TryGOLD- Free

ARDB Computerization to boost agri & rural economy
Banking Frontiers|June 2024
Agricultural and Rural Development Banks (ARDBs) play a vital role in India’s cooperative sector by providing financial services and credit to farmers and rural communities.
ARDB Computerization to boost agri & rural economy

However, many ARDBs still rely on manual processes, hindering efficiency and limiting their ability to serve their members effectively. Traditionally, ARDBs in India have operated with manual processes, including paperbased record-keeping, loan processing, and customer interactions. This manual approach is time-consuming, prone to errors, and lacks scalability. It also restricts access to modern banking services for rural communities, limiting financial inclusion and hindering agricultural and rural development.

BACKGROUND

Agriculture and Rural Development Banks (ARDBs) play a crucial role in India’s economic landscape, particularly in rural areas. Earlier they were known as Land Development Banks (LDBs). The first Land Development Bank (LDB) was started in Jhang, Punjab, in 1920. However, significant progress occurred when the Central Land Mortgage Bank was established in Chennai in 1929. LDBs were initially known as co-operative land mortgage banks. Their primary purpose was to provide long-term loans to farmers against the conveyance of land as security.

LDBs granted loans for land development, agricultural projects, and business ventures. They focused on financing infrastructure development and promoting rural economic At present, there are 16 SCARDBs of which only 13 are fully functional with a network of 1806 PCARDBs/branches. Organizational structure of ARDBs as it emerged over the years is not uniform all over the country. Thes structure is federal in 7 States, unitary in 7 states and mixed in 2 states. These banks provide term loans for agriculture along with production credit. They have a total membership of nearly 10 million rural households.

NAFCARD (National Cooperative agriculture & Rural Development Banks Federation) was established with twin objectives:

  • To promote interests of all its members and assist them in attaining organizational and business goals.

This story is from the June 2024 edition of Banking Frontiers.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the June 2024 edition of Banking Frontiers.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BANKING FRONTIERSView All
Excelling by partnering with Fenergo, SBS, Aurai, Avanade & others
Banking Frontiers

Excelling by partnering with Fenergo, SBS, Aurai, Avanade & others

The Netherlands-based NIBC Bank defines itself as an entrepreneurial asset financier for companies and individuals, having funded private housing ventures, rental property, commercial real estate, infrastructure and cars and claims it makes a difference for its clients through long-term relationships based on knowledge and expertise.

time-read
3 mins  |
January 2025
Drive by Connectivity, Automation & Analytics: SEB
Banking Frontiers

Drive by Connectivity, Automation & Analytics: SEB

Skandinaviska Enskilda Banken, or SEB, promotes digitization as much as it operates as an established bank:

time-read
3 mins  |
January 2025
Afterhour Passions
Banking Frontiers

Afterhour Passions

Professional success is often shaped by what a person does afterhours. Let us look at a few such people and what hobbies recharge their body, mind and spirit:

time-read
5 mins  |
January 2025
A colossal rise in agri credit
Banking Frontiers

A colossal rise in agri credit

A study by 3 academics on the impact of bank credit for agricultural sector reveals very encouraging trend:

time-read
3 mins  |
January 2025
The Future of Cybersecurity: Balancing AI & Human Expertise
Banking Frontiers

The Future of Cybersecurity: Balancing AI & Human Expertise

There is no denying the fact that the continued evolution in AI will redraw the landscape of cybersecurity. In this respect, the future of digital defences rest on how effectively AI capabilities are balanced with human expertise.

time-read
3 mins  |
January 2025
REINFORCING BRAND COOPERATIVE
Banking Frontiers

REINFORCING BRAND COOPERATIVE

Banking Frontiers organized its annual Frontiers in Cooperative Banking Awards and Conference in Lucknow in October where stalwarts from the sector shared insights into progress achieved and gave guidance on the road ahead.

time-read
10+ mins  |
January 2025
Magma HDI & Mahindra Finance collaborate to expand insurance access nationwide
Banking Frontiers

Magma HDI & Mahindra Finance collaborate to expand insurance access nationwide

Mahindra Finance, a leading player in India's non-banking financial services sector, has forged a strategic partnership with Magma HDI General Insurance Company to deliver customized general insurance solutions to its extensive customer base.

time-read
1 min  |
January 2025
AI for underwriting, personalization, claims & more
Banking Frontiers

AI for underwriting, personalization, claims & more

Sunil Jain, Chief Digital Technology Officer, Pramerica Life Insurance:

time-read
4 mins  |
January 2025
IoT & Chatbots - a rich data trove
Banking Frontiers

IoT & Chatbots - a rich data trove

Aditya Mall, Appointed Actuary at Future Generali India Life Insurance reveals new opportunities in insurance and the enablers:

time-read
2 mins  |
January 2025
Marching hand-in-hand: Innovation & Automation
Banking Frontiers

Marching hand-in-hand: Innovation & Automation

In the January 2024 issue of Banking Frontiers, Gyanendra Singh, CTO of Aviva India, had shared about how the company excels at RPA through governancebased implementation and pragmatic vendor selection. He shares more initiatives since then:

time-read
1 min  |
January 2025

We use cookies to provide and improve our services. By using our site, you consent to cookies. Learn more