NABARD in UP Draft 1

NABARD in Uttar Pradesh Highlights – 2019-20 Contents NABARD in Uttar Pradesh 2019-20 1. NABARD in Uttar Pradesh – Business Operations 2. Financial support to Financial Institutions and State Government 2.1 Financial Support for Credit Expansion – Rural Financial Institutions 2.2 Creating Rural Infrastructure for Rural Growth 3. Economic Empowerment through Development Initiatives 3.1 Sustainable & Inclusive Development – Farm Sector 3.2 Expansion of Livelihood through Off – farm Activities 3.3 Rural Financial Inclusion – Micro Credit 3.4 Rural Financial Inclusion- Financial Literacy & Banking Technology 3.5 Credit Planning 4. Institutional Development & Supervision 5. Publicity & Outreach through Media

Highlights of UPRO during 2019-20 Total Business of NABARD UPRO (% Share) WIF – Disb., 29.37 Dir Fin to CCBs (Disb), LT Refinance (Incl. cr, 0.24% 1412 cr, 12% under LTRC Fund), 2769.56 cr, 23% LTIF – Disb., 1436.5 cr, 12% RIDF- Disb., 1295.35 cr, 11% ST (SAO) Refinance including ST(SAO) to PSBs for PACS, 5080.1 cr, 42% Graph: Total business achievement of UPRO for FY 2019-20 Total Grant Disbursed PRODUCE- Grant - Disb., 1.64, 6.50% PODF-ID – Disb., 0.16, 0.63% FSPF- Grant-Disb., 1.88, 7.45% FIF–Grant-Disb., 10.52, 41.69% WDF- Grant- Disb, 2.44, 9.67% OFDD – Gram Vikas CDF, 0.8364, 3.31% TDF- Grant- Disb., Nidhi & OFSPF – 6.16, 24.41% Grants (Disb.), 1.6, 6.34% Graph: Distribution of grant disbursed by UPRO during FY 2019-20

2.1 Financial Support for Rural Financial Institutions NABARD formulates policies for its refinance business (short and long-term credit) and direct finance business, keeping in view the resource position, ground level credit demand, need for maintaining regional and inter-sectoral balance, objectives of national programmes and missions, health status of the rural financial institutions, etc. Seasonal Agricultural Achievements: Rs 4101 Cr disbursed to UP StCB Operations and four RRBs in UP. Objective: Credit limits for State Cooperative Banks (StCBs) & Regional Rural Banks (RRBs), for lending under Short-term Seasonal Agricultural Operations (ST– SAO) within their Realistic Lending Programme (RLP) Seasonal Agricultural Achievements : Rs 979 crore to 2 RRBs and Operations UPStCB Objective: Additional ST– SAO limits for helping StCBs and RRBs tide over the liquidity constraints arising due to drought, increased ground level demand for credit, low accretion of deposits, etc. and these are over and above the normal ST–SAO limit

Long Term Refinance LT Refinance support ( Rs crore) Objective: Support for asset 325 70.11 SCAR 492.44 DB creation and capital formation in RRBs rural areas, which is critical for increasing agricultural CBs & SFBs productive capacity, agricultural growth, and rural development. Eligible Institutions - CBs, RRBs, 1882 StCBs, SCARDBs, Small Finance Banks (SFBs), Non-Banking Achievements: Rs 2770 Crore to all agencies Financial Companies (NBFCs), NBFC-Microfinance Institutions (MFIs). Direct Refinance to DCCBs Achievement ➢ Rs 1412 crore to 9 DCCBs Objective: Short term refinance to Cooperative institutions to meet seasonal liquidity requirements & to meet financing to sugar mills etc. Other Interventions Channelising Centrally Sponsored schemes ➢ Interest subvention claims-Rs. 172.22 cr. (05 RRBs) & Rs. 73.10 cr. (UPCB) ➢ Capital Subsidy Schemes of the Government of India • Dairy Entrepreneurship Development Scheme (DEDS) • Agri clinics & Agirbusiness Clinic Scheme (ACABC) • Agri marketing Infrastructure • National Livelihood Mission

