By Team - AGRI PIRATES
- a financial supporter for the agri entrepreneurs & low poverty people .
NABARD has a prominent role in agriculture and rural development. NABARD stands for National Bank of Agriculture and Rural development. NABARD which was established in 1982 has been providing number of services to the villages in India from past 36 years.
It has been providing crop loans for farmers and also provides Investment loans, Business mechanization, ware houses, loans for cold ware houses for the other agricultural related aspects like Dairy industry, poultry, and fisheries. It has been playing a great role in the development of women empowerment groups, watershed programmes and rural infrastructure. The each and every scheme or programme which is brought up by NABARD is either related to agriculture or to the rural development only.
NABARD will make its estimations district wise regarding the development of agriculture related programmes, non-agricultural occupations and service sectors by the district officers respectively. The bank loan target will be decided by the estimations made on the investment and loans required.
NABARD issues the annual loan document in addition with the annual loan plan at state level which is made district wise. The Budget allocation required for the government departments and the setting of loan targets for different aspects in villages for the coming fiscal year is done by discussing with the departmental heads of the state government and the bank officers at state level. The planning is very helpful for the loans to be sanctioned and provided in the right time and right amount. By taking the suggestions and references from the farmers, the institution becomes more developed and profitable.
Reserve Bank of India (RBI) set up the Agricultural Refinance Corporation (ARC) in 1963 to work as a refinancing agency in providing medium term and long-term agricultural credit to support investment credit needs for agricultural development. In 1975, ARC was renamed as Agriculture Refinance and Development Corporation (ARDC). Upon its formation in 1982, NABARD took over the functions of the erstwhile Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of RBI and ARDC. NABARD refinancing is a way for banks to get funding in respect of term loan.
The Department of Refinance (DOR) deals with the short term and long-term refinance functions of NABARD.
The basic objective of short-term refinance provision is to supplement the resources of banks and to improve credit flow at the ground level.
DETAILS OF RATES OF INTEREST CHARGED BY NABARD FOR REFINANCE TO BANKS UNDER VARIOUS SCHEMES:
S.no. Particulars Interest rate (%)
1. Short term refinance assistance:
a) State cooperative banks for financing crop loans 4.50
b) RRB' s for financing crop loans 4.50
c) DCCBs directly financing crop loans 4.50
d) Commercial banks/ RRBs in respect of their finance 4.50
to PACS towards crop loans
e) ST-additional SAO/ST(others)/ST(SAO)-SCARDBs 7.35
f) StCBS /RRBs- conversion of short term-crop loans into 8.10
medium term loans(3% less than the interest rate changed
by banks to ultimate beneficiaries subject to minimum
interest rate at 8.10%)
BROAD ACHIEVEMENTS OF THE DEPARTMENT AT THE NATIONAL LEVEL:
An amount of Rs.79,704 crore was disbursed as short-term refinance during the year 2017-18. Purpose-wise and agency-wise breakup is given as:
PURPOSE StCBs RRBs
ST-SAO 45,000 10,000
Additional ST-SAO 15,308 4,828