The National Bank for Agriculture and Rural Development, West Bengal is planning to introduce a new financing scheme for small and marginal farmers, tenant farmers, oral lessees and share croppers through banks.

The scheme is in the lines of  Nabard's self-help group bank linkage programme, which is recognised as one of the largest microfinance programmes in the country.

It envisages funding the farmers through joint liability groups, which will help both banks as well as farmers to reduce the risk of default. Apart from the usual refinance support, Nabard will provide  financial support to cooperative banks, regional rural banks, Panchayat Raj institutions, Krishi Vikas Kendras and farmers clubs for the promotion of JLGs under the scheme.

Nabard has set a farm sector lending target of Rs 13,400 crore (Rs 134 billion) this financial year in West Bengal.

The move is aimed at giving more bank credit to small and marginal farmers, as in West Bengal against a farm household population of 50 lakh (5 million), only  about 12 lakh (1.2 million) families avail loans through Kisan Credit Cards. 

Under the Farmers' Club Programme of Nabard, a total of 28,226 clubs covering 61,789 villages in 555 districts have been formed across India, to help farmers get access to credit, technology and extension services.  

Recently, Nabard had sanctioned   Rs 117.07 crore (Rs 1.17 billion) under the Rural infrastructure Development Fund  XV to West Bengal for the  construction of 29 rural road projects  (Rs 94.76 crore or Rs 947.6 million), 11 flood protection projects (Rs 15.84 crore or Rs 158.4 million), one joint forest management project (Rs 4.16 crore or Rs 41.6 million) and agricultural farm projects (Rs 2.31 crore or Rs 23.1 million).

Also, Nabard in West Bengal,  has joined hands with the Indian Institute of Banking & Finance, Mumbai, for training business correspondents and business facilitators.

It had introduced a scheme to support the capacity building needs of business correspondents and business facilitators of banks in association, under which it will reimburse the course fee of to those who successfully complete the certificate course offered by IIBF.