ACABC State Level Workshop • Two state Level Workshops organized on 19th July 2019 and 5th March 2020 • Shri Sajith Kumar, Joint Director, Agri Extension, GoI attended as Chief Guest. Objectives: • Create awareness among the bankers for increasing financing under the scheme • To promote diverse Agri and allied activities catering to the technological needs of the farmers • Minimize the pendency of the subsidy claims DEDS State Level Workshop • Two State level Workshops organized on 19th July 2019 and 25th October 2019 • Shri Sudhir M. Bobde, I.A.S. Principal Secretary, Animal Husbandry, Govt. of Uttar Pradesh attended as Chief Guest. Objective: • To encourage bankers to increase awareness about the scheme at grassroot level through their branches. • To make bankers aware of the different components under DEDS. New AMI State Level Workshop • A State level Workshops organized on 25.10.2019. • Shri. Jawahar, Deputy Agricultural Marketing Advisor, DMI, GoI attended the workshop Objective: • To introduce guidelines of new AMI scheme so as to make Bankers and Farmers aware of the various facilities that can be financed • To apprise the client Banks about the newly introduced ENSURE online portal for upload of subsidy claims.

2.2 Financial Assistance for Rural Infrastructure Development Rural Achievement: Infrastructure Development ➢ 23260 projects sanctioned Fund (RIDF) ➢ Sanctioned loan - Rs. 26640 crore ➢ Disbursement - Rs. 21687 crore Objective: Financial ➢ Types of Projects sanctioned: Assistance to State • 698 rural roads - 830.60 km – benefitting 34.23 lakh population • 106 bridges - 77.87 km - benefitting a population of 67.65 lakh • 72 Veterinary Hospitals • 20 canal irrigation system and Flood Protection Projects - 21459 ha area ➢ Total disbursement : Rs. 1295.35 crore Govt. for building critical rural infrastructure, agricultures development, improving rural connectivity and social sector development. 45 Long Term Achievement: Irrigation Fund ➢ Three Projects in UP - Arjun Sahayak, (LTIF) Madhya Ganga and Saryu Nahar projects supported by NABARD Objective: Fast ➢ Loan commitment of Rs. 6431.34 crore tracking the 99 ➢ Cumultive Release– Rs. 4111.61 crore ➢ Disbursement during 2019-20 – 1436.50 identified medium and crore major irrigation projects spread across 18 state in mission mode

Warehouse Achievements: Infrastructure Fund ➢ 40 Warehouses - 30 districts - total (WIF) support of Rs. 146.86 crore from Warehouse Infrastructure Fund (WIF) Objective: Instituted by Government of India with a ➢ 2.0 lakh Mt of fresh storage capacity corpus of Rs. 5000 crore in to be created in the predmises of 2013-14. Further augmented APMCs with allocation of Rs. 5000 crore. ➢ Disbursement - Rs.29.37 crore Workshops Held: Micro irrigation Fund (MIF) workshop held on 17 October 2019 for GoUP Senior Officials for sensitizing on the objective, operational, modalities of the fund. Meetings/ Workhops High Power Committee Meeting: 3 meetings held under chairmanship of ACS, Finance, GoUP.

3.1 Sustainable and Inclusive Development - Farm Sector Watershed Achievements: Development ➢ Cumulative sanction - 47 watershed development projects – 36 ongoing Objective: ➢ Sanctioned in 2019-20 – 3 projects under Capacity Building Phase (CBP) • Applying soil and ➢ 17 projects for conduct of feasibility study water conservation ➢ Two Integrated Water Management Schemes measures in arid and ➢ 7 projects graduated to Full semi-arid regions from Implementation Stage the view point of ➢ Total Grant sanctioned - Rs. 2.42 crore natural resource management and sustainable usage. • Started way back in 1992 • Watershed Development Fund set up in 1999 with initial corpus of Rs. 200 cr. Promotion of FPOs Objective: Achievements: ➢ Total 73 FPOs running • To transform small holding ➢ 19 FPOs sanctioned during 2019-20 based agriculture into a ➢ Total grant released during 2019-20 : 2.17 viable agri-business crore enterprise and to increase ➢ ‘Rajya Stariya FPO Sammelan Evam the net income of farmers, particularly the small and Samman Samaroh 2019-20’ was marginal. organized at Gorakhpur on 29 December 2019 which was attended by Shri Yogi • Producers Organization Aditynath ji, Hon’ble Chief Minister, GoUP Development Fund (PODF) and Shri Surya Pratap Shahi, Hon’ble Agriculture Minister, GoUP. was set up in 2011 with initial corpus of Rs. 50 cr.

