nabard presentation bank

8/11/2019 NABARD Presentation Bank

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Promote sustainable and equitable

agriculture and rural prosperity through

effective credit support, related

services, institution development and

other innovative initiatives

Mission


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NABARD- unique features

Facilitating credit flow for agriculture and rural development Strengthening rural credit delivery system through institutional

development measures

Supervising rural financial institutions (rural co-operative banks

and regional rural banks) Promoting and supporting policies, practices and innovations

conducive to agriculture and rural development

Raising resources from urban areas to facilitate flow of credit

for rural development Enabling the poorest of the poor to access financial services

through the largest micro finance movement in the world


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Laying special emphasis on development of the sociallydisadvantaged, particularly the tribal people

Piloting Natural Resource Management through programmes for

soil and water conservation

Facilitating credit planning on assessed developmental potentialand monitoring ground level credit flow PLP

Providing financial support to State Governments for developing

appropriate rural infrastructure- RIDF

Capacity building of RFIS and rural entrepreneurs Providing consultancy services in project preparation, appraisal,

financial services, evaluation etc. to banks, government and

private enterprise.

NABARD- unique features Contd


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Credit Planning and monitoring

Credit

Refinance

Co-Finance

Finance

Institutional Development

Supervision

Promotion and Development

Consultancy

Broad Functions


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Credit Planning and Monitoring

District level Potential Linked Plans prepared for all

districts;

392 District level offices covering 480 districts out of

608;

District level coordination done by District Development

Manager

State Level aggregation of District Plans;

Monitoring the flow of GLC for agriculture & allied

activities;

Issuing policy & operational guidelines to Coop. Banks &

RRBs;

Coordinating with GoI & RBI in policy formulations in

regard to agriculture & allied activities;

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Credit

Credit is provided as Refinance to

Cooperative Banks and Regional Rural Banks for financingfarmers for meeting their production costs (short term) foragriculture & allied activities- Short term refinance limitsto Cooperatives and RRBs increased from Rs. 1658 crore in1982-83 to Rs. 16,352 crore in 2007-08;

Commercial Banks, Cooperative Banks and RRBs forInvestment Purposes (medium & long term) in agricultureand rural non farm activities. Investment refinanceincreased from Rs.703 crore in 1982-83 to Rs.9046 crorein 2007-08.

Kisan Credit Cards- an innovative product designed byNABARD to provide timely and hassle free credit tofarmers in meeting farmers credit needs (production,investment and consumption) 71.5 million cards issued ason 31 March, 2008

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Many of the rural credit products have beenevolved and developed by NABARD

Major activities financed

Animal husbandry, Land Development, FarmMechanisation, Plantation & Horticulture, MinorIrrigation, creation of storage capacity, rural nonfarm sector; rural housing, SHG financing, forestry& wasteland development,organic farming, etc.

CreditContd

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Co-financingwith Commercial Banks for hi-tech /export oriented agriculture

Direct Financingto State Governments

Rural Infrastructure Development

Share Capital contribution to Cooperative

Credit Institutions

Revolving Fund Assistance

Credit Contd


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Institutional Development

Strengthening of Rural Financial Institutions (RFIs) to ensure

credit delivery to the sector

Development Action Plans (DAPs) to enable RFIs to attainsustainable viability over specified time frame

Memorandum of Understanding with Banks/ State Governmentsfor implementation of DAPs

NABARD appointed implementing agency for ongoing process of

Revitalisation of Cooperatives - Financial package to beadministered subject to strict conditionalities for reforms andperformance obligations - accordingly NABARD assistingCooperative Banks with sufficient training for special audits,building common accounting & monitoring system, undertake HRD

initiatives, computerisation, etc11


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Institutional Development Contd..

