National Paper - PLP – 2020-21

Policy Initiatives - NABARD

Refinance Policies
1.1 Long-Term Refinance
Capital formation assumes overriding priority in the context of policy as it acts as an
indicator of economic growth. NABARD, since its inception, has laid special emphasis
on investment credit as it leads to capital formation through asset creation and thereby
development of rural areas. NABARD provides long-term refinance to commercial
banks, RRBs, Co-operative banks and other eligible institutions for a wide gamut of
activities encompassing farm and non-farm activities with tenors of 18 months to more
than 5 years.
Long Term Rural Credit Fund (LTRCF): To ensure increased and uninterrupted
credit flow to farmers, as also to give a boost to capital formation in agriculture sector
and to avoid high cost market borrowings by NABARD for providing refinance to the
cooperative banks and RRBs, at a reasonable rate of interest, for extending concessional
term loans to farmers for agricultural activities, Long Term Rural Credit Fund (LTRCF)
has been set up in NABARD in 2014-15 out of shortfall in priority sector lending by
scheduled commercial banks. An amount of Rs. 15,000 crore has been allocated for the
year 2019-20.
Major features of the refinance policy for the year 2019-20 are as under:
i. All StCBs and DCCBs should maintain a minimum CRAR of 9% to be eligible
for refinance from NABARD.
ii. All Scheduled commercial Banks (except RRBs and SFBs) shall maintain a
CRAR of 10.875% as per Basel III, to be eligible for refinance.
iii. All StCBs/DCCBs and RRBs in the low risk category will be eligible for
unrestricted refinance.
iv. Owing to change in the domestic economic environment and change in the
quality of assets, the Net NPA norms to be eligible for refinance are as under:

Agency Maximum Net NPA Norm

Public Sector SCBs 9%
Private Sector SCBs 6%
SFBs 5%
NBFCs 4%
NBFC-MFIs 4%
StCBs 20%
RRBs 15%
PUCBs 3%

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v. For SCARDBs,in respect of portfolio covered under LTRCF outstanding

beyond 5 years, is eligible for refinance under Normal LT refinance.
vi. While sanctioning refinance, ROs should adhere to the Exposure norms.
vii. While sanctioning refinance to Banks, ROs should impress upon Banks to
bring down un-reconciled entries, completion of migration audit, IS audit etc.
and improve overall corporate governance in general.
viii. In order to check the end use of NABARD’s refinance, Banks should be
advised to earmark all the assets to NABARD for which NABARD has
provided refinance.

1.2 Short-Term Refinance:

(i) Short Term (Seasonal Agricultural Operations)

Refinance is provided for production purposes at concessional rate of interest to State

Cooperative Banks (StCBs) and Regional Rural Banks (RRBs) by way of sanction of
credit limits. Each drawal against the sanctioned credit limit is repayable within 12
months.

The Cooperative Banks and RRBs complying with eligibility criteria of completion of
audit for the financial year, CRAR of 9% and above and Net NPAs not exceeding 20%
and 15% respectively are eligible for refinance under ST(SAO).

The quantum of refinance to StCBs and RRBs is restricted to 40% and 20% of Realistic
Lending Programme (RLP) respectively of these Banks.

However, StCBs and RRBs in NER, J&K, Himachal Pradesh, Uttarakhand and Andaman
& Nicobar, the Net NPA criteria is relaxed upto 25% and 18% respectively to be eligible
for ST(SAO) refinance. The quantum of refinance to StCBs and RRBs in these States is
restricted to 60% and 45% of RLP.

The applicable rate of interest on refinance is 4.5% p.a.

Short Term Cooperative Rural Credit - STCRC (Refinance) Fund has been set
up in NABARD to provide Short Term refinance to Cooperatives for their crop loan
lending. The allocation for the year 2019-20 is Rs.45,000 crore.

Short Term RRB (Refinance) Fund has been set up in NABARD to provide Short
Term refinance to RRBs for their crop loan lending. The allocation for the year 2019-20
is Rs. 10,000 crore.

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(ii) Short Term (Additional Seasonal Agricultural Operations)

To address the liquidity problems of cooperative banks and to supplement the funding
under ST(SAO), a new line of credit viz., Additional ST(SAO) was introduced by
NABARD from 2016-17. Refinance is provided to State Cooperative Banks and RRBs
and it is eligible for 2% interest subvention from Govt. of India. The banks should
comply with the eligibility criteria stipulated under ST(SAO) in order to avail refinance
from NABARD.
The quantum of refinance to StCBs and RRBs is restricted to 60% and 50% of Realistic
Lending Programme (RLP) respectively, including outstanding under normal ST(SAO)
of these Banks.

However, StCBs and RRBs in NER, J&K, Himachal Pradesh, Uttarakhand and Andaman
& Nicobar, the quantum of refinance is restricted to 80% and 70% of RLP respectively.
The refinance is extended at interest rate as decided from time to time. The current rate
of interest is 7.55% p.a..

(iii) Short Term (Others)

NABARD provides Short Term Refinance to StCBs and RRBs for purposes other than
Seasonal Agricultural Operations for marketing of crops, and working capital
requirement of the Industrial Cooperative Societies, Artisan Societies, for purchase and
distribution of agricultural inputs, wholesale procurement, bonafide commercials or
trade transactions, MSME etc.
Refinance to the extent of 100% of RLP of the banks is sanctioned by NABARD.
The refinance is extended at interest rate as decided from time to time . The prevailing
rate of interest applicable is 7.55% p.a.

(iv) ST (Weavers)

Refinance support is available under ST (Weavers) as under:

 Working Capital requirement of Primary/Apex/Regional Weavers Coop Society -
through State Coop Banks/DCCBs
 Working Capital requirement of Primary Weavers Coop Society – through
Scheduled Commercial Bank
 Working Capital requirement of State Handloom Development Corporation –
through Scheduled Commercial Banks & State Cooperative Banks
 Working Capital and Marketing requirement of Individual Weavers, Handloom
Weavers Groups, Master Weavers, Mutually aided Coop Societies, Societies
outside Coop fold and Producer Group Companies – through Scheduled
Commercial Banks & RRBs

The refinance is extended at interest rate as decided from time to time. The prevailing
rate of interest applicable is 7.55% p.a.

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1.3 Medium Term Conversion

NABARD provides medium term credit limits for conversion of short term crop loans
advanced for financing SAO to StCBs and RRBs for providing relief to the farmers whose
crops are damaged due to occurrence of natural calamities. NABARD provides Medium
Term(Conversion) loans to the extent of 60% and 70% of ST(SAO) loans converted by
the StCBs and RRBs respectively. Eligibility norms as stipulated for refinance under
ST(SAO) are applicable for availing refinance under this product. The assistance is
provided at 300 basis points less than that charged to the ultimate beneficiary subject to
minimum interest rate of 8.10% p.a. currently.

1.4 Loans to State Governments for contribution to Share capital of

Cooperative Institutions

NABARD provides long-term loans by way of reimbursement to State Governments

under Section 27 of NABARD Act, 1981 for contributing to the share capital of
cooperative credit institutions, viz. State Cooperative Banks (StCBs), District Central
Cooperative Banks (DCCBs), Primary Agricultural Credit Societies (PACS)/Farmers
Service Societies (FSS)/Large sized Adivasi Multipurpose Society (LAMPS), State
Cooperative Agriculture and Rural Development Banks (SCARDBs) and Primary
Cooperative Agriculture and Rural Development Banks (PCARDBs).

Net NPAs of the banks not exceeding 10% are eligible for assistance under this line of
credit. However, 5% relaxation in NPA norms is provided to banks functioning in NER,
J&K, Sikkim, HP, Uttarakhand and A&N Islands.
The State Government contribution to the share capital should not exceed 25% of the
paid up capital of the StCB/DCCB/PACS/FSS/LAMPS.
The annual ceiling for reimbursement assistance would be Rs. 400 lakh per SCARDB
and Rs. 75 lakh per PCARDB, subject to the State Govt. contribution to Share capital not
exceeding 50% of the paid up capital of the institutions assisted.

The credit facility to the State Government is available at interest rate as decided from
time to time (8.5% p.a. at present).

1.5 ST-SAO Refinance to Commercial Banks

To ensure flow of credit to farmers, ST-SAO is provided to Scheduled Commercial Banks
(SCBs) for financing the Primary Agriculture Credit Societies (PACS)/ceded societies in
such areas where the DCCBs are financially weak or are unable to finance PACS
adequately. The eligibility criteria fixed for SCBs under Long term refinance is
applicable. NABARD provides refinance support to the extent of 40% of RLP of the
SCBs and at interest rate of 4.5% p.a.

