The Committee

Chief Patron: Shri Anil Shastri, Special Invitee, Congress Working Committee (CWC), Patron: UK Mohanty, President: Giridhar Thakur, Vice President: D K Mazumdar and K K Bagul, General Secretary: Dr DS Chauhan, Organising Secretary: P K Maheshwari, Treasurer: Amit Gupta, Zonal Secretaries: Smt. Sandhya Chowdhary (North), Pushphas Pandey (Central), A K S Chauhan (West), Ashes K Chatterjee (South), Ranajee Mehta (East), A K Gogoi (North East), Committee Members: A K Dikshit, Mahesh Raichandani, R Mohan, Dr. S K Pandey, B V Rao, Advisor: A D Lokare

Sunday, 25 October 2015

PY - 2015 Vacancies in Rajbhasha Services Letter to Bank

Hon’ble Chairman
Head Office,

Dear Sir,

Filling Up of Vacancies in Rajbhasa Services: PY 2015
With due regards we would like to submit as follows-
1.    AINBOA has been submitting to bank, both formally and informally, its reservation and apprehension in respect to banks decision to have a common written test for Grade ‘C’ to ‘D’ promotions for the officers of ‘other Services’ along with ‘RDBS’ officers. The officers from the ‘Other Services’, who are employed and deployed by the bank for specific role assignments naturally find themselves at receiving end while being tested on the subject matter which pertains to RDBS services.
2.    We had repeatedly requested the bank to adopt the system prevailing in RBI where at, officers from ‘Other Services’ are tested on separate set of questions pertaining to their domain of profession only.
3.    Unfortunately bank has not acceded to our requests which has resulted in non-fulfilment of vacancies, especially in grade ‘D’ during the panel year 2014 due to want of required number of officers qualifying for interviews.
4.    This year too, our apprehensions have proved to be true as we note that not a single officer from Rajbhasha who wrote their promotion test for PY 2015 could qualify for interviews for promotion to grade ‘D’. This in turn means that vacancies for the panel year 2015 may not get filled up again during this year too.
5.    This will not only set in demotivation among deserving officers from Rajbhasha who have already put in more than a decade of service in Grade ‘C’ but will also lead to some sort of reverse discrimination among the officers community.
We, therefore, earnestly request you to use your good offices in ensuring filling up the already declared vacancies in Grade ‘D’ for Rajbhasha officers.  Thanking You

Yours Sincerely ,
(Dr D S Chauhan)

General Secretary

Moderation in PAR - Letter to Bank

Hon’ble Chairman
Head Office,

Dear Sir,

Moderation in PAR – FY : 2014-15

With due regards it is submitted that we have received feedback from our various units, including Mumbai Unit, that officers have observed drastic reductions (ranging from 5 to 15%) in their PAR marks by respective review committees during the year 2014-15.
Great Majority of the officers who have preferred an appeal too have not finally got their marks restored or modified.
This has resulted in a large scale demotivation as it may adversely impact their career progression.
We, therefore humbly request you to bestow your personal good offices to each of the  ‘appeals’ so that justice is meted out to the aggrieved officers.

Thanking You

Yours Sincerely ,

(Dr D S Chauhan)
General Secretary

Tuesday, 13 October 2015

Annual Report 2015 - Salient Fetures


The Annual report is transmitted to share holders U/S 48(5) of NABARD Act , 1981
Chairman NABARD to Be Chairman of the Board u/s 6 (1) (a)
A) Appointed under Sec 6(1)(b) of NABARD Act,81 -  VACANT (Experts in Rural economics, Rural Dev. etc)-
B ) Appointed under Sec 6(1)(c) of NABARD Act,81 -      2 directors (Directors from RBI)
C) Appointed under Sec 6(1)(d) of NABARD Act,81 -      3 directors (CG/GoI officials)
D) Appointed under Sec 6(1)(e) of NABARD Act,81 -      4 directors (SG officials)
E) Appointed under Sec 6(1)(f) of NABARD Act,81 -       VACANT ( Elected Directors )
F) Appointed under Sec 6(1)(g) of NABARD Act,81 -      VACANT (MD)
G) Appointed under Sec 6 (3) of NABARD Act,81 -     2 Whole-time Directors (DMDs)

A: SOURCES OF FUND                                                                                (Rs crore)                                                                            
% growth


Major increase in sources of fund is through RIDF deposits , STCRC fund , CPs , Term money borrowings and CBLO. The total  market borrowings including CBLO which were 79% of the total funds in 2013-14 increased to 80% of the total funds in 2014-15. The direct market borrowings (Deposits , Bonds & debentures , FC Loan , CPs , CBLO & term Money borrowings)remained static at 15% of the total funds as compared to 2013-14.
I)             CAPITAL:Paid-up capital got augmented by Rs.300 crore  by way of share contribution by GoI during 14-15. GoI holding stood at 99.6% while that of RBI at 0.4%. Authorised capital stands at Rs.5000 crore.

II)            NRC (LTO & STAB.) FUNDS : Remained almost static as Augmentation to these funds is by way of  internal accruals and contribution from RBI. These funds are used by NABARD for Investment sector refinance and for conversion of ST loans respectively. RBI contributed a token sum of Rs.1 crore to each of these funds.

III)           DEPOSITS : Are from Tea , Coffee & rubber Companies as deposits with NABARD.

IV)          BONDS & DEBUNTURES : Fresh corporate bonds worth Rs. 9850 were issued during the year 2014-15 , however due to redemption of CGB , Corporate Bonds , BhavishyaNirman Bonds & NABARD Rural Bonds amounting to Rs. 12058 crore the (-) growth was registered.

Definition :
A debenture is a debt instrument which is not backed by any specific security instead the credit of the company issuing the same is the underlying security. Corporates use this as a tool to raise medium- to long-term funds. The funds raised become part of the capital structure but not share capital of the company.
Bonds, however, are typically issued by financial institutions, government undertakings and large companies. The interest rate is assured and is paid at a fixed interval, i.e. on an annual or semi-annual basis. On maturity, the principal is repaid. Bond is a form of loan. The holder of the bond is the lender and the issuer of the bond is the borrower. Bonds are issued to fund long-term capital expenditure needs.
There are many types of bonds and some of the common ones are –
a)      Deep discount bonds, also known as zero-coupon bonds, are bonds wherein there is no interest or coupon payment and the interest amount is factored in the maturity value. So, the issue price of these bonds is inversely related to their maturity period.
b)    Corporate bonds are issued by companies/corporates offering attractive interest rates , generally higher than bonds issued by public sector units and other financial institutions. The interest rate on these bonds is governed by a Corporate or companies credit rating and higher the rating, lower is the interest rate offered by them.

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V)           FOREIGN CURRENCY  LOAN :Borrowings from international agencies marginally  increased from Rs.715 crore as on 31/03/2014 to Rs.727 crore as on 31/03/2015. All our FC loans as also the interest payments are fully hedged @ average annual cost of 6.35 % for 10 years.
Hedging is a risk management strategy used in limiting or  offsetting probability of loss from fluctuations in    the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies.In very simple terms, currency hedging is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange  rates.

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VI)          COMMERCIAL PAPERS :Borrowings to the tune of Rs.37450 crore was resorted to during the FY 14-15 and after redemptions during the year a sum of Rs.2898 crore was O/S as on 31/03/2015.
CP :It is basically a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed only by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note.
vii) CBLO (Collateralised Borrowing& Lending Obligations) : NABARD d resorted to CBLO based borrowings in the FY 14-15 and a sum of Rs.5281 crore was O/S as on 31/03/2015.
CBLO is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of the loan. CBLOs were developed by the Clearing Corporation of India (CCIL) and Reserve Bank of India (RBI). The details of the CBLO include an obligation for the borrower to repay the debt at a specified future date and an expectation of the lender to receive the money on that future date, and they have a charge on the security that is held by the CCIL.
viii) TERM MONEY BORROWING : 3-6 month tenure borrowings required to meet short term obligations. The O/S under this head grew by 126% which indicates our over reliance on market borrowings for meeting our short term obligations.
The call/notice/term money market is a market for trading very short term liquid financial assets that are readily convertible into cash at low cost. The money market primarily facilitates lending and borrowing of funds between banks and entities like Primary Dealers. An institution which has surplus funds may lend them on an uncollateralized basis to an institution which is short of funds. The period of lending may be for a period of 1 day which is known as call money and between 2 days and 14 days which is known as notice money. Term money refers to borrowing/lending of funds for a period exceeding 14 days. The interest rates on such funds depends on the surplus funds available with lenders and the demand for the same which remains volatile.
NABARD has  launched a TMB instrument to mobilise funds having Min. 03 months and max.6 months tenancy and bearing an interest rate of 7.1% and 7.2% respectively. No TDS will be deducted on the maturity value as banks are exempted from IT on this instrument.
IX )RIDF DEPOSITS: Deposits taken from CBs u/s 19(d) of NABARD Act , 1981, being the shortfall in their priority sector lending stipulations. Used for funding our RIDF portfolio of providing loans , primarily to state Governments for funding Rural Infrastructure projects. FY 14-15 deposits accounted for RIDF XV to XX and stood at Rs.89603 crore as on 31/03/2015.

What is meant by Priority Sector?
Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.
Different categories under priority sector
(vi) Others
Targets and Sub-targets for banks under priority sector
Domestic commercial banks / Foreign banks with 20 and above branches (As percent of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher)
Foreign banks with less than 20 branches (As percent of ANBC or Credit Equivalent of Off-Balance Sheet Exposure, whichever is higher)
Total Priority Sector
Total agriculture
No specific target.
Advances to Weaker Sections
No specific target.
 'Direct Finance' for Agricultural Purposes
(i) Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers] engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture.
(ii) Loans to corporates including farmers' producer companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericultureup to an aggregate limit of `2 crore per borrower.
(iii) Loans to small and marginal farmers for purchase of land for agricultural purposes.
(iv) Loans to distressed farmers indebted to non-institutional lenders.
(v) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized AdivasiMulti Purpose Societies (LAMPS) ceded to or managed/ controlled by such banks for on lending to farmers for agricultural and allied activities.
 'Indirect Finance' to Agriculture?
(i) If the aggregate loan limit per borrower is more than `2 crore in respect of para. (4) (ii) above, the entire loan will be treated as indirect finance to agriculture.
(ii) Loans upto `5 crore to Producer Companies set up exclusively by only small and marginal farmers under Part IXA of Companies Act, 1956 for agricultural and allied activities.
(iii) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized AdivasiMulti Purpose Societies (LAMPS).
Micro and Small Enterprises under priority sector
Bank loans to Micro and Small Manufacturing and Service Enterprises, provided these units satisfy the criteria for investment in plant machinery/equipment as per MSMED Act 2006.

Manufacturing sector
Investment in plant and machinery
Micro Enterprises
Do not exceed twenty five lakh rupees
Small Enterprises
More than twenty fivelakh rupees but does not exceed five crore rupees
Investment in equipment
Micro Enterprises
Does not exceed ten lakh rupees
Small Enterprises
More than ten lakh rupees but does not exceed two crore rupees
Loan limit for education under priority sector
Loans to individuals for educational purposes including vocational courses upto `10 lakh for studies in India and `20 lakh for studies abroad are included under priority sector.
Loan limit for housing loans under priority sector
Loans to individuals up to `25 lakh in metropolitan centres with population above ten lakh and `15 lakh in other centres for purchase/construction of a dwelling unit per family excluding loans sanctioned to bank’s own employees.
Weaker Sections categorisation for priority sector lending
Priority sector loans to the following borrowers are considered under Weaker Sections category:-
(a) Small and marginal farmers;
(b) Artisans, village and cottage industries where individual credit limits do not exceed `50,000;
(c) Beneficiaries of Swarnjayanti Gram SwarozgarYojana (SGSY), now National Rural Livelihood Mission (NRLM);
(d) Scheduled Castes and Scheduled Tribes;
(e) Beneficiaries of Differential Rate of Interest (DRI) scheme;
(f) Beneficiaries under SwarnaJayantiShahariRozgarYojana (SJSRY);
(g) Beneficiaries under the Scheme for Rehabilitation of Manual Scavengers (SRMS);
(h) Loans to Self Help Groups;
(i) Loans to distressed farmers indebted to non-institutional lenders;
(j) Loans to distressed persons other than farmers not exceeding `50,000 per borrower to prepay their debt to non-institutional lenders;
(k) Loans to individual women beneficiaries upto `50,000 per borrower;
10. What is the rate of interest for loans under priority sector?
The rate of interest on various priority sector loans will be as per RBI’s directives issued from time to time, which is linked to Base Rate of banks at present. Priority sector guidelines do not lay down any preferential rate of interest for priority sector loans.
Source : Reserve Bank of India.

