Priority Sector, Need Importance and classifications

Before Nationalization of Indian Banks, some sectors such as agriculture and small scale industries were Ignored/least cared by the financial institution even though these sectors were inevitable for the nations development. The meeting of National Credit Council held in July 1968 emphasized that commercial bank should increase their lending to priority sector, viz, agriculture and small scale industries

Important points

• Description of priority sector formalized in 1972 based on the report submitted by an informal study group on statistics relating to priority sector.
• In November 1974 banks were advised to raise the share of these sector in their aggregate advances to level of 33 1/3 % by march 1979 and subsequently to 40% by 1980
•  Twenty point economic programme by banks Dr.K.S.Krishnaswamy

Categories under priority sector

• Agriculture
• Micro small enterprises
• Education
• Housing
• Export credit
• Others

Targets/Sub targets for priority sector

Total priority Sector -40% of Adjusted Net Bank Credit(ANBC) or credit equivalent amount of off balance sheet exposure which ever is higher

(ANBC

Total Agriculture -18% of ANBC or credit equivalent amount of off balance sheet exposure which ever is higher, of this 4.5% is maximum indirect lending

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Banking News

• United Bank of India CMD Smt.Archana Bhargava resigned followed by the mounting NPA of the bank. United Bank of India is a Kolkatta Based public sector Bank   

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Roles and responsibilities of an Agricultural Field Officer

The major Roles are mentioned below

• Promote banks loan products in rural areas and to Farmers
• Meet and maintain good relationship with farmers and thereby generate Leads
• Pre sanction inspection
• Followup in case of recovery

Loan product mainly include the lending related to Agriculture finance and micro finance. The Agriculture loans include Crop Loans/Kissan Credit Card (KCC), Term Loans for development activities, Farm house construction and project finance.

AFO should be in touch with farmers, they are the one having field knowledge and he/she should disseminate knowledge to the farmers. The role is not only limited to granting of loan they have to ensure the proper recovery of loan and getting the acknowledgement of debt (AOD)

Before the sanction of loan the AFO has to visit the farm and evaluate the things.

As the Govt.of India has introduced the scheme of Financial inclusion activity we have to work for the same. Selling of Financial inclusion products like Micro Insurance i.e Insurance with small premium, No frill savings bank account, Co ordinate business correspondence

The growth channel of an AFO compared to other generalist/specialist officers is more as we are directly in to credit we will get more exposure  

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