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1.6 Important policy circular issued by NABARD during 2018-19 and 2019-
20 (upto 31 July 2019) are as under;
Circulars issued from April 2018 to December 2018

Provision of Additional
Short -Term (ST) refinance
by NABARD to Regional
NB.DoR.ST
64/DoR-12/2018 Rural Banks for financing 2018/4/5
Policy/58/A.1(Gen)/2018-19
Seasonal Agricultural
Operations(SAO)-Policy for
F.Y.2018-19

Provision of Additional
Short-Term (ST) refinance
by NABARD to State
NB.DoR.ST
Cooperative Banks for
Policy/56/A.1(Gen)/2018- 65/DoR-13/2018 2018/4/5
financing Seasonal
19
Agricultural Operations
(SAO)-Policy for
F.Y.2018-19
Sanction of term loans to
State Governments under
Section 27 of the NABARD
NB.DoR.ST- Act, 1981 for Contribution
68/DoR-14/2018 2018/4/14
Policy/210/A.101/2018-19 to share capital of
cooperative credil
institutions-Policy for the
year 2018-19

Provision of Short Term

refinance by NABARD to
State Cooperative Banks
NB.DoR/206/A-1(ST-
69/DoR-15/2018 for financing various 2018/4/11
Others)/2018-19
purposes under Short
Term(Others)-Policy for
the year 2018-19

70/DoR-16/2018 Provision of Short term 2018/4/11

NB.DoR/208/A-1(ST
refinance by NABARD to
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Others)/2018-19 Regional Rural Banks for

financing various purposes
under Short Term
(Others)-Policy for the
year 2018-19

Guidelines for refief

measures to farmers
affected by natural
NB.DoR(ST Policy)/202/A- calamities-Conversion of
71/DoR-17/2018 2018/4/11
10/2018-19 ST(SAO) loans into
Medium Term loans-
Refinance Policy for the
year 2018-19

Guidelines for refief

measures to farmers
affected by natural
NB.DoR(ST-Policy)/204/A- calamities- Conversion of
72/DoR-18/2018 2018/4/11
10/2018-19 ST (SAO) loans into
medium Term loans-
Refinance Policy for
F.Y.2018-19

Refinance Policy for

Schematic Lending for F.Y.
NB.DoR/188/PPS-9/2018-19 73/DoR/-19/2018 2018-19 public sector 2018/4/11
Scheduled Commercial
Banks

Refinance Policy for

Schematic Lending for F.Y.
NB.DoR/190/PPS-9/2018-19 74/DoR/-20/2018 2018-19 Private Sector 2018/4/11
Scheduled Commercial
Banks

Refinance Policy for

NB.DoR/193/PPS-9/2018-19 75/DoR/-21/2018 Schematic Lending for F.Y. 2018/4/11
2018-19 Regional Rural
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Banks(RRBs)

Refinance Policy for

Schematic Lending for F.Y.
NB.DoR/194/PPS-9/2018-19 76/DoR-22/2018 2018/4/11
2018-19 -State
Cooperative Banks (StCBs)

Refinance Policy for

Schematic Lending for F.Y.
NB.DoR/195/PPS-9/2018-19 77/DoR-22/2018 2018-19 -Primary Urban 2018/4/11
Cooperative Banks
(PUCBs)

NB.DoR- ST Credit Limits to

Policy.weavers/407/A.7P/20 73/DoR-23/2014 StCBs/CCBs - Policy 2014- 2014/4/23
14-15 15

Refinance Policy for

NB.DoR/196/PPS-9/2018-19 78/DoR-24/2018 Schematic Lending for F.Y. 2018/4/11
2018-19-SCARDBs

Refinance Policy for

NB.DoR/197/PPS-156/2018-
79/DoR-25/2018 Schematic Lending for F.Y. 2018/4/11
19
2018-19 -NBFCs-

Refinance Policy for

NB.DoR/198/PPS-156/2018-
80/DoR-26/2018 Schematic Lending for F.Y. 2018/4/11
19
2018-19 -NBFC-MFIs

Refinance Policy for

Schematic Lending for F.Y.
NB.DoR/199/PPS-9/2018-19 81/DoR-27/2018 2018/4/11
2018-19 -Small Finance
Banks (SFBs)

Long-term refinance Policy

NB.DoR/200/PPS-9/2018-19 82/DoR-28/2018 for PACS as MSCs through 2018/4/11
StCBs -F.Y. 2018-19

Long-term refinance Policy

NB.DoR201/PPS-9/2018-19 83/DoR-29/2018 2018/4/11
for -F.Y. 2018-19 - DCCBs

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Short -term refinance to

NB.DoR/205/PPS-64D/2018- SCARDBs under Section 25
84/DoR-30/2018 2018/4/11
19 (1) (d) of NABARD
Act,1981

Submission of KCC data

using ENSURE-Monthly
NB.DoR/511/KCC-1/2018-19 97/DoR-31/2018 2018/5/14
Position of KCC Agency
wise

Contnuation of Interest
Subvention Scheme for
NB.DoR-Policy/524/IS-
99/DoR-32/2018 Short Term Crop Loans on 2018/5/14
1/2018-19
interim basis during the
year 2018-19 -regarding

Contnuation of Interest
Subvention Scheme for
NB.DoR-Policy/526/IS-
100/DoR-33/2018 Short Term Crop Loans on 2018/5/14
1/2018-19
interim basis during the
year 2018-19-regarding

Revision in rate of interest

on refinance We advise
NB.DoR/541/PPS-165/2018- that the nterest rates on
101/DoR-34/2018 2018/5/16
19 refinance have been
revised w.e.f.16 May 2018
as under:

Revision in rate of interest

on refinance We advise
NB.DoR/406/PPS-165/2018- that the nterest rates on
102/DoR-35/2018 2018/5/3
19 refinance have been
revised w.e.f. 03 May 2018
as under:

NB.DoR- Short Term Credit Limits to

Policy(Weavers)/412/A- 110/DoR-36/2018 StCBs/CCBs for Financing 2018/5/16
7(P)/2018-19
the Working Capital

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requirements of
Primary/Apex/Regional
Weavers Cooperative
Societies etc-Policy for
2018-19

Provsion of ST credit limits

NB.DoR- to Scheduled CBs for
Policy(Weavers)/414/A- 111/DoR-37/2018 Individual Weavers /HWGs 2018/5/16
7(P)/2018-19 etc by NABARD-Policy for
2018-19

Provsion of ST credit limits

NB.DoR- to RRBs for Individual
Policy(Weavers)/417/A- 112/DoR-38/2018 Weavers/HWGs etc by 2018/5/16
7(P)/2018-19 NABARD -Policy for 2018-
19

Provision of refinance to
State Cooperative Banks
for financing the Working
NB.DoR-
Capital Capital
Policy(Weavers)/419/A- 113/DoR-39/2018 2018/5/16
requirements of State
7(P)/2018-19
Handloon Development
Corporations(SHDCs)-
Policy for the year 2018-19

Provision of Short Term

Refinance to Scheduled
Commercial Banks for
NB.DoR- Financing the working
Policy(Weavers)/422/A- 114/DoR-40/2018 capital requirements of 2018/5/16
7(P)/2018-19 state Handloom
Development
Corporation(SHDCs)-Policy
for the year 2018-19

NB.DoR- 115/DoR-41/2018 Financing of Primary 2018/5/16

Policy(Weavers)/424/A- Weavers Cooperative
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7(P)/2018-19 Societies (PWCS) by

Scheduled Commercial
Banks Refinance Policy for
financial year 2018-19

Refinance Policy for

schematic lending for F.Y.
NB.DoR/670/PPS-9/2018-19 121/DoR-42/2018 2018/5/28
2018-19-Small Finance
Banks(SFBs)-Corrigendum

NB.DoR/672/PPS-165/2018- Revision in rate of interest

122/DoR-43/2018 2018/5/30
19 on refinance

Dairy Entrepreneurship
Development Scheme
NB.DoR/GSS/709/DIDS-
128/DoR-44/2018 (DEDS)-Continuation of 2018/6/6
1/2018-19
the Scheme for the
Financial Year 2018-19

Refinance Policy for

schematic lending for
NB.DoR/803/PPS-9/2018-19 143/DoR-45/2018 F.Y.2018-19 -Small Finance 2018/6/18
Banks(SFBs)-Revision in
Net NPA Norm

Refinance Policy for

NB.DoR/799/PPS-156/2018- schematic lending for
144/DoR-46/2018 2018/6/18
19 F.Y.2018-19 -NBFCs-
Revision in Net NPA Norm

Refinance Policy for

NB.DoR/800/PPS-156/2018- schematic lending for
145/DoR-47/2018 2018/6/18
19 F.Y.2018-19 -NBFC-MFIs-
Revision in Net NPA Norm

Refinance Policy for

schematic lending for
NB.DoR/801/PPS-9/2018-19 146/DoR-48/2018 F.Y.2018 -19-Private 2018/6/18

Sector Scheduled
Commercial
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Banks(Excluding SFBs)-
Revision in Net NPA Norm

Refinance Policy for

schematic lending for
F.Y.2018 -19 -Pubic Sector
NB.DoR/802/PPS-9/2018-19 147/DoR-49/2018 2018/6/18
Scheduled Commercial
Banks(Excluding RRBs)-
Revision in Net NPA Norm

NB.DoR/807/PPS-165/2018- Revision in rate of interest

148/DoR-50/2018 2018/6/18
19 on refinance

Credit exposure norms-

NB.DoR/808/PPS-9/2018-19 149/DoR-51/2018 Fixation of limits for 2018/6/18
F.Y.2018-19

