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Reserve Bank of India

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Reserve Bank of India

Logo of RBI The RBI headquarters in Mumbai

Headquarters Mumbai, Maharashtra, India
18°55′58″N 72°50′13″E18.93278°N
Coordinates 72.83694°ECoordinates: 18°55′58″N
72°50′13″E18.93278°N 72.83694°E
Established 1 April 1935
Governor Duvvuri Subbarao
Central Bank of India
Currency Indian Rupee
ISO 4217 Code INR
Reserves $287.37 billion(2009)
Base borrowing
Base deposit
Website www.rbi.org.in
RBI is the apex banking body in India

The Reserve Bank of India (RBI, Hindi: भारतीय िरजवर बैक) is the central bank of India and
controls the monetary policy of the rupee as well as 287.37 billion US-Dollar (2009)
currency reserves. The institution was established on 1 April 1935 during the British-Raj
in accordance with the provisions of the Reserve Bank of India Act, 1934 [1] and plays an
important part in the development strategy of the government.


[edit] History
[edit] 1935 - 1950

The central bank was founded in 1935 to respond to economic troubles after the first
world war.[2] The Reserve Bank of India was set up on the recommendations of the
Hilton Young Commission. The commission submitted its report in the year 1926,
though the bank was not set up for another nine years. The Preamble of the Reserve Bank
of India describes the basic functions of the Reserve Bank as to regulate the issue of Bank
Notes, to keep reserves with a view to securing monetary stability in India and generally
to operate the currency and credit system in the best interests of the country. The Central
Office of the Reserve Bank was initially established in Kolkata, Bengal, but was
permanently moved to Bombay (now Mumbai) in 1937. The Reserve Bank has continued
to act as the central bank for Myanmar till Japanese occupation of Burma and later up to
April 1947, though Burma seceded from Indian Union in 1937. After the partition, the
Reserve bank served as the central bank for Pakistan up to June 1948 when the State
Bank of Pakistan commenced operations. Though originally set up as a shareholder's
bank, the RBI has been fully owned by the Government of India since its nationalization
in 1949.[3]

[edit] 1950 - 1960

Between 1950 and 1960 the Indian government developed a centrally planned economic
policy and focused on the agricultural sector. The administration nationalized commercial
banks[4] and established, based on the Banking Companies Act, 1949 (later called Banking
Regulation Act) a central bank regulation as part of the RBI. Beside that the central bank
was ordered to support the economic plan with loans.[5]

[edit] 1960 - 1969

As a result of bank crashes the reserve bank was requested to establish and monitor a
deposit insurance system. It should restore the trust in the national bank system and was
initialized on 7. December 1961. The Indian government founded funds to promote the
economy and used the slogan Developing Banking. The Gandhi administration and their
successors restuctured the national bank market and nationalized a lot of institutes.[6] As a
result the RBI had to play the central part of control and support of this public banking

[edit] 1969–1985

Between 1969 and 1980 the Indian government nationalized 20 banks. The regulation of
the economy and especially the financial economic was reinforced by the Gandhi
administration and their successors in the 1970s and 1980s.[8] The central bank became
the central player and increased her policies for a lot of taks like interests, reserve ratio
and visible deposits.[9] The measures aimed at a better economic development and had a
huge effect on the company policy of the instituts. The banks lent money in selected
sectors like agra business and small trade companies.[10]

The branch was forced to establish two new offices in the country for every new founded
office in a town.[11] The Oil crises in 1973 resulted in increasing inflation and the RBI
restricted the monetary policy to reduce the effects.[12]

[edit] 1985–1991

A lot of committees analysed the Indian economy between 1985 and 1991. Their results
had an effect on the RBI. The Board for Industrial and Financial Reconstruction, the
Indira Gandhi Institute of Development Research and Security & Exchange Board of
India investigated the national economy as a hole and the security and exchange board
proposed better methods for more effective markets and the protection of investor
interests. The Indian financial market was a leading example for - so called - "financial
repression" (Mackinnon uand Shaw).[13]

The Discount and Finance House of India began his operations on the monetary market
in April 1988, the National Housing Bank, founded in July 1988, was forced to invest in
the propoerty market and a new financial law improved the versatility of direct deposit by
more secirity measures and liberalisation.[14]

[edit] 1991–2000

The national economy came down in July 1991 and the Indian rupee was devalued.[15]
The currency lost 18% related to the US-Dollar and the Narsimahmam Committee
adviced to restructure the financial sector by a temporal reduced reserve ratio as well as
the statutory liquidity ratio. New guidelines were published in 1993 to establish a private
banking sector. This turning point shound reinforce the market and was often called neo-
liberal[16] The central bank deregulated the bank interests and some sectors of the
financial market like the trust and the proporty market.[17] This first phase was a success
and the central government forced a diversity liberalisation to diversify the owner
structures in 1998.[18]

The National Stock Exchange of India took the trade on in June 1994 and the RBI
allowed nationalized banks in July to interact with the capital market to reinforce their
capital base. The central bank founded a subsidiary company - the Bharatiya Reserve
Bank Note Mudran Limited - in February 1995 to produce banknotes.[19]

[edit] since 2000

The Foreign Exchange Management Act from 1999 came into force in June 2000. It
should improve the foreign exchange market, international investments in India and
transactions. The RBI promoted the development of the financial market in the last years,
allowed online banking in 2001 and established a new payment system in 2004 - 2005
(National Electronic Fund Transfer).[20] The Security Printing & Minting Corporation of
India Ltd., a merger of nine institutions, was founded in 2006 and produces banknotes
and coins.[21]

The national economy's growth rate came down to 5,8% in the last quarter of 2008 -
2009[22] and the central bank promotes the economic development.[23]

[edit] Structure
[edit] Central Board of Directors

The Central Board of Directors is the main committee of the central bank and has not
more than 20 members. The government of the republic appoints the directors for a four
year term.

central Board of Directors

Name Position
Duvvuri Subbarao Governor
Shyamala Gopinath Deputy Governor
Usha Thorat Deputy Governor
K. C. Chakrabarty Deputy Governor
Subir Gokarn Deputy Governor
Y. H. Malegam Regional of the West
Suresh D. Tendulkar Regional of the East
U. R. Rao Regional of the North
Lakshmi Chand Regional of the South
H. P. Ranina Lawyer Supreme Court of India
Chairman Firstsource Solutions
Ashok S. Ganguly
Azim Premji Chairman WIPRO Limited
Chairman Aditya Birla Group of
Kumar Mangalam Birla
Shashi Rajagopalan Advisor
Suresh Neotia former Chairman Ambuja Cement Co.
A. Vaidyanathan Economist, Professor Madras Inst.
Chemist, Professor Mumbai
Man Mohan Sharma
Chairman Lakshmi Machine Works
D. Jayavarthanavelu
Sanjay Labroo CEO Asahi India Glass Ltd.
Ashok Chawla Government representative
[edit] Governors

The central bank had 22 governors since 04.01.1935. The regular term of office is a four
years period, appointed by the national administration.

