NABARD in BIRBHUM

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NABARDs ROLE IN RURAL DEVELOPMENT  -  AT A GLANCE

National Bank for Agriculture and Rural Development (NABARD) was established as an apex rural development bank in the year 1982, through an Act of Parliament, to provide refinance for agriculture, allied activities, small scale industries, cottage and village industries, rural artisans and crafts in an integrated manner. 

NABARD supports the rural credit system by way of refinance for short-term, production/ marketing activities, medium-term and long-term loans for technically feasible and financially viable projects in both Farm and Non-Farm sectors, through State Co-operative Banks (SCBs), and Regional Rural Banks (RRBs). The State Co-operative Agriculture and Rural Development Banks (SCARDBs) are supported for only term loans for investment credit. The Commercial banks are supported for short-term financing of primary weavers' societies and for term loans for investment credit.

 NABARD provides finance to State Governments for completion of rural infrastructure development projects such as major and minor irrigation projects, soil conservation, rural roads and bridges, SHGs (Self Help Groups) through PRls (Panchayati Raj Institutions) etc., from the "Rural Infrastructure Development Fund" (RIDF) created for the purpose. In the district of Birbhum, NABARD has sanctioned Rs.13534.52 Crores for Rural Roads, Rural Bridges, Flood Protection structures, Minor Irrigation, Major Irrigation, Power sector, Watershed Management and PHC (Anganwadi centres).Out of the total sanction, Rs 8715.23 Crores has been drawn by the State Government. ( Figures as obtaining on 10 January 2005)

 NABARD also provides loans to State Governments to enable them to contribute to the share capital of co-operative credit institutions. NABARD works in co-ordination with various central/ state government agencies, and NGOs to implement projects like, watershed development, dry land farming, waste land development, forestry, Swarnjayanti Gram Swarozgar Yojana (SGSY) and other poverty alleviation  programmes.

 NABARD has raised a cadre of volunteers under its programme of Vikas Volunteer Vahini (VVV) to spread the message of "Development through Credit"  to farmers and non-farm rural entrepreneurs.

NABARD has also been providing promotional grants to VAs/ NGOs for various programmes such as mother units, ancillarisation, common facility centres, training including skill up gradation and entrepreneurship development, marketing, etc., under exclusive women and other schemes from its "Rural Promotion Corpus Fund". In the district of Birbhum, till date three Rural Entreprenuership development Programme (REDP) have been conducted and few more are in the pipeline. A one month long, special training programme to rural artisans (mostly women ), engaged in Sola Pith and Kantha Stitch works have been conducted in collaboration with National Institute of Fashion Technology, Kolkata. 

NABARD has established Research and Development (R&D) Fund to gain insights into the problems of agriculture and rural development through in-depth studies and applied research and experimenting innovative approaches backed by technical and economic studies. In Birbhum, to mention a few, studies on the functioning of Self Help Groups and Farmers Clubs were undertaken. Also, an exclusive study on development of various loan products was conducted for obtaining an insight into the product requirement of the rural populace.   

NABARD has set up Soft Loan Assistance Fund for Margin Money to provide support to rural entrepreneurs with the required skills and aptitude but unable to provide margin money for availing bank loan.  

NABARD has set up Co-operative Development Fund (CDF) to improve management systems and skills in co-operative banks. 

NABARD has constituted a "Credit and Financial Services Fund" to support credit innovations to improve the outreach of credit to the un reached rural poor. Till 30 November 2004, 4900 SHGs (56% thereof are women groups) were savings linked with 5 Commercial Banks, Mayurakshi Gramin Bank and Birbhum District Central Co-operative Bank. Out of the same 2368 groups (60% thereof are women groups) have been credit linked. The Mayurakshi Gramin Bank and seven NGOs in the district, has been identified as a Self Help Promoting Institution. This has helped in augmenting the flow of credit as well as in formation of more groups.

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