The Tamil Nadu State Apex Cooperative Bank Ltd was registered on 23rd November 1905 and started functioning on 26th November 1905. The Bank has completed 102 years and entered into the 103rd year of useful service to the farmers and weavers of Tamil Nadu by extending the required credit through the various Cooperative institutions like the District Central Cooperative Banks, Primary Agricultural Cooperative Banks and Primary Weavers’ Cooperative Societies. The Bank was included in the Second Schedule of RBI in July 1966 and licensed in August, 1972.
The Tamil Nadu State Apex Cooperative Bank is the federation of the District Central Cooperative Banks. It also channelises the refinance provided by National Bank for Agriculture and Rural Development (NABARD) towards short term and medium term agriculture and allied sector loans to District Central Cooperative Banks.
The Tamil Nadu State Apex Cooperative Bank maintains a fund called the Primary Cooperative Development Fund financed out of contribution of profit making Central Cooperative Banks and the Tamil Nadu State Apex Cooperative Bank. The fund is utilized to strengthen the infrastructure facilities of the Primary Agricultural Cooperative Banks in the State.
The Tamil Nadu State Apex Cooperative Bank Ltd., is playing a major role in formulating the credit programmes as well as the credit policy for the Cooperative institutions in Tamil Nadu. The Apex Bank has been playing a major role by providing refinance facility for the successful running of the PDS in the State.
FUNCTIONS OF THE TAMIL NADU STATE APEX CO-OPERATIVE BANK LTD
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The state cooperative bank extends short term and medium term loans and advances primarily for agricultural and other allied activities. It also provides credit for various rural development projects through district central cooperative banks, apex cooperative institutions, consortium arrangements and directly through its head office and branches.
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In addition to providing loans and advances, it extends various other ancillary banking facilities such as hiring of safe deposit lockers , accepting of articles of safe custody, funds transfers etc.,
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The bank takes up the following activities towards affiliates development:-
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It forms consortium of district central cooperative banks for financing various cooperative sugar mills in the state.
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It helps the district central cooperative banks channelise their investments both for statutory and non-statutory purposes. It assists them in trading in securities by providing expertise for buying and selling of securities.
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The bank has constituted the "Primary Cooperative Development Fund" for the purpose of providing financial assistance to primary agricultural cooperative banks in the state for construction of strong rooms, purchase of jewel safes, installation of defender doors, installation of modern banking counters etc.,
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The apex bank monitors the functioning of district central cooperative banks in the state, inspects their activities periodically and provides necessary guidance for the efficient running of the banks.
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The bank has formulated the deposit guarantee scheme for primary agricultural cooperative banks at the instance of Government of India / Government of Tamil Nadu with a view to providing insurance coverage for the deposits accepted by the primary agricultural cooperative banks.
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The bank has a separate cell for monitoring the progress made under development action plans for all the district central cooperative banks and primary agricultural cooperative banks in the state.
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The bank has created a technical cell for the purpose of providing technical expertise on project evaluation to all the district central cooperative banks for the purpose of clearing projects under non-farm sector schemes of National Bank for Agricultural and Rural Development.
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The bank convenes state level technical committee meeting every year for fixing uniform scales of finance for all crops for each district in the state for financing seasonal agricultural operations.
AGRICULTURAL ADVANCES
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SHORT-TERM AGRICULTURAL ADVANCES
Credit limit sanctioned to Central Coop. Banks for financing Seasonal Agricultural Operations
National Agricultural Insurance Scheme
The Comprehensive Crop Insurance Scheme which was introduced from Khariff 1985 season, has been replaced by National Agricultural Insurance Scheme and implemented during the year 2003-2004 by the DCCBs for the crops and areas notified by the Tamil Nadu State Level Co-ordination Committee on Crop Insurance.
Kisan Credit Card Scheme
KCC Scheme was announced by the Hon'ble Finance Minister, Government of India, in his budget speech for the year 1998-1999 and NABARD in consultation with RBI has formulated the Scheme. The above Scheme was made applicable to all the Co-op. banks by the RCS duly approved by the Government of Tamil Nadu. Further, NABARD in consultation with RBI, Insurance Companies and Banks finalized the Personal Accident Insurance Scheme (PAIS) to provide accident insurance cover to KCC holders. The PAIS is being implemented by all the PACBs.
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SELF HELP GROUPS
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Financing of Self Help Groups By The Cooperative Banks
The Government of Tamil Nadu through the Tamil Nadu Corporation for Development of Women Ltd. Has implemented a scheme,called “Mahalir Thittam”.
The Self Help Groups are provided financial support .Under the SHG-Bank Linkage Programme introduced by the NABARD,the Cooperative Banks provide financial assistance to the Self Help Groups fulfilling the following the following criteria.
Eligibility Criteria (Stage I)
1.Group in active existence for over six months.
2.Group size in the range of 12 to 20 members.
