CHAPTER 1 NATIONAL AGRICULTURE AND RURAL DEVELOPMENT BANK Introduction "Rural India which comprises 5.5 lakh villages and encompasses three fourths of the Country's population is characterized by low income levels, inadequate to ensure a quality of life compatible with physical well being. The Ministry of Rural Development, spearheading the frontal attack on rural poverty, through its various programmed endeavored to reach out to the last and most disadvantaged sections of society, provide them with avenues of employment, be it self-employment or wage-employment, and to improve infrastructure relating to their life support systems." India has been a welfare state ever since her Independence and the primary objective of all governmental endeavors has been the welfare of its millions. Planning has been one of the pillars of the Indian policy since independence and the country's strength is derived from the achievement of planning. The policies and programmes have been designed with the aim of alleviation of rural poverty which has been one
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CHAPTER 1
NATIONAL AGRICULTURE AND RURAL DEVELOPMENT BANK
Introduction
"Rural India which comprises 5.5 lakh villages and encompasses three
fourths of the Country's population is characterized by low income levels,
inadequate to ensure a quality of life compatible with physical well being. The
Ministry of Rural Development, spearheading the frontal attack on rural poverty,
through its various programmed endeavored to reach out to the last and most
disadvantaged sections of society, provide them with avenues of employment, be it
self-employment or wage-employment, and to improve infrastructure relating to
their life support systems."
India has been a welfare state ever since her Independence and the primary
objective of all governmental endeavors has been the welfare of its millions.
Planning has been one of the pillars of the Indian policy since independence and
the country's strength is derived from the achievement of planning. The policies
and programmes have been designed with the aim of alleviation of rural poverty
which has been one of the primary objectives of planned development in India. It
was realized that a sustainable strategy of poverty alleviation has to be based on
increasing the productive employment opportunities in the process of growth itself.
Elimination of poverty, ignorance, diseases and inequality of opportunities and
providing a better and higher quality of life were the basic premises upon which all
the plans and blue-prints of development were built. NABARD implies both the
economic betterment of people as well as greater social transformation. In order to
provide the rural people with better prospects for economic development, increased
participation of people in the rural development programmes, decentralization of
planning, better enforcement of land reforms and greater access to credit are
envisaged.
Establishment of the Bank
The Bill for setting up the Bank was passed by the Parliament in December,
1981 and National Bank came into existence on 12th July, 1982.The review
committee envisaged that the new apex bank would be an organizational device for
providing undivided attention, forceful direction and pointed focus to the credit
problems arising out of the integrated approach to rural development.
The Committee recommended that the new bank take over from the Reserve
Bank the overseeing the entire rural credit system, including credit for rural artisans
and village industries, and the statutory inspection of co-operative banks and
Regional Rural Banks on an agency basis, the Bank continuing to retain its
essential control. The new bank was to have organic links with the Reserve Bank
by virtue of the latter contributing half of its share capital ( the other half being
contributed by the Central Government), and three members of the Central Board
of Directors of the Reserve Bank being appointed on its board, besides Deputy
Governor of Reserve Bank being appointed as its Chairman. On the establishment,
the National Bank has taken over the entire undertaking of the Agriculture
Refinance and Development Corporation, and has taken over from the Reserve
Bank its refinancing functions in relation to the State Co-operative Banks and the
Regional Rural Banks.
The bank is now coordinating agency in relation to the Central Government,
Planning Commission, State Governments and institutions at all-India level and
State-level engaged in the development of small-scale industries, rural crafts, etc.
for giving effect to the various policies and programs related to rural credit.
Objectives
NABARD was established in terms of the , "for providing credit for the
promotion of agriculture, small scale industries, cottage and village industries,
handicrafts and other rural crafts and other allied economic activities in rural areas
with a view to promoting IRDP and securing prosperity of rural areas and for
matters connected therewith in incidental thereto".
The main objectives of the NABARD as stated in the statement of objectives
while placing the bill before the Lok Sabha were categorized as under:
o The National Bank will be an apex organisation in respect of all matters
relating to policy, planning operational aspects in the field of credit for
promotion of Agriculture, Small Scale Industries, Cottage and Village
Industries, Handicrafts and other rural crafts and other allied economic
activities in rural areas.
o The Bank will also provide direct lending to any institution as may approved
by the Central Government.
o The Bank will have organic links with the Reserve Bank and maintain a
close link with in.
