Agricultural Credit, Sources of Agricultural Credit, NABARD, RBI

1. Dr. B. H. DAMJI
Associate Professor & Head,
Department of Economics,
D.B.F. Dayanand College
of Arts & Science,
Solapur

2. agricultural credit

3. Need for Agricultural Credit
• Productive and Unproductive needs.
• (i) Credit for productive reasons.
• (ii) Credit for unproductive reasons.
• Credit needs according to purpose.
• (i) To satisfy domestic needs.
• (ii) To satisfy needs of non-farming
occupations.
• (iii) Farming needs.

4. •Contd.
• Credit needs according to loan period.
• (i) Short term needs.
• (ii) Medium term needs.
• (iii) Long term needs.

5. Sources of Agricultural Credit
• (A) Private/Non-institutional sources.
• Money lenders.
• Landlords and others.
• Relatives.

6. (B) Institutional Sources
• Government.
• Cooperative credit socities.
• Land Development Banks.
• Commercial Banks.
• Regional Rural Banks.

7. Contd.
• Lead Banks.
• State Bank of India.
• RBI
• NABARD

8. Role of RBI in Agricultural
Fianance
• 1. Establishement of Agricultural Credit
Department
• 2. Set up of All India Rural Credit Survey
Committee
• 3 Set up of All India Rural Credit Review
Committee
• 4. Establishment of National Agricultural
(Stabilization and Long Term) Funds

9. Contd.
• 5. Boost to short term credit
• 6. Emphasis on credit supply to priority
sector
• 7. Establishment of various agencies and
banks for rural credit supply
• 8. Initiative in the inception of NABARD
• 9. Assistance to cooperative credit socities
• 10. Boost to long term credit to agricultura
sector through LDBs.

10. Role of NABARD in rural credit
• 1. Boost to short term, medium term and
long term credit supply to agricultural sector
• 2. Assistance to twenty point programme
• 3. Refinance facility
• 4. Assistance to economically backward
states
• 5. Help to cooperatives societies and their
rehabilitation

11. Contd.
• 6. Establishment of Cooperative
Development Fund
• 7. Provision of credit to small scale industries
• 8. Provision of credit to processing industries
• 9. Research and Development Fund
• 10. Establishment of Rural Infrastructure
Development Fund

12. THANK YOU