Schemes of Cooperative Agricultural Banks

Topics: Credit union, Bank, Cooperative banking Pages: 2 (613 words) Published: May 12, 2014

Schemes of Cooperative Agricultural Banks
1.National Bank for Agriculture and Rural Development or NABARD (External website that opens in a new window) - is responsible for refinance disbursement to commercial banks, State cooperative banks, State cooperatives, rural development banks, Regional Rural Banks (RRBs) and other eligible financial institutions. It also sanctions money through its Rural Infrastructure Development Fund for projects covering irrigation, rural roads and bridges, health and education, soil conservation and drinking water schemes. NABARD also offers a Kisan Credit Card Scheme and crop loans under the Rashtriya Krishi Bima Yojana.

Banks and RRB's introduced the Kisan Credit Card Scheme of NABARD in their areas of operation. In this scheme eligible farmers are provided with a Kisan Credit Card and a passbook or card-cum-pass book. The revolving cash credit facility allows any number of withdrawals and repayments within the limit. This limit is fixed on the basis of operational land holding, cropping pattern and the scale of finance. Sub-limits may be fixed at the discretion of banks.

This Kisan Credit Card is valid for 3 years subject to annual review. As incentive for good performance, credit limits may be enhanced to take care of increase in costs, change in cropping pattern, etc. Each drawl should be repaid within a maximum period of 12 months. Conversion or rescheduling of loans is allowed in case of damage to crops due to natural calamities. Security, margin, rate of interest and other details are fixed according to RBI norms. 2.Bihar State Co-operative Bank Limited (BSCB) - External website that opens in a new window - Offers a range of loans and financial schemes to agriculturalists. 3.Haryana State Co-operative Apex Bank Limited (HARCOBANK) - External website that opens in a new window - The bank offers crop loans, Kisan Credit Cards, cash credit...
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