Financing agriculture and allied activities
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Rural Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 40 rapid-fire Q&A cards.
Validity?
5 years, subject to annual review
Each ST withdrawal?
To be liquidated within 12 months (revised in 2012 to align with harvest/marketing period)
Rate of interest?
Linked to base rate / MCLR / EBLR; adjusted for interest subvention
ISS rate to farmer?
7 % p.a. (effective rate post 3 % PRI = 4 %)
NPA classification?
Per IRAC norms issued by RBI — applied to ST loans if outstanding > drawing limit or > 12 months, and to term loans on fixed-instalment basis
Area Development Scheme — Lead Formulator / Nature?
Lead Formulator: Bank; Nature: Uniform investment & outlay for a defined area (e.g., dairy scheme for a district — ₹50,000/unit, 100 units)
Banking Plan — Lead Formulator / Nature?
Lead Formulator: Development agency (State Dept / NABARD); Nature: Multi-bank, multi-district / state implementation (e.g., MI banking plan, Multi-state cashew project)
Individual-Borrower-Oriented Investment — Lead Formulator / Nature?
Lead Formulator: Borrower; Nature: Custom project; can be small (one well, two cows) or commercial (50 cross-bred cow dairy with feed mill)
Video classes for this chapter
MCQ practice tests
Chapter-wise mock tests with instant scoring.
PDF study notes
More chapters in Module B - Financing Rural Development
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