Question

Describe the functions of State Institutional Financial Resources.

Answer 1

State level institutional financial sources include Co- operative banks, Primary Co-operative societies, Land development banks, Commercial banks, Regional rural banks and NABARD.

Farmers of the state get short term, medium term and long term loans through Co-operative banks. They work from their sources at many level. Primary Co-operative credit societies (PACS) provide loans for productive purposes for a maximum period of one year. This period can be extended for three years in special circumstances. Land Development Bank arranges long term loans for sustainable improvement and development in agriculture.

Commercial banks also provide loans to farmers by expanding their branches under their state level obligations. Regional Rural Banks Provide loans or credit to the marginal and small farmers, artisans and other weaker sections according to their needs.

NABARD which is known as National Bank for Agriculture and Rural Development. Provides finance facilities to government institutions, commercial banks and regional rural banks for agriculture and rural development, which these banks pass on to the villagers.