Has constituted a Cooperative Development Fundin NABARDto support Cooperative Credit Institutions in undertakingdevelopmental initiativesFinancial assistance provided for :-

Infrastructure

Building MIS/Audit Systems

Training Women Development Cells

Human and Institutional Development through Organisational

Development Initiatives for RRBs and Cooperatives;

Best Performance Awards for Cooperatives


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Supervision

Supervision of Cooperative Banks and RRBs to assess - Financial Viability

Operational Soundness

Managerial efficiency

Compliance with Regulations

Individuals Supervision of banks is sharply focused on core areas of

functioning pertaining to Capital Adequacy, Asset Quality,Management, Earnings, Liquidity & Systems Compliance(CAMELSC);

On-site inspection on biennial basis;

Off-site surveillance systems also undertaken;

Board of Supervision Advisory Body to provide directions andguidance for supervision


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Various Funds setup in NABARD(As on 31.3.2008)

Name of Fund Corpus(Rs. Cr)

Objectives

NRC(LTO) FUND 13615 Refinance operations

NRC (Stabiliation) Fund 1544 Conversion of ST loans into MT

loans in times of natutalcalamities

Cooperative Dev Fund(CDF)

125 To Support cooperativeinstitutions in undertakingdevelopment initiatives

WaterShed Dev Fund 614 Supporting Watershed activities

Tribal Development Fund 603 Development of Tribal areas


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Various Funds setup in NABARD(As on 31.3.2008) contd

Name of Fund Corpus (Rs.

Cr)

Objectives

Micro FinanceDevelopment & EquityFund

127 Supporting micro finance & equitysupoort to mFIs

R & D Fund 50 Supporting R&D in Farm sector

Farm Innovation &Promotion Fund

4.17 Supporting innovative, riskfriendly & unconventionalexperients farm & NFS sector

Rural Innovation Fund 110 Supporting innovations in nonfarm sector

Financial Inclusion Fund 15 Support developmental &promotional activies to securegreater financial inclusion


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Name of Fund Corpus (Rs.

Cr)

Objectives

Financial InclusionTechnology Fund 15 To enhance investment in ICTaimed at promoting financialinclusion

Farmers TechnologyTransfer Fund

25 Facilitating disseminating &adoption of appropriatetechnologies

Various Funds setup in NABARD(As on 31.3.2008) contd


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Micro Finance Initiatives (SHG-Bank Linkage)

Now one of worldslargest micro finance initiatives Pilot started in 1992 with 500 SHGs 3.5 million SHGs linked to the institutional credit structure (31 March,

08), 58 million poor households accessed MF; Rs. 22000 crore (Approx) given as credit to the SHGs

Capacity building support for Bankers, NGOs, Govt Officers and SHG members Micro Finance Innovations -

Pilot Project for promotion of micro enterprises by SHGs Pilot for financing Joint Liability Groups Pilot for SHG Post Office Linkage Support to MFIs through RFA, rating support, capital/equity support, etc.

Pilot project for providing social security system for SHG members; Micro Finance Development & Equity Fund (MFDEF) created in NABARD for

scaling up of the SHG Bank Linkage Programme. Financial Inclusion Fund and Financial Inclusion Technology Fund set up with

NABARD with a corpus of Rs.500 crore each


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Promotion and Development Supporting Rural

Entrepreneurship Development

NABARD supports NGOs/ other specialised institutions in

conducting Rural Entrepreneurship Development Programmes

(REDP)

Training of rural unemployed youth for capacity building

Skill and management inputs provided

Supported more than 9400 REDPs and trained over 233

thousand rural youth so far

About 50% of the trained persons have set up their ownself employment ventures

Each successful unit can provide employment to additional

1 to 2 persons

P ti d D l t R l N f S t


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Promotion and Development Rural Non farm Sector

Development through Area approach

District Rural Industries Project (DRIP) Area based programme with District as the unit; Credit intensification programme for promotion of rural

industries through convergence of all credit and non creditprogrammes and synergy among various partner agencies;

Implemented in 106 districts as on 31 March, 2008;

Cluster Approach Development of select rural clusters through need based

interventions for input supplies, technology upgradation,

market orientation and sustainable income generation; 56 Rural clusters developed as part of National programme

for Rural Industrialisation; 61 clusters developed by NABARD in 56 districts across 22

states as against 50 clusters envisaged

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Promotion and Development Farm Sector

Initiatives

Natural Resources Management

Watershed Development Programme -initiated in 1992 todevelop micro watersheds in an integrated and comprehensivemanner, for achieving sustainable production systems throughpeoples participation with emphasis on soil and waterconservation and rejuvenation of natural resources

A novel initiative for regeneration of natural resourcesinvolving village communities through participatory approach;Emphasis on self-help, environmental protection and povertyalleviation

Village Communities in close collaboration with committedNGOs and NABARD involved in designing, planning,implementation and monitoring the watershed developmentprogrammes

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P ti d D l t F S t


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Promotion and Development Farm Sector

Initiatives

Strategies adopted for successful implementation

Peoples commitment that decides selection of a

watershed. A selfselectionprocess People demonstrate willingness to undertake the

watershed project through shared labour and

development of micro-watersheds

Community discipline (self imposed); villagers agree tobring down the cattle population within the carrying

capacity of the land, ban free grazing and tree felling.

