Karnataka: NABARD signs MOU with SBI for concessional Credit
Dr. Govinda Rajulu Chintala, NABARD, Chairman recently announced Rs. 5000 Cr
concessional refinance facility for banks and financial institutions for providing finance
to the beneficiaries of the 3295 watershed development and 791 tribal development
projects across the country, over a period of three years from 2020-21 to 2022-23 and
digitization of 2 million SHGs by 2021-22. Moving ahead in this direction, NABARD,
Karnataka Regional Office Bengaluru entered into MoU today with State Bank of India,
LHO, Bengaluru for joint interventions by the 2 Institutions in the State.
The MoU was signed at NABARD, Regional Office, Bengaluru by Shri Niraj Kumar Verma, CGM,
NABARD and Shri Abhijit Majumder, CGM, SBI. Through this MoU NABARD aims to
provide grant support, concessional refinance and undertake capacity building of the
stakeholders of various livelihood interventions promoted by NABARD. SBI, on the
other hand, will give priority to extend credit to these beneficiaries.
With this MoU, the largest Developmental Financial Institution and the largest Public
Sector Bank of the country look forward to associate together to have convergence of
ongoing development initiatives of NABARD and SBI, thereby, aiding the beneficiaries
of Tribal Development Fund (TDF), Watershed Development Fund (WDF),
Farmer Producer Organisation (FPOs), SHGs, JLGs, etc. The MoU aims to
benefit farmers and 45000 beneficiaries of 260 FPOs in 28 districts, 8500 beneficiaries
in 20 districts of 70 watersheds and 15 Tribal Development programmes (wadis) along
with JLGs/ SHGs through E- Shakti (digitization)/ Artisans/ Agri-preneurs /Agri Start
Ups, etc. in the State.
Under NABARD’s E Shakti project launched in 29 districts of Karnataka as on
01.10.2020, 3,02,614 SHGs have been digitized and 2,81,755 SHGs are credit linked.
This MoU aims at SBI acting as an Implementing Agency for digitizing their SHGs and
on-boarding on our E-Shakti portal across Karnataka. This will facilitate availability of
credit to the SHGs for promotion of their livelihood. Further, each branch of SBI in rural
and semi-urban areas will strive to finance 50 Joint Liability Groups (JLGs) and SHGs
annually. NABARD would also extend grant support for promotion of JLGs and SBI
would explore the possibility of entering into a separate MoU with NABARD for
promotion of JLGs with BC/BF support.
Financial Literacy Programme: NABARD would extend support @ 60% of Rs. 5,000/-
for conduct of Financial Literacy Programmes in the rural/semi-urban branches and
through FLCs of SBI. Aiming at Financial Inclusion, NABARD would also extend grant
support for procuring infrastructure support like VSAT, mobile signal boosters,
handheld projectors etc. to SBI.
Speaking on the occasion Shri Niraj Kumar Verma ,CGM, NABARD, stated that this is a
moment of delight for both the organizations and he hoped that this collaboration will
not only benefit the various stakeholders of rural India but will also be an example for
other Financial Institutions to emulate.
Abhijit Majumder, CGM, SBI, said that with this intervention, SBI is looking
forward to further strengthen its’ ties with NABARD and make a difference in the
development of rural areas and bring about rural prosperity. SBI also looks forward to
further its’ rural lending with this joint intervention.
This combined effort could be a potential game changer in facilitating integrated
development of the agriculture sectors and contribute significantly towards economic
growth. Senior Officers-GMs and DGMs- of both the organizations were present on the
MOU being signed by Shri Niraj Kumar, Verma, CGM NABARD and Abhijit
Majumder, CGM, SBI