National Bank for Agriculture &

Rural Development



(NABARD)
1

Genesis
Set up on 12 July 1982 as Apex Institution for
Agriculture and Rural Development carved out of
the Central Bank of the country

To ensure an integrated Development of rural
areas, Single window approach for working capital
and investment credit for both on farm and off
farm investments in rural areas
2

Promote sustainable and equitable
agriculture and rural prosperity through
effective credit support, related
services, institution development and
other innovative initiatives
Mission
3

NABARD- unique features
Facilitating credit flow for agriculture and rural development
Strengthening rural credit delivery system through institutional
development measures
Supervising rural financial institutions (rural co-operative banks
and regional rural banks)
Promoting and supporting policies, practices and innovations
conducive to agriculture and rural development
Raising resources from urban areas to facilitate flow of credit
for rural development
Enabling the poorest of the poor to access financial services
through the largest micro finance movement in the world

4

Laying special emphasis on development of the socially
disadvantaged, particularly the tribal people
Piloting Natural Resource Management through programmes for
soil and water conservation
Facilitating credit planning on assessed developmental potential
and monitoring ground level credit flow PLP
Providing financial support to State Governments for developing
appropriate rural infrastructure- RIDF
Capacity building of RFIS and rural entrepreneurs
Providing consultancy services in project preparation, appraisal,
financial services, evaluation etc. to banks, government and
private enterprise.
NABARD- unique features Contd
5

Credit Planning and monitoring
Credit
Refinance
Co-Finance
Finance
Institutional Development
Supervision
Promotion and Development
Consultancy
Broad Functions
6

Credit Planning and Monitoring
District level Potential Linked Plans prepared for all
districts;
392 District level offices covering 480 districts out of
608;
District level coordination done by District Development
Manager
State Level aggregation of District Plans;
Monitoring the flow of GLC for agriculture & allied
activities;
Issuing policy & operational guidelines to Coop. Banks &
RRBs;
Coordinating with GoI & RBI in policy formulations in
regard to agriculture & allied activities;
7
Credit
Credit is provided as Refinance to
Cooperative Banks and Regional Rural Banks for financing
farmers for meeting their production costs (short term) for
agriculture & allied activities- Short term refinance limits
to Cooperatives and RRBs increased from Rs. 1658 crore in
1982-83 to Rs. 16,352 crore in 2007-08;
Commercial Banks, Cooperative Banks and RRBs for
Investment Purposes (medium & long term) in agriculture
and rural non farm activities. Investment refinance
increased from Rs.703 crore in 1982-83 to Rs.9046 crore
in 2007-08.
Kisan Credit Cards- an innovative product designed by
NABARD to provide timely and hassle free credit to
farmers in meeting farmers credit needs (production,
investment and consumption) 71.5 million cards issued as
on 31 March, 2008
8
Many of the rural credit products have been
evolved and developed by NABARD

Major activities financed
Animal husbandry, Land Development, Farm
Mechanisation, Plantation & Horticulture, Minor
Irrigation, creation of storage capacity, rural non
farm sector; rural housing, SHG financing, forestry
& wasteland development, organic farming, etc.


Credit
Contd
9

Co-financing with Commercial Banks for hi-tech /
export oriented agriculture

Direct Financing to State Governments
Rural Infrastructure Development
Share Capital contribution to Cooperative
Credit Institutions
Revolving Fund Assistance

Credit Contd
10
Institutional Development
Strengthening of Rural Financial Institutions (RFIs) to ensure
credit delivery to the sector

Development Action Plans (DAPs) to enable RFIs to attain
sustainable viability over specified time frame

Memorandum of Understanding with Banks/ State Governments
for implementation of DAPs