X. STCRC (SHORT TERM COOPERATIVE RURAL CREDIT-REFINANCE)FUND :Setup in 2008-09 to augment NABARDs resource base for providing short term refinance facility to cooperative banks , the contribution to the fund is through CBs shortfall in the Priority sector lending. Rs.50000 crore were contributed to this fund in 2014-15 , taking the outstanding under this fund to Rs. 60000 crore.
PS :Rs. 45000 crore has been contributed for this fund for  2015-16 through union budget announcement.
XI.SHORT TERM  RURAL CREDIT REFINANCE FUND FOR RRBs : Setup in 2012-13 to augment NABARDs resource base for providing short term refinance facility to RRBs , the contribution to the fund is through CBs shortfall in the Priority sector lending. Rs.20000 crore were contributed to this fund in 2014-15 , taking the outstanding under this fund to Rs. 30000 crore as on 31/03/2015.
PS :Rs. 15000 crore has been contributed for this fund in 2015-16 through union budget announcement.
XII. WAREHOUSE INFRASTRUCTURE FUND :Setup for providing loans to SGs, for projects under PPP model and as also to private sector for providing fillip to warehousing related activities. The O/s under this fund as on 31/03/2015 was Rs. 1550 crore.
XIII. LONG TERM RURAL CREDIT FUND(LTRCF) :Setup in 2014-15 by GoI with a corpus of Rs.5000 crore the fund aims to give impetus to GLC flow under Investment credit so as to enhance the pace of Gross Capital Formation (GCF) in rural areas. It is a new line of credit available with NABARD so as to provide refinance at concessional rate (7.85%) to RRBs and Cooperative banks. The contribution to the fund is through CBs shortfall in the Priority sector lending. Rs.5000 crore was O/S on 31/03/2015.
PS :Rs.15000crore has been contributed to the fund in 15/16 and RoI charged  is 6.7% during the current year.
XIII.  OTHER LIABILITIES: Amounting to Rs.9490 crore mainly  include interest/discount accrued , Sundry  Creditors , subsidy reserves , provisions for gratuity & pension , provision for Encashment of OL , provisions for standard assets etc.
XIV. OTHER FUNDS : At Rs.5710 crore include watershed Development fund , Interest Differential Fund , Adivasi development fund , Tribal development fund , FIF (financial inclusion fund) , FITF (financial inclusion Technology fund) and FTTF (Farmers Technology Transfer Fund).
                                                                                                                                   (Rs crore)                                                                           
%  growth




Investments portfolio recorded a negative growth of 8.9%  over the last FY , as compared  loan & advances recorded a positive growth of 15.5% as year on year basis. Major growth was recorded in Treasury Bills , CPs and investment in Equities. The ST loans grew by 11% , while MT/LT loans grew by 32% and  RIDF loans grew by 6%.
i)             ST loans
ii)            : Provided as per section 21(1) to (4) of NABARD Act , 1981. Loans are upto 18 months and are being provided to state cooperative banks and RRBs , primarily for Seasonal agricultural operations u/s 21(1)(i). ST (other than seasonal Agricultural operations) limits are also being sanctioned u/s 21(1)(iv) & (v) for off farm marketing activities pertaining to retail trade , handicrafts and other crafts and/or any other cottage and SSI.
ST refinance portfolio comprises of 36% (decreased by 1.5% as compared to last year) of our total loans & advances portfolio as on 31/03/2015.
ii)            MT Conversion loans for production credit : Provided under Section 22 of NABARD Act, 1981 in order to tide over the problems faced by financing institutions on account of  non repayment of loans due to natural calamity , enemy action etc. Accommodation granted under this section is for a fixed period not exceeding 7 years.
No disbursement was made under this category in 2014-15
iii)           MT Rescheduling of  loans to rural Artisans , SSI etc. : Provided under Section 23 of NABARD Act , 1981 in order to tide over the problems faced by financing institutions on account of  non repayment of loans due to unforeseen circumstances. Accommodation granted under this section is upto a period of not less than 18 months and not exceeding 7 years.
No disbursement was made under this category in 2014-15
iv)           MT loans for Investment Credit : Provided u/s 24 of the NABARD act , 1981, these are loans &advances for a period not less than18 months and not exceeding 7 years. These are refinance against Term loans provided by the FIs for Agri& Allied activities.
MT-investment credit  refinance portfolio comprises of 25% (increased by 3% as compared to last year) of our total loans & advances portfolio as on 31/03/2015.A new line of credit having refinance tenancy of 18 months to 3 years was introduced during the year.
v)            RIDF Loans : These loans are provided to state governments u/s 27 (A) of NABARD Act, 1981 for creating rural infrastructure. Started in 1995-96 the RIDF has entered into its XX tranche in the year 2014-15.
RIDF loan  portfolio comprises of 34% (decreased by 3% as compared to last year) of our total loans & advances portfolio as on 31/03/2015.

vi)           Other loans :Loans granted u/s 27 (to state governments for contributing to share capitals of coops) , loans provided from various funds such as CDF , TDF , kfW , NIDA , direct loans to cooperative banks (u/s 21(1)/21(4)) etc. stood at Rs.10505 crore making 4% of the loans & advances.
vii)         Other &Fixed  Assets : Constituted of accrued interest , loans and advances to staff and other individuals ,advance &deferred tax and other recoverable as also land & Building , F/F , Computers and Office equipment , and vehicles.
C : Other important financial Parameters; (ref. P/L Account for ii to v)
i)             Investment of surplus funds :Rs.25418 crore was deployed as surplus fund , with major deployment in G-Sec @ Rs.14607 crore and Rs.10811 crore in ST bank deposits to meet the liquidity requirements.
ii)            Income : The income rose from Rs.15570 crore in 2013-14 to Rs.17804 crore in 2014-15, recording an increase of Rs.2234 crore in absolute terms and 14% in terms of growth year on year basis which was lower than the recorded growth rate of 20% in 2013-14 over 2012-13.
iii)           Expenditure : The expenditure rose from Rs.12654 crore in 2013-14 to Rs.14383 crore in 2014-15 , recording an increase of Rs.1729 crore in absolute terms and 14 % in terms of growth on year to year basis which compares favourably to recorded growth in expenditure @ 24 % in 2013-14 over 2012-13. However , the growth of expenses has been equal to the growth of income in %age terms.
iv)           PBT (Profit before Tax) :PBT grew from Rs. 2788 crore in 2013-14 to Rs.3421 crore in 2014-15 recording a growth rate of 22% and Rs.633 crore in absolute terms.
v)            PAT (Profit after Tax) : PAT grew from Rs. 1860 crore in 2013-14 to Rs.2403 crore in 2014-15 recording a growth rate of 29% and Rs.543 crore in absolute terms.
vi)           Contribution to various Funds: Rs. 490 crore to special reserve for IT purposes under Section 36(1) (viii) of IT Act , 1961 , Rs 1 crore each to NRC (LTO) and NRC (Stab.) funds respectively ,  , Rs 1955 to Reserve Fund and Rs .134 crore to various other funds such as R& D Fund , FTTF and Investment Fluctuation Reserve Fund etc.
vii)         CRAR ( Capital to Risk Weighted Assets Ratio) : CRAR marginally  increased from 16.61% in 2013-14 to 16.91% in 2014-15 and was within RBI stipulation of 9%.
viii)        Net NPAs as % to Net loans increased from 0.0089 in 13-14 to 0.0092 in 14-15.
ix)           Cost of Funds was 6.77% while yeald on assets was 9.29 %.
x)            Net Income as %age to Av.Working Funds increased from 6.75 in 2013-14 to 6.80 in 2014-15.
xi)           Operating profits as %age to Av. Working Funds increased from 1.27 in 2013-14 to 1.37 in 2014-15. The low operating profits as %age to Av. Working funds indicates low margins and interest spreads and warrants correction either by increasing the margins or by suitably increasing the turnover.
xii)         Return on average asset in %age terms increased  from 0.82  in 2013-14 to 0.93 in 2014-15.
xiii)        Per Employee profit rose from Rs.0.44 crore in 13-14 to Rs.0.59 crore in 14-15.



1.    Economic growth @ 7.1% of GDP growth (PE). Real GDP is now being calculated by CSO with reference to GDP at constant market price instead of at factor cost as was being done prior to 2015. This is in tune with international practice. The base year too has been changed from 2004-05 to 2011-12. PS the note
2.    Agriculture or primary sector declined sharply as it grew by 0.2% only compared to 4.7% growth in 2013-14. Its contribution to GDP stood at 17%.
3.    Industries or Secondary sector , which contributes 30% of the total GDP grew by just 5.6% , while services or tertiary sector which contributed 53 % grew by 9.8%.
4.    India’s GDP in 2014-15 at current prices is pegged at Rs. 135 lakh crore.
5.    Major concerns are slow agricultural growth , sluggish global economy, massive demand for skill creation and creation of infrastructure. Other concerns are containing the current account deficit ,  inflation and falling exchange rate of INR vis-a-vis US$. The positive indicators are declining inflation , low crude prices in international market and slowing of China’s economic growth which provides opportunity to Indian manufacturers to grow and occupy the space. Further , moderate trade & current account deficit , abundant Financial flows , healthy foreign exchange reserve and broadly healthy exchange rate movement can elevate our economy to next higher pedestal of growth.
6.    Consumer Price Index (CPI) inflation ranged between 8.5% to 5.2% , with CPI for food articles ranging between 9% to 6%. CPI inflation in respect of pulses and milk and fruits was on higher side.
7.    GoI allocated additional 5 Million Tonnes of rice for BPL families , 10 MT of wheat in open market sale , delisting of fruits and vegetables from APMC Act so as to allow free movement , brought Onions and Potato under Essential Commodities Act , 1955 to curb hoarding and cartelization and increased export price for onion and potato in order  to curb food inflation.
8.    GoI to reduce Fiscal deficit to 3% by FY 2017 as against the 3.99% during FY 2014-15.
9.    Food grain production fell down from 265 MT in 2013-14 to 251 MT in 2014-15.
10.  Fruits & vegetables production 280 million tonnes in 2013-14.
11.  Average rural casual wages tripled between 2004-05 to 2011-12 on account of growing construction activity , increased MSP (Minimum Support Price) for farm products leading to increased wages for farm labourers and the positive effect of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). This led to higher purchasing power  the rural India leading to increased opportunities for Fast Moving Consumer Goods (FMCGs) business , clothes , mobile sets etc. in rural areas.
12.  Gross Capital Formation (GCF) in Agriculture & Allied Activities increased from 15% in 2006-07 to 20% in 2011-12 to 21.2% in 2012-13 which compares poorly to overall capital formation in economy @ 38-40% of GDP. The share of private sector in GCF in agri-GDP stood at 85% in 2011-12 as against that of public sector share of 15%. Increased participation of public sector in big infrastructure project will further prompt the private sector participation in GCF in agri-GDP.
13.  Poverty levels and HDI : Overall poverty level recorded a decline from 37.2 % in 2004-05 to 21.9 % in 2011-12. In absolute terms the number decreased from 407 million to 269 million during the same period. Rural poverty declined from 41.8 % to 25.7% during the same period with reduction in absolute numbers from 326 million to 217 million. India is ranked poorly at 135 among 187 countries in Human development Index (HDI).

HDI : The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries.

14.  National Food Security Act , 2013 envisages providing food and nutritional security to each citizen of the country. Targeted population to be provided with 5 kgs of foodgrain per day per person Rs.1-3 per kg. India is ranked at 55 with a GHI of 17.8 , in respect of Global Hunger Index (GHI) , even below than countries like Nepal , SriLanka and Indonesia.
GHI : The Index ranks countries on a 100-point scale, with 0 being the best score ("no hunger") and 100 being the worst, though neither of these extremes is achieved in practice. The higher the score, the worse the food situation of a country. Values less than 4.9 reflect "low hunger", values between 5 and 9.9 reflect "moderate hunger", values between 10 and 19.9 indicate a "serious", values between 20 and 29.9 are "alarming", and values exceeding 30 are "extremely alarming" hunger problem.The GHI combines three equally weighted indicators: 1) the proportion of the undernourished as a percentage of the population; 2) the prevalence of underweight children under the age of five; 3) the mortality rate of children under the age of five.

15.  During 2013-14 a central Sector Scheme of National  Crop Insurance Program (NCIP)/RashtriyaFasalBimaKaryakaram (RFBK) was formulated by merging Modified National Agriculture Insurance Scheme (MNAIS) , Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS). As per the scheme MNAIS will be extended to all the districts of the country with compulsory coverage for loanee farmers. Crops covered will be food crops , oilseeds and horticulture crops. Insurance premium will be one of the components of Scale of Finance fixed for the respective crops. Agriculture Insurance Company of India Ltd (AICI) will implement the scheme. GoI’s committee to review the implementation of Crop insurance schemes has pointed out-discrepancies in the area insured , delayed , unreliable and inadequate crop cutting data , non adherence to mandatory crop insurance by the banks , poor quality of data base with banks , non-settlement or delayed settlement of claims , affordability of premium by SF, lack of awareness about the scheme are the major areas of concern.

