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NABARD & SIDBI

Navnirman Institute of Management (NIM-Surat)

Project On: World Trade Organization (WTO)

Created By:Radha Patel(133) Komal Padsala(135) Keyur Shah(165) Pooja Vanasiwala(196)

Class:T.Y.B.B.A-(C)

Submitted To: Lekha Jariwala

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NABARD & SIDBI Introduction :


NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is entrusted with 1. Providing refinance to lending institutions in rural areas 2. Bringing about or promoting institutional development and 3. Evaluating, monitoring and inspecting the client banks Besides this pivotal role, NABARD also: Acts as a coordinator in the operations of rural credit institutions Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development Acts as regulator for cooperative banks and RRBs Extends assistance to the government, the Reserve Bank of India and other organizations in matters relating to rural development Offers training and research facilities for banks, cooperatives and organizations working in the field of rural development Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development Acts as regulator for cooperative banks and RRBs

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Some of the milestones in NABARD's activities are: Total production credit disbursed at end March 2011 was `34196 crore. Refinance disbursement under Investment Credit to commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs and other eligible financial institutions during 2010-11 aggregated `13485.87 crore. Through the Rural Infrastructure Development Fund (RIDF) `12060.04 crores were disbursed during 2010-11. A cumulative amount of `121488.40 crore has been sanctioned for 444162 projects as on 31 March 2011 covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc. Under Watershed Development Fund which has a balance of `1847.69 crore as on 31 March 2011, 579 projects in districts of 14 states have benefited. Farmers now enjoy hassle free access to credit and security through 1009.30 lakh Kisan Credit Cards that have been issued through a vast rural banking network. During 2010-11, 72.6 lakh KCC were issued by banks with a sanctioned limit of `43370 crore. Under the Farmers' Club Programme, during the year 21903 clubs were launched, taking the total to 76708 clubs as on 31 March 2011 helping farmers get access to credit, technology and extension services. Village Development Programme (VDP) is being implemented in 801 villages across 25 states. Under Tribal Development Fund, cumulative sanction amounted to `917.60 crore for 317 projects covering 2.5 lakh families. During 2010-11 financial assistance of `373.97 crore was sanctioned for 126 projects benefiting 94,163 tribal families. Under Farm Innovation and Promotion Fund (FIPF), cumulatively 123 projects in various states, involving financial support of `11.65 crore were sanctioned as on 31 March 2011. Farmers Technology Transfer Fund (FTTF) 512 innovative projects in 27 states with grant assistance of `44.97 crore were sanctioned during 2010-11. There were more than 69.53 lakh savings linked SHGs and more than 48.51 lakh credit linked SHGs covering 9.7 crore poor households as on 31 March 2011, under the microfinance programme.

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NABARD at a Glance (Rs.crore)

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Genesis and Historical Background The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) set up by the RBI under the Chairmanship of Shri B Sivaraman in its report submitted to Governor, Reserve Bank of India on November 28, 1979 recommended the establishment of NABARD. The Parliament through the Act 61 of 81, approved its setting up. The Committee after reviewing the arrangements came to the conclusion that a new arrangement would be necessary at the national level for achieving the desired focus and thrust towards integration of credit activities in the context of the strategy for Integrated Rural Development. Against the backdrop of the massive credit needs of rural development and the need to uplift the weaker sections in the rural areas within a given time horizon the arrangement called for a separate institutional set-up. Similarly. The Reserve Bank had onerous responsibilities to discharge in respect of its many basic functions of central banking in monetary and credit regulations and was not therefore in a position to devote undivided attention to the operational details of the emerging complex credit problems. This paved the way for the establishment of NABARD. CRAFICARD also found it prudent to integrate short term, medium term and long-term credit structure for the agriculture sector by establishing a new bank. NABARD is the result of this recommendation. It was set up with an initial capital of Rs 100 crore, which was enhanced to Rs 2,000 crore, fully subscribed by the Government of India and the RBI.

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Mission Promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives. In pursuing this mission, NABARD focuses its activities on: Credit functions, involving preparation of potential-linked credit plans annually for all districts of the country for identification of credit potential, monitoring the flow of ground level rural credit, issuing policy and operational guidelines to rural financing institutions and providing credit facilities to eligible institutions under various programmes Development functions, concerning reinforcement of the credit functions and making credit more productive Supervisory functions, ensuring the proper functioning of cooperative banks and regional rural banks

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Objectives NABARD was established in terms of the Preamble to the Act, "for providing credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting IRDP and securing prosperity of rural areas and for matters connected therewith in incidental thereto". The main objectives of the NABARD as stated in the statement of objectives while placing the bill before the Lok Sabha were categorized as under : 1. The National Bank will be an apex organisation in respect of all matters relating to policy, planning operational aspects in the field of credit for promotion of Agriculture, Small Scale Industries, Cottage and Village Industries, Handicrafts and other rural crafts and other allied economic activities in rural areas. 2. The Bank will serve as a refinancing institution for institutional credit such as long-term, short-term for the promotion of activities in the rural areas. 3. The Bank will also provide direct lending to any institution as may approved by the Central Government. 4. The Bank will have organic links with the Reserve Bank and maintain a close link with in.