NABARD appointed implementing agency for ongoing process of
Revitalisation of Cooperatives - Financial package to be
administered subject to strict conditionalities for reforms and
performance obligations - accordingly NABARD assisting
Cooperative Banks with sufficient training for special audits,
building common accounting & monitoring system, undertake HRD
initiatives, computerisation, etc
11
Institutional Development Contd..
Has constituted a Cooperative Development Fund in NABARD
to support Cooperative Credit Institutions in undertaking
developmental initiatives Financial assistance provided for :-
Infrastructure
Building MIS/Audit Systems
Training
Women Development Cells

Human and Institutional Development through Organisational
Development Initiatives for RRBs and Cooperatives;

Best Performance Awards for Cooperatives


12

Supervision
Supervision of Cooperative Banks and RRBs to assess -
Financial Viability
Operational Soundness
Managerial efficiency
Compliance with Regulations
Individuals
Supervision of banks is sharply focused on core areas of
functioning pertaining to Capital Adequacy, Asset Quality,
Management, Earnings, Liquidity & Systems Compliance
(CAMELSC);
On-site inspection on biennial basis;
Off-site surveillance systems also undertaken;
Board of Supervision Advisory Body to provide directions and
guidance for supervision
13
Various Funds setup in NABARD
(As on 31.3.2008)
Name of Fund Corpus
(Rs. Cr)
Objectives
NRC(LTO) FUND 13615 Refinance operations
NRC (Stabiliation) Fund 1544 Conversion of ST loans into MT
loans in times of natutal
calamities
Cooperative Dev Fund
(CDF)
125 To Support cooperative
institutions in undertaking
development initiatives
WaterShed Dev Fund 614 Supporting Watershed activities
Tribal Development Fund 603 Development of Tribal areas
14
Various Funds setup in NABARD
(As on 31.3.2008) contd
Name of Fund Corpus (Rs.
Cr)
Objectives
Micro Finance
Development & Equity
Fund
127 Supporting micro finance & equity
supoort to mFIs
R & D Fund 50 Supporting R&D in Farm sector
Farm Innovation &
Promotion Fund
4.17 Supporting innovative, risk
friendly & unconventional
experients farm & NFS sector
Rural Innovation Fund 110 Supporting innovations in non
farm sector
Financial Inclusion Fund 15 Support developmental &
promotional activies to secure
greater financial inclusion
15
Name of Fund Corpus (Rs.
Cr)
Objectives
Financial Inclusion
Technology Fund
15 To enhance investment in ICT
aimed at promoting financial
inclusion
Farmers Technology
Transfer Fund
25 Facilitating disseminating &
adoption of appropriate
technologies
Various Funds setup in NABARD
(As on 31.3.2008) contd
16
Promotion and Development
Micro Finance Initiatives (SHG-Bank Linkage)
Now one of worlds largest micro finance initiatives
Pilot started in 1992 with 500 SHGs
3.5 million SHGs linked to the institutional credit structure (31 March,
08), 58 million poor households accessed MF;
Rs. 22000 crore (Approx) given as credit to the SHGs

Capacity building support for Bankers, NGOs, Govt Officers and SHG members
Micro Finance Innovations -
Pilot Project for promotion of micro enterprises by SHGs
Pilot for financing Joint Liability Groups
Pilot for SHG Post Office Linkage
Support to MFIs through RFA, rating support, capital/equity support, etc.
Pilot project for providing social security system for SHG members;
Micro Finance Development & Equity Fund (MFDEF) created in NABARD for
scaling up of the SHG Bank Linkage Programme.
Financial Inclusion Fund and Financial Inclusion Technology Fund set up with
NABARD with a corpus of Rs.500 crore each
17
Promotion and Development Supporting Rural
Entrepreneurship Development
NABARD supports NGOs/ other specialised institutions in
conducting Rural Entrepreneurship Development Programmes
(REDP)
Training of rural unemployed youth for capacity building
Skill and management inputs provided
Supported more than 9400 REDPs and trained over 233
thousand rural youth so far
About 50% of the trained persons have set up their own
self employment ventures
Each successful unit can provide employment to additional
1 to 2 persons
18
Promotion and Development Rural Non farm Sector
Development through Area approach
District Rural Industries Project (DRIP)
Area based programme with District as the unit;
Credit intensification programme for promotion of rural
industries through convergence of all credit and non credit
programmes and synergy among various partner agencies;
Implemented in 106 districts as on 31 March, 2008;

