A Study on Performance Evaluation of Refinance Operation of Nabard in Sivagangai District, Tamil Nadu

Abstract

The rural credit system in India has undergone radical changes in respect of focus, basic philosophy, structure and approach over time. The rural credit policy in India, adopted in the fifties and expanded in the sixties and seventies, culminated in the establishment of an apex institution at the national level in 1982 under the name National Bank for Agriculture and Rural Development (NABARD). The present study has been carried out to evaluate the performance of NABARD holistically, including its refinance activities, development, innovative and co-coordinating activities in Sivagangai district. Data and information required for the present study have been gathered with pre-tested interview schedule and Statistical tools like percentage, standard deviation,’t’ test, correlation, compound growth rate, regression analysis, compound growth rate and Co-efficient of variation have been applied for analysis and interpretation of data. The policy initiatives of NABARD are mainly geared to increase the credit dispensation for improving production and productivity in rural areas. The finding of the study shows that the performance of NABARD is found to be in line with its objectives. Sivagangai District occupies 16th place in absorbing the refinance facilities of NABARD in Tamil Nadu. It is observed that the money-lenders are still popular source of finance because of high transaction cost. It is suggested that the credit delivery system at ground level could be improved. It is also suggested that the study would go a long way in further improving the operations of NABARD and realizing the objectives of National Bank namely gearing up credit dispensation for improving production and productivity in rural areas.Thugh the study is restricted to Sivagangai District of Tamil Nadu, its conclusion of the study will be relevant to all districts with similar agro-climate and socio-economic conditions.