Beruflich Dokumente
Kultur Dokumente
Pratiksha Baid
Prerit Jain Jyoti Munot
GB-047
GJ-053
Free Powerpoint Templates GM-071 Page 1
Page 2
Rural Banking started since the establishment of banking sector in India. Mainly focused upon the Agro- Sector.
Introduction
In rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote rural areas.
SBI- Largest Bank Catering to rural banking.
Haryana State Co-operative Apex Bank Limited, NABARD, Sindhanur Urban Souhadra Co-operative Bank, United Bank of India are other banks operating in rural markets.
Page 3
Current Status
Rural population of about 780 million with limited access to financial services. A high proportion of rural lending is from informal sources.
About 500-600 million people in India still do not have bank accounts.
Rural economy (agriculture +on agriculture) constitutes about 50% of the GDP. Banks have woken up to the potential in the rural sector. Current demand for credit in rural India is around Rs. 1,33,000 Crores. Commercial bank branches cover only 7% of rural sector & large market is still untapped. Free Powerpoint Templates
Page 4
Objectives Of RRB
1) Overall economic development of a country 2) Freeing of rural masses from acute poverty and unemployment. 3)Meeting the needs of the weaker sections of the rural population consisting of:a) Small and marginal farmers b)Agricultural laborers c)Artisans d)Small entrepreneurs Free Powerpoint Templates 4)Mobilize deposits from rural households Page 5
concessional
rates
Page 6
Ownership Of RRB
GOI 50%
RRB
STATE GOVERNMENT 15% SPONSOR BANK 35%
Free Powerpoint Templates Page 8
Evaluation Of RRBs
Preference for opening bank branches than commercial banks
The eligible business of commercial banks rural branches may be transferred to RRBs.
The losses in initial years of RRBs may be met by shareholders and equity capital should also be raised. The various facilities provided by sponsor banks should continue for 10yrs in each case Concessionary refinance by RBI should be continued The control, regulation, and promotional responsibilities should be Free Powerpoint Templates transferred from the GOI to RBI or NABARD. Page 10
Regulatory Control
RRBs are allowed up to December 31, 2000 to maintain cash reserves at 3per cent of their demand and time liabilities In 1998-99 NABARD introduced several policy measures for improving overall performance. They are:a)Quarterly / half yearly review of RRBs b)Merger of RRBs coming under a sponsor bank and operating in other area c)Off-site surveillance d)Introduction of Kissan Credit Cards for provision of credit to farmers.
Free Powerpoint Templates Page 11
Page 12
Constitute an authority for National Mission on Financial Inclusion. Draw a road map for replicating the successful pilots. Establish open standards for technology to be used. Undertake a massive program for financial literacy & credit counseling. Include SHGs as BC.
Free Powerpoint Templates Page 14
Expand Reach
Tie up with India Post to penetrate the Rural Market.
Page 15
Gap Analysis
The Poor requires.. Mechanism to keep their limited resources safely. Credit to meet emergencies. Credit for micro enterprise. Facility to receive remittances.
Banks.. Sustainable approaches products that matches needs & capacities & reduces transaction costs & times
Page 16
Payments + Remittances
Insurance
Financial Advice
Free Powerpoint Templates
Lack of Assets
Page 17
Affordable Credit
Case Study
Page 18
Page 19
Rural banks of SBI is spread in 13 states extending from Kashmir-Karnataka & Himachal PradeshNorth East. Bank is actively involved since 1973 in non profit activity called Community Services Banking
Comprehensive financial services viz savings, credit, insurance & financial products through ICT
Page 20
KCC
This is medium limit card of Rs.20,000. Farmers can withdraw partial amt from the card. 2.5% annual interest only Free on withdraw led amt. Powerpoint Templates
Page 22
Goals of SBI
Issue 1 crore IT enabled No Frill Accounts through alternate channels. Open 15 Lakhs No Frill A/c through bank branch channels. Open 870 new branches under second wave of branch expansion program. Open atleast 250 rural household A/cs at each rural & semi urban branch every year as per GOI directives. increase outreach through 25,000 Customer Service Point outlets of BC/BF.
Page 23
Page 24
Page 25
Banks told to integrate operations with regional rural banks for rural lending
NEW DELHI: In an attempt to extend the reach of banks in rural and semi-urban areas, the finance ministry has asked public sector banks to integrate their operations with regional rural banks (RRBs). "Charges for various banking services used by customers of RRBs are to be aligned with the sponsoring banks," a finance ministry official said on condition of anonymity. "Further, cheques or drafts issued by RRBs should be treated at par with their...
Free Powerpoint Templates Page 26
Govt to open over 3,100 regional rural banks branches in two years
Page 28