NEW BUSINESS MODEL OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN INDIA

Dr. P.B. REDDY; Dr.C.B.HARINATHA REDDY; Dr. MORUSU SIVA SANKAR

Volume : VI, Issue : IX, September - 2017

NEW BUSINESS MODEL OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN INDIA

Dr. P. B. Reddy, Dr. C. B. Harinatha Reddy, Dr. Morusu Siva Sankar

Abstract :

This paper is research purpose only. NABARD has been instrumental in grounding rural, social innovations and social enterprises in the rural hinterlands. It has in the process partnered with about 4000 partner organisations in grounding many of the interventions be it, SHG–Bank Linkage programme, tree–based tribal communities� livelihoods initiative, watershed approach in soil and water conservation, increasing crop productivity initiatives through lead crop initiative or dissemination of information flow to agrarian communities through Farmer clubs. Despite all this, it pays huge taxes too, to the exchequer figuring in the top 50 tax payers consistently. NABARD virtually ploughs back all the profits for development spending, in their unending search for solutions and answers.

Infrastructure Development Assistance (NIDA): NABARD has set up NIDA, a new line of credit support for funding of rural infrastructure projects. The cumulative sanctions under NIDA during the year 2011–12 were 890.85 crore and disbursement was 422.90 crore.

Producers Organizations Development Fund (PODF): In order to support and finance Producers� Organizations, NABARD set up PODF. During the year, 13 projects were sanctioned to Producers Organizations and 70 projects to PACS, with an assistance of ` 32.29 crore and 7.75 crore, respectively. The cumulative sanction under the fund was 40.04 crore.

Direct Lending to CCBs: Under Direct lending to CCBs, 937.74 crore was disbursed during the year 2011–12.

PACS as Multi Service Centres: A total of 2,335 PACS have been developed as Multi–service Centres through various interventions from NABARD.

Core Banking Solutions (CBS): Through Core Banking Solution (CBS), Co–operatives are being ought to a higher technology platform so as to compete with other banks for business and growth.