Rural Banking Potential In India and its Expanding Scope
History –
Rural areas are endowed with not only the agriculture but also with the activities like fisheries, bee keeping, livestock etc. The question that arises here is, even with such potential of making profits who is there to fund their ideas. In 1975 the narshimhan committee recommended the formation of regional rural banks in India. On 2nd October 1976 five RRBs were setup with the capital of 100crores but later it was augmented to 500crores the five banks. The central government, the state government and the sponsor banks. Who held shares in the ratios as follows Central Government-50%, State Government- 15% and Sponsor Banks- 35 %. Earlier, Reserve Bank of India had laid …show more content…
The Committee to Review the Implementation of Crop Insurance Schemes in India observed that the issues that needed to be addressed were: discrepancies in the area insured; delay in receiving crop-cutting data, and the quality and reliability of such data; non-compliance with the provision of compulsory insurance for loanee farmers, multiple loans on the same land, and lack of seasonality discipline; affordability for farmers, especially in the case of the Modified National Agricultural Insurance Scheme; transparency in determining the premium rate; compilation of information by banks without due diligence; delay in settlement of claims; dissatisfaction with quantity of claims in the case of the Weather- Based Crop Insurance Scheme; and lack of awareness of the schemes and principles of insurance among farmers (Government of India, 2014b). Insurance companies and banks need to play an active in the active and proper implementation of the scheme. Indian government has taken some instrumental steps like introduction of schemes pradhaan mantri fasal bima …show more content…
Challenge arises in front of NABARDS to reduce the cost of transaction by providing them a gateway of the world class infrastructure. RIDF emerged as the largest partner of NABARD’s major partnership with the state governments for the creation of wide variety of the rural infrastructure covering 34 activities like agriculture and it’s all three sectors. A value chain model covering innovations in farming, transportation, storage, processing, value addition and marketing can help farmers in making a handsome profit in a sustainable manner. NABARD has emerged as the leader for providing affordable credit to the public and private sectors out of the warehouse infrastructure fund for investment in scientific storage and the food processing sector, leading to the overall development of post-harvest infrastructure in the country. Further, the GoI has also set up a special fund of `2000 crore in NABARD to make available affordable credit for establishing mega-food parks and for setting up individual food processing units in the designated food
History –
Rural areas are endowed with not only the agriculture but also with the activities like fisheries, bee keeping, livestock etc. The question that arises here is, even with such potential of making profits who is there to fund their ideas. In 1975 the narshimhan committee recommended the formation of regional rural banks in India. On 2nd October 1976 five RRBs were setup with the capital of 100crores but later it was augmented to 500crores the five banks. The central government, the state government and the sponsor banks. Who held shares in the ratios as follows Central Government-50%, State Government- 15% and Sponsor Banks- 35 %. Earlier, Reserve Bank of India had laid …show more content…
The Committee to Review the Implementation of Crop Insurance Schemes in India observed that the issues that needed to be addressed were: discrepancies in the area insured; delay in receiving crop-cutting data, and the quality and reliability of such data; non-compliance with the provision of compulsory insurance for loanee farmers, multiple loans on the same land, and lack of seasonality discipline; affordability for farmers, especially in the case of the Modified National Agricultural Insurance Scheme; transparency in determining the premium rate; compilation of information by banks without due diligence; delay in settlement of claims; dissatisfaction with quantity of claims in the case of the Weather- Based Crop Insurance Scheme; and lack of awareness of the schemes and principles of insurance among farmers (Government of India, 2014b). Insurance companies and banks need to play an active in the active and proper implementation of the scheme. Indian government has taken some instrumental steps like introduction of schemes pradhaan mantri fasal bima …show more content…
Challenge arises in front of NABARDS to reduce the cost of transaction by providing them a gateway of the world class infrastructure. RIDF emerged as the largest partner of NABARD’s major partnership with the state governments for the creation of wide variety of the rural infrastructure covering 34 activities like agriculture and it’s all three sectors. A value chain model covering innovations in farming, transportation, storage, processing, value addition and marketing can help farmers in making a handsome profit in a sustainable manner. NABARD has emerged as the leader for providing affordable credit to the public and private sectors out of the warehouse infrastructure fund for investment in scientific storage and the food processing sector, leading to the overall development of post-harvest infrastructure in the country. Further, the GoI has also set up a special fund of `2000 crore in NABARD to make available affordable credit for establishing mega-food parks and for setting up individual food processing units in the designated food