Introduction and Schemes

Current Affairs related to NABARD

• Parliament has passed the National Bank for Agriculture and Rural
Development (Amendment) Bill, 2017 with the approval of Rajya Sabha.
• The Bill seeks to amend National Bank for Agriculture and Rural
Development (NABARD) Act, 1981
• The Bill allows Union Government to increase capital of NABARD from
Rs. 5000 crore to Rs 30,000 crore. Further, it allows Union Government to
increase the capital more than Rs 30,000 crore in consultation with the
Reserve Bank of India (RBI), if necessary.
• Currently RBI holds 0.4% of paid-up capital of NABARD and
remaining 99.6% is held by Union government and this causes conflict in
RBI’s role as banking regulator and shareholder in NABARD.
 Headquarters

Bandra-Kurla
Complex ,
Bandra , Mumbai,
Maharashtra
 Chairman

Managing Director

Board Of Director

Executive Director

Head Office Regional Training

Departments Offices Establishments
Sub Office Special
District Development Offices
Cell
 More about NABARD
• It is not a wholly own subsidiary of RBI now because RBI
sold 99.6% of its stake to GOI.
• It has 336+ district offices across the country.
• Chairman of NABARD is Dr. Harsh Kumar Bhanwala.
• On 30th march 1979, GOI and RBI constituted a committee
under the Chairmanship of Shri B.Sivaraman to review the
arrangements for institutional credit for agriculture and rural
development (CRAFICARD).
• NABARD was initially started with an amount of Rs100
crore.
• NABARD replaced the Agricultural Credit Department (ACD) and Rural
Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural
Refinance and Development Corporation (ARDC).
• NABARD is active in developing financial inclusion policy and is a member of
the Alliance for Financial Inclusion.
• NABARD was dedicated to the service of the nation by the late Prime Minister Smt.
Indira Gandhi on November 5, 1982.
• NABARD was set up essentially as a development bank for promoting
both Agriculture Development and Rural Development.
• NABARD is also known for its ‘SHG Bank Linkage Programme’ which encourages
India’s banks to lend to self-help groups (SHGs). SHGs are composed mainly of
poor women.
• NABARD is considered as 100% Corporate Social Responsibility (CSR) Company.
 Banking Services
Production credit

Rupay Kisan Credit Cards

Farmers' Club Program

Tribal Development Fund

Microfinance Program

Village Development Program

• As we know that RBI institutionalizes saving
and take measures for an expansion of the
banking network.
• It has many institutions such as deposit
insurance, UTI, IDBI,NABARD,NHB etc.
These organization develop and promote banking
habits among the people.
 FUNCTIONS
1. Grant loan and advances to small &marginal farmers,
agriculture, laborers, cooperative societies etc.
2. Grant loan and advances to artisans, craftsman, small
enterprises, traders and businessman.
3. Help to reduce regional imbalances and increases rural
employment generation.
4. Provide banking service in those area which are not served by
commercial banks.
5. It charges low interest rate.
Regulator of RRB is NABARD. It is the Apex body for RRB.
• Father of RRB- M.s swami Nathan
 FUNCTIONS OF NABARD

