CAIIB Rural Banking – Elective Paper | Syllabus and Study Material

MODULE A: RURAL INDIA

Topics

Demographic Features

Population; Literacy; Sixth Economic Census; Agriculture Census; Socio Economic Development Indicators; Health; Nutrition; Education; Rural-Urban Migration

Characteristics of Rural Society

Social Stratification; Local Institutions; National Institute of Rural Development and Panchayati Raj (NIRD & PR

Economic Features

Agriculture; Non-Farm Activities; Gross Domestic Product and Gross Value Added; Rural Money Markets – Formal and Informal Rural Money Markets; Rural Indebtedness; Rural Poverty; Different Methods of Measuring Poverty Line; Sustainable Development Goals

Infrastructure

Infrastructure in India; Transport; Markets; Rural Electrification; Other Services

Agriculture Economy

Structure and Characteristics of Indian Agriculture; Role of Agriculture in Economic Development; Agriculture-Industry Linkage; Issues in Economic Development; Resources in Agriculture; Technical Change in Agriculture; Constraints in Agricultural Development; Emerging Issues in Agriculture; National Mission for Sustainable Agriculture (NMSA)

Rural Development Policies

Rural Development Schemes; Skill Development and Entrepreneurship Initiatives; Shyama Prasad Mukherji Rurban Mission (SPMRM); Programs for Development of Backward Areas; Power Supply to Rural India Program; Development of Dryland Farming; Soil and Water Conservation; Rural Infrastructure Development Fund; Economic Reforms; Financial Sector Reforms; Impact of Reform in Rural Economy; Reforms after 1998-99

Issues Concerning Rural Areas

Components of Rural Development; Approaches to Rural Development since Independence; Sustainable Rural Development; Necessity for Rural Development; Measures for Development; Rural Development and Rural Management; Key Issues Concerning Rural Management; Marketing Management; Importance of Agricultural Prices

MODULE B: FINANCING RURAL DEVELOPMENT

Chapters

Topics

Regulation of Rural Financial Services

Overall Set Up of Rural Financial Institutions (RFIs); Function and Policies of RBI in Rural Banking; Role and Functions of NABARD; Lead Bank Scheme

Rural Credit Institutions

Cooperative Credit System; Regional Rural Banks; Commercial Banks and Rural Financing; Other Financial Institutions Catering to Rural Areas; Initiatives for Augmenting Credit Flow; Role of Information and Communication Technologies in Rural Banking; Rural Development Banking – Initiatives for Inclusive Growth; Rural Insurance and Micro Insurance; Micro Finance Institutions; Concept of Business Facilitators and Business Correspondents in Rural Banking.

Financing Agriculture and Allied Activities

Crop Loans – Production Credit; Features of Kisan Credit Card Scheme; Basic Features of NABARD Refinance Support to Cooperative Banks and RRBs for Crop Production activities; Bank’s Role in Provision of Relief in Areas Affected by Natural Calamities; Term-Loans for Agriculture and Allied Activities; Features of Major Sectors for which Opportunities are Available for Provision of term Credit by Banks; Advance against Gold Ornaments

Financing Rural Non-Farm Sector

Rural Non-Farm Sector – Facilitative Set Up, Importance, Structure and Growth, Strength and Issues Concerning the Sector; Promotion of Traditional Industries; Raw Material Supply – Arrangements; Marketing Assistance; Institutional Finance; Technology Development and Training

SME Finance

Definition of SME; Importance of the sector to the Indian Economy; Arrangements for provision of credit to the MSME sector; Appraisal of MSME loan proposals – techniques and Requirement assessment of Projects for term loans; SIDBI’s assistance to the MSME Sector and its development role; Policy prescriptions of RBI for the growth of MSME Sector; Initiatives taken by GOI for the development of MSME Sector; Problems faced by MSMEs; Delayed Payments to Micro and Small Enterprises under the Micro Small and Medium Enterprises Development (MSMED) Act, 2006; Performance and Credit Rating Scheme (PCRS); Framework for Revival and Rehabilitation of MSMEs

Concepts of Project, Aspects of Project Formulation & Appraisal & Model Bankable Projects

Aspects of Project Preparation; The Project Cycle; Minor Irrigation Schemes; Lift Irrigation; Financing Micro Irrigation Structures; Land Development Schemes; Farm Mechanization; Financing Plantation and Horticulture; Dairy Development Schemes; Poultry Farming; Sheep Breeding; Goat Rearing; Pisciculture; Bee Keeping; Financing Rural Godowns; Financing Sericulture; Financing Mushroom Cultivation.

MODULE C: PRIORITY SECTOR FINANCING AND GOVT.

Chapters

Topics

INITIATIVES Priority Sector Lending

Evolution of Priority Sector Lending; Guidelines on Priority Sector Lending – Categories; Non-Achievement of Priority Sector Targets; Common Guidelines for Priority Sector Loans; Priority Sector Credit Achievement

Poverty Alleviation Programs

Poverty Assessment and Way Forward; Initiatives of the Government – Features of the Schemes Implemented for Poverty Reduction; Welfare Schemes

Rural Housing and Education Loans

Rural Housing An Introduction; Pradhan Mantri Awas Yojana (Grameen); Education Loan

Initiatives of R.BI under Financial Inclusion & Financial Education Programs and implementation of various Poverty Reduction Programs

National Strategy for Financial Inclusion; National Strategy for Financial Education; Direct Benefit Transfer; Guidelines Issued by RBI under NRLM/NULM; Relief Measures by Banks in areas Affected by Natural Calamity-RBI Guidelines to Banks; Credit Facilities to SCs/STs; Credit Facilities to Minority Communities; Poverty Alleviation/Employment Generation Programs

MODULE D: PROBLEMS AND PROSPECTS IN RURAL BANKING

Chapters

Topics

Role of Banking – Emerging Trends in Rural Banking Characteristics of Rural Society

Present Scenario; Areas of Concern and Actions Pursued; Present Focus on Banking in Rural Areas; Inclusive Banking Activities

Role of Technology in Financial Inclusion and Rural Development

Transformational Role of Digital Technologies; Technology for Adoption of Improved Agricultural Practices; Scope for Using Digital Technology for Growth in Agriculture; Modern Management of Agriculture – Possible Technological Components; Benefits of Usage of Technology in Agriculture for the Society and the Nation; Common IOT Devices/Equipment in Agriculture for Agri-Solutions; Technology and Value Chain Operations; Progress of IOT in World Agriculture; Progress of IOT in Indian Agriculture; Other Initiatives for Development of Rural Areas; Financial Technology in Financial Inclusion Space

Financing Poor as Bankable Opportunities: Micro Credit and Self-Help Groups

Microcredit Delivery Models; SHG-Bank Linkage Program (SBLP) Approach; Micro Finance Institutions (MFIs); Role of NABARD as Microfinance Facilitator; SIDBI & Micro Credit; Initiatives by RBI and GOI