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Major Activities Preparing of Potential Linked Credit Plans for identification of exploitable potentials under agriculture and other activities available for development through bank credit. Refinancing banks for extending loans for investment and production purpose in rural areas. Providing loans to State Government/Non Government Organizations (NGOs)/Panchayati Raj Institutions (PRIs) for developing rural infrastructure. Supporting credit innovations of Non Government Organizations (NGOs) and other nonformal agencies. Extending formal banking services to the unreached rural poor by evolving a supplementary credit delivery strategy in a cost effective manner by promoting Self Help Groups (SHGs) Promoting participatory watershed development for enhancing productivity and profitability of rainfed agriculture in a sustainable manner. On-site inspection of cooperative banks and Regional Rural Banks (RRBs) and iff-site surveillance over health of cooperatives andRRBs.

Organization Structure

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Board of Directors Dr.PrakashBakshi Chairman National Bank for V A C A N T Agriculture and Rural Development Mumbai Section : 6(1)(a) Section:6(1)(c) Shri D. B. Gupta Principal Secretary Department of Agriculture Government of Rajasthan Jaipur. Section : 6(1)(e) Shri Lakshmi Chand Shri A. K. Sinha C-12, Sector -14 Noida, Uttar Pradesh Section : 6(1)(c) From RBI Board Shri Prabeer Kumar Basu Secretary Ministry of Agriculture VACANT Department of Agriculture and Section : 6(1)(b) Cooperation Government of India, New Delhi Section : 6(1)(d) GoI representative Shri B. K. Sinha Secretary VACANT Ministry of Rural Development Section : 6(1)(b) Shri K. Jayakumar Additional Chief Secretary (Home & Vigilance) Government of Kerala, Shri Mohd. Iqbal Khandey Principal Secretary, Agricultural Production Department, Government of Jammu & Kashmir, Srinagar Section : 6(1)(e) Agricultural Production Commissioner Government of Bihar Vikas Bhawan,New Secretariat Patna. Section : 6(1)(e)

Shri Jainti Kumar Batish House No. 131, Sector 8, Panchkula, Haryana Section : 6(1)(b)

Government of India, Thiruvananthapuram New Delhi Section : 6(1)(e) Section : 6(1)(d)

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GoI representative Shri Alok Nigam Dr. K. C. Chakrabarty Deputy Governor Reserve Bank of India Central Office, Mumbai Section : 6(1)(c) Joint Secretary (BO), Ministry of Finance, Department of Financial Services, Government of India, New Delhi Section : 6(1)(d) GoI Representative VACANT Section : 6(1)(g)

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Chairman Dr. Prakash Bakshi Chairman National Bank for Agriculture and Rural Development, C-24, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400 051 Tel no.: (91) 022 26530000 / 26530001

Fax: (91) 22 26530113 E-mail : chairman@nabard.org Executive Directors Shri S K Mitra NABARD 7th Floor, 'C' Wing, C-24, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051 Tel:(91) 022-26530128 Fax:(91) 022-26530022 E-mail: ed1@nabard.org Shri Amaresh Kumar NABARD 7th Floor, "C" Wing, C-24, G-Block, Bandra-Kurla Complex Bandra (East), Mumbai - 400051 Tel: 022-26530011 Fax: 022-26530012 E-mail: ed3@nabard.org Shri V. Ramakrishna Rao NABARD 7th Floor, "C" Wing, C-24, G-Block, Bandra-Kurla Complex Bandra (East),

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Mumbai - 400051 Tel: 022-26530031 Fax: 022-26530032 E-mail: ed2@nabard.org Shri B.S. Shekhawat NABARD 7th Floor, "C" Wing, C-24, G-Block, Bandra-Kurla Complex Bandra (East), Mumbai - 400051 Tel: 022-26530052 Fax: 022-26524394 E-mail: bs.shekhawat@nabard.org Shri R. Narayan NABARD 7th Floor, "C" Wing, C-24, G-Block, Bandra-Kurla Complex Bandra (East), Mumbai - 400051 Tel: (91) 022-26530109 Fax: (91) 022-26525068 E-mail: ed5@nabard.org District Development Offices

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Executive Committee Dr. Prakash Bakshi Chairman National Bank for Agricultureand Rural Development Mumbai Section : 6(1)(a) Dr. K. C. Chakrabarty Deputy Governor Reserve Bank of India Central Office, Mumbai Section : 6(1)(c) VACANT

Section : 6(1)(b) Shri Alok Nigam Joint Secretary (BO), Ministry of Finance, Department of Financial Services Government of India, New Delhi Section : 6(1)(d) GoI Representative Shri K. Jayakumar Additional Chief Secretary (Home & Vigilance) Government of Kerala, Thiruvananthapuram Section : 6(1)(e) V A C A N T (M.D.)

