Slide 1: 1 1/17/2011 CP – 201 MANAGEMENT INFORMATION SYSTEM
CASE STUDY ON “NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT” (NABARD) & MIS AT NABARD
Dr. Debomalya Ghosh
Asst. Prof. DBA
Assam University, Silchar
Roll No. 05 Sec A
MBA 2nd Sem. Slide 2: National Bank for Agriculture and Rural Development 2 1/17/2011 Slide 3: NABARD was established on the recommendations of Shivaraman Committee, by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is one of the premiere agencies to provide credit in rural areas. 3 1/17/2011 Slide 4: NABARD is set up by the Government of India as a development bank with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural development. With a capital base of Rs 2,000 crore provided by the Government of India and Reserve Bank of India , it operates through its head office at Mumbai, 30 regional offices situated in state capitals and 391 district offices at districts. 4 1/17/2011 Slide 5: NABARD's Roles and Functions are :
Developmental and Promotional Functions
Institutional and Capacity building
Role in Training 5 1/17/2011 Slide 6: 6 MISSION STATEMENT OF NABARD
Promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives.
Objectives of NABARD
NABARD was established in terms of the Preamble to the Act :
For providing credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting IRDP and securing prosperity of rural areas and for matters connected there within incidental thereto. 1/17/2011 Slide 7: 7 1/17/2011 Organisational Structure of NABARD
NABARD, like all Apex bodies, has an organisational structure with specific designations and well-defined functional roles.
NABARD’s task structure
Strategic planning and control level
Programme planning and control level
Performance planning and control level Slide 8: 8 1/17/2011 Planning Process
The planning process are performed at various levels of the organisation. The strategic planning levels are mainly concerned with the organisation of funds, identification of priorities, determining broad guidelines and indicators for the allocation to various sub-sectors and approval to already appraised projects.
Upward Information Flow
District Level Planning – In the month of December each DDM at the district level prepares a Potential Lending Plans of the entire district for the next year, taking into account the available long term resources, infrastructure, extension services, marketing support, credit absorption capacity and the strength and weakness of the Rural Financial Institutions (RFIs). Slide 9: 1/17/2011 9 State Level Planning – All district level PLPs are combined and a State Focus Report is prepared which presents a comprehensive picture of the potentials available in each state for agricultural and rural development. This report is forwarded to the Corporate Planning Department for approval of refinance.
National Level Planning - The summary of State Focus Report forms the Annual Credit Plan for the country. The Corporate Planning Department at head office is in preparing annual credit lending plan.
Downward Information Flow
The annual credit lending plan is forwarded to Managing Director for scrutiny as per the Credit Lending Policy of the Govt. of India. This plan is passed to the Chairman of NABARD for approval. Then it is passed to the Corporate Planning Department at Head Office and forwarded to the Planning Department at Regional Office to pass it to the clients of NABARD. Slide 10: 10 1/17/2011 Scrutiny and approval of the Refinance Proposal
The proposal prepared for refinance by the clients have to be in a fixed model for different kinds of refinance. The proposal is scrutinized for different departments as per their specific function. The approved proposal is passed to F & A Department at Regional Office which in turn is passed to the F & A Department at Head Office. After approval from Chairman, the refinance amount reaches within 1-7 days to the prospective clients.
The planning of activities is followed by the Management control.
The Management Control task is performed at three levels of the organisation. Generation of funds,flow of funds to the desired sub units of Agriculture and Rural development.
Implementation of various schemes at the Regional level, identification of operational restrictions.
Identification of remedial measures of operational problems for the Regions/Districts. Slide 11: 1/17/2011 11 Business Process of NABARD
Credit Delivery System – NABARD acts as an institute for refinance and has got linkages with 2-tier and 3-tier Co operatives, Commercial Banks and RRBs.
Credit Monitoring System – NABARD’s monitoring cell supervises the proper utilization of allotted refinance amount to the respective Co operatives and Commercial Banks.
Credit Recovery Mechanism – It states the Organisations concerned for recovery and repayment of the refinance amount with Credit Scheme Specific Recovery Plan. Slide 12: 1/17/2011 12 Management Information System at NABARD
Planning and control tasks require information on the variables of both efficiency and effectiveness. This is supplemented by the creation of an appropriate database followed by processing and dissemination to various levels of organization as per their decision making needs.
The information flow at NABARD is primarily at the following levels:
Operational information – District wise operational information is generated on operations with respect to fund positions, cost of funds, target and achievement of released funds and information on unit cost of various types of schemes. Slide 13: 1/17/2011 13 DDM report with regard to monitoring – Sixteen reports have to be submitted by the DDMs to the planning department regarding their working and identification of new schemes in the districts. These reports have to review the generation of project information in banks, find out the factors for good and bad performance, establish data banks for district-oriented monitoring and provide supporting evidences for answering Parliamentary questions.
Evaluation studies – The Economic Analysis department of NABARD conduct studies pertaining to certain selected programmes with respect to performance, planning and control level. These reports are then analyzed at the corporate planning level and necessary corrections are made. Slide 14: 1/17/2011 14 MIS report for planning department
Development in districts on credit disbursement
Plan of DDMs visit to the districts
Date wise data diary of work done for entire month
Ground level of credit flow – Credit flow of Clientele
SLBC report, Lead Bank report
Report on formation of SHGs
Exclusively for SHGs Bank linkage
DDMs bank transactions from current account
Progress on Rashtriya Sama Vikas Yojana
Implementation, improvement of rural infrastructure and self employment
Report on newly started pilot project
Integrated Development of backward blocks
Summary of cumulative progress
Data on sanctions and distribution of credit Slide 15: 1/17/2011 15 Missing Link - NABARD has a varied client base, it is cumbersome to receive data from each client . Also, the expertise of each client in data collection is different. If data on SC/ST lending is required, there is no mechanism with private banks or NGOs to collect all those and hence this data gets missed from being combined.
Proposed Scaling Up of MIS - If the Information Sytem of NABARD can be scaled up to weaker clients it will have a substantial change in operational efficiency of both NABARD and it clients. This can help NABARD to track progress of credit lending, information about end user and the impact of credit on his/her life. Slide 16: 1/17/2011 16 THANK YOU