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    Specialized Banks

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    khusbu
    Specialized banks cater to specific sectors like agriculture, exports, and industries. Some examples include agricultural banks, export-import banks, and industrial banks. The National Bank for Agriculture and Rural Development (NABARD) is India's apex development bank that works to uplift rural areas by increasing credit access for agriculture and rural non-farm sectors. NABARD provides refinancing support, develops rural financial institutions, regulates cooperative banks and rural development banks, and implements schemes to promote agriculture and rural development. Its key activities include refinancing loans, developing rural credit infrastructure, and supervising cooperative banks and rural banks.

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    Specialized Banks

    Uploaded by

    khusbu
    399 views29 pages
    Specialized banks cater to specific sectors like agriculture, exports, and industries. Some examples include agricultural banks, export-import banks, and industrial banks. The National Bank for Agriculture and Rural Development (NABARD) is India's apex development bank that works to uplift rural areas by increasing credit access for agriculture and rural non-farm sectors. NABARD provides refinancing support, develops rural financial institutions, regulates cooperative banks and rural development banks, and implements schemes to promote agriculture and rural development. Its key activities include refinancing loans, developing rural credit infrastructure, and supervising cooperative banks and rural banks.

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    Specialized banks cater to specific sectors like agriculture, exports, and industries. Some examples include agricultural banks, export-import banks, and industrial banks. The National Bank for Agriculture and Rural Development (NABARD) is India's apex development bank that works to uplift rural areas by increasing credit access for agriculture and rural non-farm sectors. NABARD provides refinancing support, develops rural financial institutions, regulates cooperative banks and rural development banks, and implements schemes to promote agriculture and rural development. Its key activities include refinancing loans, developing rural credit infrastructure, and supervising cooperative banks and rural banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    399 views29 pages

    Specialized Banks

    Uploaded by

    khusbu
    Specialized banks cater to specific sectors like agriculture, exports, and industries. Some examples include agricultural banks, export-import banks, and industrial banks. The National Bank for Agriculture and Rural Development (NABARD) is India's apex development bank that works to uplift rural areas by increasing credit access for agriculture and rural non-farm sectors. NABARD provides refinancing support, develops rural financial institutions, regulates cooperative banks and rural development banks, and implements schemes to promote agriculture and rural development. Its key activities include refinancing loans, developing rural credit infrastructure, and supervising cooperative banks and rural banks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 29

    SPECIALIZED BANKS

    WHAT IS IT?

    Banks catering to specific needs


    Meet unique activities
    Provide financial aid to
    Industries
    Heavy turn key projects
    Foreign trade

    DIFFERENT SPECIALIZED BANKS

    Foreign exchange banks


    Industrial banks
    Development banks
    Export import banks
    Agricultural banks

    AGRICULTURAL BANKS
    A type of bank that lends money to farmers for longer
    periods of time and charges them less interest than other
    types of banks

    NATIONAL BANK FOR AGRICULTURE


    AND RURAL DEVELOPMENT (NABARD)

    NABARD is an apex development bank in India, having


    headquarters inMumbai (Maharashtra) and other branches
    are all over the country.
    It was established on 12 July 1982 by a special Act of
    parliament and its main focus was on upliftment of rural
    India by increasing the credit flow for elevation of
    agriculture & rural non farm sector and completed its 34
    years on 1 Jan 2016
    It 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".
    NABARD is active in developingfinancial inclusion policy
    and is a member of the Alliance for Financial Inclusion.

    OBJECTIVES

    More than 50% of the rural credit is disbursed by the Cooperative Banks and Regional Rural Banks.
    NABARD is responsible for regulating and supervising the
    functions of Co-operative banks and RRBs
    NABARD works towards providing a strong and efficient
    rural credit delivery system, capable of taking care of the
    expanding and diverse credit needs of agriculture and rural
    development.

    FUNCTIONS OF NABARD

    Credit function
    Development functions
    Supervisory functions

    CREDIT FUNCTION

    Framing policy and guidelines for rural financial institutions.


    Providing credit facilities to issuing organizations
    Monitoring the flow of ground level rural credit.
    Preparation of credit plans annually for all districts for
    identification of credit potential.

    DEVELOPMENT FUNCTIONS
    Help cooperative banks and Regional Rural Banks to prepare
    development actions plans for themselves.
    Help Regional Rural Banks and the sponsor banks to enter
    into MoUs with state governments and cooperative banks to
    improve the affairs of the Regional Rural Banks.
    Monitor implementation of development action plans of
    banks.
    Provide financial support for the training institutes of
    cooperative banks, commercial banks and Regional Rural
    Banks.
    Provide financial assistance to cooperative banks for building
    improved management information system, computerization
    of operations and development of human resources.

    SUPERVISORY FUNCTION
    Undertakes inspection of Regional Rural Banks (RRBs) and
    Cooperative Banks (other than urban/primary cooperative
    banks) under the provisions of Banking Regulation Act,
    1949.
    Undertakes inspection of State Cooperative Agriculture and
    Rural Development Banks (SCARDBs) and apex non- credit
    cooperative societies on a voluntary basis.
    Provides recommendations to Reserve Bank of India on
    issue of licenses to Cooperative Banks, opening of new
    branches by State Cooperative Banks and Regional Rural
    Banks (RRBs).
    Undertakes portfolio inspections besides off-site surveillance
    of Cooperative Banks and Regional Rural Banks (RRBs).