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Section : 6(1)(g) go to top Board of Directors | Executive Committee | Sanctioning Committee Audit Committee | Risk Management Committee Sanctioning Committee Dr. Prakash Bakshi Chairman National Bank for Agricultureand Rural Development Mumbai Section : 6(1)(a) Dr. K. C. Chakrabarty Deputy Governor Reserve Bank of India Central Office, Mumbai Section : 6(1)(c) Shri Lakshmi Chand C-12, Sector -14 Noida, Uttar Pradesh Section : 6(1)(c) From RBI Board Shri Alok Nigam Joint Secretary (BO), Ministry of Finance, Department of Financial Services Government of India, New Delhi Section : 6(1)(d) GoI Representative Shri Prabeer Kumar Basu 14 | P a g e Navnirman Institute Of Management

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Secretary Ministry of Agriculture Department of Agriculture and Cooperation Government of India, New Delhi Section : 6(1)(d) GoI representative Shri B. K. Sinha Secretary Ministry of Rural Development Government of India, New Delhi Section : 6(1)(d) GoI representative Shri D.B. Gupta Principal Secretary Department of Agriculture Government of Rajasthan Jaipur. Tel : 0141 2227851 Fax : 0141-5103626 Section : 6(1)(e) Shri Mohd. Iqbal Khandey Principal Secretary, Agricultural Production Department, Government of Jammu & Kashmir, Srinagar. Section : 6(1)(e) VACANT (Managing Director)

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Section : 6(1)(g)

Audit Committee Dr. K. C. Chakrabarty Deputy Governor Reserve Bank of India Central Office, Mumbai Section : 6(1)(c) VACANT

Section : 6(1)(b) Shri Lakshmi Chand Chairperson C-12, Sector -14 Noida, Uttar Pradesh Tel & Fax : (O) 011-26184883, Mob. 9818480666 Section : 6(1)(c) From RBI Board Shri Alok Nigam Joint Secretary (BO), Ministry of Finance, Department of Financial Services Government of India, New Delhi Section : 6(1)(d) GoI Representative Shri K. Jayakumar Additional Chief Secretary (Home & Vigilance) Government of Kerala

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Thiruvananthapuram Section : 6(1)(e) VACANT (Managing Director) Section : 6(1)(g)

Risk Management Committee Dr. Prakash Bakshi Chairman National Bank for Agriculture and Rural Development Mumbai Section : 6(1)(a) VACANT

Section : 6(1)(b) Dr. K. C. Chakrabarty Deputy Governor Reserve Bank of India Central Office, Mumbai Section : 6(1)(c) VACANT

Section : 6(1)(c) Shri Alok Nigam Joint Secretary (BO), Ministry of Finance, Department of Financial Services 17 | P a g e Navnirman Institute Of Management

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Government of India, New Delhi Section : 6(1)(d) GoI Representative Shri A. K. Sinha Agricultural Production Commissioner Government of Bihar Vikas Bhawan,New Secretariat Patna. Section : 6(1)(e) VACANT (Managing Director) Section : 6(1)(g)

Role and Functions NABARD is an apex institution accredited with all matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas. It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas It takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc. It co-ordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India and other national level institutions concerned with policy formulation. It prepares, on annual basis, rural credit plans for all districts in the country; these plans form the base for annual credit plans of all rural financial institutions It undertakes monitoring and evaluation of projects refinanced by it. It promotes research in the fields of rural banking, agriculture and rural development 18 | P a g e Navnirman Institute Of Management

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NABARD and its Role in Training National Bank Staff College, Lucknow National Bank Staff College, Lucknow Set up in the year 1986 to cater to the training needs of officers of NABARD, based on the Study Group headed by Dr Kamla Chowdhry. The College aims at upgrading knowledge and skills of officers to strengthen human resources in Bank and provide the necessary impetus for strong and vibrant cadre of officers. Every year the College conducts about 100 programmes. The College has adopted ISO 9001 : 2000 certification based on Quality Management System w.e.f. 20 February 2006. National Bank Training Centre, Lucknow

