Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finiuice in I it din
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture tinnnce in India
of s t a t e p a r t n e r e d c o o p e r a t i o n in the s p h e r e of c r e d i t a n d
o t h e r e c o n o m i c activities."*
i
Short-term Structure Long-term Structure
^ ^
•^ r
DCCBs
^r
Source: Bhubon, Chandra Barah, Report of APO symposium on Agricultural credit in Tokyo
1999, Asia Productivity, Tokyo 2001, p. 167
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finnnce in India
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finance in India
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hleed and Source of Agriculture Finance in India
i
1 T \ 1 1 \ \ [
Central CCB CCB CCB CCB CCB CCB Central
Coop. Coop.
Bank Bank
1 \ 1 1 \ 1
PACS PACS PACS PACS PACS PACS PACS PACS
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finance in India
the Apex Central Land Mortgage Banks at the state level. The
Primary Land Mortgage Banks were preferred as the
Committee thought that they could play a very useful role in
the involvement of the beneficiaries in the process of
development, assessment of the credit needs of the
borrowers, examination of loan applications for improvement
of land and supervision over the use of loans with the help of
intimate local knowledge and experience which could not be
otherwise done effectively by a branch of a Central Land
Mortgage Bank. For those States in which land mortgage
banking had not yet started, the Survey recommended that in
the first instance a Central Land Mortgage Bank should be
organized and this Bank should take initiative to open
branches in the districts and subsequently convert them into
Primary Land Mortgage Banks.^^
52
Need and Source of Agriculture Fiitniicc in ludin
Commercial Banks
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Need and Source of Agriculture Fittniice in iudiii
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Need mid Source of A^rictilttire Fiiiniice in linlin
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Need mill Source of A^ricullure Finance in Indin
58
Ni'fil mill S o u M c t)l A^iiciilliiic iiinnnr in liitltn
RBI a p p o i n t e d a c o m m i t t e e u n d e r the C h a i r m a n s h i p of
Mr. M.L. D a n t w a l a to e x a m i n e the w o r k i n g of Regional Rural
Banks. The main findings may be s u m m a r i z e d as follows:
b o r r o w e r s to w h o m i n s t i t u t i o n a l credit w a s h e r e t o not
available.
> H e n c e , the D a n t w a l a C o m m i t t e e does not a p p r o v e of
the idea of s c r a p p i n g of RRB s t r u c t u r e
> The RRBs are well s u i t e d for the p u r p o s e of
" p r o g r e s s i v e l y filling u p the c r e d i t g a p in the r u r a l
section".
> H e n c e , the p r o g r a m m e for the e s t a b l i s h m e n t of m o r e
RRBs d e s e r v e s to be a c c e l e r a t e d .
> In the D a n t w a l a C o m m i t t e e ' s v i e w e s t a b l i s h m e n t of
RRBs will n o t d i s t u r b the c o o p e r a t i v e c r e d i t s t r u c t u r e at
the base level". It is a s s u r e d that the r e o r g a n i z e d
p r i m a r y A g r i c u l t u r a l C o o p e r a t i v e c r e d i t societies a n d
F a r m e r s service societies, w h e t h e r they can be
effectively o r g a n i z e d will c o n s t i t u t e " t h e b a s e of the
rural credit structure".
> RRBs s h o u l d " F u n c t i o n at the i n t e r m e d i a t e l e v e l "
> As r e g a r d s RRBs r e l a t i o n s h i p w i t h the c o o p e r a t i v e
institutions at the intermediate level (Central
C o o p e r a t i v e Bank, District C e n t r a l C o o p e r a t i v e Banks)
a n d at the retail level (i.e. P r i m a r y A g r i c u l t u r a l
C o o p e r a t i v e C r e d i t Societies a n d F a r m e r ' s Service
Societies) are w e a k a n d i n a d e q u a t e , RRBs can fill u p the
gap".
> In the first i n s t a n c e , RRBs s h o u l d be e x t e n d e d to such
areas w h e r e the C e n t r a l C o o p e r a t i v e Banks (i.e. DCC
Banks) are not able to a d e q u a t e l y serve p r i m a r y c r e d i t
societies within their jurisdiction. Where the
c o o p e r a t i v e s t r u c t u r e at the i n t e r m e d i a t e level (i.e. DCC
Banks) is fairly s t r o n g , the q u e s t i o n arises as to w h e t h e r
RRBs a n d the C o o p e r a t i v e p a t t e r n at the i n t e r m e d i a t e
level can co-exist.
The D a n t w a l a C o m m i t t e e w a s of the o p i n i o n that " t h e
credit was of the opinion that "the credit gap, both
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Need and Source of Agriculture Finance in India
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Need (111(1 Soiirci' oj Agriciillure Fiiiiiiuc in IIKIKI
To m a k e b a n k i n g i n s t i t u t i o n an effective s o u r c e of r u r a l
finance v a r i o u s n e w s c h e m e s such as the Lead Bank S c h e m e
(LBS), village A d o p t i o n Scheme (VAS), Service Area Plan
(SAP), I n t e n s i v e C e n t r e Scheme (ICS) and Regional Rural
Bank S c h e m e (RRBs) w e r e i n t r o d u c e d .
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Need and Source of Agriculture Finance in India
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Need and Source of Agriculture Finance in India
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Nci'il mill Source of Agriciilhire Fiiiiiiici' in linliii
Reference:
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