Mission
Promoting sustainable and equitable agriculture and rural development
through effective credit support, related services, institution building and other
innovative initiatives. In pursuing this mission, NABARD focuses its activities on
o Credit functions, involving preparation of potential-linked credit plans
annually for all districts of the country for identification of credit potential,
monitoring the flow of ground level rural credit, issuing policy and
operational guidelines to rural financing institutions and providing credit
facilities to eligible institutions under various programmes
o Development functions, concerning reinforcement of the credit functions and
making credit more productive
o Supervisory functions, ensuring the proper functioning of cooperative banks
and regional rural banks
Current Position of NABARD
o In a journey spanning 30 years, NABARD has paved the way for all-round
rural progress and development with 28 regional offices, sub-office at Port
Blair and 376 district offices.
o The Micro Finance programme is the largest of its kind in the world. The
programme has helped over 329.90 lakh households through 22.38 lakh
SHGs comprising mostly of women members.Women empowerment in rural
areas. Rs 872 lakh have been sanctioned by way of assistance to women
undertakes monitoring and evaluation of projects refinanced by it.It promotes
research in the fields of rural banking, agriculture and rural development.
Credit Operations Performed by the Bank
The National Bank is empowered to provide short-term refinance assistance
for periods not exceeding 18 months to state Co-operative Banks, Regional Rural
Banks and any financial institution approved by Reserve Bank in this behalf; for a
wide range of purposes, including marketing and trading, relating to rural
economy. These short term loans granted to State co-operative Banks and Regional
Rural Banks, in so far as they relate to the financing of agricultural operations or
marketing of crops, can be converted by the National Bank into medium-term loans
for periods not exceeding seven years under conditions of drought, famine or other
natural calamities, military operations or enemy action.
The National Bank can grant medium-term loans to the State co-operative
Banks and Regional Rural Banks for period extending from 18 months to seven
years for agriculture and rural development and such other purposes as may be
determined by it from time to time subject to their being fully guaranteed by the
State Governments as to the repayment of principal and payment of interest. Such
guarantee can however be waived by the National Bank in such circumstances.
The National Bank is empowered to provide by way of refinance assistance
long-term loans extending upto a maximum period of 25 years including the period
of re-scheduling such loans to the State Land Development Banks, Regional Rural
Banks, Commercial Banks, State Co-operative Banks or any other financial
institutions approved by the Reserve Bank for the purpose of making investment
loans. It may also give short-term loans alongwith long-terms loans where such
composite loans are considered necessary. Loans for periods not exceeding 20
years can be made to the State Governments to enable them to subscribe directly or
indirectly to the Share capital of Co-operative Societies.
Moreover, the new bank can contribute to the share capital or invest in the
securities of any institutions concerned with agriculture or rural development.
Credit Planning by NABARD
o District Level Planning -
NABARD prepares Potential Linked Credit Plans (PLPs) for all the districts
of the country. It maps the potentials available for development in agriculture and
rural sectors in the district and projects credit requirements, taking into account
long-term physical potential, availability of infrastructure, extension services and
marketing support and the strengths and weaknesses of the RFIs in the district.
o State Level Planning -
NABARD prepares a State Focus Paper for every State. This presents a
comprehensive picture of potentials available in the State for development of
agriculture and allied sectors. It also provides a road map of the opportunities
available for further investments in these sectors. It can be used by bankers and
other agencies for preparing their action plans for making these investments.
State Credit Seminars are convened by NABARD annually where all
agencies concerned viz., the State Government, banks, NGOs, etc. participate and
discuss policies and operational measures required to be taken for tackling
constraints in development of potentials available in agriculture and allied sectors
in the State.
o National Level Planning -
NABARD facilitates policy decisions by GoI and RBI in the areas of credit
flow to agriculture and rural development.
2.3 TYPES OF REFINANCE FACILITIES
Agency Credit Facilities
Commercial Banks Long-term credit for investment purposes
Financing the working capital
requirements of Weavers' Co-operative
Societies (WCS) & State Handloom
Development Corporations
Short-term Co-operative
Structure (State Co-operative
Banks, District Central Co-
operative Banks, Primary
Agricultural Credit Societies)
Short-term (crop and other loans)………
Medium-term (conversion)
loans…………
Term loans for investment purposes……..
Financing WCS for production and
marketing purposes
Financing State Handloom Development
Corporations for working capital by State
Co-operative Banks
Long-term Co-operative
Structure (State Co-operative
Agriculture and Rural
Development Banks, Primary
Co-operative Agriculture and
Rural Development Banks)
Term loans for investment purposes
Regional Rural Banks (RRBs) Short-term (crop and other loans)………..