[edit] Supportive bodies

The reserve bank of India has four regional represantations: North in New Delhi, South in
Chennai, East in Kolkata and West in Mumbai. The representations are formed by five
members, appointed for four years by the central government and serve - beside the
advice of the Central Board of Directors - as forum for regional banks and to deal with
delegated tasks from the central board.[24] The institution has 22 regional offices.

The Board of Financial Supervision (BFS), formed in November 1994, serves as a

CCBD committee to control the financial institutions. It has four members, appointed for
two years, and takes measures to strength the role of statutory auditors in the financial
sector, external monitoring and internal controlling systems.

The Tarapore committee was setup by the Reserve Bank of India under the chairmanship
of former RBI deputy governor S S Tarapore to "lay the road map" to capital account
convertibility. The five-member committee recommended a three-year timeframe for
complete convertibility by 1999-2000.

On 1 July 2006, in an attempt to enhance the quality of customer service and strengthen
the grievance redressal mechanism, the Reserve Bank of India constituted a new
department — Customer Service Department (CSD).

[edit] Main Functions

Reserve Bank of India regional office, Delhi entrance with the Yakshini sculpture
depicting "Prosperity through agriculture"[25].
The RBI Regional Office in Delhi.

[edit] Monetary Authority

The Reserve Bank of India is the main monetary authority of the country and beside that
the central bank acts as the bank of the national and state governments. It formulates,
implements and monitors the monetary policy as well as it has to ensure an adequate flow
of credit to productive sectors. Objectives are maintaining price stability and ensuring
adequate flow of credit to productive sectors. The national economy depends on the
public sector and the central bank promotes an expensive monetary policy to push the
pivate sector since the financial market reforms of the 1990s.[26]

The institution is also the regulator and supervisor of the financial system and prescribes
broad parameters of banking operations within which the country's banking and financial
system functions. Objectives are maintain public confidence in the system, protect
depositors' interest and provide cost-effective banking services to the public. The
Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI)
for effective redressal of complaints by bank customers. The RBI controls the monetary
supply, monitors economic indicators like the gross domestic product and has to decide
the design of the rupee banknotes as well as coins.[27]

[edit] Manager of exchange control

The central bank manages to reach the goals of the Foreign Exchange Management Act,
1999. Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.

[edit] Issuer of currency

The bank issues and exchanges or destroys currency and coins not fit for circulation.
Objectivs are giving the public adequate supply of currency of good quality and to
provide loans to commercial banks to maintain or improve the GDP. The basic objectives
of RBI are to issue bank notes, to maintain the currency and credit system of the country
to utilize it in its best advantage, and to maintain the reserves. RBI maintains the
economic structure of the country so that it can achieve the objective of price stability as
well as economic development, because both objectives are diverse in themselves.

[edit] Developmental role

The central bank has to perform a wide range of promotional functions to support
national objectives and industries.[28] The RBI faces a lot of inter-sectoral and local
inflation-related problems. Some of this problems are results of the dominant part of the
public sector.[29]

[edit] Related functions

The RBI is also a banker to the Government and performs merchant banking function for
the central and the state governments. It also acts as their banker. The National Housing
Bank (NHB) was established in 1988 to promote private real estate acquisition.[30] The
institution maintains banking accounts of all scheduled banks, too.

There is now an international consensus about the need to focus the tasks of a central
bank upon central banking. RBI is far out of touch with such a principle, owing to the
sprawling mandate described above. The recent financial turmoil world-over, has
however, vindicated the Reserve Bank's role in maintaining financial stability in India.

Commercial bank
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on the talk page. (January 2007)

Financial markets
Financial market participants
Corporate finance
Personal finance
Public finance
Banks and Banking
Financial regulation
Types of Bank
Central bank
Advising bank
Commercial bank
Community development bank
Credit union
Custodian bank
Depository bank
Investment bank
Industrial bank
Islamic banking
Merchant bank
Mutual bank
Mutual savings bank
National bank
Offshore bank
Private bank
Savings bank
Swiss bank
Banking terms
Anonymous banking
Automatic teller machine
Money creation
Substitute check
List of banks
List of banks and credit unions in Canada
List of banks in Hong Kong
List of banks in Singapore
List of banks in Pakistan

A commercial bank is a type of financial intermediary and a type of bank. Commercial

banking is also known as business banking. It is a bank that provides checking accounts,
savings accounts, and money market accounts and that accepts time deposits.[1] After the
implementation of the Glass-Steagall Act, the U.S. Congress required that banks engage
only in banking activities, whereas investment banks were limited to capital market
activities. As the two no longer have to be under separate ownership under U.S. law,
some use the term "commercial bank" to refer to a bank or a division of a bank primarily
dealing with deposits and loans from corporations or large businesses. In some other
jurisdictions, the strict separation of investment and commercial banking never applied.
Commercial banking may also be seen as distinct from retail banking, which involves the
provision of financial services direct to consumers. Many banks offer both commercial
and retail banking services.


• 1 Possible meanings
• 2 Origin of the word
• 3 The role of commercial banks
• 4 Types of loans granted by commercial banks
o 4.1 Secured loan
 4.1.1 Mortgage loan
o 4.2 Unsecured loan
• 5 References
• 6 See also
• 7 Further reading

• 8 External links

[edit] Possible meanings

Commercial bank has two possible meanings:

• Commercial bank is the term used for a normal bank to distinguish it from an
investment bank or retail bank.