    ROLES

    Providing refinance to lending institutions in rural areas


    Bringing about or promoting institutional development and
    Evaluating, monitoring and inspecting the client banks
    Acts as a coordinator in the operations of rural credit
    institutions
    Extends assistance to the government, the Reserve Bank of
    India and other organizations in matters relating to rural
    development
    Offers training and research facilities for banks, cooperatives
    and organizations working in the field of rural development
    Helps the state governments in reaching their targets of
    providing assistance to eligible institutions in agriculture and
    rural development
    Acts as regulator for cooperative banks and RRBs

    PRODUCTS AND SERVICES

    Kisan credit card scheme


    Supporting business operations rural financial institution
    (RFI)
    Refinance support to RFIs for increasing the flow of long
    term credit
    Government of India scheme
    Capital investment subsidy scheme
    Schemes for animal husbandry

    KISAN CREDIT CARD


    SCHEME

    Introduced in August 1998


    Mechanism to meet the production credit requirements of
    farmers
    Scheme was revised in 2012 to make room for ATM enabled
    debit cards

    SUPPORTING BUSSINESS
    OPERATIONS OF RFIs
    1. REFINANCE SUPPORT TO RFIs FOR INCREASING THE FLOW
    OF SHORT TERM CREDIT: Refinances short term loans extended by co-operative banks and
    RRBs
    extended for production, marketing and procurement activities
    . POLICY GUIDELINES FOR STATE CO-OPERATIVE BANKS
    Extend higher quantum of refinance for priority states/areas
    Maximum refinance available to state co-operative Banks (STCBs)
    for short term operations is 50 percent of their realistic lending
    programme(RLP)
    For eastern regions refinance support was it was higher at 55
    percent
    While for north eastern region it was highest at 7o percent
    within the approved Capital to Risk Weighted Asset Ratio (CRAR)

    POLICY GUIDELINES FOR STATE CO-OPERATIVE BANKS

    Extend higher quantum of refinance for priority states/areas


    Maximum refinance available to state co-operative Banks
    (STCBs) for short term operations is 50 percent of their
    realistic lending programe(RLP)
    For eastern regions refinance support was it was higher at
    55 percent
    While for north eastern region it was highest at 7o percent
    within the approved Capital to Risk Weighted Asset Ratio
    (CRAR)

    2. REFINANCE FOR SEASONAL AGRICULTURAL


    OPERATIONS- STCBs:
    Credit limit was sanctioned to 23 STCBs aggregating to
    Rs 53989.15 crore for the year 2013-14

    Utilization of the credit was 99.8

    POLICY GUIDELINES:

    Sanctioned limit was Rs 193 crore to 3 STCBs


    STBCs reached a maximum utilization of Rs 85 crore

    3. SUPPORT TO WEAVERS:
    Refinance for meeting working capital requirements

    Assistance was routed through commercial banks to


    co-operative societies for production and marketing of
    handloom weavers

    Credit limit sanctioned was Rs 251.12 crore to 3


    STCBs for the year 2013-14

    Refinance support to RFIs for increasing the flow of long term credit

    Refinance support is extended to commercial banks , RRBs


    and co-operative banks
    Facility is provided for long term lending to create assets
    and capital formation in agriculture and allied activities
    Refinance is available for farm and non-farm sector
    activities with a repayment period of 3-15 years
    It is provided for farm investment, allied activities, Self Help
    groups etc..

    POLICY GUIDELINES

    Eligibility criteria was linked to net NPA in case of scheduled


    commercial banks, STCBs, RRBs
    Whereas eligibility for state co-operative agriculture and
    rural development banks (SCARDBs) it was linked to their
    risk profile
    Scheduled commercial banks with net NPS exceeding 3 per
    cent were not eligible for availing refinance
    Refinance was provided to scheduled commercial
    banks,STCBs,RRbs at 100%

    NORMS AND INTEREST


    RATES

    SECURITY NORMS
    Refinance for all state co-operative agriculture and rural
    development banks (SCARDBs) was against state
    government guarantee
    With out state government guarantee alternative security
    like pledge of government securities was considered
    REFINANCE INTEREST RATES :For the year 2013-14 was in the range of 9.65-11% per
    annum
    depending on the type of agency and quantum of finance

    REFINANCE DISBURSEMENT

    Refinance disbursement was Rs 21,486.17 crore as


    against the target of Rs 16,990.00 crore

    DISTRIBUTION: Commercial banks Rs 13,254.62 crore (61.69%)


    RRBs- Rs 4,303.66 crore (20.03%)
    SCARDBs- Rs 1,814.95 crore (8.45%)
    STCBs- Rs 1,713.34 crore (7,97%)
    Others (PUCBs/ADFCs/NABFINS)- Rs 399.61 crore
    (1.86%)

    CAPITAL INVESTMENT SUBSIDY


    SCHEME
    1. Rural godown:
    GOI aims at creating scientific storage facilities for
    rural farmers

    Helping farmers reduce wastage of farm produce.


    2. Agri -clinics and Agri-business centre's:
    Provides extension and other services to farmers
    either on payments or free basis

    Supports agriculture development

    Provided self employment opportunity

    ANIMAL HUSBANDRY
    SCHEMES

    Dairy entrepreneurship development scheme


    Poultry venture capital fund
    Pig development

    MODE OF PROVIDING
    SERVICES

    Co-operative banks
    Regional rural banks
    State co-operative banks
    Commercial banks

    CUSTOMERS

    Farmers
    Self help groups
    Small scale entrepreneurs

    MARKETING TECHNIQUES

    Speeches
    Seminars
    Posters
    With the help of other banks
    Through self help groups

    SUMMARY

    Presentation By,
    Jayanth
    Kushbu
    Shravya
    sneha

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