Professional Documents
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NABARD took over the functions of the erstwhile Agricultural Credit Department
(ACD) and Rural Planning and Credit Cell (RPCC) of RBI and Agricultural
Refinance and Development Corporation (ARDC). Its subscribed and paid-up
Capital was Rs.100 crore which was enhanced to Rs. 500 crore, contributed by
the Government Of India (GOI) and RBI in equal proportions. Currently it is Rs.
2000 crore, contibuted by GoI (Rs.550 crore) and RBI (Rs.1450 crore).
NABARD: (i) serves as an apex financing agency for the institutions providing
investment and production credit for promoting the various developmental
activities in rural areas; (ii) takes measures towards institution building for
improving absorptive capacity of the credit delivery system, including monitoring,
formulation of rehabilitation schemes, restructuring of credit institutions, training
of personnel, etc. ; (iii) co-ordinates the rural financing activities of all institutions
engaged in developmental work at the field level and maintains liaison with
Government of India, State Governments, Reserve Bank of India (RBI) and other
national level institutions concerned with policy formulation; and (iv) undertakes
monitoring and evaluation of projects refinanced by it.
NABARD operates throughout the country through its 28 Regional Offices and
one Sub-office, located in the capitals of all the states/union territories. It has 336
District Offices across the country, one Sub-office at Port Blair and one special
Cell at Srinagar. It also has 6 training establishments.
ORGAINSATION STRUCTURE
ORGANISATIONAL SET-UP
BOARD OF DIRECTORS
CHAIRMAN
MANAGING DIRECTOR
EXECUTIVE DIRECTORS (5)
HEAD OFFICE REGIONAL TRAINING
DEPARTMENTS (22) OFFICES (28) ESTABLISHMENTS (5)
NABARD has suitably qualified and experienced staff in the areas of:
General Banking
Agriculture and related Sciences such as Irrigation, Plantation and
Horticulture, Land Development, Animal Husbandry and Dairy Technology,
Agricultural Engineering, Bio-technology, Fisheries, Forestry, etc.
Agricultural Economics
Accounts and Finance
Information Technology
Appropriate training and skills are imparted to the staff on an ongoing basis within
and outside the country. NABARD's own training establishment as also outside
agencies are utilised for the purpose.
Staff Structure
CHAIRMAN
MANAGING DIRECTOR
EXECUTIVE DIRECTORS
CHIEF GENERAL MANAGERS
GENERAL MANAGERS
DEPUTY GENERAL MANAGERS
ASSISTANT GENERAL MANAGERS / MANAGERS / ASSISTANT MANAGERS
CLERKS / STENOGRAPHERS / TYPISTS
Mode of Assistance:
b. Promotional
KISAN CREDIT CARD SCHEME
1. Genesis
Hon'ble Union Finance Minister announced in his budget speech for 1998-
99 that NABARD would formulate a Model scheme for issue of Kisan
Credit Cards to farmers, on the basis of their land holdings, for uniform
adoption by banks, so that the farmers may use them to readily purchase
agricultural inputs such as seeds, fertilisers, pesticides, etc. and also draw
cash for their production needs'.
NABARD formulated a Model Kisan Credit Card Scheme in consultation
with major banks.
Model Scheme circulated by RBI to commercial banks and by NABARD to
Cooperative banks and RRBs in August 1998, with instructions to
introduce the same in their respective area of operation.
2. Objectives
Beneficiaries covered under the Scheme are issued with a credit card
and a pass book or a credit card cum pass book incorporating the name,
address, particulars of land holding, borrowing limit, validity period, a
passport size photograph of holder etc., which may serve both as an
identity card and facilitate recording of transactions on an ongoing basis.
Borrower is required to produce the card cum pass book whenever
he/she operates the account.
Eligible farmers to be provided with a Kisan Credit Card and a pass book
or card-cum-pass book.
Card valid for 3 years subject to annual review. As incentive for good
performance, credit limits could be enhanced to take care of increase in
costs, change in cropping pattern, etc.
Operations may be through issuing branch (and also PACS in the case of
Cooperative Banks) through other designated branches at the discretion of
bank.
Sanction of the facility for 3 years subject to annual review and satisfactory
operations and provision for enhancement.
