The Kisan Credit Card (KCC) Scheme is a flagship farmer-centric initiative of the Government of India, designed to ensure timely and adequate credit support from the formal banking system. Introduced with the objective of streamlining agricultural lending, the scheme provides simplified and flexible procedures to meet the diverse financial needs of cultivators. The scheme extends…
Projects in agriculture and allied sectors are structured undertakings to create productive assets that generate incremental income, requiring systematic formulation and appraisal to ensure technical, financial, and market viability; NABARD’s model bankable projects, refinance support, and sectoral guidelines provide standardized templates and costing to expedite bankability and execution across subsectors like irrigation, mechanization, horticulture, dairy,…
SIDBI anchors India’s MSME development through refinance, direct credit, guarantees, analytics, and scheme management, while RBI’s policy prescriptions on priority sector lending, restructuring, and digital rails shape bank behavior; concurrently, Government of India initiatives spanning registration, guarantees, procurement, skilling, clusters, and payments underpin ecosystem growth even as MSMEs face structural constraints in credit, markets, skills,…
The MSME sector is a cornerstone of India’s economy, contributing about 30% to GDP, over one-third of manufacturing output, and nearly half of exports while providing large-scale employment and balanced regional development. Robust credit arrangements—priority sector norms, guarantee schemes, and digital rails—are essential to close the MSME credit gap, and banks must deploy disciplined appraisal…
Information and Communication Technologies (ICT) have transformed rural banking by extending secure, low-cost financial services to remote communities through digital channels, interoperable infrastructures, and data-driven delivery models that overcome distance, scale, and information barriers. Effective ICT adoption in rural banking hinges on a layered architecture that integrates connectivity, identity, payments, analytics, and local last‑mile touchpoints,…
The rural non-farm sector (RNFS) has become central to rural income diversification and employment in India, accounting for a rising share of rural output and jobs while interfacing with agriculture through value chains, services, and construction-led growth. Its finance ecosystem must align with facilitation, technology, marketing, and capacity-building to unlock productivity and quality employment across…
Crop loans provide short-term production credit for seasonal agricultural operations, while term-loans finance medium to long-term investments in agriculture and allied activities, with NABARD’s refinance architecture enabling cooperative banks and RRBs to deliver these at scale and affordable cost. RBI’s Master Directions guide banks on providing structured relief in areas hit by natural calamities, ensuring…
Rural financial services in India operate through a multi-agency framework anchored by policy, supervision, and development institutions, with the Reserve Bank of India (RBI) and NABARD at the center of regulation, refinancing, and capacity-building for sustainable rural credit delivery. Rural finance regulation The rural finance ecosystem is regulated through a combination of Banking Regulation Act…
Rural credit institutions form the backbone of financial inclusion in India, enabling access to credit for agriculture, small businesses, and other productive activities. They bridge the gap between rural needs and formal finance, playing a pivotal role in rural development and inclusive growth. Cooperative Credit System The cooperative credit system is a member-owned, democratically managed…
The Shyama Prasad Mukherji Rurban Mission (SPMRM), launched in 2016 by the Government of India, is a visionary program designed to transform rural India. Its core idea is to develop Rurban Clusters—groups of villages with growth potential—into sustainable hubs that balance the best of rural traditions with modern urban facilities. The mission seeks to bridge…