Cluster Approach
Development of select rural clusters through need based
interventions for input supplies, technology upgradation,
market orientation and sustainable income generation;
56 Rural clusters developed as part of National programme
for Rural Industrialisation;
61 clusters developed by NABARD in 56 districts across 22
states as against 50 clusters envisaged
19
Promotion and Development Farm Sector
Initiatives
Natural Resources Management
Watershed Development Programme -initiated in 1992 to
develop micro watersheds in an integrated and comprehensive
manner, for achieving sustainable production systems through
peoples participation with emphasis on soil and water
conservation and rejuvenation of natural resources
A novel initiative for regeneration of natural resources
involving village communities through participatory approach;
Emphasis on self-help, environmental protection and poverty
alleviation
Village Communities in close collaboration with committed
NGOs and NABARD involved in designing, planning,
implementation and monitoring the watershed development
programmes
20
Promotion and Development Farm Sector
Initiatives

Strategies adopted for successful implementation

Peoples commitment that decides selection of a
watershed. A self selection process
People demonstrate willingness to undertake the
watershed project through shared labour and
development of micro-watersheds
Community discipline (self imposed); villagers agree to
bring down the cattle population within the carrying
capacity of the land, ban free grazing and tree felling.
21
Promotion and Development
Farm Sector Initiatives
I mpact of Watershed Development -
Rise in ground water level between 1 to 2 m has been observed
Drinking water scarcity in villages has been overcome
Local employment generation has improved, reducing off season
migration
Increase in agricultural productivity and production -
Dairy activity has received a fillip
Demand for credit has gone up
Women empowerment and reduction in drudgery; large number
of women SHGs formed and credit linked
Secondary impact improved quality of life, housing, health and
education (schools)
Watershed Development Fund created in NABARD to create
replicable watershed development models with participatory
approach.
22
Watershed Treatments:
Ridge to Valley Approach
Continuous Contour Trenches
23

Impact of Watershed Programme
Plantation on Trenches
Ist Year Forestry
Fodder Cultivation
24

Promotion and Development
Natural Resources Management

Wadi a small orchard: Tribal Development Programme
The programme commenced in 1995 for comprehensive development of
tribal families through wadi approach in Gujarat & Maharashtra
benefiting over 20,000 tribal families.
Focus on livelihood support and improvements in quality of life.
A small orchard (WADI) of suitable fruit crops with forestry
plantations on the boundary core intervention.
Soil conservation and water resource development to support the wadis
Other Critical Components dovetailed:
Community Health
Women Development
Development of landless
Processing and Marketing
Implementation through Peoples participation
Tribal Development Fund created in NABARD to support models for
tribal development
25
Wadi Programme
Established Wadi
Blooming Mango Tree
Temporary check dams
for irrigating wadis
Tree platforms:
Soil conservation
26

Promotion and Development
Gender Development
Gender sensitization programmes
Women Development Cells
Assistance to Rural Women in Rural Non Farm Sector
Development (ARWIND)
Assistance for Marketing Non Farm Products of Rural
Women (MAHIMA)
Development of Women through Area Programme
(DEWTA)
27
Major Govt. Programmes being implemented
by/through NABARD
NABARD has overseen the implementation of Farm Package announced
by GOI in 2004
The agricultural advances were doubled in span of two years as
against three years envisaged
PMs package for distressed districts being implemented in 31 districts
spread over 4 states of Maharashtra, Andhra Pradesh, Karnataka &
Kerala
NABARD vested with implementation of Agriculture Debt Waiver and
Debt relief Scheme 2008 in cooperatives and RRBs
NABARD is closlely monitoring the issue of fresh finance to farmers
who were extended the benefit of debt waiver/debt relief in 2008
28