16.  Nine states have adopted Model APMC(Agriculture Produce Marketing Committee) Act , 2003. The model act envisages-
i)              Establishment of Pvt. Wholesale Markets
ii)             Direct Marketing by promoters , exporters , graders and packers.
iii)            Farmers Market to directly sell the produce to consumers.
iv)           PPP in marketing infrastructure development.
v)            Special Markets and Special Commodity markets.
vi)           Promotion of e-Trading , and
vii)          Simplification of levy and market fee structure.

17.  Banking Sector :
i)              Share of credit to GDP increased from  36 % in 2000 to 51% in 2013.
ii)             Return on Assets (RoA) reduced from 1.08 in 2011-12 to 1.03 in 2012-13
iii)            Net Interest Margin (NIM) as a %age of average assets reduced from 2.9 to 2.8 during the same period.
iv)           CRAR remained above the stipulated 9% in case of SCBs , however it declined from 13% to 12.8% between 31/03/14 to 30/09/14.
v)            Growth in total assets and credit declined for the 4th consecutive year in case of SCBs.
vi)           CD ratio remained static at 79%.
vii)          Gross NPA as % to total gross advances in case of SCBs increased from  3.6 as on 31/03/13 to 4.1% as on 31/03/2014 , which further increased to 4.5% as on 30/09/2014.
viii)         Stressed Advances in PSBs stood at 13% of the total advances in case of PSBs as on 30/09/14 as compared the PvtSBs had 4.5% as stressed advances to total advances as on 30/09/2014. Infrastructure , Mining , Iron & steel , textiles and aviation had the highest level of stressed advances and hence has been categorised as ‘stressed sectors’.
PS: Stressed advances are defined as gross non-performing assets plus restructured standard advances.
ix)           Slowdown of economy , credit concentration in certain sectors and lax appraisal/monitoring , pressure on asset quality , risk aversion among bankers , and resorting to non bank finance by corporates such as through commercial Papers and external borrowings were the prime areas of concern.

18.  Agriculture Credit :
i)              Against a target of 800000 crore the disbursement was 840643 crore.
ii)             CBs share 71% , Cooperatives 17% and RRBs 12%.
iii)            Between 2004-05 to 2014-15 , the Crop loan increased more than eight folds while the investment credit recorded increased by only four folds.
iv)           Investment credit stood at 24 % of the total credit disbursed in 2014-15.
v)            Though the average loan outstanding has increased from Rs.12500/=  in 2003 to Rs. 47000/= in 2013 , the point of concern is that it is not a real increase in credit availability if inflation and real time value for money is factored in and the increase in availability of credit in respect of landless and SF/MF is still much less pronounced.
vi)           It is observed that the access of Institutional Finance to landless, SF and MF is highly restricted and they are indebted more to Informal sources of credit.

19.  KCC Scheme
i)              Introduced in August 1998
ii)             Revised in 2012 to enable ATM based debit cards as KCCs.
iii)            Cooperatives have issued 400 lakhs and RRBs 110 lakh operative KCCs by  31/08/14.
20.  Enhancing Agriculture Productivity –Major Concerns
ia)        Small operational Land holdings-Out of 138 million land holdings 117 million are small & marginal holdings with Av.size of 1.16 Ha
ib)        Constitute of 85% of land holdings
ic)        Hold 44% of cultivated area.
ii)             Though Agri credit almost increased more than 10 folds since 2000-01 , the share of investment credit declined from 40% of the total Agri credit in 2006-07 to merely 22% in 2012-13 leading to a very slow and tardy GCF in rural areas.
iii)            Out of 14 crore farm households only 55% are under formal credit delivery coverage.
iv)           Lopsided geographical distribution of agri credit with eastern region having access to less than  9%  followed by central region with 16% .
v)            Addressing Agrarian distress due to unviability of agri-operations. Net monthly Income (farm and non-farm) is directly proportional to size of land holding. Farmers having land holding less than 1 hectare reported (-) ve net income.
vi)           NSA is 140 mill. Has. , GCA at 198 Mill. Has. , Cropping Intensity of 140% and Net irrigated area of 63 Mill.Has.
vii)          Fertilisers consumption at 144 kg/Ha (2011-12) coupled with imbalanced use of fertilisers has reduced the crop response ratio.
viii)         30% of the geographical area is categorised as ‘Dry’ with scanty rainfall , 625 as ‘medium’ which is prone to rainfall vagaries and only 8 % ‘Assured’ rainfall category. 54% country faces extremely high water ‘stress’ , more than 50 5 of the wells are facing declining water tables and more than 100 million people live in areas where the quality of water available both for irrigation and consumption is of poor quality.
ix)           Soil degradation is on increase due to salinity and erosion which threatens almost 50% of agricultural area and availability of quality seeds is restricted.
x)            Sharp decline in agri-exports in total exports (from 30 5 to 9 5 between 1980-81 to 2010-11). It increased to 14% in 2013-14 with agri export valued at US$47 Billion and a share of 3% in total world exports.
xi)           Requirement :
a)    Cooperative Farming and Corporate farming.
b)    Increased investment in Agri sector leading to increased per unit productivilty.
c)    SF/MF required to be put on high pedestal of growth through Animal Husbandry activity , Non Farm sector activity and provisions for leasing their unviable land holdings under cooperative/corporate farming systems with policy provisions to ensure Minimum Returns on the land and adequate safeguards to the ownership of the land.
d)    GCA needs to be increased to 280 million Ha. by increasing the cropping intensity to 200% with the help of Minor Irrigation projects (having CCA upto 2000Has.) and medium Irrigation projects (having CCA upwards of 2000 Has. And upto 10000 Has.). Importance of Micro Irrigation is to be realised and adopted , specially for horticulture and vegetable crops. Micro irrigation is defined as a system of irrigation which ensures frequent application of small quantum of water directly above and below the soil surface usually by way of  discreet drops , continuous drops or tiny streams with the help of emitters placed along a water delivery line. Adopting community based approach towards water management systems such as the ‘Andhra Pradesh Farmer Managed ground water system’ is a way out. This endeavour involves managing the water resource (conservation and harnessing) with the help of a people governed Groundwater Management Committee situated at each Hydrological Unit.
e)    20-25 % productivity is impacted by the quality of seeds so quality seeds at affordable prize be made available.
f)     Precision farming through Bio-and eco-technology be promoted. (Precision agriculture (PA) or satellite farming or site specific crop management (SSCM) is a farming management concept based on observing, measuring and responding to inter and intra-field variability in crops with the help of eco technology & Biotechnology).
g)    Soil Health management steps be initiated.
h)    Integrated fertiliser and Pest management practices be adopted.
i)      Protected cultivation i.e. a methodology to create favourable conditions around the cultivated plant by offsetting the detrimental affects of biotic and abiotic factors (Biotic components are the living things that shape an ecosystem. A biotic factor is any living component that affects another organism i.e. plant and animal. Biotic factors include human influence. Abiotic factors are non-living chemical and physical parts of the environment that affect living organisms and the functioning of ecosystems).
j)      Creating a National Common Market for agri commodities so as to address the problem of inefficiency in price discovery , high cost of handling and transportation of agriculture produce due to scattered and state controlled regulated markets.
k)    Developing an organised retail supply system with a direct link between farmers and consumers will bring better remuneration to farmers and better bargain to consumers.
l)      Shanta Kumar Committee has recommended that
·         Food Corporation Of India sjould provide grant assistance to states suffering from distress sale of farm produce.
·         NWR system to compensate farmers in case market price fells below MSP should be put in place.
·         Direct cash subsidy of Rs.7000/Ha may be granted to farmers to bring them out of the moneylenders clutches.
·         Deregulation of Fertiliser sector so as to stop diversion of Urea.
·         MSP system to be reviewed so as to provide adequate MSP to farmers producing pulses and oilseeds.

In the new definition of the economic growth, 
GDP is estimated at market prices, which includes indirect taxes but excludes subsidies. Earlier, GDP growth was estimated at factor cost, which excludes indirect taxes but includes subsidies.  

Taking the old definition and base of 2004-05, India’s GDP growth stood at 4.5 per cent in 2012-13 and 4.7 per cent in 2013-14. However, the new series put GDP growth at 5.1 per cent for 2012-13 and 6.9 per cent for 2013-14.  GDP at factor cost is now passé and will not even be mentioned by the government in future statements. GDP at market prices was recorded in the past as well even though it was not counted while calculating economic growth. In place of GDP at factor cost, gross value added (GVA) at basic prices will be used now.  The difference between GDP at factor cost and GVA at basic prices is that production taxes are included and production subsidies excluded from the latter. “These (production taxes) are imposed even if the products are not produced, such as property. However, excise duty, value added tax etc are all product taxes. Similarly, product subsidies would not  include interest subsidies, which will form part of production subsidies,” explained National Statistical Commission chairman Pronab Sen.   Now, GDP at market prices would come by adding product taxes and deducting product subsidies from GVA at basic prices.  

GVA at factor cost rose 4.9 per cent in 2012-13 and 6.6 per cent in 2013-14.The subsidies at product prices rose 18.6 per cent (at constant prices) in 2012-13 and declined 3.8 per cent in 2013-14.On the other hand, indirect taxes on product rose 10.3 per cent in 2012-13 and six per cent in 2013-14.The net result was that GDP at market prices rose 5.1 per cent in 2012-13 and 6.9 per cent in 2013-14.j

The 0.2 per cent point addition in 2012-13 (from GVA at basic prices) and 0.3 percentage point expansion in 2013-14 was accounted by movement of subsidies and indirect taxes. It should be noted that product subsidies, which are excluded from new definition of GDP, declined 3.8 per cent in 2013-14 year-on-year.

Within GDP as well,  composition of various sectors  have changed.  For  instance,  the share of manufacturing rose from 12.9  per cent in the old base to 18 per cent in the new  series for 2013-14. The government wants to increase the share from 16 per cent to 25 per cent in a decade.  This was because certain services that go into after product moves out of factory are included in the manufacturing.

Explaining  this, Sen said two kinds of approaches — establishment and enterprises — are used in calculating manufacturing production. Till now, only establishment approach was used which means calculating production plant by plant.  On the other hand, in enterprises approach the activities at headquarters are taken into account. For instance, after an item is produced, various marketing and sales promotion efforts go at headquarters level.
“All these have been taken into manufacturing,” Sen, former chief statistician, said. In the  new  GDP  data, establishment approach is used for small companies as they have a few plants or sometimes  a single plant. But,  for large  corporates, enterprises approach is used.

·         Role of Small Farmers :
1)      44% of cultivatable land with SF/MF.
2)      70% vegetables produced by SF
3)      55 % fruits produced by SF
4)      52% cereals produced by SF
5)      70% of Milk produced by SF
As per World bank report GDP growth which originates from agriculture is twice as effective in reducing poverty as that which originates outside agriculture.
Agri commodity value chain normally refers to entire chain of activities pertaining to an agricultural crop starting from the selection of a crop , different phases of its cultivation/production (i.e. arrangements for inputs including credit , agronomic practices and associated services) , Marketing right upto the final produce reaching a consumer.
Farmers generally get less than 20 to 30% of the price finally paid by a consumer.

·         512 Million Live stock including 119 million cows & buffaloes.
·         40% household involve in AH activities
·         138 MT milk produced in 2013-14 which is 18% of Worlds production.
·         10% each of the total production is procured by Milk Cooperatives and private sector which is estimated to be 35 % of marketable surplus. Amul and Nestle are one of the leading value chain system representing a milk cooperative and a private sector respectively. Amul operates through village level milk cooperatives while Nestle operates through individual commission agents.
·         Thus , 65 % of the marketable surplus is either not processed or is processed at the household level only.
·         Marketing sector in AH sector remains largely unorganised , fragmented and traditional in nature leading to sub optimal returns.
·         With 69700 million eggs/annum India is the second largest producer of eggs.
·         With 4 MT of [poultry meat/annum India is third largest producer of poultry meat.
·         Total market of Rs.90000 crore of which 80% is urban market.
·         Hardly 10% of the poultry meat is processed.

·         During 2013-14 India produced 9.6 MT of fish making it the second largest producer in the world.
·         Lack of quality control with poor on-board storage , quality ice & packaging material as also freezing or processing facilities results in high post harvest losses and drop in quality controls.
·         75 % of fish production is marketed as fresh fish with hardly 10 % going through the process of processing/freezing.
·         Lack of capital investment , access to formal credit and organised value chains plague the sector.
·         Fish Farmers Credit Cards on line with KCCs can be an answer.
                                               CHAPTER 2
                  SUPPORTING RFIs - NABARD’s ROLE

1.    Total Financial support extended during 2014-15 stood at Rs.127000 crore as against 103900 crore in 2012-13 , thus registering an increase of 22%.
2.    ST refinance in 2013-14: Sanctioned Rs. 90620 crore & Max. outstanding reached Rs.90151 crore (increase of  16% over the previous year in terms of sanction anda CAGR of over 22% over the last 5 years).
3.    Policy Guidelines for StCB for ST(SAO) operations : (Norms for 2015-16 given in parenthesis)
i)              Refinance @ upto50% (40%) of Realistic Lending Program (RLP) for general areas , upto 55% (45% )of RLP for eastern region and for districts covered under BGREI (Bringing Green Revolution to Eastern India) and at upto 70% (60%) for NER , J&K , HP and Uttrakhand.
ii)             Other Conditions – CRAR to be above 4% , compliance to Sec 11 of BR Act,1949 ,  for general-net NPAs upto 5% then 50% (40) , above 5 upto 10 then 45% (35) , above 10 upto 20% then 40% (30) , above 20% -NIL. Similarly for NER , J& K , HP and Uttrakhand if net NPA upto 15% then 70% (60) of RLP , above 15 and upto 25% then 65% (55) of RLP and for NPAs above 25% then NIL , in case of eastern and BGREI net NPAs upto 5% then 55% (45) , above 5 upto 10 then 50% (40) , above 10 upto 20% then 45% (35) , above 20% -NIL (of RLP) .
iii)            Overall Rs. 59800 crore was sanctioned under ST-SAO to 23 StCBs with Northern Region accounting for 32%  followed by Southern at 20% , Central & western at 18%  each and eastern at 11%.