Tribal Development Objective: Achievements: ➢ Total 24 Tribal Development • For sustainable projects sanctioned ➢ 18 projects ongoing livelihood creation for ➢ 2 new projects were sanctioned in the tribal pockets of tribal families as Tribal Balrampur and Sonebhadra districts to cover 1000 tribal communities are families ➢ Total Grant sanctioned: Rs. 65 dependent mainly on crore ➢ Total Grant release: Rs. 47 crore agriculture, forests, and livestock for their livelihood. • Tribal Development Fund (TDF) was set up by NABARD in 2003-04 with initial corpus of Rs. 50 cr. Climate change projects Objective: To address the Achievements: ➢ Two projects viz. ‘Ecosystem challenges posed by climate services based adaptation to Climate Change in Bundelkhand change particularly in the areas region of Uttar Pradesh’ and ‘Climate Resilience Building in of agriculture and rural Rural Areas through Crop Residue Management’ have been sanctioned livelihood. NABARD as the under NAFCC National Implementing Entity Achievements: ➢ 9 location specific projects were (NIE) for three important sanctioned in different districts of the state to 9 different project funding arrangements aims to implementing agencies ➢ Total grant release during 2019-20: Rs. channelize national, 103.74 lakh International, and private finances for adaptation and mitigation activities in India. Projects based on sector specific activities Objective: To increase income of the farmers using location specific projects.

Exposure visits for Objective: Capacity building of farmers to Capacity building adopt technologies through exposure visits and training by Adoption of Technology (CAT) Achievements: ➢ 57 exposure visits for groups of farmers from 33 districts were supported during 2019-20 ➢ Total grant release during 2019-20: Rs. 35.39 lakh ‘Rajya Stariya FPO Sammelan Evam Samman Samaroh 2019-20’ was organized at Gorakhpur on 29 December 2019 which was attended by Shri Yogi Aditynath ji, Hon’ble Chief Minister, GoUP and Shri Surya Pratap Shahi, Hon’ble Agriculture Minister, GoUP. Events During 2019-20

3.2 Expansion of Livelihood through Off-Farm Activities Off-Farm To promote collectivisation of rural NABARD promoted one Producer artisans and strengthening their business OFPO at Baghpat on Organisations skills through capacity building, business Handloom and one at (OFPOs) planning and development of marketing Varanasi on Wood Carving linkages Marketing During last 3 years, 12 Initiatives Rural Haat: Rural Haats and 19 A Rural Haat is an open air market place Rural Marts have been Honing up catering to marketing needs of 10-20 supported through Skills surrounding villages NABARD Rural Mart: Artisans from across established at prominent block/district places are catering to the marketing needs the state were of handicraft or agro based products of rural populace. sponsored to exhibit Mela and Exibitions: their products at many established at prominent block/district places are catering to the marketing needs such melas like of handicraft or agro based products of rural populace. Surajkund Mela, NABARD in partnership with training Haryana, Mahalakshmi agencies, has been addressing the skill gap in rural India through demand based, region Saras Mela, Mumbai based and outcome based programmes and Lucknow Mahotsav etc. A new partnership was established with ‘Mahendra Skills’with complete orientation towards ODOP of GoUP..

