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?
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Which funds support NABARD's concessional refinance activities?
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What is the purpose of the potential-linked credit plans (PLPs) prepared by NABARD?
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How many potential-linked credit plans were prepared by NABARD for FY2025?
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What is the significance of state focus papers (SFPs) in the credit planning process?
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During which fiscal year were SFPs launched across 30 states?
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What is the estimated projection for the priority sector under SFP for FY2025?
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What share of the projected ₹61 lakh crore for FY2025 is attributed to agriculture?
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What role do state credit seminars (SCSs) play in the SFP process?
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Who are the main stakeholders involved in the state credit seminars (SCSs)?
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What was the total disbursement under LT refinance during FY2024?
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What percentage of the LT refinance disbursement was allocated to SCBs including SFBs?
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Which region received the highest share of LT refinance during FY2024?
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What was the percentage increase in LT refinance disbursements from the previous fiscal year?
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In which financial year was a total of ₹88,378 crore disbursed in LT refinance?
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Which agency received 13% of the LT refinance disbursement in FY2024?
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Identify the agency with the lowest share of LT refinance in FY2024.
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Which two entities received a combined share of 12.9% in FY2024?
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What does the acronym SCARDB stand for in the context of LT refinance?
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What does 'LT' stand for in the term 'LT refinance'?
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What is the main objective of NABARD's Digitalising Agri-Value Chain Finance (AVCF) initiative?
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How many farmer producers' organizations (FPOs) are involved in the AVCF pilot launched by NABARD?
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What is the corpus amount of the Technology Facilitation Fund (TFF) set up by NABARD?
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What innovative approach is NABARD exploring to address field-level challenges in its AVCF pilots?
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What was a significant achievement facilitated by NABARD for 75 Rural Cooperative Banks (RCBs)?
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How much funding was sanctioned under the Technology Facilitation Fund during the year mentioned?
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What collaborative effort is NABARD involved in to improve agri-value chain financing?
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What is the primary purpose of the FPO accelerator model being implemented by NABARD?
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What initiatives has NABARD implemented to enhance financial literacy in rural areas?
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How many awareness programmes did NABARD conduct, and how many households did they reach?
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What are some technological services that NABARD facilitates for financial inclusion?
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What role does NABARD play in supporting digital infrastructure for farmers?
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What challenges has NABARD addressed to improve digital financial service access in remote areas?
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How many micro-ATMs and POS/MPOS machines has NABARD deployed to increase financial service access?
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What additional training has NABARD provided to enhance financial literacy?
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What specific programs does NABARD support to boost banking reach in remote areas?
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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.
Refinance Trends
- 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.