Provision of Short-Term
(ST) refinance by NABARD
to State Cooperative Banks
NB. DOR. ST Policy / 899 /A-1
173 / DOR-52/ 2018 for financing Seasonal 2018/7/6
( Gen)2018 -19
Agricultural Operations
(SAO) -Policy for F. Y.
2018-19

Provision of Short-Term
(ST) refinance to RRBs for
NB. DOR. ST Policy / 897 /A-1 financing Seasonal
174 / DOR-53/ 2018 2018/7/6
( Gen)2018 -19 Agricultural Operations
(SAO) Policy for the year
2018-19

Long-term refinance for

investment credit to
NB. DoR/971/PPS-178/2018- agriculture - Long Term
181/DoR - 54/2018 2018/7/16
19 Rural Credit Fund 2018-19
(LTRCF) - State
Cooperative Banks (StCBs)

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Long-term refinance for

investment credit to
NB. DoR/972/PPS-178/2018- agriculture - Long Term
182/DoR - 55/2018 2018/7/16
19 Rural Credit Fund 2018-19
(LTRCF) - Regional Rural
Banks (RRBs)

Agriclinic and Agribusiness

Centres (ACABC) Scheme
NB. DoR/973/ACABC -
185/DoR - 56/2018 Continuation of the 2018/7/17
4/2018-19
Scheme during the Years
2018-19 to 2019-20

Provision of Short term

refinance for financing
NB. DoR. Seasonal Agricultural
ST(Policy)/1070/A.1(DF)/201 186/DoR - 57/2018 Operations -Financing of 2018/7/18
8-19 PACS through Scheduled
Commercial Banks -2018-
19

Credit exposure norms –

NB. DoR/1074/PPS- 9/2018-
187/DoR - 58/2018 Revision in limits of SFB for 2018/7/19
19
F.Y.2018-19

NB. DoR/1075/PPS- Revision in rate of interest

190/DoR - 59/2018 2018/7/19
165/2018-19 on refinance

Loan-Cum-Grant Refinance
NB. DoR/1073/PPS- 9/2018- product for Natural
194/DoR - 60/2018 2018/7/19
19 Resource Management
based projects

Revision in rate of interest

on LT refinance to
NB. DoR/1216/PPS-
214/DoR - 61/2018 Cooperative Banks and 2018/8/7
165/2018-19
RRBs under Long Term
Rural Credit Fund (LTRCF)

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NB. DoR/1236/PPS-
165/2018-19
NB. DoR.CFC/1396/DF-
1(A)/2018-19
NB.DoR/1416/PPS-
165/2018-19
NB. DoR/GSS/1510/NLM-
1/2018-19
NB. DoR/1729/PPS-
165/2018-19
NB. DoR. Sugar Cell/1768/A-
75(B)-7(i)/2018-19
NB. DOR /2110-2115 GSS-
AMI/2018-19
NB. DoR/2447/PPS-
165/2018-19
NB. DoR. ST/2484/Policy A-
National Paper - PLP – 2020-21
Revision in rate of interest
221/DoR - 62/2018 2018/8/13
on Refinance
Operational Guidelines for
Recovery Management
232/DoR - 63/2018 2018/8/31
and Dealing With Recovery
Suits
Revision in rate of interest
237/DoR-64/2018 2018/9/6
on Refinance
Administrative Approval
for implementation of
Centrally Sponsored
241/DoR-65/2018 Scheme” National 2018/9/14
Livestock Mission-EDEG
Component during 2018-
19
Revision in rate of interest
252/DoR-66/2018 2018/10/8
on Refinance
Scheme for Extending
Financial Assistance to
Sugar Mills for
263/DoR - 67/2018 2018/10/12
Enhancement and
Augmentation of Ethanol
Production Capacity
New Agricultural
Marketing Infrastructure(
283/ DOR/68/2018- AMI) sub-scheme of
2018/11/28
19 Agricultural marketing
(ISAM) Operational
Guidelines
Revision in rate of interest
292/DoR - 69/2018 2018/12/13
on Refinance
300/DoR -70/2018 Guidelines - Relief 2018/12/27
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10/2018-19 Measures by Banks in

Areas affected by Natural
Calamities

Circulars issued from January 2019

NB. DoR/2540/ PPS-176 /NRLM – Interest 08/DoR NRLM Interest 2019/1/7

Subvention Scheme / 2018-19 - 01 / Subvention Scheme -
2019 Refinance Policy for
Schematic lending
2018-19

NB. DOR /2795 / KCC-1 /2018-19 32 /DOR Campaign to achieve 2019/2/11

-06 saturation under Kisan
/2019 Credit Card

NB. DOR /2797/ KCC -1 / 2018-19 33 /DOR Campaign to achieve 2019/2/11

-07 saturation under Kisan
/2019 Credit Card

NB. DOR / 287 / KCC-1/ 2018-19 34 / Dor Kisan Credit Card 2019/2/13
/ 08 / Scheme - Working
2019 Capital for Animal
Husbandry and
Fisheries

NB. DoR/2965 /IS -I/2018-19 37/DoR- Modified Interest 2019/2/15

09/2019 Subvention Scheme for
short term crop loans
during 2018-19 and
2019-20

NB. DoR/2967 /IS -I/2018-19 38/DoR- Modified Interest 2019/2/15

10/2019 Subvention scheme for
short term crop loans
during 2018-19 and
2019-20

NB. DoR. Sugar Cell/3023/A-75-18-SL.18- 46/DoR Scheme for Extending 2019/3/6

19/2018-19 -11/2019 Soft loan to Sugar Mills

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to facilitate payment of
cane dues of the
farmers for the current
sugar season 2018-19

NB. DoR. Sugar Cell/3021/A-75-18-SL.18- 47/DoR Scheme for Extending 2019/3/6

19/2018-19 -12/2019 Soft loan to Sugar Mills
to facilitate payment of
cane dues of the
farmers for the current
sugar season 2018-19

NB. DoR. Sugar Cell/3022/A-75-18-SL.18- 48/DoR Scheme for Extending 2019/3/6

19/2018-19 -13/2019 Soft loan to Sugar Mills
to facilitate payment of
cane dues of the
farmers for the current
sugar season 2018-19

NB. DoR.Sugar Cell/3069/A-75-18-SL.18- 53/DoR Scheme for Extending 2019/3/7

19/2018-19 -14/2019 Soft loan to Sugar Mills
to facilitate payment of
cane dues of the
farmers for the current
sugar season 2018-19

NB. DoR.Sugar Cell/3128/A-75-18-SL.18- 57/DoR - Scheme for Extending 2019/3/12

19/2018-19 15/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

NB. DoR.Sugar Cell/3126/A-75-18-SL.18- 58/DoR - Scheme for Extending 2019/3/12

19/2018-19 16/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

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NB. DoR. Sugar Cell/3127/A-75-18-SL.18- 59/DoR - Scheme for Extending 2019/3/12

19/2018-19 17/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

NB. DoR.Sugar Cell/3125/A-75-18-SL.18- 60/DoR - Scheme for Extending 2019/3/12

19/2018-19 18/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

NB. DoR. Sugar Cell/3139/A-75-18-SL.18- 66/DoR - Scheme for Extending 2019/3/15

19/2018-19 19/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

NB. DoR /3201/PPS-9/2018-19 74/DoR - Refinance Policy for 2019/3/25

20/2019 Schematic lending for
F. Y. 2019-2020-Public
Sector Scheduled
Commercial Banks

NB. DoR/3202/PPS-9/2018-19 75/DoR - Refinance Policy for 2019/3/25

21/2019 Schematic lending for
F. Y. 2019-2020 -
Private Sector
Scheduled
Commercial Banks

NB. DoR/3203/PPS-9/2018-19 76/DoR - Refinance Policy for 2019/3/25

22/2019 Schematic lending for
F. Y. 2019-2020 -
Regional Rural Banks
(RRBs)
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NB. DoR/3204/PPS-9/2018-19 77/DoR - Refinance Policy for 2019/3/25

23/2019 Schematic lending for
F. Y. 2019-2020 - State
Cooperative Banks
(StCBs)

NB. DoR/3205/PPS-156/2018-19 78/DoR - Refinance Policy for 2019/3/25

24/2019 Schematic lending for
F. Y. 2019-2020 -
NBFCs

NB. DoR/3206/PPS-156/2018-19 79/DoR - Refinance Policy for 2019/3/25

25/2019 Schematic lending for
F. Y. 2019-2020 -
NBFC- MFIs

NB. DoR/3207/PPS-9/2018-19 80/DoR - Refinance Policy for 2019/3/25

26/2019 Schematic lending for
F. Y.2019-2020 - Small
Finance Banks (SFBs)

NB. DoR.ST.Policy /3291/A.1(Gen)/2018-19 85/DoR - Provision of Additional 2019/3/28

27/2019 Short-Term (ST)
refinance by NABARD
to State Cooperative
Banks for financing
Seasonal Agricultural
Operations (SAO)-
Policy for F.Y. 2019-20

NB. DoR.ST.Policy /3292/A.1(Gen)/2018-19 86/DoR - Provision of Additional 2019/3/28

28/2019 Short-Term (ST)
refinance by NABARD
to Regional Rural
Banks for financing
Seasonal Agricultural
Operations (SAO) -
Policy for F.Y. 2019-20

