2. The economy of India is of rural based.
Without the development of rural area of the country, one
cannot think of its overall development. Majority of rural
people spend their life below poverty line. Their
economic, educational and social statuses are pathetic and
falling day by day. Banks play a crucial role in
eradication of poverty and unemployment in the rural
areas. Poverty alleviation programme launched by the
Government from time to time is implemented through
the various autonomous agencies or supporting
institutional network.

3. CLASSIFICATION OF GOVERNMENT FUNDING
AGENCIES

4. CENTRAL
GOVERNMEN
T FUNDING
AGENCY
NABARD
SIDO
NSFDC
KVIC
CAPART

5. STATE
GOVERNMENT
FUNDING
AGENCIES
DRDA
DICS
CED
SIDBI

6. CENTRAL GOVERNMENT FUNDING
AGENCIES

7.  The National Bank for Agriculture and Rural Development
(NABARD) was set up in 1982 as an apex institution for
financing agricultural and rural sectors.
 It provides financial assistance through Regional Rural banks
and cooperative banks to agriculture, small-scale, cottage and
village industries, handicrafts and other allied activities in
rural areas.
 The agriculture credit functions of the Reserve Bank of India
(RBI) and refinance functions of the then Agricultural
Refinance and Development Corporation (ARDC) were
transferred to NABARD on its formation.

8.  NABARD mission is to promote sustainable and equitable
agriculture and rural prosperity through effective credit support,
related services, institution development and other innovative
initiatives.
 NABARD was set up by the Government of India as a
development bank with the mandate for facilitating credit flow for
promotion and development of agriculture, small-scale industries,
cottage and village industries, handicrafts and other rural crafts.
 NABARD also Acts as a coordinator in the operations of rural
credit institutions.

11.  Facilitating credit flow for agriculture, rural infrastructure and
rural development.
 Promoting and supporting policies, practices and innovations
conducive to rural development.
 Strengthening rural credit delivery system through institutional
development.
 Supervising rural financial institutions (Co-operative Banks
and Regional Rural Banks)

12.  Credit functions, involving preparation of potential-
linked credit plans annually for all districts of the country
.
 reinforcement of the credit functions and making credit
more productive.
 Supervisory functions, ensuring the proper functioning of
cooperative banks and regional rural banks.
 Concerned with policy formulation.
 It prepares, on annual basis, rural credit plans for all
districts in the country; these plans form the base for
annual credit plans of all rural financial institutions.

13.  It undertakes monitoring and evaluation of projects
refinanced by it.
 It promotes research in the fields of rural banking, agriculture
and rural development.
 Financing industrial societies.
 Co-financing: To ensure substantial credit flow to agriculture
and rural sector and to instill confidence in banks or financing
hi-tech/export oriented agriculture projects .
 Under this arrangement, projects have been sanctioned in the
areas like floriculture, organic farming, milk processing,
ethanol production, infrastructure development, forestry,
animal husbandry, agro/ food processing etc.
 Rural Infrastructure Development: With the objective of
assisting State Governments in the completion of ongoing
rural infrastructure projects and to take up new infrastructure
projects.

14.  SIDO is created for development of various small scale units
in different areas. SIDO is a subordinate office of department
of SSI and ARI.
 It is a nodal agency for identifying the needs of SSI units
coordinating and monitoring the policies and programmes for
promotion of the small industries.
 This agency provides technical consultancy and managerial
assistance to small scale units. It offers common service and
tool room facilities and conducts training programmes for the
managerial and technical personnel of small scale units.

16. The activities of SIDO are divided into
three categories as follows:
1. Coordination activities of SIDO
2. Industrial development activities of SIDO
3. Management activities of SIDO
Scheme
 Dena Shakti
 Priyadharshini
 Cent Kalyani

19. The Khadi and Village Industries
Commission (KVIC) is a statutory formed by the
Goverment of India , under the Act of Parliament, 'Khadi
and Village Industries Commission Act of 1956‘.
Schemes and Programs of the Commission
 Prime Ministers Employment Generation Program (PMEGP)
 Interest Subsidy Eligibility Certification Scheme (ISEC)
 Rebate Scheme

20.  The Council for Advancement of People’s Action and Rural
Technology (CAPART)
 Set up as a pioneer organisation in September, 1984, as a
supporting and funding agency for the Voluntary Organizations by
merging two organizations
1. People’s Action for Development (India)
2. Council for Advancement of Rural Technology (CART) with the
mandate to promote voluntary action and propagate appropriate
rural technologies for the benefit of the rural masses.

