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Credit Planning and NABARD's PLPs
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Credit Planning and NABARD's PLPs

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@LuxuriantDryad

Questions and Answers

What types of loans does NABARD extend directly to governments and state-owned corporations?

Short-term loans for procurement and long-term loans for infrastructure projects.

What percentage of the target was achieved for ST refinance disbursement in FY2024?

121% of the target.

What are the primary contributions of concessional refinance provided by NABARD?

Augmentation of credit for agriculture and allied activities and provision of affordable credit at the ground level.

How did the achievement of the LT refinance target in FY2024 compare to the ST refinance?

<p>The LT refinance achieved 76% of its target, which is lower than the ST refinance achievement.</p> Signup and view all the answers

Which funds support NABARD's concessional refinance activities?

<p>Short-Term Cooperative Rural Credit Fund, Short-Term Regional Rural Bank Fund, and Long-Term Rural Credit Fund.</p> Signup and view all the answers

What is the purpose of the potential-linked credit plans (PLPs) prepared by NABARD?

<p>PLPs estimate credit potential under the priority sector at the district level and present holistic interventions required in infrastructure and other support services.</p> Signup and view all the answers

How many potential-linked credit plans were prepared by NABARD for FY2025?

<p>729 PLPs were prepared covering 758 districts.</p> Signup and view all the answers

What is the significance of state focus papers (SFPs) in the credit planning process?

<p>SFPs highlight credit potential, gaps, and strategies for sector and infrastructure development within a state.</p> Signup and view all the answers

During which fiscal year were SFPs launched across 30 states?

<p>SFPs were launched during FY2024.</p> Signup and view all the answers

What is the estimated projection for the priority sector under SFP for FY2025?

<p>The projection for FY2025 under the priority sector is estimated at ₹61 lakh crore.</p> Signup and view all the answers

What share of the projected ₹61 lakh crore for FY2025 is attributed to agriculture?

<p>The share attributed to agriculture is ₹26.3 lakh crore, which is 43%.</p> Signup and view all the answers

What role do state credit seminars (SCSs) play in the SFP process?

<p>SCSs facilitate the discussion of infrastructure gaps and sectoral issues with stakeholders to inform policy decisions.</p> Signup and view all the answers

Who are the main stakeholders involved in the state credit seminars (SCSs)?

<p>The main stakeholders include senior officials of state governments, banks, and research institutions.</p> Signup and view all the answers

What was the total disbursement under LT refinance during FY2024?

<p>₹1.3 lakh crore.</p> Signup and view all the answers

What percentage of the LT refinance disbursement was allocated to SCBs including SFBs?

<p>67%.</p> Signup and view all the answers

Which region received the highest share of LT refinance during FY2024?

<p>The south.</p> Signup and view all the answers

What was the percentage increase in LT refinance disbursements from the previous fiscal year?

<p>23.8%.</p> Signup and view all the answers

In which financial year was a total of ₹88,378 crore disbursed in LT refinance?

<p>FY2022.</p> Signup and view all the answers

Which agency received 13% of the LT refinance disbursement in FY2024?

<p>StCBs (State Cooperative Banks).</p> Signup and view all the answers

Identify the agency with the lowest share of LT refinance in FY2024.

<p>The north-east region, with 1.4%.</p> Signup and view all the answers

Which two entities received a combined share of 12.9% in FY2024?

<p>RRBs (Regional Rural Banks) and StCBs (State Cooperative Banks).</p> Signup and view all the answers

What does the acronym SCARDB stand for in the context of LT refinance?

<p>State Cooperative Agriculture and Rural Development Bank.</p> Signup and view all the answers

What does 'LT' stand for in the term 'LT refinance'?

<p>Long Term.</p> Signup and view all the answers

What is the main objective of NABARD's Digitalising Agri-Value Chain Finance (AVCF) initiative?

<p>To streamline financing and digitize processes related to input purchase, crop production, and output procurement.</p> Signup and view all the answers

How many farmer producers' organizations (FPOs) are involved in the AVCF pilot launched by NABARD?

<p>10 farmer producers' organizations (FPOs) are involved.</p> Signup and view all the answers

What is the corpus amount of the Technology Facilitation Fund (TFF) set up by NABARD?

<p>The corpus amount is ₹50 crore.</p> Signup and view all the answers

What innovative approach is NABARD exploring to address field-level challenges in its AVCF pilots?

<p>NABARD is exploring the use of purpose-bound loans with Central Bank Digital Currency.</p> Signup and view all the answers

What was a significant achievement facilitated by NABARD for 75 Rural Cooperative Banks (RCBs)?

<p>NABARD facilitated collective cyber risk insurance for 75 RCBs.</p> Signup and view all the answers

How much funding was sanctioned under the Technology Facilitation Fund during the year mentioned?

<p>₹73.17 lakh was sanctioned.</p> Signup and view all the answers

What collaborative effort is NABARD involved in to improve agri-value chain financing?