3.Minimum of two meetings per month.
4.Group (not individual members) not a defaulter of Bank loans.
5.Recovery of both internal and external loans not less than 85%.
6.Availing of internal loans by not less than 50% members.
7.Regular savings by all members.
8.Proper maintenance of books of Accounts.
The groups which passed through the above screening process,by complying with all these eight essantial parameters should alone be taken up for credit rating.Groups which cannot fulfill all the eight parameters should be rejected in the first phase itself and should not be taken up for rating of Groups.Such groups are always free to reapply when they fulfill the minimum criteria.
Credit Limits
Based on the rating of groups done by the joint Appraisal Committee,the following credit limits will be sanctioned by the Bank to the SHGs.
1.The SHG will be sanctioned a term loan or revolving credit to the tune of not less than 1:4-Savings:Credit Limit Ratio.
2.To start with the first loan may be given to an extent of 4 times of savings. After evaluating performance of group in the long run,subsequent credit limits may be fixed at more than 1:4 ratio also. It may be scaled upto 1:15 or even more in stages.
3.The discretion of fixing the higher limits exceeding 4 times of savings to a group will be given to the Joint Appraisal Committee represented by Bank,NGO and PIU.
Purpose of the Loan
The loan may be utilized for productive purposes or consumption purposes or both. However, groups must be motivated to use credit to use credit mainly for productive purpose, as consumption loans do not generate any income to repay the loan dues.
Type of Loan
The guidelines for selection of 6 months-2 years old SHG for Bank Loan are as under.
Term Loan
Since most members will utilize the SHG loan for rural farm and non-farm activities, which generate income at regular intervals,loans for Mahalir Thittam groups can be sanctioned as term loans.Bank may consider,on merit,sanction of a second or subsequent loan to Self Help Groups,in consultation with the NGO and PIU.
Revolving Credit
SHG can receive revolving crdit also from banks.Revolving credit is a running account like a cash credit.Revolving credit will avoid opening of many loan accounts in the name of same group in the long run.More the turnover (by way of larger and frequent credit) in the account,higher will be the total loans availed by SHG from the account,by way of any number of withdrawls by the SHG to meet member’s loan needs,upto the loan sanctioned.The limit will be reviewed,every year.Based on the performance of revolving credit account and functioning of SHG,renewal/enhancement of limit can be considered by bank,in consultation with NGO and PIU at the end of every year.For fixing enhanced limits at the beginning of the second year,the group savings,as on the last day of first year,should be considered as the base.The option of sanctioning term loan or revolving credit is given to SHG and bank.Hence,revolving credit may be sanctioned to SHGs performing to SHGs performing well,very selectively.
Margin
No margin is necessary,irrespective of loan amount.Group savings should not be blocked for meeting the margin money.Subsidy is not being condemplated under this scheme by TNCDW.However,other schemes,like TAHDCO and NBCFDC micro-credit schemes will be dovetailed with MT and made available to SHGs,with the same minimum eligibility criteria and credit rating system.Subsidy and margins would be as per the guidelines under the respective schemes.
Rate of Interest
The present interest rate structure,as stipulated by RBI/NABARD at different levels under SHG-Bank linkage Programme,is as under:
NABARD to SCB (Refinance) : 6.00%*
Banks to Self Help Groups : 9.00%*upto Rs.50000/-
Self Help Groups to members : As per SHG’s decision
(*- Subject to revision from time to time as per RBI/NABARD guidelines)
Security
All group members are jointly and severally responsible for prompt repayment of loans.No collateral security will be insisted upon.Under no circumstances,group savings should be blocked as security.
Mode of Disbursement
Loan will be released in one Lump-sum or in stages,as requested by group to the credit of group’s savings account.As per group’s resolution,group will draw the amount and pay to needy members.
Repayment period
Terms Loan
There is no holiday for repayment.No fixed repayment period can be prescribed.Repayment period will be decided by bank and SHG,jointly.
Revolving Credit
It will be allowed to continue as running account.However,the turnover in the account,(credit summations during the year) should not be less than the limit sanctioned. At the end of every year,the account has to be reviewed and renewed by the bank after studing the group’s performance and suitable limit sactioned.
However,interest charged by the bank for both term loan and revolving credit has to be paid by the groups promptly.
CONTACT ADDRESS
Tamil Nadu State Apex Co-op. Bank Ltd.,
233, Netaji Subhash Chandra Bose Road,
Chennai – 600 001.
Phone : 25340301, 25340304, 25340321,
25340351 ,25340391, 25340421.
Fax : 044-25340508.
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Source
http://www.tnscbank.com/agriculture3.htm
http://www.tnscbank.com/shg2.htm
http://www.tnscbank.com/sf2008.pdf |
http://www.tn.gov.in/policynotes/archives/policy2004-05/pdf2004/cfcp2004_05.pdf
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