Term loans for investment purposes
State Governments Long-term loans for equity participation
in co-operatives
Rural Infrastructure Development Fund
(RIDF) loans for infrastructure projects
Non-Governmental
Organisations (NGOs) -
Informal Credit Delivery
System
Revolving Fund Assistance for various
micro-credit delivery innovations and
promotional projects under 'Credit and
Financial Services Fund' (CFSF) and
'Rural Promotion Corpus Fund' (RPCF)
respectively
INTEREST RATES
Margin money
The beneficiary's contribution to the project cost is necessary in order to
ensure his stake in the investment. Such margin money varies from 5% to 25%
depending on the type of investments and the category of the beneficiaries. The
margin money can be by way of contribution in cash or own or family labour.
Large farmers, firms, corporate borrowers including state-owned corporations,
forest development corporations provide margin money up to 25% pf the
investment cost.
Special focus
Promote sustainable and equitable agriculture and rural prosperity through
effective credit support, related services, institution development and other
innovative initiatives
Removal of regional and sectoral imbalances is one of the thrust areas and
hence preference is given to the needs of the underdeveloped areas. For example,
the development of the north-eastern region has been a key programme and special
efforts have been made through refinance offered on liberal terms and other
supportive measures so that the rural credit delivery system in the region is
strengthened.
A
chievements of Nabard
I am delighted to be a part of NABARD’s celebrations of its completion of thirty years. This
is a special occasion for NABARD, of course; but also a special occasion for the Reserve
Bank, for NABARD was incubated in the Reserve Bank before it rolled out as an
independent development financial institution in 1982. The bondage between our two
institutions has not only remained strong but is getting stronger. We share a common goal -
of furthering inclusive growth. We also share significant professional domain because of
our joint responsibility for the flow of agricultural credit.
I.NABARD
2. Over the last three decades, NABARD has grown and evolved from a uni-dimensional
apex financing agency into a multi-dimensional institution for shaping and implementing
the country’s overall rural credit policy. NABARD has been a leader in promoting
microfinance through the SHG-Bank linkage programme. By investing huge energies and
manpower into this programme and drawing upon its myriad roles, NABARD has reached
nearly 97 million households, making India’s microfinance programme the fastest, if not
also the largest, in the world. All of you - management and staff of NABARD - including
those who have retired can be proud of this very credible record of achievement of
NABARD. My congratulations to all of you for serving this great institution so
competently.
3. Completing three decades is an occasion for celebration; it is also an occasion for
introspection - to look back on what you have accomplished and to look ahead to the
challenges on the way forward. I thought the best way I can add value to NABARD’s
celebrations is to do precisely that - to look back and look ahead on the challenges of
agricultural credit - the quintessence of NABARD’s mandate.
II. Importance of Agricultural Credit
4. Starting from Pandit Nehru’s exhortation soon after independence that ‘everything else
can wait, but not agriculture’, agricultural growth has all along been central to India’s
efforts at poverty reduction. We have come a long way from the chronic food shortages and
occasional famines of the immediate post-independence years; even as the population has
increased, we have been able to maintain food self-sufficiency through both extensive
agriculture and productivity improvement. But in recent years, there has been growing
concern about the erosion at the margins of food self-sufficiency. A big challenge for
sustaining food self-sufficiency is raising production which, given that available land is
fixed if not diminishing, has to come from improved productivity. A host of cash and non-
cash inputs is necessary to improve productivity, and an important one is agricultural credit.
5. Development experience shows that credit is an important determinant of value added in
agriculture. A quick assessment by the Reserve Bank of the relationship between
institutional credit to agriculture (from commercial banks, cooperatives and RRBs)
evidences positive and statistically significant elasticity - every 1 per cent increase in real
agricultural credit results in an increase in real agricultural GDP by 0.22 per cent with a
one-year lag.2 Further, the Granger causality test (based on lag length of 1) also indicates
that the causality was unidirectional from agricultural credit to agricultural GDP.