National Bank Training Centre Shri Madan Mohan, Chief General Manager & Principal, Sector D/S, Sitapur Road, Opp. Mandi Samiti, Aliganj, Lucknow 226 020 Tel: 0522-329109, 329501 Zonal Training Centre, Hyderabad Shri V Ramakrishna Rao, NABARD Staff Qtrs. 10-1-128/41, Near My Friend Restaurant Masab Tank Hyderabad - 500028 Tel: 040-3375006, 3375007

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Zonal Training Centre, Hyderabad Zonal Training Centre, Hyderabad NABARD Staff Qtrs. 10-1-128/41, Masab Tank Hyderabad - 500028 Tel: 040-3375006, 3375007 Chief Faculty Member Shri S S Rao, AGM Faculty Member Shri V. Sundara Raman, AGM Contact No. 23375006 Mobile +919949690891 E-mail vsundar1964@hotmail.com

Bankers Institute of Rural Development (BIRD), Mangalore

" Training in BIRD, NABARD, Mangalore is a proactive, planned and continuous process as part of our institutional development efforts aimed at developing efficient, responsive and viable rural credit delivery systems. It seeks to impart knowledge, improve skills and reorient attitudes for individual growth and organizational effectiveness". OUR QUALITY POLICY We, at the BIRD, Mangalore, are committed to capacity building of the Human Resources of Rural Financial Institutions and other organizations involved in agricultural and rural development by providing relevant need based quality training and development interventions. We also endeavour for continual improvement of our systems and procedures to enhance the quality of our service.

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Bankers Institute of Rural Development (BIRD), Bolpur Regional Training College (RTC), Bolpur, established in 1984, is NABARD's principal Training Institute for Primary Lending Institutions (PLIs), in the Eastern and North Eastern Regions. As Apex Development Financial Institution in Agriculture and Rural Sector, NABARD has the responsibility of Institutional development of PLIs through training and capacity building. RTC, Bolpur was set up primarily to undertake this responsibility in the Eastern and North Eastern Regions. Recently, Andhra Pradesh, Chattishgarh and a part of Maharastra have also been added to its training jurisdiction. The college is headed by a Principal in the rank of General Manager of NABARD, with rich experience in rural banking. He is supported by a team of young, committed Faculty Members specializing in Economics, Finance, Project Appraisal, Behavioural Science, Banking Law and Practice, Management and Organisation Development. Over the years, the college has developed expertise in imparting quality training and conducting on-location programmes including Organisational Development Initiative. On an average, every year, the college trains about 1500 - 2000 bank officers through in-house and on-location programmes. The training methodology used by the college is participatory, case- study based and fieldoriented. Unlike chalk-and-talk, theoretical method, the training in this college is based on solving real problems faced by the client institutions through group discussion and experience sharing. The college is a learning organisation which believes in continuous learning from and with each other.
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Air-conditioned hostel rooms and class room A library having a very good collection of books Regular Yoga session Mini Gymnasium Contact Number, Fax, E-mail Tele : (03463) 252812, 254065, 254087 Fax : (03463) 252295 E-mail : ksh_nabbol@sancharnet.in

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Office Timings
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Mondays: 0945 hrs. to 1800 hrs. Tuesday to Friday: 0945 hrs. to 1745 hrs.

Bolpur (Shantiniketan) - Tagore's Land Bolpur, which houses Shantiniketan and Vishva Bharati, Central University, is a small town - 150 Kms away from Kolkata. Situated in a sylvan setting, it attracts millions of visitors, who come to pay homage to Gurudev Tagore and touch the holy land which has been the abode of myriad artists, intellectuals, poets and painters. Among them are, to mention a few, Prof. Amartya Sen (Nobel Laureate, who grew up here as an Ashram Child), Nandalal Bose (Painter), Ramkinkar Baize (Sculptor), Satyajit Ray (film maker) and many others. Tagore spent a large part of his life here building Vishva Bharati. Hence, this place was recently visited by Gandhiji, Nehruji, Vinobha Bhave and many other national leaders. Indira Gandhi, too, studied at Shantiniketan. Vishva Bharati follows the unique practice of open air education, where students study in an open environment - even today. To its millions of visitors, Shantiniketan (abode of peace) has a mystic charm which gives "peace to the mind and relief to the soul"

Bankers Institute of Rural Development (BIRD), Lucknow

Bankers Institute of Rural Development (BIRD) Established in 1983, at Lucknow, is an autonomous institute promoted and funded by NABARD. BIRD was established primarily to cater to the training needs of RRB personnel. The Institute, has, since 1st April 1992, been catering to the training and information needs of rural bankers through its topical training programs/seminars . The Institute's mandate also includes Research and Consultancy in the related areas. Shri S K Chatterjee, Officer on Special Duty, Sector 'H', LDA Colony, Kanpur Road, Lucknow 226 012 Tel: 0522-436546, 636854 22 | P a g e Navnirman Institute Of Management

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Fax: 0522-436850 Email: bird@sancharnet.in mail@birdindia.org.in feedback@birdindia.org.in For more information on what BIRD can offer you, please visit www.birdindia.com, www.birdindia.org.in

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 alone. 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 23 | P a g e Navnirman Institute Of Management

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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 needed. 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 officers. 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.

