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Agriculture Credit in India - Coggle Diagram
Agriculture Credit in India
A brief history
Phase 2 (1970-1990)
Regional Rural Bank Act, 1976 enacted
NABARD was established in 1982
Entry of commercial banks into agricultural credit with the Lead Bank Scheme and Priority sector lending
1989 service area approach (SAA) & Annual Credit Plan (ACP) system to increase outreach
to rural areas
Phase 3 (1991-onwards)
1st major nationwide farm loan waiver in 1990
Establishment of the Rural Infrastructure Development Fund (RIDF) with NABARD
Implementation of Narasimham Committee Report of 1991
Phase 1 (1951-69)
National Credit Council in 1968
Nationalization of banks in 1969
Thrust on developing primary sector since 1st FYP in 1951
Mechanisms of Agriculture Credit in India
Kisan Credit Card (KCC) Scheme
Self Help Group- Bank Linkage Programme (SHG-BLP)
Interest Subvention Scheme (ISS)
Joint Liability Groups (JLG) Scheme of NABARD
Priority Sector Lending
Issues with spending
Low allocation for important schemes
Low Capital Investment
Low spending
Institutional vis-à-vis Non-Institutional Agricultural Credit
Skewed agency share in institutional credit
Regional Disparity
Diversion of agriculture loans for non-agriculture purposes
Way forward
Enhancing the sub-target of SMFs under PSL
Agricultural Loans against Gold as Collateral
Addressing regional disparity
Utilizing Farmer Producer Organisations (FPOs)
Improve the Reach of Institutional Credit
Convergence of various schemes with Agriculture