FINANCIAL
functions

DEVELOPMENT

SUPERVISORY
 FINANCIAL FUNCTION REFINANCE
• SHORT TERM REFINANCE:
❖For using high yielding varieties of seeds, fertilizers, insecticides and costly
agricultural implements.
❖For increasing the production, productivity, marketing and raising the level of
surplus and saving.
❖Production credit department (PCD) deals with ST refinance facilities for
various types of production, marketing and procurement activities being
provided to client institutions.
❖Refinance is given for production purposes at concessional rate of interest to
state cooperative banks and regional rural banks (RRBs) by way of sanction
of credit limits. Each withdrawal against the sanctioned credit limit is
repayable with in 12 months
❖The short term limit would consist of different
purposes via
❖Agriculture and allied activities
➢Purchase, stoking and distribution of chemicals
fertilizers
➢Marketing of crops
➢Fisheries sector
➢Industrial cooperative societies
These types of loans are provided for production purposes
at reduced rate of interest to the RRBs(Regional Rural
Banks) and SCBs(State Cooperative Banks). Then RRBs
and SCBs provide the credit as loans to the needy ones for
different purposes such as:
• Seasonal agricultural operations
• Marketing of crops
• Fisheries Sectors
• Industrial Cooperative Societies (other than
weavers)
• Purchases, Stocking and Distribution of Chemical
Fertilisers and other Agricultural Inputs.
 MT conversion
❖NABARD provide relief to the farmers whose crop are damaged
due to natural calamities by way of
- Conversion of current short term loan into medium term
loans.
- Repurchase/ reschedule of existing MT(conversion)
loans.
❖Consolidated limit sanctioned to RRBs and SCBs in respect of
eligible DCCBs.
 LONG TERM REFINANCE
Loan period- 3 to 15 years
• Investment credit leads to capital formation through asset creation.
• It induces technological up gradation resulting in increased
production, productivity and incremental income to farmers and
entrepreneurs.
Intended to create income generating asset in following sector
• Artisans, small scale industries, non farm sectors (small and micro
enterprises), handicraft, handlooms, power looms etc.
• Activities of voluntary agencies and self help groups working among
the rural poor .
• Agriculture and allied activities.
 ELIGIBLE INSTITUTION
• State cooperative agriculture and rural development bank
(SCARDBs)
• Regional Rural Bank (RRBs)
• State cooperative bank (SCBs)
• Commercial banks
• State agriculture development finance companies (ADFCs)
• Scheduled primary urban cooperative banks (PUCBs)
• North east development finance corporation (NEDFC)
• Non banking financial companies (NBFCs)
 Supervisory Functions
Section 35(6) of the Banking Regulation Act, 1949,
empowers NABARD to conduct inspection of State
Cooperative Banks (SCBs), Central Cooperative Banks
(CCBs) and Regional Rural Banks (RRBs). In addition,
NABARD has also been conducting periodic inspections of
state level cooperative institutions such as State
Cooperative Agriculture and Rural Development Banks
(SCARDBs), Apex Weavers Societies, Marketing
Federations etc., on a voluntary basis
Schemes by NABARD
 Dairy Entrepreneurship Development Scheme
• Dairy Entrepreneurship Development Scheme (DEDS) is implemented
from September,2010 through National Bank for Agriculture and Rural
Development (NABARD) across the country.
• DEDS aim to generate self-employment opportunities in the dairy sector,
covering activities such as enhancement of milk production, procurement,
preservation, transportation, processing and marketing of milk
• Under DEDS back ended capital subsidy @ 25% of the project cost to
the General Category (@33.33% of the project cost to SC/ST category)
farmers/beneficiaries for bankable projects through NABARD subject to
the norms of the scheme. The budget provision during 12th plan is ₹ 1400
crore.
 Objective of the scheme
• To promote setting up of modern dairy farms for production
of clean milk
• To encourage heifer calf rearing, thereby conserving good
breeding stock
• To bring structural changes in the unorganized sector so that
initial processing of milk can be taken up at the village level
itself
• To upgrade the quality and traditional technology to handle
milk on a commercial scale
• To generate self-employment and provide infrastructure
mainly for unorganized sector
 Capital Investment Subsidy Scheme for
Commercial Production Units for organic/
biological Inputs
• The scheme is being implemented by the Department of Agriculture &
Cooperation through National Centre of Organic Farming (NCOF) in
collaboration with NABARD or National Cooperative Development
Corporation (NCDC).
• The scheme is being implemented since 2004-05.
• Each unit of Bio-fertilizers - Bio-pesticides will be provided with a
subsidy @ 25% of the capital cost of the project subject to a ceiling of
₹'40 lakh and each unit of fruit and vegetable waste compost production
unit will be provided with a subsidy @ 33% of the capital cost of the
project subject to a ceiling of ₹63 lakh (The ceiling is enhanced from
₹60 lakh to ₹63 lakh w.e.f. 1 April 2k14)
 Agriclinic and
Agribusiness
Centres Scheme
 Agriclinic and Agribusiness Centres
Scheme
• The scheme aims to promote the establishment of Agri-Clinics and Agri-
Business Centres (ACABC) all over the country.
• The Ministry of Agriculture, Government of India, in association with
NABARD and MANAGE has launched this unique scheme to take better
methods of farming to each and every farmer across the country.

•What is Agri-Clinics?????
• Agri-Clinics are envisaged to provide expert advice and services to
farmers on various aspects to enhance productivity of crops/animals and
increase the incomes of farmers. Agri-clinics provide support in the
following areas:
• Soil health
• Cropping practices
• Plant protection
• Crop insurance
• Post-harvest technology
• Clinical services for animals, feed and fodder management
• Prices of various crops in the market, etc.
• Agriclinics : Agriclinics are envisaged to provide expert services
and advice to farmers on cropping practices, technology
dissemination, crop protection from pests & diseases, market trends
and prices of various crops in the markets and also clinical services
for animal health etc. which would enhance productivity of crops /
animals.
• Agribusiness Centres : Agribusiness Centres are envisaged to
provide input supply, farm equipments on hire and other services. In
order to enhance viability of the ventures, Agriculture Graduates
may also take up in agriculture and allied areas alongwith the
Agriclinics/ Agribusiness Centres.
 Interest Subvention Scheme
• According to the scheme farmers receive short term credit at 7%,
with an upper limit of Rs. 3.00 lakh on the principal amount.
• The policy came into force with effect from Kharif 2006-07.
• In pursuance of this announcement, the Government of India provided
interest subvention of 2 % to Public Sector Banks, Regional Rural
Banks (RRBs) and Cooperative Banks in respect of short term
production credit up to Rs. 3.00 lakh provided to farmers out of their
own resources, provided that they make available short term credit @
7% p.a. at ground level.
 Modification in 2016-17
• The Central Government will provide interest
subvention of 5 per cent per annum to all farmers for
short term crop loan upto one year for loan upto Rs. 3
lakhs borrowed by them during the year 2016-17.
Farmers will thus have to effectively pay only 4% as
interest. In case farmers do not repay the short term
crop loan in time they would be eligible for interest
subvention of 2% as against 5% available above.
 What is RRB (Regional Rural Bank )

