Presentation on theme: "ANUJA KUMARI. Limited staff Poor infrastructure like education/housing Staff not oriented to marginal operations Functional style not cost beneficial."— Presentation transcript:
Limited staff Poor infrastructure like education/housing Staff not oriented to marginal operations Functional style not cost beneficial for generating viable operation. Too much documentation; time taken for loan sanction Lack of viable schemes for implementation Opportunity costs for loans is perceived to be high.
Smart card Hand held terminal Central CPU Low cost ATMs Mobile Phone Banking SMS Banking Public Call Office (PCO) Connectivity.
5 Allows branchless doorstep banking in remote/low population density areas. Usage of Biometric smart cards/Mobile Reach the Last Mile Villages. Transactions id Convenient & Hassle free manner Cost Effective Accessible
Smart Card (to be provided to every Customer) and Point of Sales Machines (PoS) for reading and writing Smart Cards for transactions Laptop with webcam, biometric devices - for capturing the account opening details, thumb impression, photo and account details 6 TECHNOLOGY : AN ENABLER Web Camera for Photograph Optical Biometric scanner for Fingerprints Pad for Signature capturing Battery Power back-up for undisrupted enrolment
Gross Value of Output, Value of Input and Short-Term Credit Rs crore Source: National Account Statistics 2005, [reproduced from Mohan, 2006] Year Gross Value of Output Value of Input Short Term Credit Short Term Credit as a percentage of Value of input as a perc enta ge of Outp uts Inputs Outpu ts 1998-99488731934161082111.582.2119% 1999- 20005147181031701261012.222.4520% 2000-015186931070201544214.432.9821% 2001-025620241121941888216.833.3620% 2002-035570351146132332420.354.1921% 2003-046351041273653197225.105.0320%
Recognise that there are no easy- quick fix solutions Initiate exercise to understand the cost of delivering rural financial service products in a scientific manner possibly examine activity based costing Remove formal and informal interest rate caps Allow banks to exploit rural areas Leave operational decisions to the institutions Continue to remove bottlenecks for microfinance to flourish Continue to direct branch licensing towards rural areas Continue to provide targets for rural lending
Changing technology – deskilling of farmer Inputs moving out of farmer control Seeds moving towards research intensity Research and Extension services moving from public to private space Pesticides being peddled as extended service of extension No comprehensive risk mitigation products Downside risks are unlimited, upside benefits seem to have a ceiling
Formulation of an agriculture credit policy with thrust on rain fed areas. User friendly insurance instruments. Spread of institutional arrangements Extend institutional credit to marginal and small farmers Proper monitoring mechanism for productive use of loans. Linking of farming process to nearest agricultural experts for proper technical advice Improving the credit absorption capacity of farmers
Friendly insurance instruments Raise credit and insurance literacy Linkage through Self Help Groups (SHG) Implement Skill Development Programme Marketing of Produce Training and Sensitisation Programme for organised sector Constitution of Task Force for Monitoring loan taken from un organised sector by farmers
Optimization of Resource use Output management Increase in farm incomes Widening of markets Growth of agro- based industry Addition To National Income BY value addition and employment creation
Kisan Credit Cards General Credit Cards Laghu Udyami Card Business correspondent andfacilitators SGSY Scheme for poverty alleviation SHG - Bank Linkage Programme MFI - Bank Linkage Women Entrepreneurs Development Programmes Rural Entreprenurship programme Development Programmes in clusters skills upgradation and capacity building Farmers Clubs J. L. G. of Farmers
Employment Assurance Scheme Rural Housing Credit-Cum- Subsidy Scheme for Rural Housing Wastelands Development Project Golden Thread Jawahar Gram Samridhi Yojana
Production Credit without Floor Limits Given to Farmers Revolving Cash Credit valid for 5 years Primarily for crop production Also given for Capital for purchase of equipment such as Tractor & equipments& also personal expenses. Amount as per eligibility criteria- Asset value of farmer Attracts saving interest on credit balance Crop Insurance on the basis of scale of finance of crops raised during the seasons.
GCC Scheme implemented by SCBs & RRBs Given to individuals in rural/ Semi Urban areas Credit without insistence of security Maximum amount Rs25000/- Revolving Cash Credit limit. Valid for 3 years LUC Given for 5 yrs Traders, Artisans, Small businessmen, small Ind. unit. Max. amount Rs10.00lacs. Validity for 3 years.