<p>NABARD is collaborating with two start-ups on the AVCF pilot.</p> Signup and view all the answers

What is the primary purpose of the FPO accelerator model being implemented by NABARD?

<p>To facilitate the growth and development of farmer producers' organizations.</p> Signup and view all the answers

What initiatives has NABARD implemented to enhance financial literacy in rural areas?

<p>NABARD has implemented financial and digital literacy camps, reimbursed examination fees for banking correspondents, and deployed demonstration vans in unbanked villages.</p> Signup and view all the answers

How many awareness programmes did NABARD conduct, and how many households did they reach?

<p>NABARD conducted over 8.1 lakh awareness programmes reaching 35 crore households.</p> Signup and view all the answers

What are some technological services that NABARD facilitates for financial inclusion?

<p>NABARD facilitates the adoption of CBS, Any Branch Banking, NEFT, RTGS, and ATM access in rural areas.</p> Signup and view all the answers

What role does NABARD play in supporting digital infrastructure for farmers?

<p>NABARD promotes revised KCC through cooperatives to ensure timely credit for farmers and supports digital infrastructure like PFMS and BHIM UPI.</p> Signup and view all the answers

What challenges has NABARD addressed to improve digital financial service access in remote areas?

<p>NABARD has addressed challenges like erratic power supply and connectivity issues by providing funding support for VSAT and mobile boosters.</p> Signup and view all the answers

How many micro-ATMs and POS/MPOS machines has NABARD deployed to increase financial service access?

<p>NABARD has deployed 77,219 micro-ATMs and 72,552 POS/MPOS machines.</p> Signup and view all the answers

What additional training has NABARD provided to enhance financial literacy?

<p>NABARD has conducted hands-on training for over 5 lakh households using mobile vans.</p> Signup and view all the answers

What specific programs does NABARD support to boost banking reach in remote areas?

<p>NABARD supports initiatives like CSPs and kiosks to expand banking access in remote areas.</p> Signup and view all the answers

Study Notes

Credit Planning and NABARD

  • NABARD prepares Potential-Linked Credit Plans (PLPs) annually for all districts to estimate credit potential for the priority sector, recognizing infrastructure needs.
  • For FY2025, 729 PLPs were created covering 758 districts, guiding banks in rural credit supply.
  • State Focus Papers (SFPs) are compiled from PLP assessments to highlight credit potential, gaps, and development strategies in each state.
  • SFPs detail government department support and are discussed at State Credit Seminars (SCSs) with key stakeholders, influencing policy-making.
  • In FY2024, SFPs were launched in SCSs across 30 states, projecting ₹61 lakh crore for priority sector credit in FY2025, with agriculture comprising ₹26.3 lakh crore (43%).

Refinance Activities

  • NABARD extends refinance to Rural Financial Institutions (RFIs), Scheduled Commercial Banks (SCBs), and Non-Banking Financial Companies (NBFCs) to meet diverse rural credit needs.
  • Loans for government procurement and infrastructure projects are provided directly by NABARD.
  • Concessional refinance is supported by the Government of India and the Reserve Bank of India, enhancing credit for agriculture and allied activities.
  • Short-Term refinance disbursement reached ₹1.8 lakh crore, surpassing the target by 121% in FY2024.
  • Long-Term refinance disbursement totaled ₹1.3 lakh crore, achieving 76% of the target of ₹1.7 lakh crore, showing a 23.8% increase from the previous year.
  • Disbursement was heavily skewed regionally: South (39.6%), West (21.3%), North (17.5%), Central (10.6%), East (9.7%), North-East (1.4%).

Technology and Financial Literacy Initiatives

  • NABARD is digitizing Agri-Value Chain Finance (AVCF) to streamline financing for input purchases and crop production, involving collaborations with start-ups.
  • A Technology Facilitation Fund (TFF) of ₹50 crore supports the development of digital technology, with proposals sanctioned valued at ₹73.17 lakh.
  • NABARD facilitated collective cyber risk insurance for 75 RCBs to improve coverage and reduce premiums.

Financial Literacy and Capacity Building

  • Financial literacy initiatives have reached over 8.1 lakh households, promoting digital services awareness and adoption.
  • NABARD conducts financial literacy camps, subsidizes training for banking correspondents, and deploys demonstration units in unbanked areas.
  • The role of NABARD also includes enhancing technological infrastructure for Rural Regional Banks and Cooperatives, supporting services like CBS and ATM access.

Infrastructure Support

  • Funding is provided for enhancing digital infrastructure, including VSATs, mobile boosters, and solar units to tackle connectivity issues in rural areas.
  • Significant deployment of micro-ATMs, POS machines, and digital payment systems has increased access to financial services in underserved regions.

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Description

This quiz explores the annual preparation of potential-linked credit plans (PLPs) by NABARD for all districts in India. It covers the assessment of credit potential in the priority sector and the necessary infrastructure interventions for various districts. Test your knowledge on the significance and implementation of these credit plans.

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