Flexibility of drawals from a branch other than the issuing branch at the
discretion of the bank
Hon'ble Union Finance Minister in his Budget Speech for the year
2001-02 set the future agenda for the Scheme as under :
Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-year
policy.
Loss of two limbs or two eyes or one limb and one eye -- Rs.50, 000/-
Since launching in August 1998, around 2.38 crore Kisan Credit Cards
issued upto 31 March 2002 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.
Agency-wise/State-wise progress in issue of cards by all banks during
2001-02 and since inception of Scheme.
c. Supervisory
Supervisory Role of NABARD
The general banking environment emerging out of the financial sector reforms
introduced by GOI/ RBI has also since been extended to cover cooperative banks
and RRBs. While the capital adequacy norm has not yet been made applicable to
these banks, the other prudential norms viz., income recognition, asset
classification and provisioning, which were made applicable by Reserve Bank of
India to the commercial banking sector have been extended to cover SCBs and
DCCBs since 1996-97 and to SCARDBs in 1997-98. These norms had already
been extended to RRBs since 1995-96. The exposure of these institutions to the
prudential norms also called for a suitable strategy to be adopted by the
NABARD to help these banks to adjust to the new financial discipline.
The changes mentioned above necessitated a review and revision of the strategy
adopted by the NABARD for the inspection and supervision of the cooperative
banks and RRBs. Under the revised strategy, a sharper focus of the NABARD's
inspection was given on the core areas of the functioning of banks pertaining to
Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Systems
Compliance(CAMELSC). Thus NABARD's focus in its statutory `on-site'
inspections is on core assessments leaving the collateral appraisals to
supplementary inspections. The micro level aspects are to be taken care of by
the banks themselves by way of internal inspections or by other agencies such as
auditors. In this direction, through a series of workshops and meetings held with
the Chief Executives and the Chief Auditors of cooperative banks, NABARD
attempted to ensure that the other areas, particularly relating to the internal
checks and controls, revenue and income realisation by way of interest on loans
and deposits and other routine features of carrying out general banking
transactions were suitably taken care of by the respective banks and their
concurrent/ statutory audit systems.
Board of Supervision (for SCBs, DCCBs and RRBs) has been constituted
by NABARD under Section 13(3) of NABARD Act, 1981 as an Internal Committee
to the Board of Directors of NABARD. The broad powers and functions of the
Board of Supervision are : giving directions and guidance in respect of policies
and on matters relating to supervision and inspection, reviewing the inspection
findings, suggesting appropriate measures, reviewing the follow-up action taken
by Department of Supervision (DoS) on matters of frauds and internal checks
and control, identifying the emerging supervisory issues in the functioning of
cooperative banks/RRBs such as NPAs recovery, investment portfolio, credit
monitoring system, management practices, frauds, etc., and suggesting
necessary follow-up measures. It can also recommend appropriate training for
Inspecting Officers of NABARD for imparting necessary skills and knowledge,
suggest measures for strengthening of DoS, recommend issue of directions by
RBI, oversee the quality of inspections carried out and the reports issued, review
the information generated through off-site surveillance and other supplementary
vehicles, action taken thereon, and undertake any other functions entrusted from
time to time by the Board of Directors of NABARD.
The Board of Supervision, since its formation on 20 November 1999, has held 22
meetings till 30 June 2004 and reviewed the financial position of Cooperative
Banks and RRBs. Based on the observations of BoS, authorities concerned have
been apprised of the weaknesses.
Critical evaluation of NABARD
• Income tax exemption:- NABARD was exempted for IT all these years, but
has lost that status from the year 2001 onwards and paid Rs.390 Cr by
way of IT for the year 2001-02 & Rs.400 Cr for the year 2002-03
• Non-Performing Assets: - NABARD has the lowest non-performing assets
which is around 0.96%
• Stagnant Labour: - The number of employees working for NABARD is
almost stagnant from the last 10 years. The total numbers of employee’s
are 5400
• KCC: - Till 31st March 2006 just 582.50 lakh Kisan Credit Card where
issued
After studying the role and various refinancing activities of NABARD one can say
that there is a lot of scope for improvement, as the actual scenario is completely
different. All the functions of NABARD are adequate, but it is the execution of
these functions which is not happening correctly. Hope NABARD will improve its
execution plans and improve its performance in refinancing RURAL INDIA