NB. DoR /3310/A.1(ST-Others)/2018-19 87/DoR - Provision of Short 2019/3/29

29/2019 Term refinance by
NABARD to State

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 National Paper - PLP – 2020-21

Cooperative Banks for

financing various
purposes under Short
Term (Others) - Policy
for the year 2019-20

NB. DoR /3311/A.1(ST-Others)/2018-19 88/DoR - Provision of Short 2019/3/29

30/2019 Term refinance by
NABARD to Regional
Rural Banks for
financing various
purposes under Short
Term (Others) - Policy
for the year 2019-20

NB. DoR(ST Policy) /3557/A.10/2019-20 91/DoR - Guidelines for relief 2019/4/1

31/2019 measures to farmers
affected by natural
calamities -
Conversion of
ST(SAO) loans into
medium term loans -
Refinance Policy for
F.Y. 2019-20

NB. DoR(ST Policy) /3558/A.10/2019-20 92/DoR - Guidelines for relief 2019/4/1

32/2019 measures to farmers
affected by natural
calamities –
Conversion of
ST(SAO) loans into
medium term loans -
Refinance Policy for
the year 2019-20

NB. DoR(ST Policy) /3559/A.101/2019-20 93/DoR - Sanction of term loans 2019/4/1

33/2019 to State Governments
under Section 27 of
the NABARD Act, 1981
for Contribution to
share capital of
cooperative credit
18
 National Paper - PLP – 2020-21

institutions - Policy for

the year 2019-20

NB. DoR. Sugar Cell/101/A-75-18-SL.18- 101/DoR Scheme for Extending 2019/4/11

19/2019-20 -34/2019 Soft loan to Sugar
Mills to facilitate
payment of cane dues
of the farmers for the
current sugar season
2018-19

NB. DoR/375/PPS-9/2019-20 109/DoR Refinance Policy for 2019/4/26

- 35/2019 Schematic lending for
F. Y. 2019-20 - Primary
Urban Cooperative
Banks (PUCBs)

NB. DoR/376/PPS-9/2019-20 110/DoR Long-term refinance 2019/4/26

- 36/2019 Policy for F. Y. 2019-20
- DCCBs

NB. DoR/377/PPS-9/2019-20 111/DoR Long Term Refinance 2019/4/26

- 37/2019 Policy for PACS as
MSCs through StCBs
F. Y. 2019-20

NB. DoR/380/PPS -165/2019-20 114/DoR Revision in rate of 2019/4/30

-38/2019 interest on Refinance

NB. DoR/ 573 /PPS-165/2019-20 128/DoR Revision in rate of 2019/5/13

-39 /2019 interest on Refinance

NB. DoR/644/DEDS/2019-20 135/DoR Dairy 2019/5/22

-40/2019 Entrepreneurship
Development Scheme
(DEDS) - Continuation
of the Scheme for the
Financial Year 2019-20

NB. DoR/686/PPS-9/2019-20 142/DoR Refinance Policy for 2019/5/27

-41/2019 Schematic lending for
F. Y. 2019-20 -

19
 National Paper - PLP – 2020-21

SCARDBs

NB. DoR/687/PPS-9/2019-20 143/DoR- Short Term Refinance 2019/5/27

42/2019 to SCARDBs under
Section 25(1) (d) of
NABARD Act, 1981

NB. DoR. Sugar Cell/702/A-75-18-SL.18- 151/DoR- Scheme for Soft Loan 2019/6/4
19/2019-20 43/2019 to Sugar Mills for
clearing cane dues of
sugar cane farmers
announced by
Government of India in
2019 - Extension of
date of sanction and
disbursement of Soft
Loan

NB. DoR/734/PPS-156/2019-20 163/DoR Refinance Policy for 2019/6/10

- 44/2019 Schematic lending:
Documents while
Sanctioning and
Monitoring NBFC/
NBFC-MFIs

NB. DoR/735/PPS-85/2019-20 164/DoR Credit exposure norms 2019/6/10

- 45/2019 - Fixation of limits for
F. Y 2019-20

NB. DoR/789/PPS-9/2019-20 165/DoR Refinance Policy for 2019/6/11

- 46/2019 Schematic Lending for
F. Y. 2019-20 –
Structured Repayment
Schedule

NB. DoR/790/PPS-9/2019-20 166/DoR Refinance Policy for 2019/6/11

- 47/2019 Schematic Lending for
F. Y. 2019-20 –
Structured Repayment
Schedule

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 National Paper - PLP – 2020-21

NB. DoR ST(Policy)/810/A.1(DF)/2019-20 168/DoR Provision of Short 2019/6/13

- 48/2019 term refinance for
financing Seasonal
Agricultural
Operations -Financing
of PACS through
Scheduled
Commercial Banks -
2019-20

NB. DoR/884 /PPS-165/2019-20 188/DoR Revision in rate of 2019/6/20

-49 /2019 interest on Refinance

NB.DoR-Policy(Weavers)/919/A-7(P)/2019-20 189/DoR- Short Term Credit 2019/6/21

50 /2019 Limit to StCBs/CCBs
for financing the
Working Capital
requirements of State
Handloom
Development
Corporations (SHDC)s-
Policy for the year
2019-20

NB. DoR-Policy(Weavers)/920/A-7(P)/2019-20 190/DoR- Short Term Credit 2019/6/21

51/2019 Limits to StCBs/CCBs
for Financing the
Working Capital
requirements of
Primary/Apex/Regional
Weavers Cooperative
Societies etc.-Policy
for the year 2019-20

NB. DoR-Policy(Weavers)/921/ A-7(P)/2019-20 191/DoR Provision of ST credit 2019/6/21

-52/2019 limits to RRBs under
Sec.21(1)(iv) &(v) read
with Sec.21(4) of
NABARD Act,1981 for
Financing Working
Capital & marketing

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 National Paper - PLP – 2020-21

requirements of
Weavers/HWGs/MWs,
etc. by NABARD-
Policy for the year
2019-20

Provision of ST credit limits to

NB. DoR-Policy(Weavers)/922/A-7(P)/2019-20
192/DoR-
Scheduled Commercial Banks
53 /2019
2019/6/21
(SCBs) underSec.21(1)(iv) &(v) read
with Sec.21(4) of NABARD Act,
1981 for Financing Working Capital &
marketing requirements of
Weavers/HWGs/MWs, etc.
by NABARD-Policy for the year 2019-20

NB. DoR-Policy(Weavers)/923/A-7(P)/2019-20 193/DoR Financing of Primary 2019/6/21

-54 /2019 Weavers Cooperative
Societies (PWCS) by
Scheduled Commercial
Banks Refinance Policy for
financial year 2019-20

B. DoR-Policy(Weavers)/924/A-7(P)/2019-20 194/DoR Provision of Short Term 2019/6/21

-55 /2019 Refinance to Scheduled
Commercial Banks for
Financing the working
capital requirements of
State Handloom
Development Corporation
(SHDCs) - Policy for the
year 2019-20

NB. DoR/933 /IS AHF-I/2019-20 198/DoR- Interest Subvention 2019/6/24

56 /2019 Scheme on Extension of
KCC facility to Fisheries
and Animal Husbandry
Farmers during the period
2018-19 and 2019-20

NB. DoR/940/PPS -156/2019-20 202/DoR- Standard Documents for 2019/6/26

57 /2019 NBFC/ NBFC-MFIs -
Revised GRA

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 National Paper - PLP – 2020-21

NB. DoR/GSS/942/NLM-1/2019-20 205/DoR Administrative Approval for 2019/6/27

-58/2019 implementation of Centrally
Sponsored Scheme -
National Livestock Mission-
EDEG Component - Year
2019-20

NB. DoR/1193/DEDS/2019-20 216/DoR Dairy Entrepreneurship 2019/7/16

-59/2019 Development Scheme
(DEDS) - Continuation of
the Scheme for the
Financial Year 2019-20 –
Revision in the Margin
requirement

NB. DoR/1241/PPS-165/2019-20 225/DoR- Revision in rate of interest 2019/7/23

60 /2019 on Refinance

NB. DoR.ST.Policy /1255/A.1(Gen)/2019-20 226/DoR Provision of Short-Term 2019/7/24

- 61/2019 (ST) refinance by NABARD
to State Cooperative Banks
(StCBs) for financing
Seasonal Agricultural
Operations (SAO)-Policy for
F.Y. 2019-20

NB. DoR. Sugar Cell/1254 /A-75-18-SL.18-
19/2019-20
227/DoR Scheme for Extending Soft 2019/7/25
- 62/2019 loan to Sugar Mills to
facilitate payment of cane
dues of the farmers for the
current sugar season 2018-
19

NB. DoR.ST.Policy /1262/A.1(Gen)/2019-20 232/DoR Provision of Short-Term 2019/7/24

- 63/2019 (ST) refinance by NABARD
to RRBs for financing
Seasonal Agricultural
Operations (SAO) - Policy
for F.Y. 2019-20

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 National Paper - PLP – 2020-21

2. Direct Loan Policies

2.1 NABARD Infrastructure Development Assistance (NIDA)

Rural infrastructure is critical for development of agriculture. State Governments

cannot borrow beyond their borrowing limits. Some of their corporations may not
access funds, thus depriving Rural India of critical infrastructure. Keeping this in view,
NABARD Infrastructure Development Assistance (NIDA), has been designed to
complement RIDF. This line of credit has been opened to financially sound State-
owned institutions and corporations with sustained income streams.

