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.Movingahead 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) alongwith 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 MoUaims at SBIacting 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.
Shri 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 occasion.
MOU being signed by Shri Niraj Kumar, Verma, CGM NABARD and Shri AbhijitMajumder, CGM, SBI.