4.    Support To Weavers:Credit limit to support the weavers activity were sanctioned to StCB of TamilNadu , Puduchery and AP to the tune of Rs.284 crore.

5.    Policy Guidelines for RRBs for ST(SAO) operations (Norms for 2015-16 given in parenthesis)

i)          Refinance @ upto 30% (25)of Realistic Lending Program (RLP) for general areas, upto 35% (30) of RLP for eastern region and for districts covered under BGREI (Bringing Green Revolution to Eastern India) and at upto 55% (50) for NER, J&K, HP and Uttrakhand.
ii)         Other Conditions – For general-net NPAs upto 5% then 30% (25) , above 5 upto 10 then 25% (20) , above 10 upto 20% then 20% (15), above 20% -NIL. Similarly for NER, J&K, HP and Uttrakhand if net NPA upto 15% then 55% (50) RLP, above 15 and upto 25% then 50% (45)of RLP and for NPAs above 45% then NIL, in case of eastern and BGREI net NPAs upto 5% then 35% (30), above 5 upto 10 then 30% (25) , above 10 upto 20% then 25% (20) , above 20% -NIL (of RLP)
iii)        Further quantum of refinance was increased by 10% of the RLP (over and above the stipulation wise quantum stated at (ii) above) in case the RRB has provided 50% or above coverage to SF/MF in crop loan disbursements during 2014-15.
iv)        In an another relaxation granted , refinance @ 60% of RLP was granted to RRBs having net NPA upto 5% , Investment to Deposit ratio upto 30% and CD ratio of above 70% as on 31/03/14.
v)         In all Rs. 30000 crore as compared to Rs.25876 crore in 2013-14 were sanctioned towards ST (SAO) limits to 56 RRBs in 2014-15 which was fully utilised by the RRBs.
vi)        UP(18%) , Bihar (14%)and Rajasthan(10%) accounted for larger share in the credit limits sanctioned.

6.    Refinance support for SAO to Commercial Banks :NABARD launched a scheme for providing refinance support to public sector commercial banks for financing PACS in 2011-12 and the same continued in 2014-15. An aggregate CC limit of Rs.200 crore was sanctioned to CBs which was fully utilised under this scheme.
7.    Interest rate for refinance : NABARD charged 4.5% Interest on refinance towards ST(SAO) and 10.50 for ST (OSAO) in 2014-15. MT(conversion) loans carried an interest rate of 7.35%.(Current RoI on refinance ST (SAO)-4.5% , ST(OSAO)-9.1%, ST(weavers)-9.1% , direct finance to CCB-9.1% &MT(Con)-8.2%)
8.    Loans to Farmers against Negotiable Ware House Receipts(NWR) : GoI , in 2011-12 , introduced a scheme for extending concessional finance to SF/MF having KCCs against NWR for a period upto 6 months at 7% RoI. The scheme envisages discouraging distress sale by Farmers , encouraging them to store their produce in warehouse and sell it at a remunerative price at a future date. Refinance assistance @ 4.5 % RoI is available to StCBs and RRBs.
( A warehouse receipt is a document that provides proof of ownership of commodities (e.g., bars of copper) that are stored in a warehouse, vault, or depository for safekeeping.Warehouse receipts may be negotiable or non-negotiable. Negotiable warehouse receipts allow transfer of ownership of that commodity without having to deliver the physical commodity).

9.    Direct Re-Finance to cooperative banks for ST Multipurpose Credit :Introduced in 2010-11 , NABARD sanctions CC limits to CCBs for lending through their branches or affiliated PACS for the purpose such as Working capital requirements , repair and maintenance of farm equipments , storage/grading/packaging of produce , crop loan above Rs.3.0 lakhs , redemption of old debts and other socio economic needs of the farmer. CCBs having audit rating of  ‘A’ or ‘B’, financially strong and well governed and/or those banks which are licensed by RBI to carry on the banking business are eligible for this product. Rs.5050 crore was sanctioned to 59 DCCBs and 7 StCBs with a utilisation of Rs.4893 crores.
10.  NABARD also supported PACS to evolve into Multi Purpose Service Centres by extending financial support to StCB/CCB/PACS for the purpose. In all , 625 PACS were supported during 2014-15 with a loan component of Rs.174 crore and grant component of Rs.7 crore. The assistance is for enabling the PACS to establish agro service centres , rural retail outlets , agri marketing infrastructure , rice mill , rural godown , farm machinery for custom hiring etc.
11.  Refinance for investment credit : NABARD provides refinance to CBs , PUCBs , RRBs and StCB and SCARDBs for providing Agri Term Loans.  A sum of Rs. 31427 crore was disbursed under Investment credit portfolio.

i)          Policy guidelines indicate that CBs , and Primary Urban Cooperative Banks (PUCBs) having net NPAs above 3% are not eligible to draw refinance.
ii)         Unlicensed StCB/CCB or those having net NPAs above 20% or audit categorisation under ‘C’ or ‘D’ are not eligible for refinance.
iii)        Licensed StCB/CCBs having CRAR less than 4% are not eligible.
iv)        RRBs having net NPA above 15% are not eligible.
v)         NBFCs with 5 years existence , having minimum AA rating (A rating in Eastern and NE regions) and net NPAs less than 3 % are also eligible  to draw refinance. Similarly mFIs with mFR 1 & mFR 2 ratings are eligible.
vi)        NABARD subsidiaries ADFT (now NABKISAN) , ABFL and NABFINS also availed refinance for the purpose.
vii)       RoI on refinance varied from 9.5 to 11 % during the year 2014-15.
(As on date RoI varies from 4.5% under NRLM to 6.7% under LRTCF to 9.1 for normal refinance above 5 years to 9.2% for refinance for above 3 years to 5 years to 9.3% for 18 months to 3 years.)
viii)      Share of CBs in refinance was 44% , RRBs 32% , SCARDB 9 % &StCB  12%  and others 3%.
ix)        NFS accounted for 35% share followed by SHG at 15% and farm mechanisation at 08%.
x)         South (45%) , North (17%) , West (15%) , East (12%) , Central (10%) and NE (1%) was spatial distribution of refinance.
xi)        A new product of providing Investment credit refinance for a tenure of 18 months to 3 years was introduced.

12.  Revival , Reform and Restructuring (RRR) Package for Handloom Sector : NABARD is implementing this RS.3884 crore central government sponsored scheme which allows waiver of overdue loans at Weavers Cooperative Credit Society Levels also envisages capacity building and adoption of technology and Common Accounting System (CAS) by the societies. Besides this , it allows 3% Interest subvention at the ground level to weavers and credit Guarantee to  Institutional credit through SIDBI managed Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). The scheme has benefited app 10000 WCCs , 6000 Weavers SHGs and 55000 individual weavers.
13.  NABARD also implements GoIs  Comprehensive Package for Handloom Sector launched in 2013-14 by which weavers are provided concessional finance at 6% with the help of interest subvention upto 7% provided by GoI to banks. Further the scheme also provides Margin Money assistance by way of grant @ 20% of Bank Loan with a maximum ceiling of Rs.10000/= per weaver.
14.  NABARD continued to act as nodal agency for restructuring of Term Loans of Cooperative Sugar Mills. In all 74 sugar mills got benefited under this scheme with an assistance of Rs.245 crore.
15.  Scheme For Extending Financial Assistance to Sugar Undertakings (SEFASU) , 2014 :GoI directed the banks to provide a subsidy based financial accommodation to Sugar Mills for clearance of Cane price arrears fixed as per Fair & Remunerative Price (FRP) mechanism of government. NABARD coordinates on behalf of  Cooperatives and RRBs and forwards the subsidy claims of the banks to SBI which acts as nodal agency for the scheme.
16.  The following are the Credit Linked Capital Investment Subsidy Schemes of the Central Government which are being administered by NABARD :
i)      Construction of Rural Godowns.(subsidy ranges from 25% (Max. Rs 50 lakhs) to 33.33% (max. Rs 60 lakhs)of TFO)$
ii)     Agriculture Marketing Infrastructure , Grading and Standardisation .(Subsidy ranges from 25%  to 33.33% of TFO)$
$  Starting 2014-15 the two schemes stand merged as ISAM(Integrated Scheme for Agricultural Marketing).
iii)    Agri Clinic &Agri Business Centres (subsidy ranges from 36%  to 44 % of TFO)
iv)   JawaharLal Nehru National Solar Mission (JNNSM) scheme for solar pump sets (subsidy ranges from Rs.45000/= onwards)
v)    National Project on Organic Farming (subsidy ranges from 25%  to 33.33% of TFO)
vi)   Dairy Entrepreneurship Development scheme (DEEDS).(Subsidy ranges from 25%  to 33.33% of TFO)*
vii)  Poultry Venture Capital Fund (Subsidy ranges from 25%  to 33.33% of TFO)*
viii) Integrated Development Of Small Ruminants and Rabbits (IDSRR).(subsidy ranges from 25%  to 33.33% of TFO)*
ix)   Pig Development .(Subsidy ranges from 25%  to 33.33% of TFO)*
x)    Estabilishment of Poultry Estates and Mother Units for Rural Backyard Poultry.(Subsidy ranges from 25%  to 33.33% of TFO)*
·         Now part of NLM
16A      Strengthening Of  Rural Financial Institutions (RFIs) by NABARD
i)             Performance Of Rural Credit Cooperatives
a)    PACS :As on 31/03/2013 , 93488 PACS with 13 crore members and 5 crore (39%) borrowing members. The total membership as also borrowing membership of PACS increased by 1% and 10 % respectively as compared to position on 31/03/2013. As on 31/03/2013 , 42586 (nearly 50% of the total) PACS earned a profit of Rs.2084 crore and 37955 PACS incurred a loss of Rs. 4214 crore as such overall position remains in deficit by Rs.2130 crore.
b)    FY 2013-14 :  26 out of 32 StCBs posted profits  aggregating Rs. 979 crore while the other 6 incurred a cumulative loss of  Rs. 94 crore , thus a net profit of Rs. 885 crore was recorded by StCbs as a whole. Accumulated losses of the StCB increased from Rs. 546 crore as on 31/03/13 to Rs.704 crore on 31/03/2014.
NPAs as % to loan outstanding decreased marginally from 6.2 as on 31/03/2013 to 5.5 %  as on 31/03/2014.                                                            No StCBs had CRAR less than 4% while 06 STCBs had CRAR between 4 to 7 % and the remaining 26 had a CRAR above 7% as on 31/03/2013.     As on 30/06/2014 , the recovery position of StCBs was 82% of the demand. Cause of concern because recovery position decreased from 95% as on 30/06/2013.
c)    FY 2013-14 : 331 out of 367 DCCBs posted profits  aggregating Rs. 1523 crore while the remaining 36 incurred a cumulative loss of  Rs. 349 crore , thus a net profit of Rs. 1174 crore was recorded by CCBs as a whole. Accumulated losses of CCBs declined from Rs.4032 crore as on 31/03/2013 to Rs.3868 crore as on 31/03/2014.
NPAs as % to loan outstanding decreased marginally from 9.8 as on 31/03/2013 to 9.3 as on 31/03/2014.
24 CCBs had CRAR less than 4% while 45 CCBs had CRAR between 4 to 7 % and the remaining 299 had a CRAR above 7% as on 31/03/2013.
As on 30/06/2013 , the recovery position of CCBs was 75% of the demand which decreased from 79% as recorded on 30/06/12.
Financial return stood at 8.39% while cost on funds stood at 5.85% thus a financial margin of 2.54%. With operating cost at 1.90% the operating margin was at 0.64%.
d)    FY 2013-14 :  08 out of 19 SCARDBs posted profits  aggregating Rs. 159 crore while the other 11 incurred a cumulative loss of  Rs. 506 crore , thus a net loss of Rs. 347 crore was recorded by LTCC structure as a whole. Accumulated losses of SCARDBs increased from Rs.1923 crore as on 31/03/2013 to Rs. 2411 crore as on 31/03/2014.
NPAs as % to loan outstanding were at 35.57 as on 31/03/2014 as compared to 35.97 as on 31/03/2013
As on 30/06/2013 , the recovery position of SCARDBs was 33% of the demand.
e)    FY 2013-14 :  372 out of 714 PCARDBs posted profits  aggregating Rs. 265 crore while the remaining 340 incurred a cumulative loss of  Rs. 508 crore , thus a net loss of Rs. 243 crore was recorded by LTCC structure as a whole.
Accumulated losses of PCARDBs increased from Rs.4785 crore as on 31/03/2013 to Rs. 5112 crore as on 31/03/2014.
NPAs as % to loan outstanding remained static at 37 as on 31/03/14.
As on 30/06/2013 , the recovery position of PCARDBs was 44% of the demand.
f)     Core Banking Solutions (CBS) was successfully implemented by NABARD in cooperative sector with 6953 branches migrating to CBS as on 30/06/2014.This will help cooperative banks customers to have access to Anywhere Anytime banking facilities , transfer of funds through RTGS(Real Time Gross Settlement) /NEFT (National Electronic Fund Transfer) facilities as also DBT (Direct Benefit Transfers)
PS : Central Government has decided to revive 23 financially weak CCBs across the states of UP, Bihar , J&K  and Maharashtra by capital infusion of Rs. 2375 crore to be shared by CG ( Rs.673crore), respective State Governments (Rs.1465 crore) and NABARD (Rs.237 crore as loans to SGs u/s 27 of NABARD Act , 1981).CG share to be routed through NABARD and can be converted as a grant to CCBs subject to fulfilment of certain stipulations. The ratio of assistance for 12 category I banks will be 20:70:10 (CG :SG:NABARD) and for remaining 11 category II banks it would be 40:50:10.