This is what people normally call a "bank". The term "commercial" was used to
distinguish it from an investment bank. Since the two types of banks no longer have to be
separate companies, some have used the term "commercial bank" to refer to banks that
focus mainly on companies. In some English-speaking countries outside North America,
the term "trading bank" was and is used to denote a commercial bank. During the great
depression and after the stock market crash of 1929, the U.S. Congress passed the Glass-
Steagall Act 1933-35 (Khambata 1996) requiring that commercial banks engage only in
banking activities (accepting deposits and making loans, as well as other fee based
services), whereas investment banks were limited to capital markets activities. This
separation is no longer mandatory.

It raises funds by collecting deposits from businesses and consumers via checkable
deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and
consumers. It also buys corporate bonds and government bonds. Its primary liabilities are
deposits and primary assets are loans and bonds.
• Commercial banking can also refer to a bank or a division of a bank that mostly
deals with deposits and loans from corporations or large businesses, as opposed to
normal individual members of the public (retail banking).

[edit] Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth.[2] However, traces of banking activity can found even in
ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest money as
merely convert the foreign currency into the only legal tender in Rome- that of the
Imperial Mint. [3]

[edit] The role of commercial banks

Commercial banks engage in the following activities:

• processing of payments by way of telegraphic transfer, EFTPOS, internet

banking, or other means
• issuing bank drafts and bank cheques
• accepting money on term deposit
• lending money by overdraft, installment loan, or other means
• providing documentary and standby letter of credit, guarantees, performance
bonds, securities underwriting commitments and other forms of off balance sheet
• safekeeping of documents and other items in safe deposit boxes
• sale, distribution or brokerage, with or without advice, of insurance, unit trusts
and similar financial products as a “financial supermarket”
• cash management and treasury services
• merchant banking and private equity financing
• traditionally, large commercial banks also underwrite bonds, and make markets in
currency, interest rates, and credit-related securities, but today large commercial
banks usually have an investment bank arm that is involved in the mentioned

[edit] Types of loans granted by commercial banks

[edit] Secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g., a car or
property) as collateral (i.e., security) for the loan.

[edit] Mortgage loan

A mortgage loan is a very common type of debt instrument, used to purchase real estate.
Under this arrangement, the money is used to purchase the property. Commercial banks,
however, are given security - a lien on the title to the house - until the mortgage is paid
off in full. If the borrower defaults on the loan, the bank would have the legal right to
repossess the house and sell it, to recover sums owing to it.

In the past, commercial banks have not been greatly interested in real estate loans and
have placed only a relatively small percentage of their assets in mortgages. As their name
implies, such financial institutions secured their earning primarily from commercial and
consumer loans and left the major task of home financing to others. However, due to
changes in banking laws and policies, commercial banks are increasingly active in home

Changes in banking laws now allow commercial banks to make home mortgage loans on
a more liberal basis than ever before. In acquiring mortgages on real estate, these
institutions follow two main practices. First, some of the banks maintain active and well-
organized departments whose primary function is to compete actively for real estate
loans. In areas lacking specialized real estate financial institutions, these banks become
the source for residential and farm mortgage loans. Second, the banks acquire mortgages
by simply purchasing them from mortgage bankers or dealers.

In addition, dealer service companies, which were originally used to obtain car loans for
permanent lenders such as commercial banks, wanted to broaden their activity beyond
their local area. In recent years, however, such companies have concentrated on acquiring
mobile home loans in volume for both commercial banks and savings and loan
associations. Service companies obtain these loans from retail dealers, usually on a
nonrecourse basis. Almost all bank/service company agreements contain a credit
insurance policy that protects the lender if the consumer defaults.

[edit] Unsecured loan

Unsecured loans are monetary loans that are not secured against the borrowers assets
(i.e., no collateral is involved). These may be available from financial institutions under
many different guises or marketing packages:

• bank overdrafts
• corporate bonds
• credit card debt
• credit facilities or lines of credit
• personal loans
Regional Rural Bank
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Please help improve this article by adding citations to reliable sources. Unsourced material may be
challenged and removed. (February 2009)

The government of India set up Regional Rural Banks (RRBs) on October 2, 1975. The
banks provide credit to the weaker sections of the rural areas, particularly the small and
marginal farmers, agricultural labourers, artisans and small entrepreneurs.

Initially, five RRBs were set up on October 2, 1975 which were sponsored by Syndicate
Bank, State Bank of India, Punjab National Bank, United Commercial Bank and United
Bank of India. The total authorised capital was fixed at Rs. 1 crore which has since been
raised to Rs. 5 Crore.

There are several concessions enjoyed by the RRBs by Reserve Bank of India such as
lower interest rates and refinancing facilities from NABARD like lower cash ratio,lower
statutory liquidity ratio, lower rate of interest on loans taken from sponsoring banks,
managerial and staff assistance from the sponsoring bank and reimbursement of the
expenses on staff training. The RRBs are under the control of NABARD. NABRAD has
the responsibility of laying down the policies for the RRBs, to oversee their
operations,provide refinance facilities, to mointor their performance and to attend their



ACT NO. 21 OF 1976

[9th February, 1976.]

An Act to provide for the incorporation, regulation and winding up of Regional Rural
Banks with a view to developing the rural economy by providing, for the purpose of
development of agriculture, trade, commerce, industry and other productive activities in
the rural areas, credit and other facilities, particularly to the small and marginal farmers,
agricultural labourers, artisans and small entrepreneurs, and for matters connected
therewith and incidental thereto. CHAP PRELIMINARY CHAPTER I PRELIMINARY

Short title, extent and commencement.

1. Short title, extent and commencement.- (1) This Act may be called the Regional Rural
Banks Act, 1976.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 26th day of September, 1975.

