On July 12, 2020, National Bank for Agriculture and Rural Development (NABARD) has celebrated its 39th Foundation day.On July 13, 2020, NABARD has organized its first “digital choupal”, a video conference which brought together farmers from across the country who have been associated with NABARD in 7 development projects in rural India viz. Rural Livelihoods Matter Immensely, Empowering Tribal Communities, Soil Health is Real Health, Direct Marketing to Urban Consumers, Climate Resilience, Climate Proofing of Koutuguda and Collectivisation of Weavers.
- On this occasion, NABARD has announced Rs 5,000 crore of refinance scheme for banks and financial institutions and also earmarked another Rs 5,000 crore for turning Primary Agricultural Credit Societies (PACS), into multi service centres. These are explained as follows:
Rs 5,000 crore of refinance scheme for banks and financial institutions
NABARD has announced Rs 5,000 crore of refinance scheme for banks and financial institutions for providing finance to the beneficiaries of its 2,150 watershed development projects. The concessional line of assistance will be available for three years from 2020-21 to 2022-23.
- These projects cover 23.04 lakh hectares of rainfed area watershed and tribal development project areas.
- The scheme will help the migrants, who have returned to their villages from urban areas following the COVID-19 crisis, take up new occupations.
NABARD allocated Rs 5,000 cr for turning PACS into multi service centres
NABARD also introduced a grant-based scheme for computerisation of Primary Agricultural Credit Societies (PACS), which will enable these ground-level entities to turn into multi service centres for providing seamless credit services to their farmer members. PACS are building blocks of the country’s cooperative banking structure and are one-stop shops for meeting the varied needs of the farmers
- 5,000 PACS will be upgraded in 2020 followed by 15,000 PACS in FY 2022 and 15000 PACS in FY 2023.
- PACS can support farmers in post-harvest and marketing activities in addition to playing a key role in the physical and financial supply chain of commodities by acting as spokes to the upcoming Gramin Agriculture Markets (GrAMs).
About National Bank for Agriculture and Rural Development (NABARD)
Chairman– G R Chintala
Headquarter– Mumbai, Maharashtra