25 YEARS OF DEDICATION TO RURAL PROSPERITY NABARD completed 25 years of its eventful and trailblazing existence on 12 July 2007. Established in 1982, by an Act of Parliament, NABARD's mandate was to provide focused and undivided attention to the development of rural India by facilitating credit flow for promotion of agriculture and rural non farm sector. Emphasizing this in no uncertain terms, its mission statement underscores NABARD's goal to "promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and

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other innovative initiatives". NABARD's functions can be classified into 4 major categories viz. Credit Planning, Financial Services, Promotion and Development, and Supervision. Under Credit Planning NABARD prepares Potential Linked Credit Plan (PLP) annually for each district of the country by assessing potential available in agriculture and rural sector. This serves as a guide for banks and Government agencies to prepare their own investment and credit plans in the district and state. Under its Financial services, it refinances commercial, co-operative and regional rural banks for lending to on farm and non-farm activities. This includes farm activities like minor irrigation, animal husbandry, farm mechanization, forestry, fisheries, land development, horticulture, plantation and medicinal crops and non-farm like rural industries, artisans, handicrafts, handlooms, rural housing, rural tourism and agro processing. Refinance is provided by NABARD for both long term investment credit as well as short term production credit for crop loans and working capital for non-farm activities. A nationwide network of 28 regional offices at the state capitals, a sub-office at Port Blair and 391 district development offices are at hand to cater to this awesome task. Clearly NABARD's benevolent hand has been silently at work in supporting rural resurgence in various ways and its stakes are quite enormous. A glance at the figures will give a fair idea. It has channelised a whopping Rs. 1,21,000 crore under its investment credit programme and RIDF since inception, which includes Rs. 8795 crore disbursed during 2006-07. Under production credit the Bank sanctioned limits of Rs. 12570 crore during 2006-07. NABARD has effectively brought in a number of innovations in the rural credit domains. To quote a few: Formation and Linkage of Self Help Groups, Farmers Clubs, Rural Infrastructure Development Fund, Watershed Development, Kisan Credit Card, District Rural Industries Project, Cluster Development Programme and Rural Innovation Fund. Self Help Groups (SHGs) Farmers Clubs Rural Infrastructure Development Fund (RIDF) Watershed Development

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Tribal Development and WADI approach Women and Development District Rural Industries Project (DRIP) Rural Entrepreneurship Development Programme (REDP) Rural Marketing Revival of Short-Term Rural Co-operative Structure (STCCS) Rural Innovation Fund NABARD Consultancy Services (NABCONS) Co-Financing Self Help Groups (SHGs): One of the major success stories of NABARD, the SHG Bank linkage programme started as a pilot project in 1992 with 500 SHGs. SHGs comprise homogeneous groups of poor people who have voluntarily come together mainly with the idea of overcoming their common problems of low social and economic status. SHGs enable the poor, especially the women from the poor households, to collectively identify, prioritize and tackle the problems they face in their socio economic environment. By pooling their meager resources and using them for lending among themselves, they develop the habit of thrift and the skill of credit appraisal, before getting mature enough to access a loan from banks, which is called credit linkage. Starting with small loans for consumption they soon graduate to bigger loans for setting up of income generating microenterprises. Today, NABARD's SHG Bank Linkage Programme boasts of over 26 lakh SHGs and 3.9 crore households influencing the lives of over 16 crore poor population. During the year 2006-07 alone, as many as 458591 groups were credit linked. Farmers Clubs A popular intervention among both farmers and Bankers, the farmers Club concept was envisaged as an experiment in social engineering, a forum to bring the rural banker and the borrower closer and to propagate the principles of development through credit. Farmers Club is 26 | P a g e Navnirman Institute Of Management

