The 1st step to boost credit flow to agriculture sector is targeting. This targeting practices is followed for raising the flow of agriculture credit. As the budget allocation increased to 1.42 lakh crore in financial year 2019-20 accordingly flow of credit should increase and to be followed.
2nd step is crop loan : Arrangement has been made to provide crop loan to farmers. Along with crop loan proper communication to farmers about timely repayment and net interest charge that is 4 % should be more emphatic.
3rd step is Discouraging distress sale: In order to discourage distress sale of crops by farmers the benefit of interest subvention has been made available to small and marginally farmers having Kisan cards for a further period of 6 months against negotiable warehouse receipts at the commercial rates. Also other farmers are also covered under warehouse receipt loan up to 50 lakh. This is one of the good scope of financing.
4th step is Relief for natural calamities: In order to provide relief to farmers on occurrence of natural calamities interest subvention of 2% will continue to available to banks for the first year on restructured loan.
In case of severe calamities fresh loan can be sanctioned as per RBI guide lines that is another grey area for financing.
5th step is to finance actors along the value chain: The focus is on the links between different actors along a value chain. Agriculture entails a sequence of interlinked activities - transaction- in a chain that starts from the supply of seeds and fertilizers and finish in the mouth of consumers. These are financial instruments specially designed to strengthen these links between the actors along the value chain.
This story is from the December 2019 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 2019 edition of BANKING FINANCE.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The Rise of ESG Investing: Global Trends and Opportunities in the Indian Market
Environmental, Social, and Governance (ESG) investing has emerged as a transformative trend in global financial markets. As the world grows more conscious of sustainability, investors are moving away from traditional profit-driven strategies towards investments that align with broader social and environmental values.
Thematic and Sectoral Funds: A Comprehensive Overview
In the dynamic world of mutual funds, thematic and sectoral funds have emerged as popular investment options for those looking to capitalize on specific economic trends, sectors, or themes. Unlike traditional diversified funds that spread investments across various sectors, thematic and sectoral funds focus on particular themes or sectors, offering investors the opportunity to align their portfolios with specific economic narratives or growth stories.
Bucketing Strategy
The rich cultural heritage of India is visible in the omnipresence of Forts across the Indian landscape. These structures reflect a larger-than-life style of living of India's richie rich. Even after centuries, this craze for physical asset prevail.
The Importance of Building Trust in Client Relationships
A successful engagement begins with recognizing the client's stage in life and the challenges they face. This empathetic approach sets the groundwork for providing tailored advice rather than a generic sales pitch.
The Fail Proof Model to Achieve your Financial Goals
Most of the Financial Goals fails because LACK OF DISCIPLINE strategy to achieve it. There is a say that, PEOPLE MAY FAIL BUT STRATEGY or PROCESS WON'T. Any goals with DISCIPLINED STRATEGY can increases the success rate of achieving by 90%.
The Evolution and Future of the Global Mutual Fund Industry
The global mutual fund industry has seen significant transformation over the last decade, driven by various factors such as technological advancements, changing investor preferences, regulatory reforms, and the rise of sustainable investing. These shifts have had profound implications on the mutual fund industry in India, where the market has experienced rapid growth.
Focussing on Attitude, Skill and Knowledge
One must consult a successful person in the field and walk the path. Repeat the success formula which worked for a person you can follow. Have mentors and coaches in life and the journey will become better and enjoyable.
Current Trends in Mutual Funds
Systematic Investment Plans (SIPs) have become one of the most popular investment strategies among Indian retail investors, offering a disciplined approach to wealth creation. SIPs allow investors to invest a fixed amount regularly (usually monthly) in mutual funds, thus averaging out the cost of investment and mitigating the impact of market volatility.
Key Regulatory Frameworks and Guidelines for Mutual Funds in India
The mutual fund industry in India has grown significantly over the years, making it a popular investment vehicle for retail and institutional investors. The regulatory environment has played a crucial role in fostering trust and transparency in the industry.
Introduction to Mutual Funds
Mutual funds have become one of the most popular investment vehicles globally, providing investors with a diversified, professionally managed, and relatively accessible means to grow their wealth. This article delves into the history and evolution of mutual funds, both globally and in India, and offers an overview of the various types of mutual funds available today, highlighting their unique characteristics and suitability for different types of investors.