Centrally sponsored schemes of GOI being
implemented by NABARD
NABARD VESTED WITH IMPLEMENTATION OF 24 CENTRALLY
SPONSRED SCHEMES OF GOI
SOME OF THE IMPORTANT SCHEMES BEING IMPLEMENTED
INCLUDE
CAPITAL INVESTMENT SUBSIDY SCHEME FOR COLD STORAGE ,
CISS FOR RURAL GODOWN,
CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY
UPGRADATION OF SSIs,
INTEGRATED WATERSHED DEVELOPMENT PROG RSVY,
DAIRY AND POULTRY VENTRURE CAPITAL FUND
MILLION SHALLOW TUBEWELL PROGRAMME
VIDARBHA PACKAGE
CAPITAL SUBSIGY FOR AGRI MARKETING, INFRASTRUCTURE,
GRADING AND STANDARDISATION
CISS FOR PRODUCTION OF ORGANIC INPUTS
GROUND WATER SCHEME IN ANDHRA PRADESH, GUJARAT,
KARNATAKA, MAHARASHTRA, MADHYA PRADESH, RAJASTHAN AND
TAMIL NADU
29

Consultancy
NABARD has set up a subsidiary company to undertake
consultancy on behalf of NABARD
Clients
Government of India
State Governments
International Bodies
Corporates
Individuals
Areas agriculture, agro-processing and infrastructure projects,
micro finance, watershed Development, Non-Farm Sector,
Institution Development and Training
30


NABARD - Role in
Infrastructure Development
in Rural Areas

31

OBJECTIVE OF RIDF
TO PROVIDE COST EFFECTIVE LOAN SUPPORT TO STATE
GOVERNMENTS TO DEVELOP INFRASTRUCTURE IN
RURAL AREAS.
NABARDs ROLE
NABARD IS THE APPRAISING, SANCTIONING,
FINANCING, MONITORING AND EVALUATING AGENCY
FOR RURAL INFRASTRUCTURE FUNDING FROM RIDF.
RIDF - A STRATEGIC MESHING OF THE
INFRASTRUCTURAL GAP IN RURAL AREAS AND THE
LENDING GAP OF THE COMMERCIAL BANKS.
32

GROWTH OF RIDF
THE RIDF WAS CREATED OUT OF COMMERCIAL BANKS
SHORTFALL IN LENDING TO AGRICULTURE

STARTED WITH RS 2,000 CRORE IN 95-96 (RIDF I)

CORPUS FOR 20114-15 (RIDF XX): RS. 25,000 CRORE +
RS. 5,000 CRORE FOR WAREHOUSING
33
RIDF ACTIVITIES AND TERMS OF LOAN
PROVIDES FINANCIAL ASSISTANCE TO STATE GOVERNMENTS
FOR 31 ACTIVITIES ( RURAL ROADS AND BRIDGES, IRRIGATION,
RURAL DRINKING WATER SCHEMES, MARKETING INFRASTRUCTURE,
HOSPITALS, EDUCATIONAL INSTITUTIONS, etc.)
REPAYMENT PERIOD 7 YEARS INCLUDING 2 YEARS GRACE PERIOD.
RATE OF INTEREST ON LOANS 1.5% LESS THAN BANK RATE
MOBILIZATION ADVANCE 20% / 30% OF THE LOAN AMOUNT
IMMEDIATELY ON SANCTION .
SECURITY TIME PROMISSORY NOTE (TPN), MANDATE WITH
RBI/PRINCIPAL BANKER TO STATE GOVERNMENT.
34
RIDF - THE ADVANTAGES.
THE MOST COST EFFECTIVE FUNDS TO THE STATE.
LOANS WITHOUT ANY MAJOR CONDITIONS.
FIXED INTEREST RATE.
NO HIDDEN COST
NO PROCESSING FEE
NO COMMITMENT CHARGES
NO PRE PAYMENT CHARGES
SUPPLEMENTARY MONITORING CARRIED OUT WITHOUT
ANY COST TO THE PROJECT
35