ii)            Performance of Regional Rural Banks (RRBs)
a)    As on 31/03/2015 the number of RRBs stood at 56 with 20059 branches covering 644 districts in 26 states and UT of Poduchery. RRBs have been allocated 22000 villages and wherever setting up of a Brick & Mortar branch is not considered viable they are allowed to have Ultra Small Branches (USBs).
b)    Deposits grew by 13% ,borrowings by 34% , loans & Advances outstanding by 16% and investments recorded a negative growth over the last year (2013-14).
c)    51 RRBs posted profits as on 31/03/2015 aggregating Rs.2958 crore  while the remaining 5 reported a loss of Rs.177 crore thus registering a net profit of Rs. 2781 crore.
d)    As on 31/03/2015 of the total 56 RRBs , 47 were considered sustainably viable based on the fact they were earning profits and carrying no accumulated losses.
e)    Recovery position as on 30/06/2015 stood at 72% as compared to 82% of the demand as on 30/06/14.
f)     Based on K C Chakarwarty Report , GoI ,State Government and Sponsor banks have decided to recapitalise 40 RRBs (as per 2010) by infusing Rs2200 crore in the ratio of 50:35:15 for GoI , Sponsor Bank and State Government respectively. The recapitalisation has been completed in respect of 38 RRBs and this will help the concerned RRBs to achieve the CRAR  stipulation of 9%.
g)    CRAR of 52 RRBs was  9% and above and they complied with RBI stipulations as on 31/03/2015. The remaining 4 RRBs were not able to comply with RBI stipulations as they had CRAR below9%.
h)    NPAs as %age to Loans and advances decreased from 6% as on 31/03/2014 to 5.725 as on 31/03/2015.

17.  Financial Inclusion :
i)     35% of the population is still out of the ambit of formal financial institutions and this segment comprises of ultra poor , living in distant geographical areas having a very low level of infrastructure development and meagre resources at their command.
ii)    Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) :FIF is for meeting cost of developmental & promotional interventions while FITF is for meeting cost of technology adoption for financial inclusion. The relative margin (interest differential) available to NABARD in excess of 0.5% in respect of deposits placed by CBs under RIDF & STCRC is being equitably credited to FIF alongwith that to WDF & TDF. . As on 31/03/2015 a sum of  Rs. 706 crore (disbursed Rs. 236 crore) and Rs.510 crore (disbursed Rs. 252 crore) respectively has been sanctioned from both the funds. Some of the initiatives funded under the funds are
·         Setting up of Financial Literacy Centres
·         Demonstration of Banking technology
·         Standardisation of Financial literacy material
·         Common service Centres for Adult learning
·         For adopting BC/BF models by RRBs.
·         Support to RRBs and Coops for meeting the ATM Interchange charges (charges levied when KCC is used at other ATMs.)
·         Assistance for implementation of RuKCCRupay debit cards  and assistance for PoS (Point of Service) devices.

iii)    The proposal to merge FIF and FITF is under consideration of GoI.

iv)   NABARD has set up a Special  Unit-Kisan Credit Card (SPU-KCC) in 2013 with an objective to encourage Coops and RRBs to issue RupayKCCs. SPU-KCC will guide the banks and coordinate between them and NPCI (National Payment Corporation of India) , sponsor banks and StCBs. Cumulatively 139 lakh RuPayKCCs have been issued.

Inclusive Growth…
‘Inclusive growth is a concept which provides equitable opportunities for every section of the society to participate in the process of the growth.’
i) NABARD’s strategy for achieving inclusive growth involves creating peoples’Institutions at the ground level , nurturing them , building their capacity and linking them to banking institutions.’
ii) Major Initiatives by NABARD-
a)    Watershed Programs envisage community participation in planning , execution and managing the watersheds. It involved a Capacity Building Phase (CBP) and then a Full Implementation Phase (FIP). The four types of watershed programs being implemented by NABARD are-
1.    Participatory Watershed Development Program : Financed through Watershed Development Fund set up in 1999 is having a corpus of Rs.1085 crore as on 31/03/15.  Being implemented in 16 states across the country , the program is being implemented through 507 sanctioned projects covering an area of 5 lakh Ha. with a commitment of Rs. 330 crore.
2.    PM’s relief Package for distressed Districts : Being implemented since 2006 in 31 districts of AP , Maharastra , Karnataka and kerala covering an estimated 9 lakh ha.with a cumulative sanction of Rs. 933 crore (Rs.791 crore disbursed) for 764 projects.

3.    Indo-German Watershed Development Program(IGWDP) : being implemented in collaboration with KfW in states of Maharashtra(110 projects worth Rs.122 crore) , AP (36 projects worth Rs.58 crore) , Gujrat ( 28 projects worth Rs.36 crore) and Rajasthan (31 projects worth Rs.37 crore). It aims to implement the program through Village Watershed Committees (VWC) in association with NGOs and focus on regeneration/rehabilitation of natural resources An estimated 2.35 lakh Ha are to be covered with an estimated commitment of Rs.300 crores.

b)    Integrated Development of Tribals :Tribal population comprises of 8.6% of the total population of the country and they are spread over 15% of the geographical area. Their mainstay is on forests and forest produce , livestock and topical agriculture.

1.    Tribal development Fund : Livelihood opportunities are provided through WADI model which revolves around orchard Cultivation activities. The fund has been used to finance 610 projects benefitting roughly 5 lakh tribal families across 27 states. The total financial support comes to Rs. 1900 crore (sanctioned) and
Rs. 1010 crores (disbursed).

2.    Adivasi development Program : In association with KfW the program is being implemented in 2 districts (Valsad&Dang) with a commitment of Rs.38 crore. The component are Wadi , soil and water resource management  , health and family development initiatives. App.6000 families have been benefitted by grant assistance of Rs.23 crore. Similarly in Maharashtra the program is under implementation in Nashik & Thane districts with a commitment of Rs.82 crore. It has benefitted app.14000 families with a grant assistance Rs.79 crore.

c)    Umbrella Program on Natural Resource Management (UPNRM) :Launched in 2007-08 in collobaration with KfW and GIZ the program aims to boost livelihood activities through community managed sustainable natural resource management projects. It has created sustainable models such as SRI (system of Rice Intensification) & SSI(Sustainable Sugarcane Initiative). It’s a loan based program with small components of grants. Its outreach is upto 2.5 lakh people across 20 states and it has resulted in augmented income levels of poor , 3000 ha of green farming , environment cleansing and water harnessing initiatives. In all ,276 projects with financial support of Rs.526 crore (Loan Rs. 492 crore and Grant Rs. 34 crore) have been sanctioned and Rs. 345 crore has been disbursed (L-Rs. 326 crore & G-Rs.19 crore).
d)    Other important programs are
1.    Climate Change adaption Project in Maharashtra (SDC financed) in 25 villages with financial support of Rs.24 crore. It involves social mobilisation, water management , biodiversity and Renewable sources of Energy based projects.
2.    Climate Proofing watershed Projects in TN and Rajasthan under WDF & IGWDP worth Rs. 5 crore with a focus on resilence of agriculture in the face of climate change (TN) & development of pasture land and fodder planning (Rajasthan).
3.    Climate Change Adaption under Adaptation Fund of United Nations framework Convention on Climate Change (NABARD has been accredited by the Adaption Fund Board –AFB-of United Nations framework Convention on Climate Change-UNFCCC-as the only National Implementing Entity (NIE) for India. Two proposals submitted by NABARD worth US$3.2 million have been sanctioned. The first project will be implemented in Krishna district of AP by M S Swaminathan Foundation and it involves restoration of degraded mangrove and establishment of an Integrated Mangrove Fishery Farming System(IMFFS) for the benefit of coastal people. The Second Project will be implemented in Purulia and Bankura districts of WB and it aims to benefit 5000 rural households by developing adaptive and resilient lively hood system through diversification , adoption of technology and management of natural resources.
4.    Support to Producers’ Organisation : In order to tide over the difficulties faced by SF/MF the one option is to scale up their business operations , provide access to technology and provide credit & market linkages through formation of Farmers Producers Organisations. In order to encourage this initiative the major initiatives taken in 2014-15 are-
a)    Providing ST loans repayable in 18 months to POs for meeting their working capital requirements , and
b)   Providing financial assistance to POs through implementing agencies (FIs, NGOs and Trusts) so that POs can access credit and leverage on to business capabilities of these organisations.
c)    Under PODF Rs. 158 crore was sanctioned (Rs.154 crore loan and Rs. 4 crore as grant) to 65 POs.
d)    NABARD assisted POs have taken up varied activities as their business starting from Dairy , Fishery , Poultry , Organic vegetable cultivation , agri-malls , agro-processing , horticulture , marketing of lac & other forest produce and plethora of RNFS activities such as marketing of eco tourism , embroidery , jewellery making etc.
e)    GoI in its budget 2014-15 allocated Rs.200 crore for PRODUCE Fund to be used as a supplement for PODF. This fund aimed to promote 2000 FPOs in next two years. A grant assistance of Rs.66 crore has been sanctioned to POPIs (Producers Organisation Promoting Institutions) for promoting 835 FPOs.
5.    Farm Innovation & Promotion Fund (FIPF) and Farmers Technology Transfer Fund (FTTF)  have since been merged to constitute FSPF (Farm Sector Promotion Fund)
6.    Farmers Club Program : conceptualised on the basis if VVV principles , the FCs are informal change agents at the grass root level. As on 31/03/2015 , NABARD has promoted and supported the formation of 1.47 lakhs FCs in the country. FCs act as Self Help Promoting Institutions (SHPIs) and as BCs/BFs too. Maximum number of FCs have been promoted by NGOs(70%) , followed by Coops(11%) , RRBs(9%) , CBs(8%) and KVKs etc (2%).
7.    Information & Communication Technology (ICT) : Under this initiative , 54700 mobile connections were provided to FCs for having access to weather advisory , market prices , crop advisory through SMS on mobiles involving Reuters’ Market Light (RML).
8.    Village Development Program (VDP) covering 1132 village under second phase with an assistance of nearly Rs.11 crore envisages holistic development of the villages through CBOs by convergence of various developmental programs.
9.    Capacity Building for Adoption of Technology (CAT) : Farmers were benefitted through 331 exposure visits in 2014-15. Cumulative assistance reached Rs.9 crore.
10.  Pilot project on Augmenting Productivity of Lead Crops , launched in 2009-10 the project envisages adoption of sustainable crop culture practices for enhanced productivity of identified lead crops in clusters, Rs 15 crore have been provided under this initiative to 58 clusters in 482 villages spread over in 18 states.
11.  System of Rice Intensification-SRI , launched in 2010 involves adoption of simple agronomic & management practices so as to improve productivity with reduced cost on inputs [SRI covered 1.42 lakh farmers in 2380 villages in 13 states , 37000 Ha of rice cultivation with an assistance of Rs 21 crore.