Definitions. 2. Definitions.- In this Act, unless the context otherwise requires,-- (a)
"Board", in relation to a Regional Rural Bank, means the Board of directors of that
Regional Rural Bank; (b) "Chairman", in relation to a Regional Rural Bank, means the
individual appointed or re-appointed under sub-

section (1) of section 11 as the Chairman of that bank; (c) "director", in relation to a
Regional Rural Bank, means a member of the Board of that bank; 1*[(ca) "National
Bank" means the National Bank for Agriculture and Rural Development established
under section 3 of the National Bank for Agriculture and Rural Development Act, 1981
(61 of 1981);] (d) "notified area" means the local limits, specified under

sub-section (1) of section 3, within which a Regional Rural Bank shall operate;
---------------------------------------------------------------------- 1. Ins. by Act 1 of 1988, s. 2
(w.e.f. 28-9-1988). 264 (e) "prescribed" means prescribed by rules made under this Act;
(f) "Regional Rural Bank" means a Regional Rural Bank

established under sub-section (1) of section 3; (g) "Sponsor Bank", in relation to a

Regional Rural Bank, means a bank by which such Regional Rural Bank has been
sponsored; (h) "State Government" means,-- (i) in relation to a Regional Rural Bank
established in a Union territory, the Central Government; (ii) in relation to a Regional
Rural Bank established in a State, the Government of that State; (i) words and
expressions used herein and not defined but defined in the Reserve Bank of India Act,
1934 (2 of 1934), shall have the meanings respectively assigned to them in that Act; (j)
words and expressions used herein and not defined either in this Act or in the Reserve
Bank of India Act, 1934 (2 of 1934), but defined in the Banking Regulation Act, 1949
(10 of 1949), shall have the meanings respectively assigned to them in the Banking

Establishment and incorporation of Regional Rural Banks.

3. Establishment and incorporation of Regional Rural Banks.- (1) The Central

Government may, if requested so to do by a Sponsor Bank, by notification in the Official
Gazette, establish in a State or Union territory, one or more Regional Rural Banks with
such name as may be specified in the notification and may, by the said or subsequent
notification, specify the local limits within which each Regional Rural Bank shall
(2) Every Regional Rural Bank shall be a body corporate with perpetual succession and a
common seal with power, subject to the provisions of this Act, to acquire, hold and
dispose of property and to contract and may sue and be sued in its name.

1*[(3) It shall be the duty of the Sponsor Bank to aid and assist the Regional Rural Bank,
sponsored by it, by-- (a) subscribing to the share capital of such Regional Rural Bank; (b)
training personnel of such Regional Rural Bank; and (c) providing such managerial and
financial assistance to such Regional Rural Bank during the first five years of its
functioning, as may be mutually agreed upon between the Sponsor Bank and the
Regional Rural Bank: Provided that the Central Government may, either on its own
motion or on the recommendation of the National Bank, extend the said period of five
years by such further period, not exceeding five years at a time, subject to such
conditions as it may deem fit to impose."]

1. Subs. by Act 1 of 1988, s. 3, for sub-section (3) (w.e.f. 28-9-1988). 265

Offices and agencies.

4. Offices and agencies.-(1) A Regional Rural Bank shall have its head office at such
place in the notified area as the Central Government may, after consultation with the
1*[National Bank] and the Sponsor Bank, specify by notification in the Official Gazette.

(2) A Regional Rural Bank may, if it is of opinion that it is necessary so to do, establish
its branches or agencies at any place in the notified area.

Authorised capita. 5. Authorised capital.- The authorised capital of each Regional Rural
Bank shall be 2*[five crores of rupees dividend into five lakhs] of fully paid-up shares of
one hundred rupees each: Provided that the Central Government may, after consultation
with the [National Bank] 2* and the Sponsor Bank, increase or reduce such authorised
capital; so, however, that the authorised capital shall not be reduced below twenty-five
lakhs of rupees, and the shares shall be, in all cases, fully paid-up shares of one hundred
rupees each.

Issued capital.

6. Issued capital.- 4*[(1) The issued capital of each Regional Rural Bank shall, in the first
instance, be such as may be fixed by the Central Government in this behalf, but it shall in
no case be less than twenty-five lakhs of rupees or exceed one crore of rupees.]

(2) Of the capital issued by a Regional Rural Bank under sub-

section (1), fifty per cent. shall be subscribed by the Central Government; fifteen per
cent. by the concerned State Government and thirty-five per cent. by the Sponsor Bank.
(3) The Board may, after consultation with the 5*[National Bank] concerned State
Government and the Sponsor Bank and with the prior approval of the Central
Government, from time to time, increase the issued capital of the Regional Rural Bank;
and, where additional capital is issued, such capital shall also be subscribed in the same

proportion as is specified in sub-section (2).

Shares to be approved securities. 7. Shares to be approved securities.- Notwithstanding

anything contained in the Acts hereinafter mentioned in this section, the shares of a
Regional Rural Bank shall be deemed to be included among the securities enumerated in
section 20 of the Indian Trusts Act, 1882 (2 of 1882), and shall also be deemed
---------------------------------------------------------------------- 1. Subs. by Act 1 of 1988 s. 4,
for "Reserve Bank" (w.e.f. 28-9-1988). 2. Subs. by s. 5, ibid., for certain words (w.e.f.
28-9-1988). 3. Subs. by s. 5, ibid., for Reserve Bank" (w.e.f. 28-9-1988). 4. Subs. by s. 6,
ibid., for sub-section (i) (w.e.f. 28-9-1988). 5. Subs. by s. 6, ibid., for "Reseve Bank"
(w.e.f. 12-9-1988). 266 to be approved securities for the purposes of the Banking
Regulation Act, 1949 (10 of 1949). CHAP MANAGEMENT CHAPTER III


8. Management.- (1) Subject to the provisions of this Act, the general superintendence,
direction and management of the affairs and business of a Regional Rural Bank shall vest
in a Board of directors who may exercise all the powers and discharge all the functions
which may be exercised or discharged by the Regional Rural Bank.

(2) In discharging its functions, the Board shall act on business principles and shall have
due regard to public interest.

Board of directors.

9. Board of directors.- (1) The Board of directors shall consist

of the Chairman appointed under sub-section (1) of section 11, and the following other
members, namely:-- 1*[(a) two directors, who are not officers of the Central
Government, State Government, Reserve Bank, National Bank, Sponsor Bank or any
other bank, to be nominated by the Central Government; (b) one director, who is an
officer of the Reserve Bank, to be nominated by that Bank; (c) one director, who is an
officer of the National Bank, to be nominated by that Bank; (d) two directors, who are
officers of the Sponsor Bank, to be nominated by that Bank; and (e) two directors, who
are officers of the concerned State Government, to be nominated by that Government.]

(2) The Central Government may increase the number of members of the Board; so,
however, that the number of directors does not exceed fifteen in the aggregate and also
prescribe the manner in which the additional number may be filled in.
Term of office of director. 10. Term of office of director.- A director (other than the
Chairman) shall hold office for such period not exceeding two years, from the date when
he assumes office, as the authority nominating him may specify at the time when the
nomination is made, and may, on the expiry of the said period, continue to hold office
until his successor has been nominated and shall also be eligible for re-nomination.