GoI (Annual Budgetary
announcement)
RBI ( Bank wise allocations &
interest rates)
NABARD
DEVELOP OPERATIONAL GUIDELINES , APPRAISE,
SANCTION, FINANCE, MONITOR AND EVALUATE RURAL
INFRASTRUCTURE PROJECTS OF STATE GOVERNMENTS

State Governments (Finance / Planning Dept)
User Dept
Irrigation
User Dept
Dept of AH
User Dept
Dept of Fisheries
User Dept
Roads & Bridges
RIDF - THE FUNDING MECHANISM
36

RIDF OPERATIONAL MATRIX


NABARD HO
(SPD & PMD)
Sanctioning Committee (SC)
( a sub committee of Board)


REGIONAL OFFICE
Project appraisal, disbursals
Monitoring and evaluation
District Office
monitoring
Consultants
(App. & Mon.)
37
38

Credit Products for Livestock
sector and promotional
activities of NABARD


Foundation Stock

Frozen Semen Banks

Pureline / Grand Parent Poultry Breeding Farms

Multiplication of Progeny
Breeding Farms
AI Units
Calf Rearing

CREDIT PRODUCTS
Contd..
39


Farming

Small Dairy Units (1-2 Animals)
Mini Dairy Units (upto 10 Animals)
Commercial Units (> 10 Animals)
Poultry Layer / Broiler Farming
Central Grower-cum-Satellite Layer Units
Quail / Duck / Turkey / Emu Farming
Sheep / Goat / Pig / Rabbit Farming

CREDIT PRODUCTS
Contd..
40


Feed & Fodder
Production of Fodder Seeds
Setting-up of Feed Plants
Gauchar Land Development
Silvi Pasture Development
Perennial cultivation
Animal Health
Production of Vaccines / Animal Health Products
Disease Diagnostic Laboratories
Veterinary Hospitals / Dispensaries / Clinics

CREDIT PRODUCTS
Contd..
41


Processing Infrastructure
Construction of Milk Houses
Purchase of Milk-o-testers / Automatic Milk
Collection Stations
Bulk Milk Coolers
Purchase of Milk Tankers
Community Milking Machines
Milk Processing Plants
Manufacture of Indigenous Milk Products
Egg Processing Plants
Poultry Dressing and Meat Processing Plants
Slaughter Houses

CREDIT PRODUCTS
Contd..
42


Marketing Infrastructure

Livestock Markets
Poultry Markets
Scheme for Grading, Packing and Exporting of Eggs
Egg and Broiler Centres
Dairy Parlours
Retail Poultry Outlets
CREDIT PRODUCTS
Contd..
43


1. Research and Development(R&D) Fund
2. Farm Innovation & Promotio Fund (FIPF)
3. Rural Innovation Fund (RIF)
4 Farmers Technology Transfer Fund (FTTF)
Promotional Activities
44

45

NABARD - R&D FUND
Objectives

Applied Research and Studies of Technical / Economic
Nature.

Training Related activities in Agriculture, non-
Agriculture, Rural Credit and Financial System, Agri.
Extension etc

Dissemination and Collation of Information

Strengthening the Technical, Monitoring and Evaluation
Cells of Cooperative Banks and RRBs for facilitating
preparation, Appraisal, Monitoring and Evaluation of
projects.
46

Corpus : Rs.50.00 crores

Eligible Agencies
Approved Research Institutions/Organisations/ Agencies
engaged in action oriented and Applied Research,
Individuals or group of individuals sponsored by suitable
organisations.