• Recommended for the 1st time by banking

commission in 1972.
• Established on 2nd Oct. 1975.
 Functions of Regional Rural Banks
(RRBs):
• RRBs are created with a view to serve primarily
the rural areas of the country with basic banking
and financial services.
• However, RRBs may have branches set up for
urban operations and their area of operation may
include urban areas too.
 Main objective of Regional Rural Banks
• Providing banking facilities to rural and semi-urban
areas.
• Distribution of pensions, carrying out government
operations like disbursement of wages of MGNREGA
workers and etc,.
• Providing Para-Banking facilities like locker facilities,
debit and credit cards.
 History of Regional Rural Banks
• Regional Rural Banks were established under the provisions of an
Ordinance passed in September 1975 and the Regional Rural Bank Act
1976 to provide sufficient banking and credit facility for agriculture and
other rural sectors.
• During the tenure of Indira Gandhi’s government with a view to include
rural areas into economic mainstream since that time about 70% of the
Indian Population was of Rural.
• In 1975, the number of total Regional Rural Banks is only 6. It will be
increased to maximum with 196 banks in 1990. Due to the financial
crisis and poor performance by the RRBs, some of the banks were
merged with some other RRBs. Finally the number of RRBs is 56 now.
Regional Rural Banks (RRB’s) Genesis
• The development process of RRBs started on 2 October 1975
five regional rural banks were set up with a total authorized
capital Rs. 100 crore.
• The first RRB, the Prathama Bank with authorized capital
of Rs. 5 crore at its starting on 2 October 1975.
• Syndicate Bank sponsored the first Regional Rural Bank in
India by name Prathama Bank, in Moradabad district Uttar
Pradesh.
 Ownership
• The Regional Rural Banks were owned by the Central
Government, the State Government and the Sponsor Bank (Any
commercial bank)
• Sponsor Bank have the power of managerial and operational
supervision of the RRBs. Whereas, Performance monitoring and
regulatory supervision is done by NABARD.
• The RRBs are owned by the Central government, the State
government and the Sponsor Bank. The ratio of their shares is:
• Central Government – 50%
• State government – 15%
• Sponsor Bank – 35%
The National Agricultural Cooperative Marketing
Federation of India Ltd (NAFED) is located in which
city of India?

•1.New Delhi
2.Mumbai
3.Pune
4.Chandigarh
5.None of these
•1.New Delhi
• National Agricultural Cooperative Marketing
Federation of India Ltd (NAFED)is an apex
organization of marketing cooperatives for
agricultural produce in India, under Ministry
of Agriculture, Government of India. It is
Headquartered in New Delhi
Founded: October 2, 1958
The National Bank for Agriculture and Rural
Development (NABARD) replaced which of the
following organization ?

• 1.Agricultural Credit Department (ACD)

2.Rural Planning and Credit Cell (RPCC)
3.Agricultural Refinance and
Development Corporation (ARDC)
4.All of these
5.None of these
• 4.All of these
NABRAD was set up with an initial capital
of
• 1.Rs.500 Cr
2.Rs.1000 Cr
3.Rs.100 Cr
4.Rs.50 Cr
5.None of these
• 3.Rs.100 Cr
Suger cane crops are example of which
type of cropping ?
• 1.Ratoon
2.Multiple
3.Mixed
4.Parallel
5.None of these
• 1.Ratoon
•Ratoon cropping simply means the
second and subsequent crop from the
suckers.This practice is seen in banana
and sugar cane crops.
The National Seed Policy was launched in
which year ?
• 1.2000
2.2001
3.2002
4.2005
5.None of these
• 3. 2002
Union Minister for Agriculture and Farmer’s Welfare
launched which quality mark logo at New Delhi?

• a. National Dairy Development Board

• b. National Dairy Development Authority
• c. National Dairy Development Scheme
• d. National Dairy Development Programme

• a. National Dairy Development Board

• Union Minister for Agriculture and Farmers
Welfare Minister, Shri Radha Mohan Singh on
July 20, 2017 launched National Dairy
Development Board “NDDB’s” Quality Mark
“Logo” at Krishi Bhawan, New Delhi.
• NDDB Quality Mark “Logo” is being launched as
an umbrella brand identity.
Which online facility has been launched by the Union
Government to provide direct solution to problem of
agriculture sector?

• A. e-Krishi Samasya
• B. e-Krishi Samvad
• C. e-Krishi Samveda
• D. e-Krishi Solution

• B. e-Krishi Samvad
Launching of Sansad Adarsh Gram Yojna
is related to the:
• (A) Vallabh Bhai Patel
• (B) Deen Dayal Upadhyay
• (C) Mahatma Gandhi
• (D) Jai Prakash Narayan

• (D) Jai Prakash Narayan

When National Horticulture Mission was
launched?
• (A) 2001-02
• (B) 2010-11
• (C) 2005-06
• (D) 2007-08

• (C) 2005-06