22. Mission
 The Mission of CAPART is to work in close coordination with the
rural NGOs and empower them by Engaging them in dialogue
 Respecting their thoughts and ideas
 Listening to their voice
 Harnessing their resources
 Funding their activities
 Strengthening their hands, particularly the women, the weaker
sections of rural society and the disabled and other underprivileged
sections of rural society.
 Walking hand-in-hand with them on the road to rural prosperity
Vision
 The Vision of CAPART is to play a dynamic and catalytic role with
the various governmental agencies and NGOs, influence public
policy and contribute its share towards the many-sided
development of Rural India.

23. National Scheduled Castes Finance and Development
Corporation, which was set up in 1989 and has become a
model for many social justice development finance institutions
in the country.
Vision
"To be the leading catalyst in systematic reduction of poverty
through socio-economic development of Scheduled Castes
living below double the poverty line, working in an efficient,
responsive and collaborative manner with channelizing
agencies and other development partners."
NSFDC Scheme
 Lead Banks’ Scheme
 Trade Related Entrepreneurship Assistance and Development
Scheme (TREAD)

24. STATE GOVERNMENT FUNDING AGENCIES

27.  Catalyst in development process.
 Poverty eradication in the District.
 Ability to coordinate and bring about a convergence of
approach among different agencies for poverty alleviation.
 Coordinate effectively with the Panchayath Raj Institutions.
 Ensure the benefits specifically earmarked for certain target
groups.
 Improve the awareness regarding rural development and
poverty alleviation particularly among the rural poor.
 Strive to promote transparency in the implementation of
different anti-poverty programmes.

28. The District Industries Centers (DIC’s) programme was
started in 1978 with a view to provide integrated
administrative framework at the district level for promotion
of small scale industries in rural areas.
Functions of DIC
 Identification of Entrepreneurs
 Provisional Registration
 Permanent Registration
 Purchases of Fixed Assets
 Clearances from Various Departments
 Assistance to Village Artisans and Handicrafts
 Interest Free Sales Tax Loan
 Assistance of Import and Export

29. Schemes of DIC
 Entrepreneurship Development Programme for Women
 Micro, Small and Medium Enterprises Development (MSMED) Act,
2006
 Micro, Small and Medium Industries Policy 2008

30.  This is the centre, started in May 1979 as an independent
body, sponsored by the Government of Gujarat, with the help
of joint collaboration of the four state level institutions GIDC,
GIIC, GSFC and GSIC.
 The main objectives of CED are to promote indigeneous
entrepreneurship, to conduct EDP in the state, help other state
level agencies in the promotion of EDPs.

31. CED Schemes
 Entrepreneurship Development Programmes (EDPs)
 Entrepreneurship Awareness Programme (EAP)
 Programme for Existing Entrepreneurs (Second
Generation Programme)
 Human Resource Development (HRD)
 Special EDPS
 Rajiv Gandhi Udyami Mitra Yojna (RGUMY)
 Cluster Development

33. The SIDBI has schemes for women entrepreneurs
 Mahila Udyam Nidhi Scheme (MUN)
 Mahila Vikas Nidhi Scheme (MVN)
 START UP

34.  Innovation and entrepreneurship, practice and
priciples,Peter.F,Drucker,published by butterworth
Heinemann.
 Entrepreneurship: Productive, Unproductive, and Destructive,
William J. Baumol,the university of chikago press journals.
 Journal of monitory economics,Finance, entrepreneurship and
growthTheory and evidence,Robert.G.King, Published by
Elsevier B.V.
 Decentralization and local democracy in the world,
Barcelona;united cities and local governments.
 Financing urban shelter: Global report on human settlements,
London: earthscan,2005
 Michael barker, financing state and local economic
development. Durham,NC;Duke university press,1983.