India’s Apex Development Financial Institution, the National Bank for Agricultural and Rural Development (NABARD) and the Nation’s largest bank the State Bank of India today entered into a Memorandum of understanding today aimed at mutual collaboration in their mission to enhance rural prosperity through convergence of their institutional lending and ongoing developmental initiatives.
The MOU was executed by Shri Sudhir Kumar Jannawar, Chief General Manager NABARD AP and Shri Sanjay Sahay, Chief General Manager, SBI Amaravathi Local Head Office in the august presence of Dr Govinda Rajulu Chintala, Chairman NABARD.
Dr Chintala, indicated that Agriculture has always been the silver lining in the current pandemic time. To supplement the efforts of GOI under ‘AtmaNirbhar’ package, especially in the agricultural and rural development sector and to ensure uninterrupted and adequate credit flow to the sector, NABARD has announced a number of special concessional refinance products for credit to watershed / tribal areas, micro-food processing entreprises, water, sanitation and health (WASH) and creation of infrastructure by PACS under Agricultural Infrastructure Fund.
The bank has also redesigned a number of its developmental programmes aimed at skilling and providing entrepreneurial skills among the rural youth especially, the reverse migrants. He indicated that such collaboration between NABARD and the banks will not only benefit the various stakeholders of rural Andhra Pradesh but also ensure effective convergence of the efforts of the individual institutions.
In the State of Andhra Pradesh, NABARD has already promoted 206 Watersheds covering and area of 2.10 lakh hectares. The bank has also implemented 52 intergrated tribal development projects (Maa thota ) benefitting around 34000 tribal families. Project specific banking plans for 143 projects have been prepared which has assessed the credit potential to the tune of Rs 218 crores. Under the MOU, both the institutions will come together for providing concessional finance to the beneficiaries in these areas and will enhance capital formation in Agriculture.
Shri Sudhir Kumar Jannawar, Chief General Manager NABARD indicated that during the last five years, 293 Farmer producer organisations have been promoted and nurtured in the State covering presently more than one lakh farmer shareholders. With the active collaboration between the two entities, the FPOs would be able to access bank credit for their business initiatives including setting up of storage and primary processing infrastructure. For enabling Small & Marginal Farmers, landless farmers, rural artisans other micro- entrepreneurs to access institutional credit, NABARD promotes formation of Joint Liability Group of such people.
The MOU will also enable formation of more JLGs and access finance through SBI. These efforts are expected to provide a fillip to the GoI’s mission of Doubling of farmers income. Shri Jannawar indicate that NABARD is willing to converge their efforts with other banks / financial institutions in the State in a similar manner.
Shri Sanjay Sahay, Chief General Manager, SBI indicated that this joint initiative will provide a further fillip to the lending by SBI in the State especially in areas wherein NABARD has already areas. Further, he indicated that SBI will work with the district level functionaries of NABARD in reaching the FPOs, Joint Liability Groups, Self Help Groups, farmers and individual entrepreneurs already covered by NABARD under its various developmental interventions. The bank will also partner with NABARD to promote financial literacy among the rural poor especially aimed to increasing the digital banking outreach.