11. Chairman. (1) The 2*[Sponsor Bank] shall appoint an individual to be the Chairman
of a Regional Rural Bank and specify the period, not exceeding five years, for which
such individual shall,


Regional Rural banks (RRB) were created to provide the sufficient institutional credit
for agriculture to the rural areas of a state. The function of RRB is to provide loans to the
small marginal farmers and agricultural laborers. However, the functions of an RRB are
limited to a specific area which is specified by the state. Agricultural growth plays an
important role in boosting the economic growth

of a country, therefore, RRB are created as a helping hand to foster the

agricultural growth. Some rural banks also work for the development of the
rural areas. Landlords who reside in rural areas also encourage these banks
to be developed in such areas. In this way rural banks also provide a way to
such people to deposit their money.

Cooperative banking
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This article may need to be wikified to meet Wikipedia's quality standards. Please
help by adding relevant internal links, or by improving the article's layout. (March 2010)
A statue of cooperative pioneer Robert Owen stands in front of the Manchester head
office of the UK's Co-operative Bank plc

Cooperative banking is retail and commercial banking organized on a cooperative basis.

Cooperative banking institutions take deposits and lend money in most parts of the world.

Cooperative banking (for the purposes of this article), includes retail banking, as carried
out by credit unions, mutual savings and loan associations, building societies and
cooperatives, as well as commercial banking services provided by mutual organizations
(such as cooperative federations) to cooperative businesses.


• 1 Institutions
o 1.1 Definition of a cooperative bank (Source : ICBA, International
Cooperative Banks Association)
o 1.2 Credit unions
o 1.3 Cooperative banks
o 1.4 Building societies
o 1.5 Others
o 1.6 International associations
o 1.7 List
• 2 Quebec
• 3 United Kingdom
• 4 Continental Europe
• 5 India
• 6 Microcredit and microfinance
• 7 See also
• 8 References

• 9 External links

[edit] Institutions
[edit] Definition of a cooperative bank (Source : ICBA, International
Cooperative Banks Association)

A co-operative bank is a financial entity which belongs to its members, who are at the
same time the owners and the customers of their bank. Co-operative banks are often
created by persons belonging to the same local or professional community or sharing a
common interest. Co-operative banks generally provide their members with a wide range
of banking and financial services (loans, deposits, banking accounts…). Co-operative
banks differ from stockholder banks by their organization, their goals, their values and
their governance. In most countries, they are supervised and controlled by banking
authorities and have to respect prudential banking regulations, which put them at a level
playing field with stockholder banks. Depending on countries, this control and
supervision can be implemented directly by state entities or delegated to a co-operative
federation or central body. Even if their organizational rules can vary according to their
respective national legislations, co-operative banks share common features:

• Customer-owned entities : in a co-operative bank, the needs of the customers meet the
needs of the owners, as co-operative bank members are both. As a consequence, the first
aim of a co-operative bank is not to maximise profit but to provide the best possible
products and services to its members. Some co-operative banks only operate with their
members but most of them also admit non-member clients to benefit from their banking
and financial services.

• Democratic member control : co-operative banks are owned and controlled by their
members, who democratically elect the board of directors. Members usually have equal
voting rights, according to the co-operative principle of “one person, one vote”.

• Profit allocation : in a co-operative bank, a significant part of the yearly profit, benefits
or surplus is usually allocated to constitute reserves. A part of this profit can also be
distributed to the co-operative members, with legal or statutory limitations in most cases.
Profit is usually allocated to members either through a patronage dividend, which is
related to the use of the co-operative’s products and services by each member, or through
an interest or a dividend, which is related to the number of shares subscribed by each
Co-operative banks are deeply rooted inside local areas and communities. They are
involved in local development and contribute to the sustainable development of their
communities, as their members and management board usually belong to the
communities in which they exercise their activities. By increasing banking access in areas
or markets where other banks are less present – SMEs, farmers in rural areas, middle or
low income households in urban areas - co-operative banks reduce banking exclusion and
foster the economic ability of millions of people. They play an influential role on the
economic growth in the countries in which they work in and increase the efficiency of the
international financial system. Their specific form of enterprise, relying on the above-
mentioned principles of organization, has proven successful both in developed and
developing countries.

[edit] Credit unions

Main article: Credit union

Credit unions have the purpose of promoting thrift, providing credit at reasonable rates,
and providing other financial services to its members.[1] Credit union members are usually
required to share a common bond, such as locality, employer, religion or profession.
Credit unions are usually funded entirely by member deposits, and avoid outside
borrowing. They are typically (though not exclusively) the smaller form of cooperative
banking institution. In some countries they are restricted to providing only unsecured
personal loans, whereas in others, they can provide business loans to farmers, and

[edit] Cooperative banks

Larger institutions are often called cooperative banks. Some of these banks are tightly
integrated federations of credit unions, though those member credit unions may not
subscribe to all nine of the strict principles of the World Council of Credit Unions

Like credit unions, cooperative banks are owned by their customers and follow the
cooperative principle of one person, one vote. Unlike credit unions, however, cooperative
banks are often regulated under both banking and cooperative legislation. They provide
services such as savings and loans to non-members as well as to members, and some
participate in the wholesale markets for bonds, money and even equities.[2] Many
cooperative banks are traded on public stock markets, with the result that they are partly
owned by non-members. Member control is diluted by these outside stakes, so they may
be regarded as semi-cooperative.

Cooperative banking systems are also usually more integrated than credit union systems.
Local branches of cooperative banks elect their own boards of directors and manage their
own operations, but most strategic decisions require approval from a central office. Credit
unions usually retain strategic decision-making at a local level, though they share back-
office functions, such as access to the global payments system, by federating.
Some cooperative banks are criticized for dilution of cooperative principles. Principles 2-
4 of the Statement on the Co-operative Identity can be interpreted to require that members
must control both the governance systems and capital of their cooperatives. A
cooperative bank that raises capital on public stock markets creates a second class of
shareholders who compete with the members for control. In some circumstances, the
members may lose control. This effectively means that the bank ceases to be a
cooperative. Accepting deposits from non-members may also lead to a dilution of
member control.