12.  Support to RNFS : Financial support in the form of Loan cum grant  , grant and as support to channel partners is provided to promote RNFS activities. Marketing Initiatives included supporting Exhibitions ,Melas , strengthening Rural Hats/marts , REDPs & SDIs , Development of Artisan clusters , coordination & monitoring of Swarojgar Credit Cards –SCCs.
13.  Scaling up Microfinance : Started in 1992 the SHG-Bank Linkage program has evolved as the world’s leading Microfinance initiative with more than 7 million Savings linked SHGs , covering 9.5 crore household having an accumulated savings of Rs.9897 crore. Almost 5 million SHGs have been credit linked with loans outstanding at Rs.43000 crore.
a)    SHG-2 initiative launched in 2012 envisages to strengthen the SHG-Bank linkage program by allowing voluntary savings by SHG members and providing of initial bank loans by way of CC limits instead of Term Loans.
b)    NABARD continues to provide financial and capacity building support to SHGs , federation of SHGs and to SHPIs in order to further expand and strengthen the program. In all ,Rs 138 crore were spent from FIF , WSHG Fund and from RPF during 2014-15 towards this end. The cumulative grant assistance provided to SHPIs for promoting app.7 lakh SHGs was Rs. 340 crore with the major share going to NGOs
14. Special Initiative for Backward Regions:
a.    Rajiv Gandhi MahilaVikasPariyojna , launched to promote and credit link WSHGs in select district of UP has resulted in formation of more than 0.8 lakh SHGs and credit linkage of more than 30000 of them.
b.    Priyadarshini Program is an IFAD (International Fund for Agriculture Development ) & Ministry of Women & Child development , GoI assisted project being implemented in 5 districts of UP and 2 districts of Bihar. The program aims to empower more than 1 lakh rural women towards achieving holistic development by organising them in 12000 SHGs.
c.    Scheme for Promoting SHGs in backward/Left wing extremism Affected districts (LWE) is being implemented in 150 districts across 28 states.
d.    Other Developmental Initiatives include Financing of JLGs with Cumulative loan disbursed to 11  lakh JLGs as on 31/03/15 was at Rs.10000 crore and Micro Enterprise Development Program [3 lakh SHG members trained through app 11000 MEDPs].


Financing Rural Infrastructure…
Availability of adequate infrastructure is a pre requirement for development of any country as such access to rural infrastructure has a positive association with rural economic development and strong negative association with incidence of poverty. Conventionally, public investment is considered as the major provider of rural infrastructure and in its absence the viability and effectiveness of private investments also suffer adversely. With this background in view-
a)    GoI set up Rural Infrastructure Development Fund (RIDF) in 1995 in NABARD with a mandate to channelize the financial resources to the State Governments for Rural Infrastructure Development.
b)    Started with an initial Allocation of Rs.2000 crore in 1995-96 under RIDF-I , the allocation has now reached to Rs.25000 crore in 2014-15 under RIDF- XX , taking the cumulative resource routed through RIDF to Rs.217500 crore including fund for Rural Roads under ‘Bharat Nirman Program’.
c)    Rs. 25000 crore allocated in 2014-15 under RIDF-XX were allocated among all the states based on allocation parameters comprising of Rural population , geographical area , infrastructure index , implementation efficiency and Rural Area CD ratio , with each parameter having equal weightage.
d)    Each drawal  from the SG is treated as a separate loan repayable over a period of 7 years with a moratorium of 2 years.
e)    Borrowings by the SGs are dependent on the borrowing capacity/power of the state as decided by GoI under article 293(3) of the Constitution of Republic of India.
f)     Deposits generated by NABARD from CBs under RIDF carry an interest bearing of Bank Rate minus 2%age point to Bank Rate minus 5%age points depending on the range of shortfall  in agriculture and overall priority sector lending targets of the concerned CB.
g)    Loans disbursed to SGs by NABARD under RIDF carry an Interest rate of Bank Rate minus 1.5%age point.
h)    Thus NABARD has an interest  margin ranging from 0.5 to 3.5% on RIDF lendings.
i)      Since Inception 5.68 lakh projects involving Rs.2.30 lakh crore have been sanctioned.
j)      The share of agriculture and related infrastructure sectors accounted for 43% of the total sanctions including 29% for irrigation projects ,  30% going for rural roads , 12% for bridges , and remaining 15% to social sectors like education, drinking water etc. accounted for 14% of the overall sanctioned amounts.
k)    RIDF based initiatives have resulted into creation of additional irrigation potential of 259 lakh Ha in turn generating 120 lakh man days of recurring employment and 33000 lakh man days of non recurring employment , rural connectivity through nearly 4 lakh Kms of rural roads and 9.610lakh meters of bridges. The hydel power projects generated 200+ Megawat of power and power transmission projects resulted in curtailing transmission & distribution losses amounting to 22000 lakh units in a year.
l)      NABARD Infrastructure Development Assistance (NIDA) is a line of credit being provided by NABARD in addition to RIDF lending for Rural Infrastructure development. The lending under NIDA are routed through state Owned Institutions/corporations. As on 31/03/2015 , the cumulative sanction and disbursement under NIDA have reached almost Rs.5500 crore and Rs.2500 crore respectively with major projects being under warehousing , power transmission , cyclone damaged power restoration , irrigation.
m)  NABARD warehousing Scheme 2014-15 (WIF) : Started with a budgetary allocation of Rs.5000 crore by GoI in 2013-14 the scheme envisages construction of Rural godowns , Silos , warehouses and cold storage units. The scheme lays special emphasis on creation of storage infrastructure in Eastern and NER part of the country. Rs.6000 crore worth projects were sanctioned in 14-15 for dry storage warehouses and silos and cold chain infrastructure. The cumulative sanctions accorded are State Governments(Rs.4546 crore), State Government corporations (Rs.1349 crore) and Private corporates (Rs.106 crore).
n)    Rural Infra Structure Promotion Fund (RIPF) was created in 2011 with an initial corpus of Rs25 crore to promote capacity building initiatives of Community Based Organisations (CBOs) like SHGs , FCs  GPs etc in the field of innovative infrastructure projects.
o)    Food Processing Fund : GoI has setup a special fund with an initial corpus of Rs.2000 crore to provide affordable credit support for setting up mega food parks as also setting up individual processing units in these parks. Five Mega projects worth Rs.216 crore were sanctioned in 2014-15 (AP , Maharstra , Gujrat , Bihar & HP).
p)    The future outlook of Rural Infrastructure devolves around providing quality infrastructure so as to support holistic and integrated rural development leading to poverty alleviation in the country.