2.2 Credit Facility to Marketing Federations (CFF)

In order to strengthen the arms of Marketing Federations/Cooperatives, NABARD

established a separate line of credit, viz. Credit Facility to Federations, which promotes
marketing of agricultural produce and other farm activities. The eligible institutions are
Marketing Federations and Corporations, registered Companies and other
Cooperatives.

NABARD provides credit facility to state entities engaged in procurement of food grains,
aggregation, storage and value additional and marketing which help the farmers in
marketing of their produce at remunerative prices. The marketing operation of
federation and cooperatives require seasonal and timely short term credit facility for
supporting their day to day operation. Therefore, a new credit facility in the form of a
very short term credit limit (for 03 months) has been devised during 2017-18 to help the
state entities to manage their peak credit requirements flexibly. As per procurement
priorities of State Government, the credit facilities are being extended to state entities
for procurement of various commodities.

2.3 Direct Lending to Cooperative Banks

In continuation of our efforts to invigorate the co-operative sector, we designed a Short-

Term Multipurpose Credit Product for financing Central Cooperative Banks (CCBs)
directly. In sync with the overarching aspirations of the Vaidyanathan Committee for
revival of cooperative credit structure, this product has enabled CCBs to raise financial
resources from sources other than the State Cooperative Banks (StCBs).

3. Infrastructure Development Funds

3.1 Rural Infrastructure Development Fund (RIDF)

The Rural Infrastructure Development Fund (RIDF), set up with NABARD in 1995-96
by the Reserve Bank of India out of the shortfall in lending to priority sector by
scheduled commercial banks, was a vindication of GoI's trust in NABARD’s

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 National Paper - PLP – 2020-21

professional expertise and capacity to oversee much-needed rural infrastructure

projects. The corpus under RIDF is announced every year by GoI/RBI and for the year
2019-20, a corpus of Rs.28,000 crore has been allocated.

3.2 Long-Term Irrigation Fund (LTIF)

The Long-Term Irrigation Fund (LTIF) was set up in NABARD with an initial corpus of
Rs. 20,000 crore for funding 99 irrigation projects during 2016-17 following
announcement in the Union Budget, was further supplemented with additional
allocation of Rs.20,000 crore in 2017-18 and Rs.15,000 crore in 2018-19.

In addition to the 99 projects, two more projects namely Polavaram National Project
from Andhra Pradesh and North Koel Reservoir Project from Bihar and Jharkhand
were included for funding under LTIF.

3.3 Warehouse Infrastructure Fund (WIF)

The Warehouse Infrastructure Fund (WIF) was instituted in NABARD by GOI with a
corpus of Rs.5000 crore in 2013-14 for providing credit to public and private sectors for
creation and augmentation of decentralized modern scientific storage facilities and post-
harvest credit facilities for farmers to realise better prices, thus minimizing distress sale
of farm produce immediately after harvest.

WIF was augmented by another Rs.5000 crore in 2014-15. NABARD financed 6103
projects with almost 9.05 MMT of scientific storage facilities worth Rs.8377 crore under
WIF to provide impetus to the overall development of post-harvest infrastructure in the
country.

3.4 Food Processing Fund (FPF)

The Ministry of Food Processing Infrastructure (MoFPI) has launched a new scheme for
creation of Agro Processing Clusters in the country, which would be established on at
least 10 acres of land area, wherein at least 5 food processing units with a minimum
investment of Rs.25 crore would be set up. The projects approved by the Ministry for
capital grant assistance are notified as designated food parks, so as to make them
eligible for availing term loan from out of Food Processing Fund instituted in NABARD.

3.5 Agri Marketing Infrastructure Fund (AMIF)

Setting up of a dedicated Agri Marketing Infrastructure Fund (AMIF) with a corpus of

Rs.2000 crore was announced in the Union Budget FY 2018- 19. The objective of the
fund is to develop and upgrade the existing 585 APMCs and 22000+ rural haats into
Grameen Agricultural Markets (GrAMs). The physical infrastructure in the rural haats
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 National Paper - PLP – 2020-21

are expected to be strengthened using the resources available under MGNREGA and
other Government Schemes. The corpus under AMIF is expected to be used to digitally
link these haats to e-NAM to provide facilities to farmers to make direct sale to
consumers and bulk purchasers. Modalities for implementing the fund are under
finalization by GoI, in consultation with NABARD.

3.6 Pradhan Mantri Awas Yojana- Grameen (PMAY-G)

Ministry of Rural Development (MoRD), GoI entered Memorandum of Agreement

(MoA) on 15th February 2018 for availing loan from NABARD to meet the budgetary
gap for implementing the PMAY-G scheme. Around 2.95 crore houses are to be
constructed under PMAY-G by 2022 in a phased manner. In the first phase, one crore
houses are to be constructed over a period of 3 years viz. 2016-17 to 2018-19 with a
financial requirement towards Central Share amounting to Rs. 81,975 crore. The total
estimated amount of loan to be availed from NABARD is Rs. 21,975 crore.

3.7 Dairy Processing and Infrastructure Development Fund (DIDF)

In the Union Budget 2017-18, Government of India announced creation of Dairy

Processing and Infrastructure Development Fund (DIDF) with a total corpus of Rs.8000
crore over a period of 3 years (2017-18 to 2019-20). The objectives of the scheme are
modernization and creation of additional infrastructure for milk processing, value
addition by producing more dairy products, especially in cooperative sector and to help
the producer owned and controlled institutions to consolidate their market position in
the organized liquid milk market and to ensure optimum price realization by the
primary producers. Loans out of DIDF shall be extended by NABARD during 2017-18,
2018-19 and 2019-20 to NDDB & NCDC for financing creation/modernization of dairy
processing and value addition infrastructure to Co-operative Milk Unions, State
Cooperative Dairy Federations, Multi State Co-operative, Milk Producers Companies
and NDDB subsidiaries (collectively end borrowers). The Operational Guidelines were
issued by GoI on 21 December 2017.

3.8 Fisheries and Aquaculture Infrastructure Development Fund (FAIDF)

In the Union Budget 2018-19, Government of India has announced creation of Fisheries
and Aquaculture Infrastructure Fund (FIDF) with a corpus of Rs.7500 crore over a
period of 5 years (2018-19 to 2022-23). The objectives of the scheme are Creation and
modernization of capture fisheries infrastructure, Marine Aquaculture Infrastructure,
Inland Fisheries Infrastructure, Post-harvest Infrastructure for Fisheries and Fish
Market Infrastructure. The Scheme is being finalized by the Government of India.

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 National Paper - PLP – 2020-21

3.9 Animal Husbandry Infrastructure Development Fund (AHIDF)

In the Union Budget 2018-19, Government of India had announced creation of Animal
Husbandry Infrastructure Development Fund (AHIDF) with a total corpus of Rs 2500
crore over a period of 3 years (2018-19 to 2020-21). The objective of the scheme is
creation of Infrastructure in Animal husbandry sector and the proposed activities
eligible for funding are establishment of Livestock Farming, Livestock Breeding Farms,
Poultry Breeding Farms, Poultry Hatcheries, Cold Chain Infrastructure, Feed Mixing
Units etc. The Scheme is being finalized by the Government of India.

4. Micro Finance
4.1 Business Model on financing of JLGs through RRBs - NABARD
Support

Extending bank loans through Joint Liability Groups (JLGs) is a major initiative for
purveying collateral free credit through the banking system in the rural areas.

Analysis of the modus operandi of banks, which have successfully implement the
schemes, reveals that they have taken up JLG financing as means of building a
profitable business portfolio and have invested substantial time and resources for
maintaining close engagement with JLG members, monitoring the end use of loan
thereby ensuring high recoveries and maintaining quality portfolio. On the other hand, a
few banks still depend on the traditional path of sporadically providing credit to the
JLGs formed by JLGPls.

An initiative to scale up JLG finance by them was taken during the year. RRBs due to
their sheer rural presence and penetration in backward areas are at advantageous
position to easily scale up financing of JLGs. RRBs have been encouraged to enter into
an MOU with BCs/NGOs working as JLG promoters and Business Facilitator (fee based)
and with assured support for promotion of JLGs from NABARD. NABARD also
considers extending capacity building support to create a pool of trainers out of bank
staff, the CSP/ or NGO and also for provision of hand-holding support from
professionals for a period upto one year. In order to give push to the model, Tripartite /
Bipartite MoUs have been signed with 36 RRBs in 18 states.

4.2 Digitization of SHGs under EShakti project

The Pilot Project EShakti envisages mapping of the existing SHGs in a district (bank
wise, branch wise) by capturing financial and non-financial information of the SHG and
its members and uploading the transactions including minutes of meetings, through an
“App” loaded on Android based Tablets/Mobiles to a dedicated website viz.
https://eshakti.nabard.org/. To address the regional GPRS connectivity issues across
the country, provision is made for uploading of data through both online and offline

27
 National Paper - PLP – 2020-21

mode. Stakeholders like SHG members themselves, Government Agencies, Banks,

NGOs, etc. can access the data on the basis of login accounts.