Implemented since inception of NABARD

contd
NABARD - R&D FUND
47

Farm Innovation and Promotion Fund
(FIPF)
Objectives

To demonstrate the bankability of new concepts in Agri
and Farm sector.
Development of prototypes to make it commercial.
To acquire innovative technology/designs/ products.
Market surveys for potential assessment of new Agri/
Rural products.
To support innovations in Information Technology.

Corpus : Rs.5.00 crores

48

Eligible Institutions/ Individuals
Research Institutions, Universities, Krishi Vigyan Kendras,
Small Farmers Agri Consortium, NGOs, Registered
Community Based Organisations, Registered
producers/Peoples organisations, Individuals/ group of
Individuals, Companies

Implemented since 01 April 2005

Farm Innovation and Promotion Fund
(FIPF)
contd
49

Rural Innovation Fund (RIF)
Objectives

To promote technology-based innovations and
transfer of indigenous technology to increase the
productivity of rural enterprises.

To promote livelihood opportunities and employment in
rural areas and facilitating access to financial and
business promotion services for the poor.
50

Eligible Activities
All innovations and related activities in the Farm,
Rural Non Farm and micro Finance Sectors.

Technology and skill upgradation providers.

Inputs supply and market support leading to promotion
of viable enterprises, sustainable employment,
infrastructure development, improved flow and access
of credit to rural entrepreneurs.

Undertake innovations so as to improve efficiency of
credit delivery and other support services to the rural
resource poor.
Rural Innovation Fund (RIF)
contd
51

Corpus : Rs.139.90 crores

Eligible Institutions/ Individuals

All organizations, institutions and Individuals


Implemented since 01 October 2005

contd
Rural Innovation Fund (RIF)
52

Farmers Technology Transfer Fund
(FTTF)
Objectives
Facilitate adoption of appropriate technologies through
Training-cum-Exposure visits, demonstrative projects or
such other activities.

Dissemination of appropriate technologies and commercial
intelligence through direct contacts, literature, visuals
etc.

Undertake activities such as financial literacy, credit
counselling and other related activities.

Organisation of farmers into informal associations, JLGs,
producer groups, producer companies or other ways for
self- help, collective approach for commercial
transactions, networking with the value chain and financial
inclusion.
53

Contd..
Corpus : Rs. 25 crores

Eligible Institutions/ Individuals
Commercial Banks/RRBs/Cooperative Banks, ATMA, Research
Institutions/SAUs/KVKs,, NGOs/Federation/ Association of
Farmers Clubs or any other registered body such as PACs
etc., Farmers Clubs/Farmers Collectives\Farmers Interest
Groups, Private Companies as part of CSR / Technology
Providers in Rural Areas.

Implemented since 01 April 2008
Farmers Technology Transfer Fund
(FTTF)
54

Other Promotional Funds
Other Promotional Funds of NABARD where,
Animal Husbandry could be one of component
for support are :
Watershed Development Fund
Tribal Development Fund
Financial Inclusion Fund with a corpus of Rs.500 crore
set up by NABARD may also indirectly help in
promoting AH activities apart from others by
supporting capacity building/awareness programmes
55
Activities Supported through Banks
by NABARD
Hatcheries & rearing units :

Inland carps, Ornamental fishes, shrimps and Fresh
water prawn

Integrated inland carp culture with :
Paddy, Horticulture, Dairy, Piggery, Poultry, Duckery,
sewage cum agri. vegetable culture

Inland Farming:
Carps, Air breathing fishes, Running water fishes in
Jhoras & Raceways, Trout, Golden talapia, Fresh water
prawn, mussel culture, etc.

56
Capture fishery:
Boats and nets in inland sector
Traditional boats, MFVs, trawlers, purse seines,
multipurpose fishing vessels in marine sector

Mariculture:
Crab fattening, Lobster, mussel and sea weed
culture
Processing & marketing:
Fish processing units, IQF and surimi units, cold
storages, ice plants, marketing outlets, transport
units, Solar dryers, oven dryers, sun drying, etc




Activities Supported through
Banks by NABARD Contd.