266
(v) Rural Branch Banking, Agency Model and Mobile Banking
The authorities have also proposed a system of agency banking involving
non-banking grassroots level institutions serving as
business facilitators
and
business correspondents
. Though nearly a decade has passed by, the system is
still to find its grooves. Some of the suggestions contained in the CAB’s report
cited earlier deserve to be addressed with utmost urgency.
(vi) Qualified Personnel
With vast modern input requirements and diversification into
horticultural products and other allied areas underway, agriculture would
require a more sophisticated system of credit delivery, for which induction of a
sizeable number of qualified agricultural science graduates and graduates with
other relevant technical qualifications would be necessary. Some of the banks
have begun to implement this policy, but in a half-hearted manner like contract
appointments. Instead, it is necessary to create a rural cadre of officers with
specialised qualifications combined with appropriate incentive structures.
And also, the banks adopt a lukewarm attitude when it comes posting
sufficient number of staff in rural branches; there is scope for strengthening
rural branches with adequate staff strength and IT infrastructures befitting the
new role of financial inclusion and of expanding agricultural credit that bank
branches have taken on.
(vii) Adoption of Primary Agricultural Societies (PACS)
Unlike cooperatives, scheduled commercial banks possess large
deposit resources leveraged with the help of public deposits. On the other
hand, cooperatives are rooted in local-level environments. Therefore, there is
scope for close link-up between cooperative credit institutions and commercial
banks, with appropriate checks and balances, such as through an adoption
process which was in vogue earlier. In any case, PACS may function as BCs for
the chosen commercial banks and central co-operative banks (CCBs).
(viii) Reinvigoration of the Lead Bank Scheme
It is necessary to reinforce close coordination between district planning
authorities and banking institutions operating in a district. The system of
lead bank scheme and associated district-level coordination committees of
bankers has apparently become inactive. The lead bank scheme needs to be
re-invigorated with clear guidelines on respecting the bankers’ commercial
judgements even as they are required to fulfill their sectoral targets. As an
NIBM Study (Shete, 2004) has revealed, various committees like Block Level
