ROLE OF NABARD IN THE DEVELOPMENT
OF CO-OPERATIVE MOVEMENT IN THE STATE
The refinance to State Co-operative Banks and District Co-operative
Banks for short term (short term agricultural operations)
purposes at present is made available by the NABARD subject
to minimum involvement policy. The credit limit for the
purpose will be fixed with reference to the credit limit
statement under the crop loan system.
Financial assistance by way of loans with NABARD’s refinance
is also provided to District Co-operative Banks for various
purposes such as Minor Irrigation, Land development, Plantation,
horticulture, diary development, animal husbandry, farm
mechanization, etc. and non-farm sector outside I.R.D.P.
NABARD also assists credit co-operative banks through State
Government by way of providing financial assistance from
the Long Terms Operation Fund(LTO) . Pattern of assistance
under the scheme is as shown below.
| 1.
Kerala State Coop: Bank KSCARDB
and PCARDBs |
50%
of the paid up share capital |
| 2.
District Co-operative Banks |
10
to 12 times of owned funds |
| 3.
Farmers Service Co-operative Banks |
In
the ratio of 1:20 paid up share capital subject
to a maximum of Rs.2.50 Lakhs per society |
| 4.
Primary Agricultural Credit Societies |
In
the ratio of 1:20 of the paid up share capital subject
to a maximum of Rs.1.50 lakhs |
NABARD provides assistance to State Government by way of
loan carrying interest at the rate fixed by NABARD from
time to time. Present rate of interest is 9%. The loan
amount realised by NABARD is passed to the Societies/Banks
concerned by way of share capital contribution by State
Government. An amount of 69.53 crores has been provided
for the State by NABARD up to 2001-01 under the scheme.
NABARD provides refinance to the Kerala State Co-operative
Agricultural and Rural Development Bank by way of subscription
to the special development debentures to the extent of 85%
to 95% of each issue of special debentures. The remaining
portion shall be subscribed by Government of India and State
Government. The rate of interest of refinance sanctioned
by NABARD will be such as may be determined by NABARD from
time to time. NABARD’s assistance under the programme is
limited to the approved unit cost minus subsidy available
from the special agency. The repayment of assistance (principal
and interest) in respect of special debentures floated shall
be guaranteed fully and unconditionally by State Government.