CHAPTER 2
ROLE of NABARD IN RURAL DEVELOPMENT
Promotion of RNFS has been recognized as an important and necessary
adjunct to the refinancing function. The objective of promotional programs is to
establish replicable models for generating/enhancing opportunities for employment
and income generation in rural areas in a sustainable, demonstrative and cost
effective manner by providing grant/revolving fund assistance etc., to NGOs,
Voluntary Associations(VAs), Trusts and other Promotional Organizations. And
trained around 1,51,000 rural youth with grant assistance of Rs. 11.91 crore
Here are some of the promotional schemes of NABARD like :
o NABARD Warehousing Scheme (NWS)
o Rupay KCC
o Swarojgar credit card schemes
o Farmer’s club programme
o Self help groups
o Kissan credit card schemes
Development and Promotional Functions
Credit is a critical factor in development of agriculture and rural sector as it
enables investment in capital formation and technological upgradation. Hence
strengthening of rural financial institutions, which deliver credit to the sector, has
been identified by NABARD as a thrust area. Various initiatives have been taken to
strengthen the cooperative credit structure and the regional rural banks, so that
adequate and timely credit is made available to the needy.
In order to reinforce the credit functions and to make credit more productive,
NABARD has been undertaking a number of developmental and promotional
activities such as:-
Cooperative banks and Regional Rural Banks to prepare development actionsplans
for themselves
Enter into MoU with state governments and cooperative banks specifying their
respective obligations to improve the affairs of the banks in a stipulated timeframe
Regional Rural Banks and the sponsor banks to enter into MoUs specifying their
respective obligations to improve the affairs of the Regional Rural Banks in a
stipulated timeframe
Monitor implementation of development action plans of banks and fulfillment of
obligations under MoUs
Provide financial assistance to cooperatives and Regional Rural Banks for
establishment of technical, monitoring and evaluations cells
Provide financial support for the training institutes of cooperative banks
Provide training for senior and middle level executives of commercial banks,
Regional Rural Banks and cooperative banks
Create awareness among the borrowers on ethics of repayment through Vikas
Volunteer Vahini and Farmer’s clubs
RUPAY KCC:
The Kisan Credit Card (KCC) has emerged as an innovative credit delivery mechanism to
meet the production credit requirements of the farmers in a timely and hassle-free
manner. As per the revised guidelines for KCC, the KCC should be a smart card cum
debit card which could be used in the ATMs/Hand held Swipe Machines etc.
RuPay is a new card payment scheme launched by the National Payments Corporation of
India (NPCI), has been conceived to fulfill RBI’s vision to offer a domestic, open-loop,
multilateral system which will allow all Indian banks and financial institutions in India to
participate in electronic payments.
RuPay has come out with its RuPay KCC offering which leverages the benefits of both
KCC and RuPay.
Advantages of RuPay KCC:
1. Unlike Visa and MasterCard networks, RuPay does not charge an entry fee.
2. RuPay is well equipped to handle both the single message and dual messaging
systems.
3. RuPay is a PIN based product so it provides enhanced security.
4. It offers complete web based architecture, so member banks will not have to
develop a separate file based interface.
5. RuPay provides advanced features such as processing of adjustment file to enable
Tip and Surcharge processing on the SMS platform too.
6. Administration costs & quarterly charges are very low when compared to current
international schemes.
7. Unlike normal KCC which serves only as an identity card and facilitate recording
of transactions on an ongoing basis, RuPay KCC is actually a smart card that can
be used at the nearest ATM/PoS for withdrawing cash. It removes the necessity of
going to PACS or a bank branch to operate the account.
NABARD Warehousing Scheme (NWS
Consequent upon the announcement of an allocation of Rs. 5000 crore to NABARD in the
budget for 2013- 14, for supporting creation of infrastructure for storage of agricultural
commodities, Reserve Bank of India (RBI) issued guidelines for creation of Warehouse
Infrastructure Fund (WIF) in NABARD. With a view to operationalising WIF, NABARD
has formulated a scheme viz., NABARD Warehousing Scheme 2013- 14 (NWS), which
envisages extension of loans to Public and Private Sectors for construction of warehouses,
silos, cold storages and other cold chain infrastructure. The Scheme has been approved by
Government of India (Copy enclosed as Appendix).
Funds under this scheme would be utilized for meeting the growing demand for storage
capacity for agricultural commodities in the entire country and also in the wake of
enactment of National Food Security Act 2013. Priority will be given for the projects
proposed in Eastern & North Eastern and food grain deficit states.
The salient features of the Scheme are indicated below:
1 Eligible Institutions/ Entities
State Governments Agencies Owned/ Sponsored by State Govt. Panchayati Raj Institutions (through respective State
Governments)
Agencies owned/ sponsored by Government of India, Special Purpose Vehicles (SPVs) set up under the projects in Public- Private Partnership (PPP) mode, Cooperatives (and their Federations), Farmers’ Producers’ Organizations (FPOs), Federations of Farmers’ Collectives, APMCs, Apex Marketing Boards, Private Companies, Individual Entrepreneurs, etc.