The project is in operation in 100 districts spread over 22 States and One UT as on 31
March 2019 As on 31 March 2019, a total of 4.34 lakh SHGs were digitized involving
47.91 lakh members across the country.

4.3 Livelihood and Enterprise Development Programme (LEDP)

Enabling SHG members to take up income generating activity for livelihood involves
intensive training and hand holding on various aspects including understanding market,
potential mapping and ultimately fine tuning skills and entrepreneurship to manage the
enterprise. Hence, it was felt that skill specific, location specific and focused skill
building programme as supplemental effort on skill up- gradation and development for
sustainable livelihoods / micro enterprises by matured SHG members are required to be
supported to enable them to set up and run a successful enterprise for income
generation and livelihood. To meet these objectives, NABARD piloted a holistic
programme of livelihood and enterprise development called Livelihood and enterprise
Development Programme (LEDP) in 2015 and mainstreamed in 2017-18 with a view to
create sustainable livelihoods among SHG members and to create maximum impact of
skill up-gradation.

201 LEDPs were sanctioned during 2018–19. Cumulatively, 532 LEDPs have been
supported through with grant sanction from NABARD up to 31 March 2019.

5. Financial Inclusion

Financial inclusion has been one of NABARD’s primary organizational goals since
inception and it has been through many channels and projects. A Financial Inclusion
Fund (FIF) has been set up in NABARD with a view to take up developmental and
promotional interventions to secure greater financial inclusion and support suitable
technology and innovations. The following initiatives are taken under the Fund.

 Supports the creation of Financial Inclusion Infrastructure of Banks and various

Financial Inclusion awareness activities.

 Grants support to Banks for conducting monthly Special Camps for “Going
Digital” by every rural bank branch and Financial Literacy Centres (FLC).

 Grants support for procuring Hand Held Projectors, to be used in such camps.

 Support for RBI’s innovative pilot project for setting up of 80 Centre for Financial
Literacy (CFL) across 9 states (Haryana, Odisha, Bihar, Karnataka, Andhra
Pradesh, Telangana, Chhattisgarh, U.P. and Maharashtra).

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 National Paper - PLP – 2020-21

 Supporting Banks to increase financial outreach in rural areas through

demonstration of Banking Technology using Mobile Vans.

 Support for conducting Financial Literacy Programmes by bank branches (SCB,

RCBs & RRBs) and FLCs of RRBs & Cooperative Banks. Thrust is given for
conducting the programmes especially in the aspirational districts identified by
the Government of India.

 A pilot project for Comprehensive Financial Inclusion is being implemented in 6

Sub Service Areas (SSA) by RRBs in geographically different regions and states
(Assam, Bihar, Rajasthan, Tamil Nadu, Uttar Pradesh, and Uttarakhand)

 Supporting banks to on-board to Central KYC Records Registry.

 Supporting Banks to increase rural touchpoints by deploying microATMs.

 PACS Computerization – Computerization of 63,000 functional PACS in next

three years.

 Supporting Banks for obtaining Membership of Authentication User Agency

(AUA) / KYC User Agency (KUA) facilities of UIDAI and setting up infrastructure
so that they can provide their customers with Aadhaar authentication services.

 Support for deployment of mobile signal booster in grey areas SSAs in lieu of
VSAT sanctioned earlier.

 Banks are being supported for their initiative of having set up Aadhaar
Enrolment and Update Centres (AECs) in their branches on or before 31 March
2019, with grant support from FIF.

 A scheme under FIF to support Scheduled Commercial Banks and Regional Rural
Banks for enabling dual authentication facility in the microATMs of BCs for SHG
transactions was launched.

 Support extended to RRBs and RCBs for on-boarding to BHIM UPI Platform in
order to provide mobile banking services to their clients using BHIM.

 Support for onboarding to Public Financial Management System (PFMS)

extended to RCBs so that their clients could avail the benefits of Direct Benefit
Transfer under Government schemes.

 Support extended for opening Kiosk outlets in unbanked villages of North

Eastern States in order to augment the banking outlets through BCs for providing
comprehensive financial services in unbanked villages with population less than
500.

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 National Paper - PLP – 2020-21

 To address the regional and institutional inadequacies and bring about inclusive
and equitable financial inclusion across the country, it has been decided to adopt
a differentiated strategy in 2019-20 for focussed FIF interventions. The strategy
for grant assistance will be geography, activity / scheme and agency specific.

 BHIM UPI Platform – NABARD is extending support to RRBs and RCBs to

onboard to the BHIM UPI platform. This will help them to service their largely
rural clientele through mobile-based banking using Bharat Interface for Money
(BHIM). Their clients will be able to conduct real time banking such as transfer
of money and payment to various product and services digitally. As on 31 March
2019, 41 banks have been sanctioned support under the scheme, of which 21
banks have availed assistance.

 Public Financial Management System (PFMS): The objective of PFMS is

to facilitate Direct Benefit Transfer to flow to rural people for various
Government welfare schemes through Rural Cooperative Banks (RCBs) also,
since it is already in place in Scheduled Commercial Banks (SCBs) and RRBs. As
RCBs are an essential part of rural financial ecosystem, this scheme will help the
rural population to receive benefits in their accounts seamlessly. Under the
scheme, sanction has been granted to 218 banks as on 31 March 2019, of which
111 banks have availed grant assistance.

 Dual Authentication at BC points for SHG transactions: NABARD is

supporting the banks to port their SHG transactions to their BC channel
through support for enabling the 'Dual Authentication' facility on their
microATMs. The financial support is for development and installation of
software patch both at CBS of banks and microATMs at the BC points. This
facility will allow SHGs to operate their accounts at their doorsteps. As on 31
March 2019 support under the scheme has been extended to 13 banks, of which 9
had availed grant assistance.

 Deployment of PoS Terminals in Tier 3 to 6 areas: In order to increase

the digital payment acceptance infrastructure in rural areas, the scheme of
Deployment of PoS Terminals in Tier 5 and Tier 6 Centres was extended to Tier 3
and 4 centres during the year. As on 31 March 2019, banks have been granted
sanction for deployment of over 2 lakh PoS devices.

 Deployment of 20 lakh BHIM Aadhaar Pay Devices: The scheme

envisages to enhance the payment acceptance infrastructure at merchant
establishments to enable smooth conduct of digital transactions. Under the
scheme, the support for deployment of these devices includes merchant
onboarding. As on 31 March 2019, 25 banks have been sanctioned grant for 12.46
lakh devices and released assistance for 3.56 lakh devices.

 Support to Kiosks in unbanked villages of NER: Business Correspondent

(BC) model is the cornerstone of India's financial inclusion strategy to ensure
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 National Paper - PLP – 2020-21

delivery of banking services across the country. However, despite the progress in
terms of geographical outreach, significant challenges remain in establishing BC
services in North Eastern States, especially the 39% of their villages, which have a
population of less than 500. Hence, NABARD is now extending support to SCBs
and RRBs in setting up of kiosks in these unbanked locations. This scheme was
launched on 22 March 2019.

 Aadhaar Enrolment and Update Centres (AECs): In order to support

banks that had set up the AECs in 10% of their branches, the scheme was
launched. The scheme will enable people at large to enrol/update Aadhaar cards.
As on 31 March 2019, support has been provided for setting up of more than
10,000 AECs.

6. Farm Sector Initiatives

6.1 Climate Change

A. Overall Project Status as on 31 March 2019

(Rs. in crore)
Sr. Funding No of Total Fund Cumulative Released Cumulative NIE / AE Fee
No. projects Sanctions received Fund to EEs release received by NABARD
by received by during
NABARD NABARD 2018-19 During Cumulative
during 2018-19
2018-19

Adaptation
1 6 59.04 17.17 37.73 13.33 27.34 1 2.32
Fund
NAF for
2 Climate 30 846.81 109.5 437.17 104.56 229.51 3.15 6.91
Change
3 GCF 2 913.58 361.64 353.03 353.03* 353.03 8.61 8.61

Total 38 1819.43 488.31 827.93 470.92 609.88 12.76 17.84

*Including an amount of Rs.8.61 crore towards NIE fee for TCCL

B. Green Climate Fund:

 In respect of GCF project (FP081) “Line of credit for solar rooftop segment for
commercial, industrial & residential housing sectors”, Funded Activity Agreement
(FAA) was signed between GCF & NABARD and Subsidiary Agreement (SA) was
signed between NABARD & TCCL (Tata Cleantech Capital Ltd.).
 First tranche of loan of Rs.344.42 crore was disbursed to TCCL. Accredited
Entity fee of Rs.8.61 crore was earned by NABARD, while Rs.8.61 crore was
transferred to TCCL.
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 National Paper - PLP – 2020-21

 A Subsidiary Agreement of GCF project (FP045) “Ground water recharge &

solar micro-irrigation to ensure food security and enhance resilience
in vulnerable areas of Odisha” was signed between NABARD and Govt. of
Odisha. Further, FAA has become effective since 21 September 2018.
 A proposal from IREDA on “Creation of Access to Clean Energy (ACE) Fund “ of
worth US $ 120 million was submitted to GCF for consideration at GCF Board
level which is under review by GCF.