Innovation: GI Registration to provide recognition and improve the marketability of 34 unique products of Uttar Pradesh. This includes products that have got/ are in the process of getting GI registration such as Banaras Gulabi Meenakari, Varanasi Wooden Lacquerware & Toys, Mirzapur Handmade Dari etc., including products under ODOP scheme of GoUP. A unique catalogue of GI products has been printed in three International Languages viz. English, French and Spanish so that the products can easily understood by international buyers. NABARD Shilp Kumbh: A five-day mela, NABARD Shilp Kumbh was organized during 14th to 18th October 2019 at Lucknow which attracted huge response from the visitors giving a boost to the artisans. Handloom OFPO - Baghpat Rural Haat

3.3 Rural Financial Inclusion – Micro Credit Livelihood Achievements Entrepreneurship ➢ 10 new LEDP programmes sanctioned Development ➢ Convergence of ODOP and LEDP Programme (LEDP) programme in 4 districts /Micro Enterprise ➢ Sanction of 10 MEDPs for matured SHGs Development Programme (MEDP) Objective: Livelihood & Skill promotion in both farm & off farm activities Objective: To bring Achievements SHGs under financial inclusion & enable access • Credit linkage of 513 SHGs under to financial services intensification drive • Phase IV- 20 districts, digitisation of 30,509 SHGs, 19,478 SHGs have been on boarding the portal State level meet to familiarize stakeholders with E-shakti portal

SHG/JLG Achievements Promotion/ Village ❑ 21 Self Help Promoting Institutions Level Programmes (SHPIs) Objective: To promote ❑ 7 JLG promoting institutions and nurture SHGs ❑ New agencies to broaden the coverage of SBLP ❑ 180 programmes for upscaling SBLP movement ❑ 1248 Village level programmes Saving linkage of 43,211 SHGs & credit linkage of 10,018 SHGs Other Events ➢ Gramin Samridhi Samman Samroh graced by Hon’ble Finance Minsiter, GoUP to felicitate suceessful endeavours of credit linkage ➢ International Women’s Day celebration graced by Hon'ble State Minister for Women & Child Development, Ms Swati Singh with participation of women SHG members, women branch managers and other stakeholder ➢ Convened Special SLBC sub-committee meet on SHG-BLP

3.4 Rural Financial Inclusion – Financial literacy & Banking Technology Financial Literacy Centres Achievements: Objective: To educate customers ➢ Cumulative sanction – 224 FLCs about financial products, Credit, ➢ Cumulative Grant Released - Rs. Banking Services etc. NABARD provides grant support for setting 791.41 lakh up of FLCs in DCCBs and RRBs. ➢ Grant Released in 2019-20 – 32.43 lakh Bank Sakhi Achievements: Objective: NABARD Promote • Cumulative Sanxction – 575 Bank Women SHG members to work as Sakhis Business Correspondents (Bank Sakhi) by providing grant support • Grant Released - Rs. 18.97 lakh • Grant released in 2019-20 – 4.39 Lakh Aadhar Enrolment Centres Achievements: (AECs) • Cumulative Sanction – 208 AECs • Cumulative Grant Released - Rs. Objective: Aadhar enrolment centers have been set up by DCCBs 152.13 lakh and RRBs for providing educational, • Sanction in 2019-20 – 128.16 lakh operational information of Aadhar to its customers. NABARD Provide support to Client Institutions to work as Aadhar Enrolment centers

Rural Self Employment Training Achievements: Institutes • Cumulative Sanction – 75 (RSETI) RSETIs • Grant Released - Rs. 205.96 Objective: RSETIs are set up by Lead banks Lakh in their respective districts for providing skill up gradation opportunities to rural Achievements people. Capital expenditure support to • Cumulative Sanction – 3042 RSETIs is provided by NABARD for skill m-ATMs training and skill up gradation of rural • Grant Released - Rs. 592.60 youth Lakh Micro-ATM Achievements: • Cumulative Grant Sanction Objective: To promote Financial Inclusion – 250 PACS – 17 DCCBs – in rural areas micro ATMs have been 44 ATMS – 131 m-ATMs provided to Institutions. NABARD • Grant Released - Rs. 6.94 promotes usage of micro-ATMs by Lakh providing grant support for Micro-ATM Achievements: PACS as Deposit Mobilising • Cumulative Sanction – 60 Vans Agency (DMA) • Cumulative Disbursement -Rs. Objective: PACS are provided support to 781.82 Lakh act as Deposit Mobilization Agents (DMA) • Grant Released During 2019-20 – in order to increase banking network among rural areas 500.94 Lakh Mobile Van Objective: For better access to banking services in rural areas, NABARD promotes use of Mobile Van by providing grant support for setting up, purchase of van, installation of ATM etc. to RRBs and DCCBs. •