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an informal group of 15-20 farmers, one per village, which acts as a medium for accessing and disseminating awareness of modern methods of farming and technological advancements in agriculture in its area. Financial support is provided by NABARD for opening and maintenance of Clubs as well as for organizing training programmes in the respective villages. With corporates and food chains looking for supply chain linkages of farm produce, Farmers Clubs may have an important role to play in joint production and marketing of farm produce. As on 31 March 2007 , there were Farmers Clubs in 534 districts covering 48763 villages. Rural Infrastructure Development Fund (RIDF): Deficient Rural infrastructure hinders both social and economic development. Economists have explicitly emphasized on the direct correlation between the index of infrastructure development and rural development. NABARD's support to State Governments through RIDF since 1995-96 has brought about a sea change in the shape of upgraded infrastructure in rural areas. Rural roads and bridges under RIDF have improved market access to farmers; check dams and irrigation structures have augmented their water resources. Even drinking water projects and health centres have been supported under the Fund. NABARD so far has sanctioned Rs. 61539 crore for 2,44,025 projects under the Fund. A cumulative position of sector-wise sanctions as on 31 st March 2007 : Irrigation: Rs. 20637 crore, Rural connectivity: Rs. 26935 crore for rural road network and bridges, Power: Rs. 1434 crore Social Sector: Rs. 6988 crore Others: Rs. 5547 crore. A separate window has been created for rural connectivity with villages of population less than 500, with a corpus of Rs. 4,000 crore to support the Bharat Nirman project. Watershed Development: In a comprehensive effort to enhance productivity of dryland through conserving soil, rainwater and irrigation, NABARD embarked on perfecting its experiments in creating a sustainable cost effective solution to the water harvesting techniques in rural areas. Building on its experience with the KFW funded watershed development programme in Maharashtra , NABARD established a Watershed Development Fund with an initial corpus of Rs. 200 crore in 1999-2000 which now stands at Rs. 602.76 crore. The programme is now being replicated in 124 districts of 14 States. Tribal Development and WADI approach : With over 8% of the population comprising tribals largely dependent on forests, livestock and

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agriculture, NABARD found a holistic approach by addressing production, processing and marketing of the produce with WADI as the core of the programme. WADI (small orchard) was found to be an effective tool for arresting migration of tribals from their native habitat. The WADI model evolved out of concerted efforts made in association with Bhartiya Agro Industries Foundation (BAIF). The project also envisages other development interventions like environment, gender and health. Having completed 10 years in Gujarat and 5 years in Maharashtra , the programme has touched 275111 families in 410 villages. Women and Development Women constitute one third of the labour force. In order to give focus to women in various development activities and increase their access to Bank credit, schemes like Assistance to Rural women in Non-farm Development (ARWIND), Assistance for Marketing of Non- Farm Products of Rural Women (MAHIMA), Development of Women through Area Programme (DEWTA) have been designed to provide exclusive support to women in rural areas. District Rural Industries Project (DRIP): NABARD launched DRIP, an integrated area-based credit intensification programme, in collaboration with Government, banks and other development agencies with district specific focus. It was introduced in 1993-94 with the objective of creating sustainable employment opportunities in 106 districts all over the country. Rural Entrepreneurship Development Programme (REDP): In order to generate employment in rural areas, it was felt necessary to develop the entrepreneurial skills of the rural youth. REDP is a promotional programme supported by NABARD to motivate and train educated unemployed rural youth, to set up their own enterprises. So far, 2.32 lakh persons have been trained under the programme under 7792 REDPs. Rural Marketing: A number of marketing interventions have been made for marketing of rural non-farm products since marketing is a key factor in the sustainability of any such endeavour. With the financial support of NABARD under its promotional programmes like Rural Haats, Rural Marts, participation in fairs, exhibitions and marketing melas, rural artisans and entrepreneurs can get a 28 | P a g e Navnirman Institute Of Management

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larger market for their produce and showcase their talent to urban and upcountry markets. Revival of Short-Term Rural Co-operative Structure (STCCS) NABARD is the implementing agency for the Revival package for the STCCS which mean the State Coop. Banks, District Coop. Banks and the Primary Agricultural Coop. Societies. (PACS). The revival package has been approved by the Govt. of India based on the recommendations of the Vaidyanathan Committee. NABARD has had dialogues with State Govts. and so far 10 states have executed MOU with GoI and NABARD. Apart from being on the national, state and district level implementing committees, NABARD has designed guidelines and training manuals for the special audit of PACS under the Package. Rural Innovation Fund: In association with Swiss Agency for Development and Cooperation (SDC), NABARD has constituted the NABARD SDC Rural Innovation Fund (RIF) to support innovative projects in Farm, Non-Farm and Micro-Finance Sectors leading to creation of livelihood opportunities for the poor. Government and Non-Government Institutions, corporate bodies, financial institutions and individuals can avail funding support for activities involved in development of new products, processes, prototypes, technology etc. which have the poor in their focus. NABARD Consultancy Services (NABCONS) NABCONS is a wholly owned subsidiary of NABARD, which has established itself as a dependable and professional consultancy services provider in agriculture and allied activities. As on 31 March 2007 , it has cumulatively contracted 487 national and international assignments involving consultancy fee of Rs.25.49 crores. Co-Financing It has been the experience that Banks are wary of taking credit risk of financing high tech/large scale/ export oriented agricultural projects or those involving sunrise technologies. To instill confidence in banks and ensure credit flow to such projects, NABARD has entered into agreements for co-financing with 14 commercial banks. During 2006-07, seven projects were sanctioned with bank loan of Rs. 145.03 crore and NABARD's share of Rs. 72.42 crore. Floriculture, organic farming, milk processing, ethanol production and agro processing are among the projects sanctioned so far.

