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| To this effect, a pilot project is soon to start with the joint initiative of Nabard, State Bank of India (SBI), Indian Overseas Bank (IOB), Canara Bank and Indian Bank. |
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| These banks will jointly work with the Tamil Nadu circle of Indian Posts for extending farm credit to customers. |
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| The pilot project will start in four districts in and around Chennai, in each of which SBI, IOB, Canara Bank and Indian Bank are the lead banks. |
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| While these banks will be on the operational side, Nabard will provide the regulatory and other advisory services. |
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| Nabard has also been roped in as cooperative banks and regional rural banks are also expected to join the scheme in future and they come under its jurisdiction. |
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| This proposal was mooted by ministry of finance jointly with ministry of agriculture in the last budget. |
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| Under the scheme, project appraisal and loan sanction will be done by the banks and marketing and distribution will be undertaken by the post offices. |
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| These banks already had meetings with the chief post master general of Postal department of India in this regard. |
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| Banking sources added that the rural network of the post offices far exceed the network of the banks. |
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| Moreover, post offices already have a database of customers as they deal in life insurance policies and various other savings scheme. |
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| The ready database can be of immense help to the banks while assessing the credit worthiness of the customer for sanctioning the loan, sources said. The post offices, on the other hand can optimise on their manpower through this scheme along with earning margin. |
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| The margin will differ as per the risk perception of the customer availing the loan. It is also not difficult to implement the scheme from the post offices as postal network across the country is uniform in work procedure. |
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| Therefore, if one circle becomes successful in conducting the scheme, it will not be cumbersome to replicate it in other circles, said a banker. |
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