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.
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