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CCP504 (B)

Agricultural banks locate in rural areas to meet the credit needs of rural people. At the village level, short term loans are provided by primary cooperative societies for buying seeds and agricultural inputs. Long term loans for agriculture are issued by land development banks for purposes like purchasing land or equipment. Agricultural banks provide both short term crop loans as well as loans for allied farming activities, and also issue Kissan Credit Cards to farmers.

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69 views

CCP504 (B)

Agricultural banks locate in rural areas to meet the credit needs of rural people. At the village level, short term loans are provided by primary cooperative societies for buying seeds and agricultural inputs. Long term loans for agriculture are issued by land development banks for purposes like purchasing land or equipment. Agricultural banks provide both short term crop loans as well as loans for allied farming activities, and also issue Kissan Credit Cards to farmers.

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Copyright
© Attribution Non-Commercial (BY-NC)
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You are on page 1/ 17

DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : G.Rajeswari
Designation : Senior Lecturer
Branch : Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam
Year/Semester : V semester.
Subject : Banking - I
Subject code : CCP 504(B)
Topic : Banking, types of banks
Duration : 50mts
Sub topic : Agricultural Banks
Teaching Aids : PPT, Animation

CCP-504 (B). 7 1
Objectives:-

On completion of this period, you would be


able to Understand :

 the meaning of Agricultural Banks.

 Know the salient features of Agricultural Banks.

 the functions of Agricultural Banks.

CCP-504 (B). 7 2
Recap

In the last class We have discussed


 The Agency services of Commercial Banks.
 General utility services of Commercial Banks.

CCP-504 (B). 7 3
Questions

 What is an Agricultural Bank? Have you heard this


name?

 Is it different from ordinary Commercial Banks?

 Do these banks collect deposits and lend loans to


ordinary public?

CCP-504 (B). 7 4
Meaning of Agricultural Banks

The bank which extends loans to farmers


to buy seeds, fertilizers, plough and other
inputs for cultivation is called Agricultural
Banks.

CCP-504 (B). 7 5
FEATURES OF AGRICULTURAL
BANKS:-

Agricultural Banks provide loans to farmers, rural


people etc.

 Agriculture also requires short term and long


term capital.

CCP-504 (B). 7 6
FEATURES OF AGRICULTURAL BANKS (contd..)

 Short term capital is required to purchase


seeds, manures, agricultural inputs etc.
 These needs will be met by Co-operative
Banks.
 In India Primary credit societies at the
village level perform this function.

CCP-504 (B). 7 7
FEATURES OF AGRICULTURAL BANKS:-

 These banks receive share capital, entrance fee


and deposits.

 These banks/societies give short period loans.

 They charge low rate of interest.

CCP-504 (B). 7 8
FEATURES OF AGRICULTURAL BANKS:-

 Land development Banks grant long term loans


to farmers.
 These loans are issued on the security of the
land.
 Long term loans are given for purchase of land,
tractors, other equipment, land improvement,
digging bore wells etc.
 These loans can be repaid in installments.

CCP-504 (B). 7 9
Functions of Agricultural Banks

 Agricultural Banks mainly cater to the needs to rural


people.
 They specialise in rural credit.
 They give short term crop loans.
 These Banks provide Kissan Credit Cards to farmers
 These banks also provide loans for allied activities
such as dairying, poultry farming, piggery, bee-
keeping, fisheries etc.

CCP-504 (B). 7 10
Summary

 Agricultural banks locate in rural areas.


 The main objective is to meet the credit needs of
rural people.
 At the village level, short term loans are given by
primary co-operative societies.

CCP-504 (B). 7 11
Summary
 Short term loans are issued for the purpose of
buying seeds, agricultural inputs etc.

 Long term loans for agriculture is issued by land


development banks.

CCP-504 (B). 7 12
Summary
 Long term loans are needed for purchase of land,
equipment, digging bore wells etc.
 Interest rates are very low.
 These banks also give loans for allied activities like
bee-keeping, piggery, poultry farming etc.
 These Banks provide Kissan Credit Cards.

CCP-504 (B). 7 13
Quiz

1. Banks established to provide long term


finance to agriculture?

A. Land development Banks


B. Public Sector Banks
C. Government
D. None

CCP-504 (B). 7 14
Quiz
 Kissan Credit Cards are issued by

A. Foreign Banks
B. IDBI
C. Agricultural Banks
D. None

CCP-504 (B). 7 15
Quiz
1. Short term Loans are given for which of the
following Purposes

 To purchase seeds
 Buying a Scooter
 Repairing to Scooter
 None

CCP-504 (B). 7 16
Frequently Asked Questions

1. What is an Agricultural Bank?

3. What are the features of Agricultural Bank?

5. What are the functions of Agricultural Bank?

CCP-504 (B). 7 17

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