CAIIB : Elective Paper - XI : RURAL BANKING (Syllabus-Topics)

Module - A: Rural India

Demographic features; Population, occupation, literacy, socio-economic development indicators, health, nutrition and education, - urban migration.

Characteristics of Rural Society; Caste and power structure - rural social stratification, Economic Features; Economic life of rural people, share in National income -Trends in per capita income, rural money markets, rural indebtedness, rural poverty - main causes and methods of measuring rural poverty.

Rural infrastructure; Transport, Power, Markets and other services.

Agriculture Economy; Structure and characteristics of Indian agriculture, Role of agriculture in economic development, agriculture-industry linkages, Resources and technical changes in agriculture, constraints to agriculture development, Emerging issues in Indian Agriculture. Rural Development Policy; Govt. policies and programmes for rural farm and non-farm sectors. Economic reforms and its impact on rural economy.

Rural Issues; Development issues, Management Issues, Marketing issues, Pricing issues, 

Module - B: Financing Rural Development

Regulation of Rural Financial Services; Function and policies of RBI in Rural Banking, NABARD-Main functions, role, refinance support. Lead bank approach, State level and District level Credit committees.

Rural Credit Institutions; Co-operative Credit Societies and Banks, Land Development Banks, Regional Rural Banks, Commercial Banks. Role of Information and communication technologies in rural banking-Models, Financial inclusion & inclusive growth for rural development banking, rural insurance micro insurance scheme, concept of Business Facilitators and Business Correspondents in rural financing.

Financing agriculture / allied activities; Crop Loans-Assessment, Sanction, Disbursement, rephasement. Term loans for irrigation, Farm mechanization, Godowns / cold-storage facilities etc. Financing allied agriculture activities like Horticulture, Fisheries, Social forestry, etc. Finance against Warehouse / cold storage receipts

Financing Rural Non-Farm Sector (RNFS); Importance of RNFS, Segments in RNFS, Role of Development and Promotional Institutions in RNFS

SME Finance; Definition of SME .Importance to Indian economy. Financing of SME and small enterprise Refinance from SIDBI. Project funding techniques and requirement assessment. Cluster based approach and joint finance with SIDBI.MSMED Act 2006, CGTMSE, Working capital assessment of SMEs. Risk rating of SME proposals, role of rating agencies and rating methodology. Revival of sick units; revival package and implementation, Stressed assets under rehabilitation. Debt restructuring mechanism for SMEs.

Module - C: Priority Sector Financing and Govt initiatives 

Components of priority sector. RBI guidelines.

Government initiatives; Poverty alleviation programmes / Employment programmes / Production oriented programmes-rationale and philosophy, progress and impact, problems and deficiencies. Rural housing and Urban housing schemes under priority sector, their refinance, Educational loans

Module - D: Problems and prospects in Rural Banking

Role of rural banking.

Problems of Rural branches of Commercial banks - transaction costs and risk costs. Technology based Financial Inclusion.

Emerging trends in rural banking-financing poor as bankable opportunity, Micro Credit, Self Help Groups / NGOs, linkages with banking, latest guidelines of GOI and RBI.