmental Function
 Industrial Development
 Farm Sector
 Non Farm Sector
 Financial Inclusion
 Micro Credit Innovations
 Research and Development
 Core Banking Solution to Cooperative Bank
 Climate Change

13. Rural Innovation Fund (RIF)
 Rural Innovation Fund (RIF) is a fund designed to support innovative, risk friendly,
unconventional experiments in Farm, Non-Farm and micro-Finance sectors that
would have the potential to promote livelihood opportunities and employment in
rural areas.

14. Innovative Projects
 EShakti - project on Digitisation of SHG
 Reducing drudgery of manual bookkeeping,
 Increase bankers’ comfort in credit linkage of SHGs in view up-to-date credible
data available on website www.eshakti.nabard.org,
 Reducing scope of multiplicity of membership and lending to SHG members,
convergence with other Government benefits to members with Aadhaar enabled
identity
 On-line system for writing of Books of a/c of SHGs and other activities through an
“App’’ loaded on a Android based Mobiles/ Tablets

15. “Moving poor households out of poverty”
 It is an Action Research Project sanctioned to ‘Range De’, an online social
investment portal to study the impact of repeated doses of Micro-credit on
the financial lives of rural women.
 Under the project, 300 beneficiaries having an annual income of less
than ₹ 40,000 will be given recurring doses of loans over a period of three
years.

16. Example
 https://www.rangde.org/invest
 https://www.youtube.com/watch?v=WcS68pbywp8&index=1&list=PLGMl_OdT
9xd7oTTDnFY4OKKu5HvK1QK9Z

17. THANK YOU