Harnessing Rural Banking Potential in India: Expanding Scope & Scale of Innovative Concepts & Programs

Developing appropriate policies and programs to accelerate rural growth
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This paper describes innovative rural development programs of the National Bank for Agriculture and Rural Development (NABARD).

Appropriate policies, application of science and technology and sufficient finance would help to develop natural resources of India’s rural areas. NABARD, a for-profit apex development bank, has introduced several innovative concepts and programs that have received a favorable response from rural banking system. The include:

  • Village Development Program;
  • Farmers’ Clubs;
  • Farmers’ Technology Transfer Fund;
  • Farm Innovation and Promotion Fund;
  • NABARD-Swiss Development Corporation Rural Innovation Fund;
  • Watershed development by Village Committees;
  • Umbrella Program on Natural Resource Management;
  • Pilot Project for Integrated Development of Backward Blocks;
  • Wadi Concept of Tribal Development;
  • Tribal Development Fund;
  • District Rural Industries Project;
  • Cluster Development Program;
  • Design Development and Skill Upgradation for Handloom Weavers;
  • Financial Inclusion Fund;
  • Microfinance Development and Equity Fund.

The paper states that commercial banks have demonstrated the ability to efficiently deliver financial services to rural areas. They need to expand the scope and scale of innovation by applying technology, placing efficient human resources in rural branches and establishing Rural Innovation Funds.

About this Publication

By Patel, A. & Kalkoti, G.