Purpose: Bring rural Poor over Poverty Line. Applicable : Rural Area Nature : Revolving funds/ Cash Credit Eligibility : SHGs to be in existence for 6 months. Fund : From DRDA & Banks. Rev. Fund : Min. Rs 5000/-; Max. Rs.10000/- Subsidy : 30% Project cost Mx. Rs7500/- 50%Project cost Mx.Rs10000/- SC /ST 50% Project cost Mx.1.25 lacs group loan. max. Rs.10000/- per capita
Mission: Dev. Through credit, technology transfer Awareness & Capacity Building Size Of club: Min. 10 members Max. no limit. Membership :Farmers & Non Farmers Operational Area: 2-3 villages in contiguous basis. Bank Linkage: Saving account must. Role: to enroll farmers inform agricultural events Hold 2-3 meetings a month. Coordinate with Bank for Credit flow Expenses:NABARD assist agencies @ Rs10000/- perannum for 3 years Mandatory Expenses: Formation & maintenance: RS2000/- Awareness &Orientation : Rs5000/- Meeting with experts : Rs3000/-
Short Term Working capital loan for agri. Loan also given for allied activities in the farm, other domestic requirement, education, consumable items, medical expenses, credit against debt from non institutional lenders, marketing and other productive purposes. Given to Tenant farmers, Oral Lessees, share croppers. JLG Min 4 & Max. 10 Members. JLG members to indulge in similar activities Membership primarily of tenant/ small farmers. Members to have same socio-economic background. Members to be engaged in agri. Activity for min one year. Group members not to be defaulters of FI 100% Refinance available from NABARD. Personal & crop insurance available.
Concept floated by Prof. Yunus of Bangladesh Through Gramin Bank, Bangladesh. Micro Credit to poor like landless traders, Petty traders artisans & other people of small means. SHG on basis of Kalia Committee recommendation Banks to finance SHG & SHG to give funds to memb. Fin. to SHG which show group dynamics, financial management capabilities & behavioural discipline. Broad Criteria for selection of SHG laid down by NABARD. SHG to be in Existence for at least 6 months & should have: (i) Homogeneity (ii) Successful Saving from own resources (iii) Democratic working (iv) Maintenance of proper accounts (v) support from NGOs
Scheme Operated by Ministry Of Textile For technology Up-gradation in Textile SIDBI & IDBI are nodal agencies. Scheme in operation since 01.10.2005 Units availing bank Finance are entitled interest subsidy @ 5% Capital Subsidy of 10% of purchase Price of machinery for up-gradation of technology.
Provided to SSI going for GTAB approved Technological Up-gradation For significant up gradation Of Technology For Installation of improved environmental condition. Installation of anti pollution measures Installation of Energy Conversion Machinery Subsidy is @15% of purchase price of Machinery Maximum Amount of loan Rs100lacs Maximum amount of subsidy is Rs15 lacs Scheme will be in operation during 11 th plan period of 2007-12. Nodal Agency is SIDBI.
Extension of loan Facility to NGOs for on lending to women. For setting up small & micro enterprise in non-farm sector. Banks to give loan upto 70% of project cost Ministry of MSME gives grant upto 30% of project cost. Eligible Activities : (i) Training in credit usage (ii) Skill development training (iii) Equity/margin money for acquiring infrasructure (iv) Exhibitions & marketing arrangements
Rural Development Project Focuses Sericulture Activity Improves Livelihood of Poor Involves development of non-mulberry silk namely Eri (Endi) & Muga Department of Panchayat & Rural Development Project is under the special SGSY Covering all aspects from plantation to spinning with modern machines Presently implemented in Eight states
Essential for socio-economic development Indira Awaas Yojana Started in may 1985 A sub-scheme of Jawahar Rozgar Primarily to help construction of dwelling units. Upgradation of existing unserviceable kutcha house SC/ ST freed bounded labourers Non SC/ST rural poor below poverty line Aid granted
Operative since 01/04/1999 Aegis Ministry Of Rural Development Target Group: Rural household with annual Income upto Rs32000/- min. 60% of fund toSC/ST Purpose: Consruction of New houses Target Area: Rural 20 KM from Metro/large Town 5 KM from Medium/ Small Town Loan Amt: Max. Rs. 40000/- Subsidy : Max. Rs 10000/- Cost Of subsidy borne by Centre: State 75:25 Repayment: Max. 7 years
Rural Road Connectivity Good all-weather roads Effective poverty reduction programme Roads for Rural Habitations with a population of more than 500 persons surfaced roads (black topped/ cement concrete) necessary cross-drainage
Financial Inclusion Fund (FIF) – Rs 5000 million Financial Inclusion Technology Fund (FITF) – Rs 5000 million Govt. of India : RBI : NABARD (40:40:20) FIF to support FIF to support Developmental and Promotional activities To secure greater financial inclusion To secure greater financial inclusion in hitherto unbanked areas. FITF to enhance investment in: FITF to enhance investment in: Information Communication Technology (ICT) Information Communication Technology (ICT) Stimulate the transfer of research and technology in financial inclusion Stimulate the transfer of research and technology in financial inclusion Increase the technological absorption capacity Increase the technological absorption capacity Encourage an environment of innovation. Encourage an environment of innovation.