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    CCP504 (B)

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    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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    CCP504 (B)

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    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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    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.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    41 views17 pages

    CCP504 (B)

    Uploaded by

    api-3849444
    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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    Download as ppt, pdf, or txt
    of 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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