2Activities Covered
Loans will be provided for projects involving creation of storage infrastructure, with a minimum capacity of 5000 metric tons (MT), for agricultural and allied produce including construction of:
a. Warehousesb. Silosc. Cold storage, Controlled Atmosphere (CA) stores, other
cold chain activities like reefer vans, bulk coolers, Individually Quick Frozen units (IQF), chilling/ freezing infrastructure, etc.
Modernization/ improvement of the existing storage infrastructure projects will be considered on merit of each proposal provided it leads to scientific/ additional storage capacity.
3Registration by WDRA
Loans will be provided in respect of only those storage projects, which not only conform to the norms laid down by Warehousing Development and Regulatory Authority (WDRA), but also give an undertaking for obtaining accreditation/ registration from WDRA on completion of the infrastructure.
4 Priority Segments
Funds under this Scheme would be utilized for meeting the growing demand for storage capacity for agricultural commodities and also in the wake of enactment of National Food Security Act 2013 from the following segments:
Food grain procurement agencies, like FCI (including under PEG Scheme), Central Warehousing Corporation (CWC), State Warehousing Corporations (SWCs), State Government Departments/ Agencies, etc.
Panchayats, PACS and other Co-operative Societies (including modernization/ renovation/ repairs of the existing warehouses) for enabling farmers to store their produce and avail concessional post harvest loans
State Civil Supplies Departments/ Corporations for Public Distribution System (PDS) and supply of essential commodities
Private Sector entities for storing food grains as well as other agricultural commodities like pulses, oilseeds, cotton, spices & condiments and perishables, like fruits & vegetables, dairy/ poultry/ meat/ fish products.
Priority will be given for the projects proposed in Eastern & North Eastern Regions and in food grain deficit states.
5Loans to Public Sector
Loans to State Government, Agencies Owned/ sponsored by State Govt. and Panchayats (through State Governments) will be governed by the extant Rural Infrastructure Development Fund (RIDF) guidelines.
6Loans to Private Sector
Direct loans to private sector and to the entities owned/ sponsored by the State Govt., which are not covered by mandate/ guarantee, would be governed by the terms of lending indicated in Annexure– I.
7Implementation Period
The Scheme will be operational during the year 2013- 14.
Swarozgar Credit Card (SCC) Scheme –
The SCC Scheme formulated by NABARD in consultation with RBI and
GoI envisages adequate and timely credit, both working capital and block capital,
to small artisans, handloom weavers, service providers, fishermen, self-employed
persons, rickshaw owners and other micro entrepreneurs, in rural and urban areas
in a flexible, hassle free and cost effective manner from the banking system. The
facility also includes a reasonable component for consumption needs. 28,925 cards
were issued by CBs, Coop Banks and RRBs involving credit limit of Rs. 64.26
crore
Farmers' Club Programme
Farmers’ Clubs are grassroot level informal forums. Such Clubs are
organised by rural branches of banks with the support and financial assistance of
NABARD for the mutual benefit of the banks concerned and rural people.
National Bank for Agriculture and Rural Development (NABARD) encourages
banks to promote Farmers' Clubs in rural areas under the Farmers’ Club
Programme, earlier known as “Vikas Volunteer Vahini (VVV) Programme”. The
Programme was launched by NABARD in November 1982 to propagate the five
principles of “Development through Credit”.
Financial Support from NABARD
Sl.
No.
Name of the
Programme
Maximum
Eligible Grant
other than
NER
North East Region
(including Sikkim
and Andaman &
Nicobar Islands)
1 Maintenance of a
Farmers' Club
Rs. 3,000 per
Club per year
for 3 years.
Rs. 3,000 per Club
year for 5 years
2 Grant if applicable in
the case of KVKs,
NGOs, Agriculture
Universities etc.
Rs. 2,000/- per
Club per year
for 3 years.
Rs. 2,000/- per Club
per year for 3 years.
3 Inauguration Rs. 5000/- Rs. 5000/-
4 Basic Level
Orientation Training
Program (BLOTP)
5 "Meet with Experts"
Program
Rs. 1,250 per
meet for 4
meets for 3
years.
Rs. 1,250 per meet
for 4 meets for 3
years.
NABARD would provide financial support for the first three years and for
the next two years the bank sponsoring the club may provide the support, if
necessary. The club is expected to attain self sustainability in a period of 3-5 years.
