BANKING SERVICES

PROVIDED BY NABARD
NME- BANKING SYSTEM IN INDIA

-R P PREETHI
III BBA
WHAT IS NABARD?
• National Bank for Agriculture and Rural
Development is an apex development finance
institution fully owned by Government of India.
• The bank has been entrusted with "matters
concerning policy, planning, and operations in the
field of credit for agriculture and other economic
activities in rural areas in India".
VISION
• Development Bank of the Nation for Fostering
Rural Prosperity. 
MISSION
• Promote sustainable and equitable agriculture and
rural development through participative financial
and non-financial interventions, innovations,
technology and institutional development for
securing prosperity.
 SERVICES PROVIDED BY NABARD
Project analysis slide 2
LONG TERM LOANS RURAL INFRASTRUCTURE
DEVELOPMENT FUNDS

ELIGIBLE SCHEMES FOR

SERVICE LONG TERM IRRIGATION
REFINANCE
S FUNDS
UNDER OFF FARM SECTOR

SWACHH BHARAT
SHORT TERM LOANS
MISSION GRAHMEEN
 RURAL INFRASTRUCTURE DEVELOPMENT
FUNDS
Project analysis slide 11
Government of India created the RIDF in NABARD in
1995-96, with an initial corpus of Rs.2,000 crore.

With the allocation of Rs.28,000 crore for 2018-19

under RIDF XXIV, the cumulative allocation has reached
Rs.3,20,500 crore, including Rs. 18,500 crore under
Bharat Nirman.

Eligible Activities

At present, there are 37 eligible activities under RIDF as

approved by GoI. (Annexure I). The eligible activities are
classified under three broad categories i.e.

• Agriculture and related sector

• Social sector 
• Rural connectivity
 LONG TERM IRRIGATION FUND

Project analysis slide 11

LTIF was operationalized in NABARD during 2016-17 for
fast tracking the completion of the 99 identified Medium and
Major Irrigation projects, spread across 18 states, in mission
mode by December 2019.

Subsequently, GoI approved the funding for Polavaram

project in Andhra Pradesh, North Koel project in Bihar and
Jharkhand, Relining of Sirhind & Rajasthan Feeders in Punjab
and Shahpur kandi Dam in Punjab under the ambit of LTIF. 

Further, GoI has since approved the continuation of the

arrangement for funding of the 99 prioritised projects under
PMKSY-AIBP and CADWM beyond December 2019. 

Under LTIF, NABARD provides loan towards Central Share

as well as State Share with a tenor of 15 years. 

The Central Share is provided to National Water Development

Agency (NWDA), an agency working under the aegis of
Ministry of Jal Shakti, GoI, whereas the loan towards State
Share is availed by the State Governments.
 SWACHH BHARAT MISSION
GRAHMEEN
Project
SBM-G wasanalysis
launched by Govt. ofslide 11 from 2nd
India with effect
October 2014 with the goal to achieve universal sanitation
coverage in rural areas by 2nd October 2019.

The nodal Ministry for SBM-G is the Ministry of Jal Shakti &
the scheme is being implemented by the State/UT Govt.
 
Under SBM-G, NABARD extends loans to National Centre
for Drinking Water, Sanitation and Quality (NCDWS&Q)
towards part funding of Central share towards construction of 3
crore household toilets. 

As on 31 March 2019, total sanction and disbursement under

SBM-G stood at Rs. 15,000 crore and Rs. 8698.20 crore
respectively. During 2019-20, an additional amount of Rs.
3600.00 crore was released to NCDWS&Q under SBM-G
taking the cumulative release under SBM-G to Rs. 12,298.20
crore as on 31 March 2020. 
 SHORT TERM LOANS

Project
Modern analysis slide 11
agriculture, as distinguished from traditional
cultivation, involves substantial investment of recurring nature
for using high yielding varieties of seeds, fertilisers, insecticides
and costly agricultural implements.

In such a situation, arrangements for credit should go much

beyond the simple provision of credit and must be linked
operationally with productivity and other services.

 Production and productivity, marketing and raising the level

of surplus and savings must, therefore, be the major functions of
credit.

Refinance is provided for production purposes at concessional

rate of interest to State Cooperative Banks (SCBs) and Regional
Rural Banks (RRBs) by way of sanction of credit limits. Each
withdrawal against the sanctioned credit limit is repayable
within 12 months.
 LONG TERM LOANS

Project
Investmentanalysis
credit leads to slide 11 through
capital formation asset
creation. It induces technological upgradation resulting in increased
production, productivity and incremental income to farmers and
entrepreneurs.

NABARD provides Long Term and Medium Term Refinance to

banks for providing adequate credit for taking up investment
activities by farmers and rural artisans etc. 

It is intended to create income generating assets in the following

sectors:

Agriculture and allied activities

Artisans, small scale industries, Non-Farm Sector (Small and

Micro Enterprises), handicrafts, handlooms, powerlooms, etc.

Activities of voluntary agencies and self-help groups working

among the rural poor
 ELIGIBLE SCHEMES FOR REFINANCE
UNDER OFF FARM SECTOR
Project analysis slide 11
A. Composite Loan Scheme (CLS)
 
Under this scheme, refinance is given to meet the block and /or
working capital requirements of small/micro enterprises.
Maximum refinance available is Rs. 10 lacs per unit.
 
B.  Integrated Loan Scheme (ILS)
 
Under this scheme, refinance is given to block capital and
working capital for one operating cycle. Maximum refinance
available is Rs. 15 lacs per borrower.
 
C.  Self-Employment Scheme for Ex-servicemen (SEMFEX)
 
The scheme has been in operation since 15 January 1988.
SEMFEX is specially designed to provide a comprehensive
package of credit for encouraging ex-servicemen to undertake
agricultural and allied activities or to set up off-farm units in
rural areas to earn their livelihood and lead a dignified life.
Thank You