Public Financial A portal devised by Ministry of Management System Finance which helps in tracking Direct Benefit Transfer (DBT) by State/Union Government. NABARD provides support to Client Institutions by providing grant support for onboarding on PFMS Portal ATM set up with support of NABARD Financial Literacy Center set up with assistance of NABARD

3.5 Credit Planning Potential Linked • PLP identifies the physical PLPs for all 75 Credit Plans potential available at districts of Uttar (PLPs) district level under priority Pradesh prepared sectors constituting rural by 50 DDMs economy and extent to which it can be financed through bank credit. State Focus Paper • Consolidation of PLPs Credit Potential (SFP) projections forms the basis for FY 2020-21 for SFP which highlights the stood at ₹ 2.94 credit potential, critical lakh crores, an infrastructure gaps, policy increase of 10% level issues etc. and gives a over last year development perspective for priority sector in the state. State Credit • SCS is organised to discuss SCS organised on Seminar (SCS) ways to bridge 10th Feb 2020, infrastructure gap and attended by Shri facilitate future cresit flow Suresh Khanna, in the states. Hon’ble Minister of Finance, GoUP Housing Loan, Renewable Energy & Others – Loans to Social Infrastructure Rs.18266 cr, SHG/JLG, PMJDY… involving Bank 6.20% Waste Management,… Credit, Rs.2910 cr, Export Credit, 0.99% Rs.6269 cr, 2.13% Education Loan, Farm Credit, 173938 Rs.4407 cr, 1.50% cr, 59.01% MSME, 63497 cr, 21.54% Ancillary Activities, Agriculture Rs.9430 cr, 3.20% Infrastructure, Rs.11006 cr, 3.73% Credit Potential under priority sectors in the state for FY 2020-21

Launch of State Focus Paper 2020-21 by Shri Suresh Khanna, Hon’ble Minister of Finance, GoUP Launch of PLPs by DDMs at various districts of Uttar Pradesh

4 Institutional Development and Supervision Review of Cooperatives ❑ Convened 3 HLC Meetings ❑ Participated in 3 SLIC Meetings Objective: To assess the financial health of rural cooperative banks Issues Resolved ➢ Recruitment in cooperative banks Review of RRBs through IBPS ➢ Merging of DCCB branches to 1 Objective: Assessment of financial branch/block and institutional health of Regional ➢ PF Trust constituted in 49 out of Rural Banks 50 DCCBs ➢ Deposit rate increased to 8.60% for 16 weak DCCBs • Convened RRB Review Meet • Convened post amalgamation Review Meeting for Aryavart Bank • Participated in 3 Empowered committee Meeting Supporting Rural Cooperative ❑ Financial Support to Cooperative Credit Structure training institutions - Rs 83.64 lakh Objective: Financial support to ❑ PACS Infrastructure support– Rs. achieve capital adequacy, capacity 11.95lakh building & functional efficiency ❑ Turnaround plans for 3 DCCBs in UP- Gorakhpur, Varanasi & Allahabad Supervision of CCBs and RRBs ❑ 43 Statutory inspection ❑ 39 compliance Meetings Objective: Conduct of Statutory Inspection of Cooperative banks and RRBs

Seminars/ ➢ Coordination committee Meeting with RBI Workshops/ Thematic Studies ➢ Workshop for Statutory Auditors and on CBS held for stakeholders ➢ Workshop on Review and Monitoring of Frauds in CCBs ➢ Workshop on Core Banking Solution in CCBs ➢ Study of Imbalance in weak banks ➢ System Generated NPA study of all 5 RRB of the State conducted Diagnostic study of UPSGVB

Solar Panels financed to PACS PACS Secretaries attending CAS under DCCB Rampur under &MIS training in ACSTI PACS Infrastructure Fund

Publicity & Outreach through Media To be done…