Self help groups
Self help groups comprise homogenous groups of poor people who have
voluntarily come together mainly with the idea of overcoming their financial
difficulties. SHGs can rightly be called a potent tool for human development.
SHGs enable the poor, especially the women form the poor households, to
collectively identify, prioritise and tackle the problems they face in their socio-
economic environment. By pooling their meager resources and using them for
lending among themselves, they develop the habit of thrift and the skill of credit
appraisal, before getting linked to the banks. Staring with small loans for
consumption they soon graduate to bigger loans for a wide range of micro-
enterprise like vermin-composting, livestock rearing, handicrafts, vending of
various commodities in rural areas, running distribution materials, etc. with a
modest beginning of just 500SHGs in 1992, today the programme boats over 22
lakh SHGs and 3.3 crore households influencing the lives of over 16 crore poor
population, 6,20.109 groups were credit linked.
KISAN CREDIT CARD SCHEME
As a pioneering credit delivery innovation, Kisan Credit Card Scheme aims
at provision of adequate and timely support from the banking system to the farmers
for their cultivation needs including purchase of inputs in a flexible and cost
effective manner.
Since launching in August 1998, around 9.25 crore Kisan Credit Cards
issued upto 31 March, since inception. An amount of Rs. 4,17,326 Crores has been
sanctioned under KCCs till 31 March 2010, since the inception by Cooperative
Banks, Regional Rural Banks and Commercial Banks put together. Scheme
implemented in all States and Union Territories (except Chandigarh, Daman & Diu
and Dadra & Nagar Haveli) with all Cooperative Banks, RRBs and Commercial
Banks participating.
CHAPTER3
CONCLUSTION
A Refinancing institution in strengthening the rural credit system of India.
Credit is a critical factor in development of agriculture and rural sector as it
enables investment in capital formation and technological upgradation. Hence
strengthening of rural financial institutions, which deliver credit to the sector, has
been identified by NABARD as a thrust area. Various initiatives have been taken to
strengthen the cooperative credit structure and the regional rural banks, so that
adequate and timely credit is made available to the needy.
Watershed Development Fund (WDF)
Pursuant to the announcement by the Hon'ble Union Finance Minister in the
Union Budget for the year 1999-2000, a Watershed Development Fund (WDF) has
been set up in NABARD with a corpus of Rs.200 crores equally contributed by the
Government of India and NABARD, with an objective to promote participatory
watershed development throughout the country.
The Fund envisaged coverage of 100 priority districts in 14 states over a
period of 3 years. The participating states can avail loans out of WDF for
implementing watershed projects through the village level communities, non-
governmental organizations (NGOs) or project facilitating agencies ( PFAs) in the
selected districts. The loans are repayable over a period of 9 years (including a
grace period of 3 years) and carry a rate of interest of 4.5% per annum at present.
One-third portion of the Fund is earmarked for promotional efforts, capacity
building, replication of Indo German Watershed Development Programme
(Maharashtra) or any other successful model and Self Help Group (SHG) related
activities particularly targeted at women in the project areas.As on 31 March 2004,
the Rs. 154.61 crore has been added to the corpus by way of interest on unutilized
portion and excess margin on RIDF loans.
COOPERATIVE DEVELOPMENT FUND (CDF)
In pursuance with the recommendations of the Parliamentary Committee on
Agriculture, NABARD had created Co-operative Development Fund for providing
assistance to Co-operative Credit Institutions for improving their infrastructural
facilities for growth. The Fund, which started with an initial corpus of Rs.10.00
crore from the surplus contributed by NABARD, has a balance of Rs.115.68 crore
as on 31 March, 2003. The assistance sanctioned to various cooperative institutions
from the Fund till 31 March, 2004 aggregated to Rs.62.18 crore against which an
amount of Rs.50.87 crore has been disbursed.
Rural infrastructural development fund :
If there is one development programme that has dramatically helped rural
India, it is projects undertaken through RIDF. Economist have explicitly
emphasized on the direct correlation between the index of infrastructure
development and rural development. Indeed it is far too crucial to have
infrastructure for agriculture, industrial and overall economic development.
Infrastructure also provides basic amenities that improve the quality of life.
Therefore, for supporting State Governments and other development institutions,
NABARD opened the window of RIDF in 1995-1996 NABARD so far have
sanctioned Rs 51,283 crore for 2,44651 projects under the Fund.
A cumulative position of sector-wise sanctions as on 31st March 2006 :