[edit] Building societies

Main article: Building society

Building societies exist in Britain, Ireland and several Commonwealth countries. They
are similar to credit unions in organisation, though few enforce a common bond.
However, rather than promoting thrift and offering unsecured and business loans, their
purpose is to provide home mortgages for members. Borrowers and depositors are society
members, setting policy and appointing directors on a one member one vote basis.
Building societies often provide other retail banking services, such as current accounts,
credit cards and personal loans. In the United Kingdom, regulations permit up to half of
their lending to be funded by debt to non-members, allowing societies to access
wholesale bond and money markets to fund mortgages. The world's largest is Britain's
Nationwide Building Society.

[edit] Others

Mutual savings banks and mutual savings and loan associations were very common in the
19th and 20th centuries, but declined in number and market share in the late 20th century,
becoming globally less significant than cooperative banks, building societies and credit
unions. Trustee savings banks are similar to other savings banks, but they are not
cooperatives, as they are controlled by trustees, rather than their depositors.

[edit] International associations

The most important international associations of cooperative banks, both based in

Brussels, are the CIBP (International Association of Cooperative Banks), which has
member institutions from all around the world, and the European Association of Co-
operative Banks.

[edit] List

Notable cooperative banking businesses

Name Country Members (2010 US$ Type Alternative name Notes
(2010)[3] millions)[3]
Joint owned by
Crédit [4]
France stock CASA federation
bank of credit
owned by
quarters of
DZ Bank Germany Bank tbank
German Central
Cooperative Bank
banks) in
and Austria
Caisse literally “savings Credit union
d'Epargne bank” federation
Netherlan 1,500,000 Credit union
ds + federation
Building largest
e Building UK
society building
Banque France 3,400,000
Credit Leading
Desjardin 5,795,277
Canada [5] union bank in
s Group
federation Quebec
Credit union
Zentralba Austria Bank RZB Österreich
of National Agricultural
South US$230
Nonghyup agricultur Cooperative
Korea billion in
al Federation (NACF)
Iccrea Istituto Centrale del
Italy Bank
Banca Credito Cooperativo
Cassa Italy Bank CCB
Banca -
vo del
Nord Est
Cassa Centrale
Italy Bank Raiffeisen dell'Alto
nk -
Raiffeisen Switzerla Credit union
Schweiz nd federation
and Caja
31% share
OP- of Finnish
Pohjola credit
Group market, and
and 32% share
Pohjola of savings
Bank and deposit
2nd national
Koperasi Bank
Bank 86,375,542. cooperative
Malaysia 46,135 Bank Persatuan Malaysia
Persatuan 97 bank in
Co- Not Subsidiary
operative UK applicable [8] Bank of consumer
Bank cooperative
Federal Credit
US 3,004,352 33012 natural
Credit union
credit union
Shared [9] ve Finance for
Interest lending fair trade
This list is incomplete; you can help by expanding it.

[edit] Quebec
The caisse populaire movement started by Alphonse Desjardins in Quebec, Canada,
pioneered credit unions. Desjardins wanted to bring desperately needed financial
protection to working people. In 1900, from his home in Lévis, Quebec, he opened the
first credit union in North America, marking the beginning of the Mouvement Desjardins.

[edit] United Kingdom

British building societies developed into general-purpose savings and banking institutions
with ‘one member, one vote’ ownership and can be seen as a form of financial
cooperative (although some de-mutualised into conventionally owned banks in the 1980s
and 1990s). The UK Co-operative Group includes both an insurance provider, the CIS,
and the Co-operative Bank, both noted for promoting ethical investment.

[edit] Continental Europe

Important continental cooperative banking systems include the Crédit Agricole, Crédit
Mutuel, Banque Populaire and Caisse d'épargne in France, Rabobank in the Netherlands,
BVR/DZ Bank in Germany, Banco Popolare, UBI Banca and Banca Popolare di Milano
in Italy, Migros and Coop Bank in Switzerland, and the Raiffeisen system in several
countries in central and eastern Europe. The cooperative banks that are members of the
European Association of Co-operative Banks have 130 million customers, 4 trillion euros
in assets, and 17% of Europe's deposits. The International Confederation of Cooperative
Banks (CIBP) is the eldest association of cooperative banks at international level.

In Scandinavia, there is a clear distinction between mutual savings banks (Sparbank) and
true credit unions (Andelsbank).

[edit] India
The origins of the cooperative banking movement in India can be traced to the close of
nineteenth century when, inspired by the success of the experiments related to the
cooperative movement in Britain and the cooperative credit movement in Germany, such
societies were set up in India. Cooperative banks are an important constituent of the
Indian financial system. They are the primary financiers of agricultural activities, some
small-scale industries and self-employed workers. The Anyonya Co-operative Bank in
India is considered to have been the first cooperative bank in Asia.

[edit] Microcredit and microfinance

The more recent phenomena of Microcredit and microfinance are often based on a
cooperative model They focus on small business lending..In 2006, Muhammad Yunus,
founder of the Grameen Bank in Bangladesh, won the Nobel Peace Prize for his ideas
regarding development and his pursuit of the microcredit concept.
NABARD is set up by the Government of India as a development bank with the mandate of
facilitating credit flow for promotion and development of agriculture and integrated rural
development. The mandate also covers supporting all other allied economic activities in
rural areas, promoting sustainable rural development and ushering in prosperity in the rural

With a capital base of Rs 2,000 crore provided by the Government of India and Reserve Bank of India , it
operates through its head office at Mumbai, 28 regional offices situated in state capitals and 391 district offices
at districts.
Contact NABARD

It is an apex institution handling matters concerning policy, planning and operations in the
field of credit for agriculture and for other economic and developmental activities in rural
areas. Essentially, it is a refinancing agency for financial institutions offering production
credit and investment credit for promoting agriculture and developmental activities in rural
NABARD today

• Initiates measures toward institution-building for improving absorptive capacity of the credit delivery
system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions,
training of personnel, etc.

• Coordinates the rural financing activities of all the institutions engaged in developmental work at the field
level and maintains liaison with the government of India , State governments, the Reserve Bank of India
and other national level institutions concerned with policy formulation

• Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base
for annual credit plans of all rural financial institutions

• Undertakes monitoring and evaluation of projects refinanced by it

• Promotes research in the fields of rural banking, agriculture and rural development

• Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional
rural banks

NABARD's Roles and Functions are summarized below:

• Credit Functions

• Developmental and Promotional Functions

• Supervisory Functions

• Institutional and Capacity building

• Role in Training

Credit functions
NABARD's credit functions cover planning, dispensation and monitoring of credit.