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SMALL INDUSTRIES DEVELOPMENT BANK (SIDBI)


Schemes of refinance assistance: Lending Scheme General Scheme Scheme for Cottage, Village & Tiny Industries a) Composite Loan Scheme Eligible Borrowers All forms of organisations in the small scale sector Purpose For setting up new small scale units or expansion, modernisation, diversification, etc.

Artisans, village and cottage Assistance for equipment and/or working industries and small industries capital as also for work Sheds in tiny sector. SC/ST and physically handicapped persons. Assistance for equipment and /or working capital

b) Scheme for SC/ST and Physically Handicapped Persons Specific Schemes All forms of Organisations in the small scale sector

For acquisition ofa) In-house quality control b) GD sets c) Computers and related accessories d) For manufacturing and installation of renewable energy/energy saving systems. For identifiable items of equipment/machinery for deversification/modernisation/replacement and also balancing equipment/self-fabricated equipment.

Equipment Refinance Existing well performing SSI Scheme units

Scheme for Small Road Transport Operators(SRTOS) Scheme for Professionals

Small road transport operators To meet expenditure towards cost of chassis, body building, initial taxes/insurance and working capital. Qualified professionals in management, accountancy, medicine, architecture, engineering etc For setting up professional practice/consultancy venture, as also for acquisition of additional equipment

Scheme for Marketing activities a)Scheme for Marketing Organisations b)Scheme for

Individuals/partnership For setting up new sales outlets or undertaking concerns/Pvt./Public Ltd. Cos. renovation/expansion of existing outlets for in marketing Village and Small marketing VSI products Industries(VSI) products All khadi & Village For acquisition of new mobile sales vans for Industries(KVI) institutions stocking/display/sales of KVI products as also 30 | P a g e Navnirman Institute Of Management

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Purchase of Mobile Sales Vans Schemes for Medical Profession a) Schemes for Hospitals/Nursing Homes b)Scheme for Acquisition of Electro-Medical and other Equipment Scheme for Tourism related activities a)Scheme for Tourism related activities Entrepreneurs setting up hospitals/nursing homes. Qualified medical practitioners/professionals for transport of raw materials for producing KVI products. For setting up small hospitals/nursing homes/polyclinics, etc. For acquisition and installation of electromedical and other related equipment

Entrepreneurs setting up tourism related activities Entrepreneurs setting up hotel/restaurant projects

For setting up or development of amusement parks, cultural centres, convention centres, restaurants, tourist service agencies etc. For setting up of small hotels/restaurants in urban/semi-urban areas

b)Scheme for Hotel and Restaurant Projects Schemes for Women Women entrepreneurs for Entrepreneurs setting up new projects in a)Mahila Udyam tiny/small scale sector and Nidhi rehabilitation of viable sick SSI units. b)Scheme for Women Women entrepreneurs entrepreneurs Special Scheme for assistance to Exservicemen

To meet gap in equity

For setting up SSI units

Ex-servicemen (including For setting up small industrial projects widows of ex-servicemen) including service industries and specified sponsored by Director transport activities which are eligible for Genral(Resettlement), Ministry finance as per SSI norms of Defence, Govt.o f India Entrepreneurs setting up new projects in SSI/tiny sector, new promoters acquiring unencumbered fixed assets of existing SI concerns from PLIs as also existing well run units undertaking modernisation/technology upgradation and potentially viable sick units undetaking rehabilitation scheme. Sole Proprietorship, Partnerships, Co-operative Socities, Private and Public Limited Comapnies 31 | P a g e Navnirman Institute Of Management To provide both term loan for fixed assets and loan for working capital through the same agency. The total working capital requirement of such units inclusive of all fund based facilities may be taken into account for determining the working capital facility eligible for refinance

Single Window Scheme

Refinance Scheme for Technology Development and Modernisation

NABARD & SIDBI


(RTDM) Line of Credit All Schedule Commercial Against PCFC Loans Banks which are authorised of Commercial Banks dealers (ADs) HISTORY Established in April 2,1990 Principal Development Financial Institution for : --Promotion --Financing and --Development of Industries in the small scale sector and --Co-ordinating the functions of other institutions engaged in similar activities. Foreign currency resource support to Ads to enable them to extend PCFC advances to small scale units

Provision of Charter SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto.

