Nabard to introduce new financing scheme for marginal beneficiaries

The National Bank for Agriculture and Rural Development (Nabard), West Bengal is planning to introduce a new financing scheme for small and marginal farmers, tenant farmers, oral lessees and share croppers through banks.

The scheme is in the lines of Nabard's self-help group bank linkage programme, which is recognised as one of the largest microfinance programmes in the country.

It envisages funding the farmers through joint liability groups (JLG), which will help both banks as well as farmers to reduce the risk of default. Apart from the usual refinance support, Nabard will provide financial support to cooperative banks, regional rural banks, Panchayat Raj institutions, Krishi Vikas Kendras and farmers clubs for the promotion of JLGs under the scheme.

 

Nabard has set a farm sector lending target of Rs 13,400 crore this financial year in West Bengal.

The move is aimed at giving more bank credit to small and marginal farmers, as in West Bengal against a farm household population of 50 lakh, only about 12 lakh families avail loans through Kisan Credit Cards (KCC). Under the Farmers' Club Programme of Nabard, a total of 28,226 clubs covering 61,789 villages in 555 districts have been formed across India, to help farmers get access to credit, technology and extension services. Recently, Nabard had sanctioned Rs 117.07 crore under the Rural infrastructure Development Fund (RIDF) XV to West Bengal for the construction of 29 rural road projects (Rs 94.76 crore), 11 flood protection projects (Rs 15.84 crore), one joint forest management project (Rs 4.16 crore) and agricultural farm projects (Rs 2.31 crore).

Also, Nabard in West Bengal, has joined hands with the Indian Institute of Banking & Finance(IIBF), Mumbai, for training business correspondents and business facilitators.

It had introduced a scheme to support the capacity building needs of business correspondents and business facilitators of banks in association, under which it will reimburse the course fee of to those who successfully complete the certificate course offered by IIBF.