(Courtesy : Smt. B. Swati , AGM , TN RO)
Ø  Date of transmittal of Annual Report and Audited balance Annual Accounts  for the year 2014-15 to GoI and RBI – 22 June 2015
Ø  Directors appointed under Section 6(1)(c) of the NABARD Act, 1981 (three directors from out of the directors of the Reserve Bank) - Shri H. R. Khan, Prof. Dipankar Gupta, Dr Nachiket Mor
Ø  Directors appointed under Section 6(1)(d) of the NABARD Act, 1981 (three directors from amongst the officials of the Central Government) - Smt. Snehlata Shrivastava, Shri Siraj Hussain, Shri Jugal Kishore Mohapatra
Ø  Directors appointed under Section 6(1)(e) of the NABARD Act, 1981 (four directors from amongst the officials of the State Government) - Smt. Upma Chawdhry, Shri P. Kharkongor, Dr Sudhir Kumar Goel, Smt. Latha Krishna Rao
Ø  Size of the Balance sheet as on 31.03.2015 – Rs. 2,85,809 crore
Ø  Net accretion to balance sheet in 2014-15 – Rs. 31235 crore
Ø  GDP growth in 2014-15 – 7.3%
Ø  Foodgrain production in 2014-15 – 251.12 million tonnes
Ø  The Central Statistical Office (CSO) recently revised the methodology for calculating the real Gross Domestic Product (GDP) from GDP at factor cost to GDP at constant market price, in alignment with international practice. The base year, too, was changed from 2004–05 to 2011–12.
Ø  About 48 per cent of India’s population is dependent on agriculture as the main source of livelihood
Ø  As per the 2011–12 series, the share of agriculture in overall GVA (2011–12) is  17.6 % in 2014–15, the share of industry is  29.7 % and that of the services sector is 52.7 %
Ø  India has witnessed a credit boom over the last decade, with the share of credit to GDP increasing from 35.5 per cent in 2000 to 51 per cent in 2013.
Ø  The incidence of poverty declined from 37.2 per cent in 2004–05 to 21.9 per cent in 2011–12 for the country as a whole.
Ø  Rural poverty declined from 41.8 per cent in 2004-05 to 25.7 per cent in 2011-12, and in numerical terms, from 326.3 million to 216.5 million.
Ø  India’s Human Development Index (HDI) (UNDP, 2014) value for 2013 stood at 0.586, ranking the country 135th among 187 countries and territories.
Ø  India is ranked 55th in 2014, with a Gross Hunger Index ( GHI) of 17.8,
Ø  During 2014–15, banks have disbursed Rs.8,40,643 crore (provisional) credit to the agriculture sector, against a target of Rs.8,00,000 crore. Disbursement by  Commercial banks was Rs. 5,99,691 crore (71%), cooperative banks – Rs. 1,38,469 crore (17%)  and RRBs – Rs. 1,02,483 crore (12%)
Ø  crop loan disbursement increased more than eightfold during the period 2004–05 to 2014–15,  while term loan (investment credit) increased fourfold.
Ø  The share of term loan in the total agricultural credit disbursed in 2014-15 was 24.3%
Ø  The share of agriculture in the GDP grew at 3.3 per cent during the 11th Five-Year Plan period, whereas the growth rate of the total economy was 7.9 per cent
Ø  About 85 per cent of the operational holdings (accounting for 45 per cent of the area) are less than 2 ha, as per the Agricultural Census, 2010–11. The average size of holdings declined from 1.33 ha in 2000–01 to 1.15 in 2010–11.
Ø  The NSS, 70th Round results reveal that about 51.9 per cent of agricultural households are indebted to either formal or informal sources of credit
Ø  As per the NSS, 70th Round, a very small segment of agricultural households insured their crops. During July 2012– December 2012, the highest penetration of insurance was in safflower, with 33.2 per cent of households insuring their crop. The lowest percentage (1.3) was for sugarcane
Ø  The gross capital formation (GCF) in agriculture and allied sectors relative to the agri-GDP was 21.2 per cent in 2012–13 at 2004–05 prices
Ø  Public sector capital formation in the agricultural and allied sectors as a percentage of the agricultural GDP was 3.0 per cent in 2011–12
Ø  The GoI has launched the National Livestock Mission in 2014–15 for sustainable and continuous growth of the livestock sector
Ø  Fisheries constitute about 1 per cent of India’s GDP and 4.75 per cent of the agriculture GDP
Ø  the share of agricultural exports to total exports was 13.7 % in 2013–14.
Ø  The share of India’s agricultural exports in total world exports stood at 2.7 % in 2013.
Ø  The maximum outstanding short-term credit to RFIs peaked at Rs. 90,151 crore during the FY 2014–15
Ø  During the year 2014-15, The rates of interest on refinance varied with the purpose—short-term refinance for seasonal agricultural operations (SAO) was offered at 4.5 per cent, and for activities other than SAO, at 10 per cent. The rate of refinance offered on medium-term conversion loan was 7.35 per cent
Ø  During 2014-15, The maximum refinance support to StCBs for short-term operations was pegged at:
 • 50 per cent of their realistic lending programme (RLP) for general areas;
• 55 per cent of the RLP for the eastern region, including Bihar, West Bengal, Odisha, Jharkhand, Chhattisgarh and 28 districts of eastern Uttar Pradesh; and
 • 70 per cent of the RLP for the northeastern (NE) region, Jammu and Kashmir, Sikkim, Andaman and Nicobar Islands, Himachal Pradesh, and Uttarakhand.
Ø  During 2014-15, NABARD continued its norm (introduced in 2013–14) of linking ST refinance eligibility with the capital to risk-weighted assets ratio (CRAR) of StCBs / CCBs for better accountability
Ø  Under the short-term seasonal agricultural operations (ST-SAO), NABARD sanctioned aggregate credit limits of `59,800 crore to 23 StCBs during the FY ending on 31 March 2015, as against `53,989.15 crore in the previous financial year, recording a growth of 10.8 per cent.
Ø  Refinance provided to RRBs during 2014-15  under ST(SAO)was fixed at:
• 30 per cent of their RLP for general areas;
• 35 per cent of the RLP for the eastern region, including Bihar, West Bengal, Odisha, Jharkhand, Chhattisgarh and 28 districts of eastern Uttar Pradesh; and
• 55 per cent of the RLP for the NE region, Jammu and Kashmir, Sikkim, Andaman and Nicobar Islands, Himachal Pradesh and Uttarakhand.
Ø  During 2014–15, NABARD introduced ‘PCARDB as MSC’, a scheme on lines similar to ‘PACS as MSC’.
Ø  In 2014–15, the disbursement of schematic  refinance stood at Rs. 31,427.30 crore, registering a 46.3 per cent growth over the previous year. This was achieved against a target of Rs. 25,000 crore.
Ø  a new medium-term refinance product for 18 months to 3 years was introduced during the year 2014-15
Ø  The ‘Long-Term Rural Credit Fund’ was set up with NABARD by the GoI to refinance long-term investment credit in agricultural activities, exclusively for cooperative banks and RRBs. The interest rate on refinance fixed at 7.85 per cent for 2014–15, is subject to periodic revision by NABARD.
Ø  Refinance up to 100 per cent of the eligible bank loan for all activities under ‘thrust areas’ and 95 per cent for other activities was provided to commercial banks, StCBs, RRBs and the subsidiaries of NABARD—NABARD Financial Services Limited (NABFINS), Agri Business Finance (AP) Limited (ABFL) and Agri Development Fund, Tamil Nadu (ADFT). Refinance to SCARDBs of up to 100 per cent of the eligible bank loan disbursed was extended under the loan system.
Ø  As on 31.3.2014, there were 32 StCBs, 370 DCCBs.  No of PACS were 93,488 on 31 March 2013.
Ø  The LTCCS comprised 20 SCARDBs and 714 PCARDBs as on 31.03.2014
Ø  As on 31 March 2014, 23 out of 370 DCCBs operating in 4 states—16 in Uttar Pradesh, 3 in Maharashtra, 3 in Jammu and Kashmir and 1 in West Bengal—did not meet the 4 per cent CRAR criterion for licensing.
Ø  The GoI announced a special package involving financial assistance of `2,375.42 crore in November 2014 to revive these 23 unlicensed DCCBs
Ø  12 DCCBs (11 in Uttar Pradesh and 1 in Maharashtra) are category-I banks with NPAs, or erosion of deposits, of above 70 per cent. The additional capital requirement for the revival of these 12 banks is met by the GoI, the state government and NABARD in the ratio 20:70:10.
Ø  The total capital requirement for the revival of the 11 DCCBs under category-II is met by the GoI, the state government and NABARD in the ratio 40:50:10.
Ø  The fourth phase of the Development Action Plan (DAP)/MoU (2007–12) concluded on 31 March 2012
Ø  The Warehousing Development and Regulatory Authority (WDRA) has registered NABCONS, a subsidiary of NABARD, as an accreditation agency for warehouses owned by PACS and other primary cooperative societies, like Large-sized Adivasi Multipurpose Societies (LAMPS), farmers’ service societies (FSS) and marketing societies.
Ø  As per the GoI’s revival package, the audit of cooperatives was to be conducted by the statutory auditors, for which a panel was provided by NABARD. In the wake of the 97th Constitutional Amendment Bill, this responsibility lies with the state governments/ RCS. Accordingly,  the practice of providing a panel to cooperative banks by NABARD was discontinued with effect from 01.04.2015; instead, broad guidelines were issued to the state government on the procedure to be followed while appointing chartered accountants to conduct statutory audits in StCBs and DCCBs from 2014–15 onwards. NABARD shall provide the panel of CAs only if a specific request is received from the State Government.
Ø  During the year 2014-15, the process of merger of the LTCCS and STCCS were completed in Chattisgarh (effective from 7 October 2014)
Ø  Post-amalgamation, the number of RRBs was reduced to 56 as on 31 March 2015, all of which have been included in the Second Schedule of the RBI Act, 1934.
Ø  While no RRB incurred losses during 2013–14, as many as 5 reported losses amounting to Rs. 177 crore in 2014–15.
Ø  The GoI constituted a committee in 2015 to assess the feasibility of granting pension to RRB employees, led by the Chairman of NABARD.
Ø  As on 31 March 2015, all 56 RRBs had complied with the minimum capital requirements as per Section 42(6) (a) (i) of the RBI Act, 1934.
Ø  With the inclusion of the Himachal Pradesh StCB on 15 December 2014, 18 of the 32 StCBs have now been included in the Second Schedule to the RBI Act, 1934.
Ø  All 32 StCBs and 348 DCCBs had received a banking licence from RBI by 31 March 2015.
Ø  A new data portal ‘ENSURE’ (acronym for ElectroNic SUbmission of REturns), for submission of various periodic returns/data to NABARD was launched in 2014-15
Ø  There were  400 DDM offices across the country and 21 assistant project managers (APMs— for the NE region and Jammu and Kashmir) as on 31 March 2015. In addition, 138 adjacent districts are tagged to specific DDMs
Ø  To clear cane price arrears (from the previous seasons) and for timely settling of cane prices for the current season, as per the fair and remunerative price mechanism, the GoI issued operational guidelines of the Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU), 2014, advising financing banks to provide loans to sugar mills. The SBI was appointed the ‘nodal bank’ to interact with the Department of Food and Public Distribution, as also to manage the subsidy for onward reimbursement to banks
Ø  Starting from 1 April 2014, the Ministry of Agriculture (MoA), GoI introduced the Agricultural Marketing Infrastructure (AMI) sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM). The Grameen Bhandaran Yojana (GBY), launched on 1 April 2001, and Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS), launched on 20 October 2004, have by now been subsumed under ISAM
Ø  the implementation of CBS in all 201 banks (14 StCBs and 187 DCCBs), with 6953 branches, under the NABARD-CBS project was successfully completed on 30 June 2014
Ø  The Participatory Watershed Development Programme, financed from the Watershed Development Fund, was established in 1999–2000 with an initial corpus of  Rs.200 crore, contributed equally by the Government of India (GoI) and NABARD. The corpus was augmented over the years by the interest differential earned under the Rural Infrastructure Development Fund (RIDF) and interest accrued on the unutilized portion of the Fund.
Ø  The Prime Minister’s Relief Package for distressed districts is being implemented in 31 districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra, with the aim of bringing 30,000 ha in each district under the participatory watershed development programme.
Ø  In the distressed districts, the watershed projects were entirely grant-based, while in the other districts, assistance was in the form of grants or grant-cum-loans.
Ø  The Indo-German Watershed Development Programme (IGWDP), a bilateral aid programme, is being implemented by village watershed  committees (VWCs) in association with NGOs in Maharashtra, Andhra Pradesh, Gujarat and Rajasthan. It focuses on regenerating/ rehabilitating natural resources.
Ø  Jharkhand is the only state where tribal development projects have been sanctioned by NABARD in all districts (24).
Ø  The Adivasi Development Programme in Maharashtra (ADPM) has been under implementation in the districts of Nashik and   Thane with KfW assistance since the year 2000.
Ø  Since 2007–08, NABARD, in collaboration with the KfW and GIZ, has been implementing the Umbrella Programme on Natural Resource Management (UPNRM), an Indo-German programme based on loan-cum-grant. Its aim is to boost rural livelihoods by supporting community managed, sustainable natural resource management projects
Ø  The Sustainable Sugarcane Initiative (SSI) is pioneered by the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)
Ø  While presenting the Union Budget for 2014–15, the Union Finance Minister announced that a ‘Producers’ Organization Development and Upliftment Corpus’ Fund of `Rs.200 crore to be utilized for building of 2000 Farmer Producer Organizations (FPOs) in the next two years to supplement NABARD’s Producer Organization Development Fund (PODF). Pursuant to this announcement, GoI has created a PRODUCE Fund of `Rs. 200 crore in NABARD.
Ø  A separate line of credit, under the scheme for Credit Facility to Federations (CFF), was made available to marketing federations/ cooperatives/corporations to promote the marketing of agricultural produce and other agricultural activities in 2012–13. The scope of the CFF has been widened during 2014–15, so that it now provides the milk unions/federations with their working capital requirements for the procurement and processing of milk and production/ procurement of cattle feed.
Ø  Farm Innovation and Promotion Fund (FIPF), was set up in 2004–05,and the Farmers’Technology Transfer Fund (FTTF), set up in 2008–09. The FIPF and FTTF were merged and renamed the Farm Sector Promotion Fund (FSPF) with effect from 1 August 2014.
Ø  Total number of Farmers Clubs  sanctioned as on 31.03.2015 – 1.47 lakh
Ø  The Village Development Programme (VDP) covers 1132 villages across 23 states.
Ø  Lead Crop Scheme launched in 2009-10
Ø  The implementation of the pilot project in the Balasore district of Odisha began in the kharif season of 2012. The objective of the project is to augment the productivity of 3–4 major crops and increase the income level of farmers, among others
Ø  A dedicated fund, the Off-Farm Sector Promotion Fund (OFSPF), was formed by merging the outstanding balances under the Rural Innovation Fund and Rural Promotion Fund with the expiry of the tenure of the SDC–Rural Innovation Fund (RIF), on 30.09.2014
Ø  Two e-portals launched by NABARD in January 2015 - and,
Ø  NABARD has been implementing the Cluster Development Programme under the National Programme on Rural Industrialization (NPRI) from 1999–2000. It evolved its own cluster development policy in 2005–06.
Ø  As on 31 March 2014, there were more than 74.30 lakh savings-linked SHGs, covering over 9.7 crore poor households. The number of credit-linked SHGs under the programme was 41.97 lakh
Ø  NABARD has launched a pilot project for digitization of all SHGs in two districts, viz., Ramgarh (Jharkhand) and Dhule (Maharashtra)
Ø  The cumulative number of JLGs promoted and financed by banks was 10,99,002 as on 31 March 2015
Ø  The GoI launched the Swachh Bharat Abhiyaan (Clean India Mission) on the occasion of Mahatma Gandhi’s 145th birth anniversary (2 October 2014).
Ø  NABARD Consultancy Services (NABCONS) is a company wholly owned and promoted by NABARD. In 2014, it relocated its corporate office to New Delhi and continues to have zonal offices in Mumbai and Guwahati.
Ø  the bi-monthly policy brief brought out by NABARD is called Rural Pulse
Ø  An amount of Rs. 25,000 crore was allocated  to the Tranche XX of the RIDF in the Union Budget 2014–15
Ø  Broad areas supported under RIDF are
Eligible loan as a % of TFO
Hilly states and NE states
Other states
Agriculture and related sectors
Social sectors
Rural connectivity