This activity involves:

• Framing policy and guidelines for rural financial institutions

• Providing credit facilities to issuing organizations

• Preparation of potential-linked credit plans annually for all districts for identification of credit

Developmental and Promotional Functions

Credit is a critical factor in development of agriculture and rural sector as it enables investment in capital
formation and technological upgradation. Hence strengthening of rural financial institutions, which deliver
credit to the sector, has been identified by NABARD as a thrust area. Various initiatives have been taken
to strengthen the cooperative credit structure and the regional rural banks, so that adequate and timely
credit is made available to the needy.

In order to reinforce the credit functions and to make credit more productive, NABARD has been
undertaking a number of developmental and promotional activities such as:-

• Help cooperative banks and Regional Rural Banks to prepare development

actionsplans for themselves
• Enter into MoU with state governments and cooperative banks specifying their
respective obligations to improve the affairs of the banks in a stipulated timeframe
• Help Regional Rural Banks and the sponsor banks to enter into MoUs specifying
their respective obligations to improve the affairs of the Regional Rural Banks in a
stipulated timeframe
• Monitor implementation of development action plans of banks and fulfillment of
obligations under MoUs
• Provide financial assistance to cooperatives and Regional Rural Banks for
establishment of technical, monitoring and evaluations cells

• Provide organisation development intervention (ODI) through reputed training

institutes like Bankers Institute of Rural Development (BIRD), Lucknow
www.birdindia.com, National Bank Staff College, Lucknow www.nbsc.in and
College of Agriculture Banking, Pune, etc.
• Provide financial support for the training institutes of cooperative banks
• Provide training for senior and middle level executives of commercial banks,
Regional Rural Banks and cooperative banks
• Create awareness among the borrowers on ethics of repayment through Vikas
Volunteer Vahini and Farmer’s clubs
• Provide financial assistance to cooperative banks for building improved
management information system, computerisation of operations and development of
human resources

As an apex bank involved in refinancing credit needs of major financial institutions in the country
engaged in offering financial assistance to agriculture and rural development operations and
programmes, NABARD has been sharing with the Reserve Bank of India certain supervisory
functions in respect of cooperative banks and Regional Rural Banks (RRBs).

As part of these functions, it

• Undertakes inspection of Regional Rural Banks (RRBs) and cooperative banks (other than
urban/primary cooperative banks) under the provisions of Banking Regulation Act, 1949.

• Undertakes inspection of State Cooperative Agriculture and Rural Development Banks

(SCARDBs) and apex non-credit cooperative societies on a voluntary basis

• Undertakes portfolio inspections, systems study, besides off-site surveillance of cooperative

banks and Regional Rural Banks (RRBs)

• Provides recommendations to Reserve Bank of India on opening of new branches by State

Cooperative Banks and Regional Rural Banks (RRBs)

• Administering the Credit Monitoring Arrangements in SCBs and CCBs.

Core Functions

NABARD has been entrusted with the statutory responsibility of conducting inspections of State
Cooperative Banks (SCBs), District Central Cooperative Banks (DCCBs) and Regional Rural Banks
(RRBs) under the provision of the Banking Regulation Act, 1949. In addition, NABARD has also
been conducting periodic inspections of state level cooperative institutions such as State
Cooperative Agriculture and Rural Development Banks (SCARDBs), Apex Weavers Societies,
Marketing Federations, etc. on a voluntary basis.

Objectives of Inspection

• To protect the interest of the present and future depositors

• To ensure that the business conducted by these banks is in conformity with the provisions of
the relevant Acts/Rules, regulations/Bye-Laws, etc

• To ensure observance of rules, guidelines, etc. formulated and issued by


• To examine the financial soundness of the banks

• To suggest ways and means for strengthening the institutions so as to enable them to play
more efficient role in rural credit

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Instruments of Supervision

• Periodic on-site inspection of 31 SCBs, 366 DCCBs, 20 SCARDBs and 102 RRBs and other
Apex level Cooperative institutions

• Supplementary Appraisal
• Off-site Surveillance System ( OSS )

• Portfolio inspection/System study

• CMA returns

Supervisory Strategy

In the wake of the banking sector reforms, new set of international norms/practices were made
applicable to Commercial Banks (CBs) to make them more competitive and sustainable in the
changing scenario. The co-operative banks and RRBs were also to function in the general banking
environment, emerging out of the financial sector reforms, introduced by the GOI/RBI. Accordingly,
the prudential norms were extended to them in phases. While the capital adequacy norm has not
yet been made applicable to these banks, the other prudential norms viz. income recognition, asset
classification and provisioning, which were made applicable by RBI to the commercial banking
sector had been extended to cover RRBs in 1995-96, SCBs and DCCBs in 1996-97 and to
SCARDBs in 1997-98. NABARD, through a concrete and time-bound supervision strategy, facilities
these banks to adjust to the new financial discipline so as to internalize prudential norms stipulated.

Current Focus

Under the revised strategy, a sharper focus of the NABARD’s inspection was
given on the core areas of the functioning of banks pertaining to Capital
Adequacy, Asset Quality, Management Earnings, Liquidity and Systems
Compliance (CAMELSC). Thus, NABARD’s focus in its statutory ‘on-site’
inspections is on core assessments leaving the collateral appraisals to
supplementary inspections. The micro level aspects are to be taken care of by the
banks themselves by way of internal inspections or by other agencies such as
auditors. In this direction, through a series of workshops and meetings held with
the Chief Executives and the Chief Auditors of cooperative banks, NABARD
attempted to ensure that the other areas, particularly relating to the internal checks
and controls, revenue and income realization by way of interest on loans and
deposits and other routine features of carrying out general banking transactions
were suitably taken care of by the respective banks and their concurrent/statutory
audit systems.
Off-site Surveillance

