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NITIN MANGLA

VIKAS SHARMA

700 , 728

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INTRODUCTION

NABARD was set up on 12 july 1982 by the actof parliament.

NABARD is set up as an apex DevelopmentBank with a mandate for facilitating credit flow forpromotion and development of agriculture, small-scale industries, cottage and village industries,handicrafts and other rural crafts.

It also has the mandate to support all otherallied economic activities in rural areas, promoteintegrated and sustainable rural development andsecure prosperity of rural areas

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CONTINUED

1. Providing refinance to lending institutions in ruralareas

2. Bringing about or promoting institutionaldevelopment and

3.

Evaluating, monitoring and inspecting the clientbanks

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PRODUCT & SCHEMS OFNABARD

Refinance scheme

Credit

Microfinance

Kisan credit card scheme

Scheme of financing farmer

Programme of weaker section

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SERVICE PROVIDE BY NABARD

CONSULTANCY SERVICES

MARKETING SERVICE

TRAINING & DEVELOPMENT

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The Government of India set up Regional Rural Banks (RRBs) onOctober 2, 1975.

Initially, five RRBs were set up on October 2, 1975.

Capital share being 50% by the central government, 15% by the stategovernment and 35% by the scheduled bank.

REGIONAL RURAL BANKSThe Narasimham committee on rural credit

recommended the establishment of Regional Rural Banks (RRBs)on the ground that they would be much better suited inmeeting the needs of rural areas.

The government passed the Regional Rural Banks Act,1976. A significant development in the field of banking during1976 was the establishment of 19 Regional Rural Banks (RRBs)under the Regional Rural Banks Act1976.

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OBJECTIVES:

Regional Rural Banks in India are oriented towards meeting theneeds of the weaker sections of the rural population consistingof small and marginal farmers, agricultural labourers, artisansand small entrepreneurs.

Regional Rural Banks in India mainly focussed upon the agrosector.

Regional rural banks in India penetrated every corner of thecountry and extended a helping hand in the growth process of

the country.

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GROWTH OF RRBs:

During the period 1975-81 the branches rose from 17 to 4795and deposits from Rs 0.20 cr. To 338 Cr. By 1987 RRBs rose to 13533 anddeposits to Rs 12305 crore and outstanding advances to 2732 Cr.

On 31 march 2008 in rural banking in India, there were 14,475rural banks in the country of which 2126 (91%) are located in remote

rural areas and deposits were Rs 99095 Cr. And advances were Rs57601 Cr.

SBI has 30 Regional Rural Banks in India known as RRBs.The rural banks of SBI is spread in 13 states extending from

Kashmir to Karnataka and Himachal Pradesh to North East. Thetotal number of SBIs Regional Rural Banks in India branches is2349 (16%).

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A part from SBI, there are other few banks whichfunctions for the development of the rural areas in India. Few ofthem are as follows.

Haryana State Cooperative Apex Bank Limited

NABARD

United Bank of India

Sindhanur Urban Souharda Co-operative Bank

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REGULATORY CONTROL

NABARD introduced several policy measures for improvingRRBs total performance. these were:

Quarterly or half yearly review of RRBs. Framing of appointment and promotion rules 1998 for staff

of RRBs. Introduction of KISAN CREDIT CARDS for provision of credit

to farmers. Encouraging RRBs to adopt self help groups for channeling

credit to the poor

Merger of RRBs

A number of measures were taken to enable RRBs functioneffectively

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A co-operative bank is a financial entity which belongsto its members, who are at the same time the owners and thecustomers of their bank. Co-operative banks are often createdby persons belonging to the same local or professional

community or sharing a common interest.

Co-operative banks generally provide their memberswith a wide range of banking and financial services (loans,deposits, banking accounts). In India co-operative banks are

regulated with the RBI and governed by Banking RegulationsAct 1949 and Co-operative Societies Act, 1965

COOPERATIVE BANKS:

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COOPERATIVE BANKS:The Co-operative banking system is a unique sector, blending-banking and cooperation.

These institutions played a significant role in mobilizingrural savings and stimulating agricultural investment.

The cooperative banking sector in India comprisesurban cooperative banks and rural cooperative banks. Suchas: SCBs DCBs CCBs

It has accounts in 2004-05 for the second largest creditof Rs 108500 crore to agriculture activities in rural sector.

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The cooperative credit structure consists of 100113institutions with distinct urban and rural sectors. The urban sector has

1770 cooperative banks and 98343 rural cooperative banks. Theseare further classified under various segments.

4.504.9 5.3

5.6

6.66.3 6.4 6.3

5.8 5.34.8

0

2

4

6

8

End-

FY96

End-

FY97

End-

FY98

End-

FY99

End-

FY00

End-

FY01

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FY02

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FY03

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FY05

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FY06

Marketshareofdepositsin

%.

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