Ø  Total eligible activities under RIDF in 2014-15 : 34
Ø  three new activities approved by the GoI under RIDF during 2014–15, which are (1). Solid Waste Management and infrastructure works related with sanitation in rural areas, (2) Infrastructure works related with alternate sources of energy, viz. solar, wind etc and energy conservation, (3). 5/10 MW Solar Photovoltaic Power Plant besides enhancing the capacity of hydel projects from the existing 10 MW to 25MW.
Ø  The implementation phase for projects sanctioned under RIDF ranges between three and five years, depending upon the type of project and location of the state. The maximum phasing of five years is for major and medium irrigation projects and other stand-alone projects involving RIDF loans of Rs 50 crore and above.
Ø  the interest rates payable to banks on deposits placed with NABARD and loans disbursed by NABARD under the RIDF were linked to the prevailing bank rate with effect from 1 April 2012
Ø  Mobilisation advance – 20% of the loan (NE states and hilly states – 30%)
Ø  Each drawal by state governments is treated as a separate loan and is repayable over a period of seven years, including
Ø  a moratorium during the initial two years.
Ø  The GoI determines the borrowing powers of the state governments in respect of negotiated loans from the market and financial institutions during a year, under Article 293 (3) of the Constitution of India
Ø  Normative allocation of RIDF funds to states based on (1) Rural population; (ii). Geographical area; (iii) Composite infrastructure development index; (iv). Utilization index; and (v). Inverse of rural credit–deposit ratio
Ø  RIDF announced by GOI in 1995-96
Ø  tranches of RIDF I–XII have since been closed.
Ø  RIDF XIII–XX are in their implementation phase,
Ø  Tranche XX of the RIDF was implemented in 2014–15
Ø  NABARD Infrastructure Development Assistance  (NIDA) is a line of credit extended to state governments and state-owned entities (institutions and corporations) to participate in the creation (or funding) of rural infrastructure projects on both on-budget and off-budget items outside the ambit of RIDF borrowing.
Ø  NIDA launched by NABARD in 2010-11.
Ø  35 projects sanctioned under NIDA as on 31.03.2015.  Sanctioned amount – Rs. 5465.25 crore
Ø  To widen the scope of NIDA, NABARD introduced two new lines of credit during 2014–15 to finance: (i.) Registered infrastructure finance companies (IFCs) and public financial institutions or companies for financing rural infrastructure; and (ii). Rural infrastructure through the PPP mode.
Ø  Established in 2013–14, the Warehouse Infrastructure Fund (WIF) was continued in 2014–15 with a corpus of  Rs.5000 crore, as per the budget announcement made by the Union Minister of Finance
Ø  GoI has set up a special fund designated the Food Processing Fund (FPF) worth Rs. 2000 crore in NABARD to provide affordable credit support for establishing mega-food parks, as well as the setting up of individual processing units in these food parks.
Ø  Financial assistance from the FPF is available to state governments, entities promoted by the state or Central governments, joint ventures, cooperatives, federations of cooperatives, special-purpose vehicles, farmer producer organizations (FPOs), companies, entrepreneurs, etc
Ø  The Rural Infrastructure Promotion Fund (RIPF) was created in 2011 with an initial corpus of Rs. 25 crore to promote capacity building initiatives and efforts to create innovative, experimental and promotional infrastructure, especially for the rural sector and rural areas.
Ø  As on 31 March 2015, NABARD had 4062 employees
Ø  A “Scheme of Special Hardship Leave for Female Employees to Meet Special Problems during Their Career” was launched by the Bank during 2014-15.
Ø  NABARD launched a data portal, ‘ENSURE’, which is an acronym for ElectroNic SUbmisson of REturns, in March 2015. It is a web-based enterprise application for internal as well as external data collection from institutions such as cooperative banks, RRBs and NGOs.
Ø  The Integrated Library Management System—a centralized library management system featuring a web-based user-friendly bilingual interface, which provides access to the Banks’ library at BIRD, Lucknow—went live during 2014–15
Ø  The Bank’s paid-up capital on 31 March 2015 was Rs. 5000 crore, against an authorized capital of Rs. 5000 crore, with the Government of India (GoI) holding 99.6 per cent and the Reserve Bank of India (RBI) 0.4 per cent.
Ø  During 2014–15, the GoI added Rs. 300 crore to NABARD’s paid-up capital.
Ø  During 2014–15, the RBI contributed Rs.1 crore to NRC(LTO) Fund and NRC (stabilization) Fund
Ø  National Rural Credit (Long-Term Operations) Fund is utilized for investment operations
Ø  the National Rural Credit (Stabilization) Fund is deployed for conversion or re-schedulement of short term credit.
Ø  the Short-Term Cooperative Rural Credit (STCRC) (Refinance) Fund was set up in 2008–09 with a corpus of RS. 5000 crore, which was contributed by scheduled commercial banks that had not achieved their priority sector lending obligations. 
Ø  STCRC Fund set up to extend short-term credit facilities to cooperative institutions
Ø  outstanding balance of the STCRC Fund stood at Rs.60,000 crore as on 31 March 2015.
Ø  The Short-term Rural Credit (STRC) (Refinance) Fund was set up in 2012–13 with a corpus of Rs. 10,000 crore, contributed by scheduled commercial banks that had not achieved their priority sector lending to augment
Ø  NABARD’s resources for short-term credit refinance to regional rural banks (RRBs).
Ø  The outstanding balance of the STRC Fund stood at Rs. 30,000 crore on 31 March 2015.
Ø  Long-Term Rural Credit Fund - A new line of credit to fulfil the requirements of cooperatives and RRBs to fund investment credit was set up in 2014–15 with a corpus of Rs. 5000 crore, contributed by scheduled commercial banks to the extent of the shortfall in their priority sector lending obligations
Ø  To meet short-term requirements for funds, term money borrowings with tenors of three to six months were mobilized during 2014-15
Ø  A multipurpose short-term credit product designed for direct lending to District Central Cooperative Banks (DCCBs) to meet the requirements of individual borrowers and affiliated PACS for working capital and farm asset maintenance was launched in 2011–12.
Ø  The total income of NABARD in the financial year 2014–15 was Rs. 17,804.46 crore
Ø  Profit Before Tax (PBT) was Rs. 3,421.46 crore and the Profit After Tax (PAT) was Rs2,403.26 crore for the year ended 31 March 2015.
Ø  Interest rates  for various NB products are fixed by the ALCO – Asset Liability Management Committee
Ø  The capital to risk-weighted assets ratio (CRAR) was 16.91 per cent on 31/03/15,
Ø  NABARD has invested in the equity of the Agriculture Finance Corporation (Rs 1 crore), Agriculture Insurance Company of India Ltd (Rs 60 crore), Small Industries Development Bank of India (Rs. 48 crore), Multi-Commodity Exchange of India Ltd (Rs. 1.25 crore), National Commodity and Derivatives Exchange Ltd (Rs. 16.88 crore) and Universal Commodity Exchange Ltd (Rs 16 crore).  However, the Investment of Rs. 16.00 crore in Universal Commodity Exchange Limited (UCX) is treated as an Non Performing Investment as the company was barred from operating as a Commodity Exchange following Forward Markets Commission (FMC) directive in July 2014.
Ø  “Farmers Technology Transfer Fund”(FTTF) and “Farm Innovation Promotion Fund”(FIPF) are merged to create a new fund “Farm Sector Promotion Fund”(FSPF) w.e.f. 01 August 2014.
Ø  With effect from 01 October 2014, , Rural Innovation Fund (RIF) and Rural Promotion Fund (RPF) are merged and a new fund has been created named as “RPF & RIF - Off-Farm Sector Promotion Fund”.
Ø  During the year 2014-15, the relative margin available to the Bank in excess of 0.5 percent in respect of Rural Infrastructure Development Fund (RIDF) deposits, Short Term Cooperative Rural Credit Refinance Fund (STCRC) deposits, Short Term RRB Credit Refinance Fund (STRRB) deposits and Warehousing Infrastructure Fund (WIF) deposits, placed by the Commercial Banks is credited to Tribal Development Fund, Watershed Development Fund and Financial Inclusion Fund as per directions of Reserve Bank of India. In the Previous year 2013-14,  the amounts were credited to Financial Inclusion Fund
Ø  The provision coverage ratio of the Bank stood at 93.15% as on 31.03.2015
Ø  Net NPAs as a percentage to Net loans outstanding as on 31.03.2015 – 0.0092%
Expand the acronyms
1.    NDB – New Development Bank
2.    CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises
3.    PMJJBY – Prime Ministers Jeeven Jyothi Bhima Yojana
4.    APBS – Aadhar Payments Bridge System
5.    JAM –Jan Dhan, Aadhar, Mobile
6.    MUDRA Bank – Micro Units Development and Refinance Agency Bank
7.    IMPS –Immediate Payments System
8.    DICGC-Deposit Insurance and Credit Guarantee Corporation
9.    NRLM – National Rural Livelihoods Mission
10.  UIDAI –Unique Identification Authority of India

Financial Inclusion Related
Tick the right answer
1. Which of the following is true regarding the Prime Minister’s Suraksha Bhima Yojana
A. Personal accident insurance coverage for 18-50 years age people; max coverage – Rs. 2 lakh; premium – Rs. 330 p.a
B. Personal accident insurance coverage for 18-70 years age people; maximum insurance coverage – Rs. 2 lakh; premium – Rs. 12 p.a
C. Life insurance coverage for 18-70 years age people; max coverage – Rs. 2 lakh; premium – Rs. 12 p.a
D. Life insurance coverage for 18-50 years age people; max coverage – Rs. 2 lakh; premium – Rs. 330 p.a
Ans.  C

2. ______ and ______ were the first  states in the country to achieve 100 percent Financial Inclusion under Pradhan Mantri Jan Dhan Yojana (PMJDY)
A. Goa and Kerala
B. Kerala and Tamil Nadu
C. Goa and Tamil Nadu
D. Tamil Nadu and Maharashtra
Ans A

3. Public Sector Banks include ?
A. 20 Nationalized Banks, State Bank of India, 10 SBI Associates, IDBI Bank, Bharatiya Mahila Bank
B. 20 Nationalized Banks, State Bank of India, 5 SBI Associates, Bharatiya Mahila Bank
C. 21 Nationalized Banks, State Bank of India, 6 SBI Associates, IDBI Bank
D. 19 Nationalized Banks, State Bank of India, 5 SBI Associates, IDBI Bank, Bharatiya Mahila Bank
Ans D

4. RuPay KCC is
A. .A debit card of NPCI
B. .A credit card of NPCI
C. .A debit card of VISA,
D .A credit card of Master
Ans  A

5. What is the maximum deposit amount insured by the DICGC.
A. Rs. 1 lakh per customer per bank
B. Rs. 2 lakh per customer per bank
C. Rs. 50,000 per customer per bank
D. Rs. 5 lakh per customer per bank
Ans. A

6. CVV stands for
A. Cash verification value
B. Code verification value
C. Card Visa Verification
D. Card Verification value
Ans. D
7. The IFSC Code is made up of ____ characters
A. 9
B. 10
C. 11
D. 12
Ans.  C

8.  Which of the following is not true regarding NEFT.
A. NEFT operates in hourly batches
B. maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India.
C. The minimum amount to be remitted through NEFT is  Rs.2 lakh
Ans: C
9. What are White Label ATMs (WLAs)?
A. ATMs set up, owned and operated by non-banks
B. ATMs set up, owned and operated by banks
C. ATMs set up and owned by banks but operated by non-banks
D. ATMs set up and owned by non-banks but operated by banks
Ans. A

10. The minimum age prescribed for opening BSBDA accounts is
A. 21 years
B. 18 years
C. 15 years
D. 10 years
Ans. D

11. To get benefit of Accidental Insurance Cover of Rs. 1 lakh, RuPay Debit Card must be used
A. Daily
B. Atleast once in 30  days
C. Atleast once in 45 days
D. Atleast once in 60 days
Ans. C

12. Which of the following statements is true regarding Atal Pension Yojana
A. Scheme is available to persons in the age group of 18-40 years and pension will be given from the age of 60 years depending on the contributions made per month
B. Scheme is available to persons in the age group of 18-50 years and pension will be given from the age of 60 years depending on the contributions made per month
C.. Scheme is available to persons in the age group of 18-40 years and pension will be given from the age of 58 years depending on the contributions made per month
D. Scheme is available to persons in the age group of 18-50 years and pension will be given from the age of 58 years depending on the contributions made per month
Ans. A

13. Inclusix, an index to measure  the progress of financial inclusion in India has been launched by
Ans D

14. Which of the following is not true in respect of a BSBDA account
A. account shall not have the requirement of any minimum balance.
B. there will be no limit on the number of deposits that can be made in a month,
C. account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals
D. BSBDA accounts  would not be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) norms
Ans. D
15. The Reserve Bank of India was established on the recommendations of a report submitted in 1926 by which commission?
A.Simon Commission
B.Banking Commission of India, 1934
C.Hilton Young Commission
D. None of the above
Ans C

16.  Microfinance is
A. The provision of financial services like micro credit and insurance
B. The provision of financial services  like savings and fund transfers
C. is the same as microcredit
D. Both A and B                                                       
Ans. D

17.  PMJDY was launched on
A. 15 August 2014
B. 28 August 2014
C. 26 January 2015
D.01 January 2015
Ans  B

18.  The campaign to cover over 74,000 villages, with population more than 2,000 (as per 2001 census), with banking facilities was known as
A. Sarveksha
B. Sulaabh
C. Sarvejana
D. Swabhimaan
Ans. D

19. Which of the following is not correct about Joint Liability Groups(JLGs)
A.Facilitate hassle free credit to farmers and rural artisans
B.Promoting saving habit in farmers,
C.Promoting mutual trust between banks and JLG members
D.Helps in availing collateral free loan
Ans. B

20.  The ATM network in the country as on 31.03.2015 was approx. around
A. 1.25 lakh
B. 1.60 lakh
C. 1.80 lakh
D. 2.25 lakh
Ans C

21. The objective of FLC is to provide free
A. Financial education & educate for financial products
B. Counselling services & promotion of Financial Literacy
C. Formulate debt restructuring plans
D. All of the above
Ans D

22. The first cooperative bank in the country to launch the Rupay KCC was
A. Rampur DCCB
B. South Canara DCCB
C. Lakhimpur-Kheri DCCB
D. Raigad DCCB
Ans D
Is there any limit on the amount that could be transferred using NEFT?
Ans: No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India
Is there any minimum / maximum amount stipulation for RTGS transactions?
Ans. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is` 2 lakh. There is no upper ceiling for RTGS transactions
Whether Joint account can be opened in Pradhan Mantri Jan-Dhan Yojana?
Ans. Yes, joint account can be opened.
Joint accounts are permitted under PMJDY.  Whether both the joint  account holders are eliglbe for life insurance
Ans. No. i.e. one person per family will get a single cover of Rs.30,000/-, subject to the eligibility conditions.
Whether there are any restrictions like age, income, amount etc. criteria for opening BSBDA by banks for individuals?
Ans. Any individual above the age of 10 years can open BSBDA Account.
How many withdrawals are permitted in BSBDA accounts
Maximum of 4 withdrawals a month including ATM withdrawal. No such limit for deposits.
What is special advantage of RuPay Debit Card?
Ans. It provides accidental insurance cover upto Rs.1.00 lac without any charge to the customer. To get benefit of Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
For getting the life insurance cover of Rs. 30000/- in PMJDY, accounts opened between 15.08.2014 to 26.01.2015 for the first time will get the benefit.
Prime Minister’s Social Security Schemes or Jan Suraksha Schemes
PMJJBY – PM Jeevan Jyoti Bhima Yojana : 18-50 years; Rs. 2 lakh life coverage; premium – Rs. 330 p.a
PMSBY – PM Suraksha Bhima Yojana – Personal accident insurance coverage for 18-70 years age people; max coverage – Rs. 2 lakh; premium – Rs. 12 p.a
Atal Pension Yojana – 18-40 years, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.
Financial Inclusion Fund (FIF ) and Financial Inclusion Technology Fund (FITF) merged into Financial Inclusion Fund in 2015-16 (31.08.2015)