As a part of the new strategy of supervision, a system of `Off-site Surveillance'

has been introduced as a supplementary tool to the on-site inspection. Its
objectives are to obtain and analyse critical data on a continuous basis, to identify
areas of supervisory concern and to identify early warning signals and risky areas
requiring further probe. The system basically envisages desk scrutiny of
operations of cooperative banks and RRBs through a set of statutory and non-
statutory returns. While the periodical statutory on-site inspections attempt an
overall evaluation of the performance of the banks with a stipulated period, off-
site surveillance envisages continuous supervision supplementing the on-site
inspections with additional instruments of supervision.
Board of Supervision (for SCBs, DCCBs and RRBs)

Board of Supervision (for SCBs, DCCBs and RRBs) has been constituted by NABARD under
Section 13(3) of NABARD Act, 1981 as an Internal Committee to the Board of Directors of
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The broad powers and functions of the Board of Supervision are :

• Giving directions and guidance in respect of policies and on matters relating to supervision and
inspection, reviewing the inspection findings, suggesting appropriate measures

• Reviewing the follow-up action taken by Department of Supervision (DoS) on matters of frauds
and internal checks and control

• Identifying the emerging supervisory issues in the functioning of cooperative

banks/RRBs such as NPAs recovery, investment portfolio, credit monitoring
system, management practices, frauds, etc.
• Suggesting necessary follow-up measures

• Recommending appropriate training for Inspecting Officers of NABARD for imparting necessary
skills and knowledge

• Suggest measures for strengthening of DoS

• Recommend issue of directions by RBI

• Oversee the quality of inspections carried out and the reports issued

• Review the information generated through off-site surveillance and other supplementary
vehicles, action taken thereon

• Undertake any other functions entrusted from time to time by the Board of Directors of

The Board of Supervision, since its formation on 20 November 1999 , has held 31 meetings till 10
January 2007 and reviewed the financial position of Cooperative Banks and RRBs. Based on the
observations of BoS, authorities concerned have been apprised of the weaknesses.

Other Initiatives

• The day-to-day functioning of the supervised banks is being monitored through various
statutory returns prescribed by the RBI/NABARD including OSS returns

• Periodic coordination Meets are conducted with RPCD, RBI to discuss the policy and
operational matters relating to supervision

• State level groups comprising RCS, Apex bank, Cooperation and Finance Department, State
Government, Director of Audit and non-compliant banks have been constituted/convened for
preparing/discussing suitable strategy for Section 11 non-compliant banks and monitoring the
progress of Action Plan prepared by them to facilitate them recompliance with the provision

• Periodic discussions are held with the MD, Apex Banks, RCS, State Government etc. to
discuss the supervisory concerns.

Institutional Building
• Help cooperative banks and RRBs to prepare development actions plans for themselves

• Enter into MoU with state governments and cooperative banks specifying their respective
obligations to improve the affairs of the banks in a stipulated timeframe
• Help RRBs and the sponsor banks to enter into MoUs specifying their respective
obligations to improve the affairs of the RRBs in a stipulated timeframe

• Monitor implementation of development action plans of banks and fulfillment of obligations

under MoUs.

NABARD and its Role in Training

• National Bank Staff College, Lucknow

• National Bank Training Centre, Lucknow

• Zonal Training Centre, Hyderabad

• Regional Training Centre, Mangalore

• Regional Training Centre, Bolpur

• Bankers Institute of Rural Development (BIRD), Lucknow

The provisions of the Act as stated below very clearly indicate the nature and scope of the
developmental mandate of the Bank and its role in training and capacity building with the
underlying belief that the process of development cannot be accomplished by credit/refinance

Section 38 of the NABARD Act provides that the Bank shall:

• maintain expert staff to study all problems relating to agriculture and rural development
and be available for consultation to the Central Government, the Reserve Bank, the State
Governments and the other institutions engaged in the field of rural development.

• provide facilities for training, for dissemination of information and the promotion of
research including the undertaking of studies, researches, techno-economic and other
surveys in the field of rural banking, agriculture and rural development.

• provide technical, legal, financial, marketing and administrative assistance to any person
engaged in agriculture and rural development activities;

• may provide consultancy services in the field of agriculture and rural development and
other related matters in or outside India, on such terms and against such remuneration, as
may be agreed upon;

In this context, the role of training in NABARD and the role played by it for capacity building in
client institutions, partner agencies and other developmental agencies is important.

For maintaining 'Expert Staff', the bank needs to provide continuous exposure to its officers
and staff for upscaling their knowledge and skills in core areas. However, in the initial years
the Bank had recruited expert staff from various technical disciplines and created a separate
cadre of officers. These officers were involved in formulating, appraising, monitoring and
evaluating different agricultural projects implemented by different credit agencies.These
officers, irrespective of their academic background, were imparted similar type of training as
all other officers. Their placements and the regular job rotations helped in grooming them to
take up assorted assignments, get involved in a variety of roles and functions including credit,
developmental, promotional, supervisory and necessary support and information for decision
making. The Bank also had access to their specialised skills which were utilised whenever

In pursuance of the Bank's mandate as stated in the Act, the Bank provides training facilities
for the RFIs and agencies involved in rural development through BIRD and the two RTCs.
With a view to broadbase the training and capacity building efforts, the Bank encourages the
RFIs to set up their own training systems and provides these training institutes the necessary
support to conduct meaningful and quality training. Options and avenues for strengthening the
training interventions at the client level are continuously examined so that the human
resources in these institutions are developed to take on the challenges, reckon with the
competition, improve customer service, expand outreach, develop suitable products and
thereby contribute to rural development.

As NABARD primarily functions through other agencies, the needs of the client
institutions largely determine the knowledge and skill requirements of NABARD

NABARD endeavours to blend the experiences of client bank training with the training for
NABARD officers so as to make training meaningful and relevant to their roles. Efforts are
also made to blend the study findings with the outcome from training to periodically measure
the overall impact of the investments made in the training efforts.

• Provide financial assistance to cooperatives and RRBs for establishment of technical,

monitoring and evaluations cells.

• Provide organisation development intervention (ODI) through reputed training institutes

like Bankers Institute of Rural Development (BIRD), Lucknow, National Bank Staff
College, Lucknow, College of Agriculture Banking, Pune, etc.

• Provide financial support for the training institutes of cooperative banks

• Provide training for senior and middle level executives of commercial banks, RRBs and
cooperative banks

• Create awareness among the borrowers on ethics of repayment through Vikas Volunteer
Vahini/farmer's clubs

• Provide financial assistance to cooperative banks for building improved management

information system, computerisation of operations, development of human resources, etc.