Page 35 - BANKING FINANCE JUNE 2016

ARTICLE

 Strong mindset of the bankers that financing to
agriculture sector increase Non Performing Assets
(NPA)

 Non availability of labours for doing agricultural inter
cultural operations/practices due to 100 days
employment schemes or under opportunity under
MGNREGA launched by Government of India

 Poor infrastructural facilities for connecting rural
villages into nearby semi urban and urban centres

 Absence of need based delivery models among the
public sector banks when comparing to private sector
banks like Axis bank, ICICI bank etc.

Support from Policy Guidelines: high value crops integrated with other micro
insurance schemes launched under PMJDY (Prime
 Reserve bank of India (RBI) guidelines on the latest Minister Jan Dhan Yojana).
priority sector guidelines removed the distinction of
direct and indirect agriculture activities. However, Support from Government of India -
insisting the benchmark of 13.5% of ANBC (Adjusted Budget (2016-17):
Net Bank Credit) under direct agriculture
Agriculture and farmers' welfare:
 Understanding the importance of finance to marginal
and small farmers, RBI stipulated bench mark of 8%  Look to double the farmers income by 2020
of ANBC for marginal and small farmers, because,
80% of the farmers in India are coming under  Target of agricultural credit raised to an all-time high
marginal and small farmers category and 80% of the of Rs.900000 crore
Indian agriculture production comes from land
holdings of marginal and small farmers only  Government will reorient interventions in farming
sector, we need to optimally utilize water resources
 Finance to Food and agro processing units earlier
classified under Micro Small and Medium Enterprises  28.5 lakh hectares will be brought under irrigation
(MSMEs), now comes under Agriculture up to an under the Pradhan Mantri Krishi Sichai Yojana
aggregate sanctioned limit of Rs.100 crore per
borrower from the banking system  Rs.15,000 crore allocated for interest subvention for
agricultural loans
 Outstanding deposits under RIDF (Rural Infrastructure
Development Fund) with NABARD on account of  A dedicated irrigation fund with Rs.20,000 crore
shortfall under agriculture now comes under under National Bank for Agriculture and Rural
Agriculture ancillary activities Development (NABARD)

 Flexibility in assessment of quantum of loan based on  Major programme for sustainable groundwater
the concept of scale of finance over and above the management
limit fixed by DLTC (District Level Technical
Committee)  Government to set apart Rs. 412 crore to encourage
organic farming
 Irrespective of crops, uniform crop insurance premium
for the seasons announced under Pradhan mantra  Access to market is critical for farmers
Fasal Bima Yojana (PMFBJ) i.e 2% for Kharif, 1.5% for
Rabi and 5% for commercial, plantation and other  Implementing Pradhan Mantri Gram Sadak Yojana as
never before--to be allocated Rs.19,000 crore in FY17;

BANKING FINANCE | JUNE | 2016 | 35

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