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P ti d D l t


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Farm Sector Initiatives

Impact of Watershed Development -

Rise in ground water level between 1 to 2 m has been observed

Drinking water scarcity in villages has been overcome

Local employment generation has improved, reducing off seasonmigration

Increase in agricultural productivity and production -

Dairy activity has received a fillip

Demand for credit has gone up

Women empowerment and reduction in drudgery; large numberof women SHGs formed and credit linked

Secondary impact improved quality of life, housing, health andeducation (schools)

Watershed Development Fund created in NABARD to createreplicable watershed development models with participatoryapproach.

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Watershed Treatments:

Ridge to Valley Approach

Continuous Contour Trenches23


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Impact of Watershed Programme

Plantation on Trenches Ist Year Forestry

Fodder Cultivation24


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Natural Resources Management

Wadi a small orchard: Tr ibal Development Programme

The programme commenced in 1995 for comprehensive development oftribal families through wadi approach in Gujarat & Maharashtrabenefiting over 20,000 tribal families.

Focus on livelihood support and improvements in quality of life.

A small orchard (WADI) of suitable fruit crops with forestryplantations on the boundarycore intervention. Soil conservation and water resource development to support the wadis Other Critical Components dovetailed:

Community Health Women Development

Development of landless Processing and Marketing

Implementation through Peoplesparticipation Tribal Development Fund created in NABARD to support models for

tribal development

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Wadi Programme

Established Wadi

Blooming Mango Tree

Temporary check dams

for irrigating wadis

Tree platforms:

Soil conservation

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Gender Development Gender sensitization programmes

Women Development Cells

Assistance to Rural Women in Rural Non Farm Sector

Development (ARWIND) Assistance for Marketing Non Farm Products of Rural

Women (MAHIMA)

Development of Women through Area Programme

(DEWTA)

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Major Govt Programmes being implemented


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Major Govt. Programmes being implemented

by/through NABARD

NABARD has overseen the implementation of Farm Package announcedby GOI in 2004

The agricultural advances were doubled in span of two years as

against three years envisaged

PMs package for distressed districts being implemented in 31 districts

spread over 4 states of Maharashtra, Andhra Pradesh, Karnataka &

Kerala

NABARD vested with implementation of Agriculture Debt Waiver and

Debt relief Scheme 2008 in cooperatives and RRBs

NABARD is closlely monitoring the issue of fresh finance to farmers

who were extended the benefit of debt waiver/debt relief in 2008

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Centrally sponsored schemes of GOI being


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Centrally sponsored schemes of GOI being

implemented by NABARD

NABARD VESTED WITH IMPLEMENTATION OF 24 CENTRALLY

SPONSRED SCHEMES OF GOI SOME OF THE IMPORTANT SCHEMES BEING IMPLEMENTED

INCLUDE CAPITAL INVESTMENT SUBSIDY SCHEME FOR COLD STORAGE ,

CISS FOR RURAL GODOWN,

CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGYUPGRADATION OF SSIs,

INTEGRATED WATERSHED DEVELOPMENT PROG RSVY,

DAIRY AND POULTRY VENTRURE CAPITAL FUND

MILLION SHALLOW TUBEWELL PROGRAMME

VIDARBHA PACKAGE

CAPITAL SUBSIGY FOR AGRI MARKETING, INFRASTRUCTURE,GRADING AND STANDARDISATION

CISS FOR PRODUCTION OF ORGANIC INPUTS

GROUND WATER SCHEME IN ANDHRA PRADESH, GUJARAT,KARNATAKA, MAHARASHTRA, MADHYA PRADESH, RAJASTHAN ANDTAMIL NADU

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Consultancy

NABARD has set up a subsidiary company to undertake

consultancy on behalf of NABARD Clients

Government of India

State Governments

International Bodies Corporates

Individuals

Areas agriculture, agro-processing and infrastructure projects,

micro finance, watershed Development, Non-Farm Sector,

Institution Development and Training

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NABARD- Role in

Infrastructure Developmentin Rural Areas

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OBJECTIVE OF RIDF TO PROVIDE COST EFFECTIVE LOAN SUPPORTTO STATE

GOVERNMENTS TO DEVELOP INFRASTRUCTURE IN

RURAL AREAS.