Business Domain of SIDBI The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million . About 3.1 million such units, employing 17.2 million persons account for a share of 36 per cent of India's exports and 40 per cent of industrial manufacture. In addition, SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

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SIDBI Among Top 30 Development Banks of the World SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets.

MISSION To empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development

Vision To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform

OBJECTIVES

Mandatory Objectives Four basic objectives are set out in the SIDBI Charter. They are:
y y y y

Financing Promotion Development Co-ordination for orderly growth of industry in the small scale sector. The Charter has provided SIDBI considerable flexibility in adopting appropriate operational strategies to meet these objectives. The activities of SIDBI, as they have evolved over the period of time, now meet almost all the requirements of small scale industries which fall into a wide spectrum constituting modern and technologically superior units at one end and traditional units at the other

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Development Outlook The major issues confronting SSIs are identified to be:
y y y y y y y

Technology obsolescence Managerial inadequacies Delayed Payments Poor Quality Incidence of Sickness Lack of Appropriate Infrastructure and Lack of Marketing Network

There can be many more similar issues hindering the orderly growth of SSIs. Over the years, SIDBI has put in place financing schemes either through its direct financing mechanism or through indirect assistance mechanism and special focus programmes under its P&D initiatives. In its approach, SIDBI has struck a good balance between financing and providing other support services.

o-ordination and Understanding As an apex institution, SIDBI makes use of the network of the banks and state level financial institutions, which have retail outlets. SIDBI supplements the efforts of existing institutions through its direct assistance schemes to reach financial assistance to the ultimate borrowers in the small scale sector. Refinancing, bills rediscounting, lines of credit and resource support mechanisms have evolved over the period of time to route SIDBI's assistance through the network of other retail institutions in the financial system.

Improved levels of co-ordination for development of the small scale sector is also achieved through a system of dialogue and obtaining feedback from the representatives of institutions of small scale industries who are on the SIDBI's National Advisory Committee and Regional Advisory Committees.

SIDBI has entered into Memoranda of Understanding with many banks, governmental agencies, international agencies, research & development institutions and industry 34 | P a g e Navnirman Institute Of Management

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associations to facilitate a co-ordinated approach in dealing with the issues for development of small scale industries.

SIDBI's MOUs Banks-(18)

Swiss Agency for Development and Co-operation Small Industries Development Organisation

Auto Components Manufactures Association Council for Scientific and Industrial Research

Asia and Pacific Centre for Transfer of Technology United Nations Industrial Development Organisation

Confederation of Indian Industry National Research Development Organisation

Government of India for channelising TREAD assistance Small Enterprise Assistance Funds (SEAF) For setting up of SEAF India SME Equity Fund and for other capacity building initiatives for SMEs

SHAREHOLDING The entire issued capital of Rs.450 crore has been divided into 45 crore shares of Rs.10 each. Of the total Rs.450 crore subscribed by IDBI, while setting up of SIDBI, 19.21% has been retained by it and balance 80.79% has been transferred / divested in favour of banks / institutions / insurance companies owned and controlled by the Central Government.

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BOARD OF DIRECTORS (AS ON AUGUST 05, 2011) 1 Shri Sushil Muhnot Chairman & Managing Director (CMD) 2 3 4 5 6 7 8 Shri Rakesh Rewari Shri N.K. Maini Dr. Shyam Agarwal Shri Anurag Jain Shri T.R. Bajalia Shri K. Sitaramam Shri B. Manivannan Deputy Managing Director (DMD) Deputy Managing Director (DMD) Government Director Government Director Nominee of IDBI Bank Nominee of State Bank of India Nominee of Life Insurance

Corporation of India 9 Shri Vikas Raj Nominated by Government of India

10 Shri Prakash Bakliwal Nominated by Government of India 11 Shri M. Balachandran Co-opted Director 12 Shri Janki Ballabh 13 Shri S.K. Tuteja 14 Shri P.A. Sethi Co-opted Director Co-opted Director Co-opted Director

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SENIOR MANAGEMENT TEAM

Shri Sushil Muhnot (Chairman & Managing Director) Shri Rakesh Rewari (Deputy Managing Director) Shri N.K. Maini (Deputy Managing Director) Shri V.S. Rathore (Executive Director) Shri N. Raman (Executive Director)

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EADS OF DEPARTMENTS Name (S/Shri) Designation CGM Office Contact Details: 022-26540025

S.V.G. Nandagopal

Mumbai

R.K. Srivastava

CGM

Mumbai

022-26541127

K.S. Singhwan

CGM

Lucknow

0522-2286368

Harsh Kaul

CGM

Mumbai

022-26540021

Smt. Bhama Krishnamurthy

CGM

Mumbai

022-26541129

A.K. Kapur

CGM

Lucknow

0522-2288109

S. L. Choudhury

CGM

Mumbai

022-26540024

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