C. Adaptation Fund:

 A proposal of NABARD to support Govt. of Islamic Republic of Afghanistan

(GIRoA), under south – south cooperation, for identification and accreditation of
suitable agency was approved by AFB. Legal agreement will be signed between
NABARD and AFB soon.
 Assessment tool for Environmental & Social risk was developed and submitted to
AF.

D. National Adaptation Fund on Climate Change:

 Rs.104.56 crore was disbursed during the year 2018-19 and Rs.3.15 crore NIE fee
was received.
 Three new projects were sanctioned under NAFCC by MoEF&CC with a total
outlay of Rs.173.81 crore for Tamila Nadu, Arunachal Pradesh and one regional
proposal for Maharahtra, Rajasthan, Telangana on “Restoration of degraded
landscapes to natural states of ecosystem for climate resilience and livelihood
improvement”.
 Participation in CoP 24: NABARD participated in COP24 held at Katowice,
Poland during 5-7th December 2018. During the period, a side event on
‘Financing Climate Smart Agriculture and Food Security’ was organized by
NABARD at the India pavilion
 Participation in various International events viz., seminars/
conferences/ workshops: Officials from NABARD participated in (i) GCF’s
Structured Dialogue with Asia (ii) GCF’s “Empowering Direct Access Workshop”
(iii) Regional Workshop on GCF Accreditation and Project Development (iv) AF’s
workshop on Accreditation Gaps, Challenges, and Readiness Support for
Enhancing Direct Access to Climate Finance (v) AF’s Climate Finance Readiness
Seminar.
 Climate Change Fund (CCF):- The ‘Climate Change Fund (CCF)’ was created
with an initial corpus of Rs.5 crore contributed out of the profit of NABARD for
the year 2015-16. The operational guidelines of the fund have been revisited and
revised guidelines issued during the year. Under the revised guidelines, the
powers to sanction of project and release of funds have been delegated to ROs. An
expenditure of Rs.16.45 lakh was incurred from the fund during 2018-19 towards
facilitating/ supporting various activities on climate change.

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6.2 Policy

 Promotion of Organic Certification – Promotion of Local Organic

Farmers Groups: Keeping in view the potential of organic agriculture to
provide opportunity for increasing income of farmers, both due to demand and
scope in domestic as well as export market and the climate resilient
characteristics of organic farming, a policy has been formulated to promote Local
Organic Farmers Group (LOFG) under PGS-India from among the Community
Organizations promoted by NABARD including capacity building. Operational
guidelines have been issued the Regional Offices and an initial target for
promotion of 50 LOFG across the country has been set by utilizing various
promotional funds of NABARD viz. WDF, TDF, PODF & FSPF.

 Development of Beekeeping Value Chain :- NABARD has formulated a

comprehensive policy for development of beekeeping through institutional credit
and promotional grant support with convergence of various schemes of Govt. of
India/KVIC. Operational guidelines have been issued to ROs and details
communicated to SLBC, Banks and other stakeholders for its operationalization.
 Development of Bamboo Value Chain:- NABARD has prepared Bamboo
value chain policy for holistic development through institutional credit and
promotional grant support under National Bamboo Mission, Govt. of India.
Operational guidelines have been issued and the ROs are expected to identify &
engage Executing Entities for project formulation and implementation.
 Krishak Samridhi-An income enhancement initiative:- Krishak
Samriddhi Project, which was launched during September 2017, has completed
one and half year of implementation in five districts, spread over five states. The
project envisages to cover 7094 households involving a total financial outlay of
Rs.17317 lakh, of which share of NABARD is Rs.450 lakh.

6.3 Producers’ Organisation Development Fund (PODF)

NABARD is providing financial assistance to Producers’ Organisations to enable them to

undertake collectivization of primary produce, add value and enhance the income of
primary producers, particularly small producers through improve access to quality
inputs, modern technology and market linkages. NABARD has set up Producers’
Organisation Development Fund (PODF) with initial corpus of Rs.50 crore.

The broad objective of the Fund is to support Producer Organization across three levels
i.e. credit support, capacity building and market linkage to meet their end to end
requirement and thereby ensuring sustainability and economic viability.

The PACS and PCARDBs are one of the legal forms of Producers Organisations,
NABARD took special initiative to support PACS / PCARDBs for developing as Multi
Service Centres (MSC).
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Certain additional activities eligible for grant support under PoDF such as tie-up with
agri business incubators, professional agencies for extending incubation services to POs,
contribution towards creation of Credit Guarantee Fund and supporting specific
activities on stand-alone basis like special studies, stakeholders meet / conference,
round table, building the specialized capacities of existing POs, ICT interventions for
improving marketing / operational efficiency and such other critical interventions
necessary for building sustainable POs is available under PODF.

NABARD has discontinued extending direct loans to POs. Such requirements are
currently being supported by NABARD’s subsidiaries/bank in various States.
Considering the need for specific and focused attention towards meeting the growing
needs of the FPOs, NABKISAN Finance Ltd., a subsidiary of NABARD as also other
subsidiaries were given special responsibility to support credit needs of FPOs on
affordable terms.

6.4 Tribal Development Fund (TDF)

The tribal population of India constitutes around 8.6 percent of total population,
distributed over 94,000 tribal villages. NABARD has been supporting tribal
development through refinance, separate line of credit to agencies supporting tribal
families, promotional activities, etc. However, a key concern for NABARD has been the
sustainability of tribal livelihoods. NABARD has taken the initiative of creating a special
Tribal Development Fund (TDF) with a contribution of Rs.50 crore out of its profit for
the year 2003-04.

The objective of the Fund is to :

 Create replicable models of integrated development of tribal families, on

participatory basis, through adoption of sustainable income generating activities
based on potential of the area and the tribal needs;
 To build and strengthen tribal institutions, which would enable the communities
to be partners in policy formulation, execution of programmes and improve
social and economic status; and
 Build and strengthen producers’ organsiations.

The fund will be utilized for assisting mainly the tribal families for the following
purposes:

 Sustainable and participatory livelihood programmes such as tree / orchard

based farming systems (wadi); mixed wadis (mixed farming / multi-tier
farming); precision farming; etc.
 Suitable and viable livelihood activities, which improve income and sustainable
livelihood to farmers / entrepreneurs like bee keeping, sericulture, non-farm
sector activities;
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 Traditional economic activities like collection of minor forest produce, herbal

medicines, gums, natural dyes, sheep rearing, etc.
 Likelihoods based on tribal art and craft and other off farm based activities;
 Vertical integration through creation of processing and marketing facilities,
common infrastructure, etc.
 Measures to improve quality of life such as preventive health care and sanitation;
 Women empowerment through promotion of thrift groups, drudgery reduction,
income generation activities, enabling participation of women in institutions, etc.
 Sustainable livelihood activities for landless;
 Training and capacity building of all stake holders such as farmers, PIAs,
Government Departments, Corporate partners, etc. and engaging the services of
resource support organsiations;
 Strengthening of tribal organisations through promotion of cooperatives, project
level committees, village level institutions, Producers Organisations/ Companies,
etc.
 Potential and exploratory studies, midterm, ex-post evaluation studies, web
based monitoring, support to events such as workshops, exhibitions, etc. for
promoting tribal activities;
 Documentation through publication of literature, documentaries, video films,
etc.;
 Integrated development of tribal dominated villages with focus on sustainable
agriculture practices and allied activities encompassing the entire chain of
interventions;
 Publicity measures, promotional initiatives, etc.;
 Per family grant assistance has been increased from Rs. 6000 to Rs. 11,000, for
laying barbed wire fencing, in place of live fencing for wadis.
 Grant assistance has been introduced for setting up of rural haats/ marts under
TDF.
 Grant support for ‘Business Development Assistance’ for FPOs has been
introduced under TDF on the lines of PODF (ID) guidelines.
 In consultation with PIA, RO will prepare a financial inclusion plan for
implementation from 2nd year onwards.
 Rewards for best wadi/project and best PIA have been introduced.

Nature of support:

The fund support will be need based, location specific and flexible for appropriate
utilization. The funding will be done by way of grant or loan as found appropriate. The
grant support would be extended to the selected tribal families for project interventions
and to the Project Implementation Agency (PIA) for project management expenditure.
The grant support for activities such as soil conservation, water resource development,
women development health, etc. may also cover other than project assisted families in
the project villages, on a case to case basis. However, such support may be limited to
not more than 10% of the grant assistance.

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The Tribal Development Fund also envisages financial collaboration with State
Governments, Corporates, NGOs, Trusts and other developmental and promotional
agencies.

6.5 Farm Sector Promotion Fund (FSPF)

The primary objective of FSPF is to provide grant assistance to support farm

innovations, technology transfer and capacity building of farming community in the
realm of agriculture and allied activities.