NABARDsROLE NABARD IS THE APPRAISING, SANCTIONING,

FINANCING, MONITORING AND EVALUATINGAGENCY

FOR RURAL INFRASTRUCTURE FUNDING FROM RIDF.

RIDF - A STRATEGIC MESHING OF THEINFRASTRUCTURAL GAPIN RURAL AREAS AND THE

LENDING GAPOF THE COMMERCIAL BANKS.

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RIDF ACTIVITIES AND TERMS OF LOAN


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RIDFACTIVITIES AND TERMS OF LOAN

PROVIDES FINANCIAL ASSISTANCE TO STATE GOVERNMENTS

FOR 31 ACTIVITIES ( RURAL ROADS AND BRIDGES, IRRIGATION,

RURAL DRINKING WATER SCHEMES, MARKETING INFRASTRUCTURE,

HOSPITALS, EDUCATIONAL INSTITUTIONS, etc.)

REPAYMENT PERIOD 7 YEARS INCLUDING 2 YEARS GRACE PERIOD.

RATE OF INTEREST ON LOANS 1.5% LESS THAN BANK RATE MOBILIZATION ADVANCE 20% / 30% OF THE LOAN AMOUNT

IMMEDIATELY ON SANCTION .

SECURITY TIME PROMISSORY NOTE (TPN), MANDATE WITH

RBI/PRINCIPAL BANKER TO STATE GOVERNMENT.

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RIDF - THE ADVANTAGES.

THE MOST COST EFFECTIVE FUNDS TO THE STATE. LOANS WITHOUT ANY MAJOR CONDITIONS.

FIXED INTEREST RATE.

NO HIDDEN COST

NO PROCESSING FEE

NO COMMITMENT CHARGES

NO PRE PAYMENT CHARGES

SUPPLEMENTARY MONITORING CARRIED OUT WITHOUTANY COST TO THE PROJECT

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GoI (Annual Budgetaryannouncement)

RBI ( Bank wise allocations &interest rates)

NABARD

DEVELOP OPERATIONAL GUIDELINES , APPRAISE,SANCTION, FINANCE, MONITOR AND EVALUATE RURAL

INFRASTRUCTURE PROJECTS OF STATE GOVERNMENTS

State Governments (Finance / Planning Dept)

User Dept

Irrigation

User Dept

Dept of AH

User Dept

Dept of Fisheries

User Dept

Roads & Bridges

RIDF - THE FUNDING MECHANISM

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http://f/ne%20%20sem%20feb%2008%2031%20jan/normative%20allocation.ppthttp://f/ne%20%20sem%20feb%2008%2031%20jan/Appraisal%20of%20RIDF%20projects.PPThttp://f/ne%20%20sem%20feb%2008%2031%20jan/Appraisal%20of%20RIDF%20projects.PPThttp://f/ne%20%20sem%20feb%2008%2031%20jan/normative%20allocation.ppt


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RIDFOPERATIONAL MATRIX

NABARD HO(SPD & PMD)

Sanctioning Committee(SC)( a sub committee of Board)

REGIONAL OFFICEProject appraisal, disbursals

Monitoring and evaluation

District Officemonitoring

Consultants(App. & Mon.)

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http://f/ne%20%20sem%20feb%2008%2031%20jan/Constitution%20of%20Sanctioning%20Committee.ppthttp://f/ne%20%20sem%20feb%2008%2031%20jan/Constitution%20of%20Sanctioning%20Committee.ppt


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Credit Products for Livestock

sector and promotional

activities of NABARD


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Foundation Stock

Frozen Semen Banks

Pureline / Grand Parent Poultry Breeding Farms

Multiplication of Progeny

Breeding Farms

AI Units

Calf Rearing

CREDIT PRODUCTSContd..

