Chapter 3 Brief history of Agricultural finance Flashcards
What was the primary focus of India’s first five-year plan in 1951?
The primary focus was on developing the primary sector, including agriculture.
What was emphasized by the National Credit Council in 1968 regarding commercial banks?
The National Credit Council emphasized that commercial banks should increase their involvement in financing priority sectors, especially agriculture and small-scale industries.
What was the average population per bank branch in India in 1969?
The average population per bank branch was 64,000.
What was the 1:3 ratio prescribed by the Reserve Bank of India in 1969?
The ratio prescribed was for opening 1 branch in rural/semi-urban centres for every 3 branches in urban centres.
What was the role of the cooperative sector in agricultural credit before 1970?
The cooperative sector was the primary channel for institutional credit to agriculture during the first two decades after independence.
What landmark policies were introduced in the 1970s for agricultural credit?
The Lead Bank Scheme and Priority Sector Lending were introduced to channel agricultural credit and promote rural development.
What was the purpose of the Regional Rural Bank Act of 1976?
The act aimed to provide sufficient banking and credit facilities for agriculture and rural sectors.
What was the establishment of NABARD in 1982 aimed at?
NABARD was established to promote agriculture and rural development in India.
What model did NABARD introduce in 1992 to enhance financial inclusion?
NABARD introduced the Self-Help Group (SHG) model to further financial inclusion of excluded segments.
What initiative was introduced by the Reserve Bank of India in 1989?
The Reserve Bank introduced the Service Area Approach (SAA) and Annual Credit Plan (ACP) system to reach rural areas.
What economic reforms started in the 1990s related to agricultural finance?
The economic reforms focused on financial soundness and operational efficiency of financial institutions, including rural financial institutions.
What was the nationwide farm loan waiver announced in 1990?
The farm loan waiver in 1990 had a cost of ₹100 billion to the national exchequer.
What is the Rural Infrastructure Development Fund (RIDF) established in 1995?
RIDF, established with NABARD, funds rural infrastructure projects to deepen credit absorption capacity in states.
What is the SHG-Bank Linkage programme introduced by NABARD?
The SHG-Bank Linkage programme is a partnership model involving SHGs, banks, and NGOs, introduced as a pilot project in 1992-93.
When was the Kisan Credit Card (KCC) introduced?
The Kisan Credit Card was introduced in 1998 to provide hassle-free credit to farmers.