The objectives of FSPF are as follows:

 Promotion of Innovations in agriculture and allied sectors

 Enhancing productivity of agriculture and allied sectors and creating market
access
 Promotion of Climate Resilient agriculture in vulnerable / distress districts
 Promotion of agricultural value chains
 Promotion of farmers’ collectives including training and capacity building
 Supporting Expert Advisory Services, Policy Advocacy including building up of
human capital in rural areas

Guiding Principles:

 Support for sustainable interventions in the field of agriculture and allied

activities
 Assistance to Farm sector for economic improvement and economy of farm
households
 Capacity building of farmers for income enhancement
 Interventions that will lead to improvement in income and quality of farmers
 Promotional support for development projects under the fund should invariably
lead to business development of NABARD
 Support is available under Programmatic / Project approach mode as well as on
standalone basis

Support is available under Programmatic / Project mode as well as on standalone basis.

Eligible Activities:

 Promotion of Innovations in agriculture and allied sectors

 Enhancing Productivity of agriculture and allied sectors and creating market
access
 Promotion of Climate Resilient agriculture in vulnerable / distress districts
 Promotion of agricultural value chains
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 Promotion of farmers’ collectives including training and capacity building

 Supporting Expert Advisory Services, policy advocacy including building up of
human capital in rural areas

In addition, any other suitable activity / agency found necessary for promotion, income
enhancement, capacity building, farmers’ education, etc., under agriculture would also
be eligible. Further, NABARD will also be eligible for utilizing grant funds; whenever
interventions are taken up directly by NABARD.

6.6 Spring shed based Watershed Development Programme

NABARD has been implementing watershed projects in the country since 1990s in the
States having major dryland / rainfed regions except North Eastern Region (NER),
which has different topographical and geological conditions. However, due to adverse
impact of climate change in the recent past, the springs, which are lifeline in the NER,
are getting dried up affecting agriculture and livelihood of rural community. IN view of
the above, Springshed development programme was launched by NABARD in February
2017 to rejuvenate springs in NER.

To facilitate the implementation of the programme, NABARD has brought out

comprehensive operational guidelines for Springshed based Watershed Development
Programme. The guidelines will be applicable to all the NE States including Sikkim and
other hilly parts of the country, where potential for revival of springs exist.

6.7 Integrated Water Management Scheme through Watershed approach

NABARD launched a nation-wise Water Conservation Campaign on 22 March 2017,

with support of various stakeholders / partner agencies such as banks, NGOs, PRIs,
KVKs, Agriculture Universities, State Government Departments and Farmers’
Organisations like FC, SHGs, JLGs, FPOs, VWCs, etc. The Campaign was implemented
with support of 200 Master Trainers (MTs) and 8,000 Krishi Jal Doots (KJDs) who
were especially trained for running the campaign. The campaign was carried out
successfully in 1,01,569 villages across 21 major States. The main objective of the
campaign was to create mass awareness about the need for conservation / preservation
and efficient use of water through locally available technologies and activate the rural
community for voluntary actions. These initiatives were expected to attract investments
for creation of farm level irrigation infrastructure, which would lead to productivity
enhancement and increased farmers’ income, besides addressing the social issues.

In order to consolidate the outcomes of the water conservations campaign implemented

during March 2017 and to carry forward the water agenda more aggressively for
mitigating the water scarcity situations and improving agricultural productivity in select
vulnerable villages, integrated water management scheme through watershed approach,
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has been prepared for implementation across 50 districts including 40 aspirational

districts of Government of India, covering 250 villages across 20 States.

The objective of integrated water management scheme is to consolidate the works

already undertaken in the villages during the Water Conservation Campaign
implemented during the last year and implement time bound concrete action plan to
promote water conservation / management activities through convergence with
Government / Corporate Sector Schemes, credit-linked area development scheme to
accelerate the flow of bank credit for water-efficient technologies and peoples’
participation in the identified villages through watershed approach.

Distinctive Features:

 Focused attention on implementation of area development schemes by banks to

enhance credit flow for capital investments in agriculture.
 Systematic efforts for facilitating convergence of schemes of the Government and
Corporate Sector
 Holistic and integrated approach for water-resources based village development.

The scheme will be implemented over a period of 02 years (2018-19 and 2019-20).

6.8 Collaboration of CSR funds from corporate bodies with NABARD

assisted developmental and promotional programmes

NABARD has been implementing several developmental and promotional programmes

for providing various ecosystem services to the rural community through conservation
and development of natural resources like soil, water crops including plantation and
horticulture apart from building up of social capital through participatory approach.
Major aim of such interventions include providing sustainable livelihood, poverty
alleviation, increasing production and productivity of crops, income and employment
generation, women empowerment, financial inclusion, etc.

The objectives envisaged under the above programmes and their impact on the
community development, have attracted the attention of many of the corporate bodies
and their CSR arms / Foundations for partnering with NABARD, primarily as part of
their Corporate Social Responsibility (CSR). Operational guidelines for such
collaboration / partnership with CSR funds have been issued by NABARD

7. Off Farm Sector Initiatives

 Gramya Vikas Nidhi (GVN): A new fund viz., Gramya Vikas Nidhi was
created during 2016-17 with an initial corpus of Rs.20 crore for development
of off farm sector activities with grant support. The corpus of the fund has
since been enhanced to Rs 40.00 crore during the year 2017-18.

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 Off Farm Producer Organization (OFPO): Small entrepreneurs,

weavers and artisans suffer mainly due to low income, high input cost, lack of
capital, access to marketing avenues and poor bargaining power.
Collectivisation helps in increasing their economies of scale, reducing input
costs, better bargaining power and strengthening the position of the
producers. To provide a strong platform to rural artisans for taking up
collective business activities including capacity building, business planning
and providing marketing linkages “Off Farm Producer Organizations” have
been promoted on a pilot basis during 2016-17 in the existing clusters.

 Setting up of Agri Business Incubation Centres (ABIC) by

NABARD: Agri Incubation Centres help in creating direct employment
opportunities, increasing agricultural productivity and entrepreneurship
development by supporting startups and enterprises, which are attempting to
commercialize/ upscale innovations. Despite Government and private
interventions in setting up of Agri Business Incubators for entrepreneurship
development, there is still a huge gap in demand and supply of such services.

NABARD took the initiative of providing financial assistance and other need
based support in establishment of ‘new’ Agri Business Incubation Centers
(ABICs) in Government Agriculture Universities/Government Agriculture
Colleges across India. The Agri incubation centers would further support and
encourage start-ups/ entrepreneurs in identified sectors to develop as
successful enterprises. These centres would incubate the start- ups relating to
irrigation, seeds, bio-pesticides, biofertilizers, precision farming, agro-
processing, marketing, bio fuel, drinking water and sanitation, energy, health,
education, etc.

 Rural Innovation projects: NABARD continued to support new rural

innovative projects and upscaling of successful innovations funded in the
previous years.

 Skill Development Programmes: NABARD supports Skill Development

Programmes (SDPs) for facilitating generation of wage employment
opportunities as well as self-employment for the rural youth. During 2018-19,
NABARD partnered with corporates like Lupin Foundation, JSW Foundation
for developing various skill development activities for rural youth. A few of
the skill activities are driving, soft skills, plumbing, tailoring etc.

 Gurukuls set up by PANIIT: Financial assistance sanctioned to NABFINS

(a subsidiary of NABARD) for extending loans to the youth through Gurukuls
set up by PANIIT Reach for India Foundation (PARFI).

 NABSKILL – Digital interface with NABARD : Promoting

entrepreneurial culture among the rural youth and encouraging them to start
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enterprises in the rural off farm sector has been one of the thrust areas of
NABARD’s promotional initiatives. To take forward the objective more
effectively, NABARD developed a structured approach for addressing the skill
gap in rural India through demand based and outcome based programmes
through RUDSETIs/RSETIs, NGOs/VAs, NSDC affiliated Training Institutes,
Government Agencies, and Corporate Partners. The portal, NABSKILL
(www.nabskillnabard.org) was developed for skill initiatives with the objective
of effective implementation, monitoring/tracking placement and building
candidate-wise data base for the skill initiatives. It captures the details of all
stakeholders (Training seekers, Training Providers, Placement Agencies and
NABARD) involved in skill development initiatives of NABARD. It also
facilitates online submission of application for the eligible training provider to
seek financial support from NABARD towards conduct of various skill
training programmes.

 Rural Haat/ Rural Mart: In order to support rural artisans to market their
products effectively NABARD provides financial assistance for setting up
Rural Haat and Rural Mart. The scheme continued in 2018-19 with certain
modifications.

a. Rural Haat - A Rural Haat is an open air market which is considered the
nerve center of the economic activities of the rural life of the country. The
project can be implemented by Panchayati Raj Institutions (PRIs) or
PACS/POs/NGOs. The financial assistance is given towards creating basic
infrastructure.
b. Rural Mart - A rural mart provides a market link to rural people for
their household produce besides generating income and employment at
grassroot level.

 Marketing initiatives - Exhibitions, melas, rural haats and marts

 For the first time exclusive exhibitions/melas were organized by NABARD.

A total of 360 exhibitions and melas supporting around 5000 artisans
were organized by 17 ROs / HO, with grant assistance of Rs.4.32 crore. A
sales turnover of Rs.14 crore was reported.
 Artisans from 5 States were sponsored to participate in exhibition cum
seminar conducted by Handloom Export Promotion Council (HEPC) at
New Delhi. The weavers were an opportunity to interact with national and
international buyers in the Buyer Seller Meet.

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