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Processing Infrastructure

Construction of Milk Houses Purchase of Milk-o-testers / Automatic Milk

Collection Stations

Bulk Milk Coolers

Purchase of Milk Tankers

Community Milking Machines

Milk Processing Plants

Manufacture of Indigenous Milk Products

Egg Processing Plants

Poultry Dressing and Meat Processing Plants

Slaughter Houses


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Marketing Infrastructure

Livestock Markets

Poultry Markets

Scheme for Grading, Packing and Exporting of Eggs

Egg and Broiler Centres

Dairy Parlours

Retail Poultry Outlets


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1. Research and Development(R&D) Fund

2. Farm Innovation & Promotio Fund (FIPF)

3. Rural Innovation Fund (RIF)

4 Farmers Technology Transfer Fund (FTTF)

Promotional Activities

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NABARD - R&D FUND

Objectives

Applied Research and Studies of Technical / EconomicNature.

Training Related activities in Agriculture, non-Agriculture, Rural Credit and Financial System, Agri.Extension etc

Dissemination and Collation of Information

Strengthening the Technical, Monitoring and EvaluationCells of Cooperative Banks and RRBs for facilitatingpreparation, Appraisal, Monitoring and Evaluation ofprojects.


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Corpus : Rs.50.00 crores

Eligible Agencies

Approved Research Institutions/Organisations/ Agencies

engaged in action oriented and Applied Research,

Individuals or group of individuals sponsored by suitableorganisations.

Implemented since inception of NABARD

contdNABARD - R&D FUND

Farm Innovation and Promotion Fund


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Farm Innovation and Promotion Fund

(FIPF)

Objectives

To demonstrate the bankability of new concepts in Agri

and Farm sector.

Development of prototypes to make it commercial.

To acquire innovative technology/designs/ products.

Market surveys for potential assessment of new Agri/

Rural products.

To support innovations in Information Technology.



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R l I ti F d (RIF)


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Rural Innovation Fund (RIF)

Objectives

To promote technology-based innovations and

transfer of indigenous technology to increase the

productivity of rural enterprises.

To promote livelihood opportunities and employment in

rural areas and facilitating access to financial and

business promotion services for the poor.

R l I ti F d (RIF)


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Eligible Activities

All innovations and related activities in the Farm,Rural Non Farm and micro Finance Sectors.

Technology and skill upgradation providers.

Inputs supply and market support leading to promotionof viable enterprises, sustainable employment,infrastructure development, improved flow and accessof credit to rural entrepreneurs.

Undertake innovations so as to improve efficiency ofcredit delivery and other support services to the ruralresource poor.

Rural Innovation Fund (RIF)contd

R l I ti F d (RIF)


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Eligible Institutions/ Individuals

All organizations, institutions and Individuals

Implemented since 01 October 2005

contdRural Innovation Fund (RIF)

Farmers Technology Transfer Fund


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(FTTF)Objectives

Facilitate adoption of appropriate technologies throughTraining-cum-Exposure visits, demonstrative projects orsuch other activities.

Dissemination of appropriate technologies and commercialintelligence through direct contacts, literature, visualsetc.

Undertake activities such as financial literacy, creditcounselling and other related activities.

Organisation of farmers into informal associations, JLGs,producer groups, producer companies or other ways forself- help, collective approach for commercialtransactions, networking with the value chain and financialinclusion.



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Contd..

Corpus : Rs. 25 crores

Eligible Institutions/ IndividualsCommercial Banks/RRBs/Cooperative Banks, ATMA, ResearchInstitutions/SAUs/KVKs,, NGOs/Federation/ Association ofFarmers Clubs or any other registered body such as PACsetc., Farmers Clubs/Farmers Collectives\Farmers InterestGroups, Private Companies as part of CSR / TechnologyProviders in Rural Areas.

Implemented since 01 April 2008


(FTTF)


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Other Promotional Funds

Other Promotional Funds of NABARD where,

Animal Husbandry could be one of component

for support are :

Watershed Development Fund

Tribal Development Fund

Financial Inclusion Fund with a corpus of Rs.500 crore

set up by NABARD may also indirectly help in

promoting AH activities apart from others by

supporting capacity building/awareness programmes

Activities Supported through Banks


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pp g

by NABARD

Hatcheries & rearing units :

Inland carps, Ornamental fishes, shrimps and Freshwater prawn

Integrated inland carp culture with :Paddy, Horticulture, Dairy, Piggery, Poultry, Duckery,sewage cum agri. vegetable culture

Inland Farming:Carps, Air breathing fishes, Running water fishes inJhoras & Raceways, Trout, Golden talapia, Fresh water

prawn, mussel culture, etc.


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nabard presentation bank

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