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Land Development Banks PDF

This document provides information about land development banks (LDBs) in India. It discusses that LDBs were first established in 1920 in Punjab to promote agriculture and increase production. LDBs have a two-tier structure with primary LDBs at the district level and a central LDB at the state level. The primary LDBs provide long-term loans to farmers by taking mortgages on their land. The central LDB raises funds through bonds guaranteed by state governments and provides refinancing to the primary LDBs. The funds are used to provide long-term loans to farmers for agricultural development activities.

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4K views

Land Development Banks PDF

This document provides information about land development banks (LDBs) in India. It discusses that LDBs were first established in 1920 in Punjab to promote agriculture and increase production. LDBs have a two-tier structure with primary LDBs at the district level and a central LDB at the state level. The primary LDBs provide long-term loans to farmers by taking mortgages on their land. The central LDB raises funds through bonds guaranteed by state governments and provides refinancing to the primary LDBs. The funds are used to provide long-term loans to farmers for agricultural development activities.

Uploaded by

Tapesh Awasthi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Land development bank

Presented by:SAUMITRA MATHUR


RISHIKESH LAHRY
ROHIT NAIR

LAND DEVELOPMENT BANKS


(LDB)
The first LDB was started at Jhang in Punjab in
1920. But the real impetus to these banks was
received after passing the Land Mortgage Banks
Act in 1930s (LDBs were originally called Land
Mortgage Banks). After passing this Act LDBs were
started in different states of India.

Objective
The main objective of the land development
bank is to promote the development of
agriculture and increase the agricultural
production. The CLDBs provide long-term
finance to PLDBs affiliated to them or finance
directly through their branches

Structure
These Banks have two-tier structure
1. Primary Land Development Bank at district level with branches at
taluka level.
2. State Land Development Bank. All primary Land Development Banks
are federated into Central Land Development Bank at the State Level. In
some States, there is Unitary structure wherein, there is only one State
Land Development Bank at the state level operating through its branches
and sub-branches at district and below levels.
Primary Land Development Banks (PLDB)
These banks were originally organized to cover one or a few taluks in the
district. At present they are eligible to cover one development block. All
land owners are eligible to become members and borrow funds by
mortgaging their land. The principal borrower is enrolled as A class
member and others who have interest in the mortgaged property are
admitted as B class members

Central Land Development Bank (CLDB)


These members of the CLDBs are the PLDBs and a few
individual promoters. It grants long-term loans to
agriculturists through the PLDBs and branches of
CLDBs. It raises funds through floating debentures,
which are guaranteed by the State Government. When
PLDB obtains loan from the CLDB, it assigns the
mortgage deeds obtained from the borrowers to the
CLDB. The CLDB floats debentures and raises funds
against the security of these properties. The NABARD
and LIC subscribe for the debentures in large amounts
and the former also extends refinance assistance to
LDBs.

Raising of funds
The main function of raising funds is carried out
be the Central or State Land Development Bank
which can really deal with the money market of
the country effectively and advance loans to
primary LDBs. The sources of funds of State LDBs
are: 1. Share capital.
2. Issue of debentures
3. Loans from NABARD
4. Reimbursements of subsidies from the Govt.
5. Other funds.

Contd.
These debentures are mostly purchased by
financial institutions like LIC, Commercial
Banks, Co-op. Banks, NABARD, and State
Govts. As there is limited response from the
public. The State Govt. give incentive subsidies
for many development activities by individual
farmer including purchase of tractor. The
amounts of subsidies are reimbursed to the
LDBs.

Whom to approach for loan/details of scheme


Primary Agriculture and Rural Development Banks/Branches of SCARDBs
are located at each taluka/block in the country. The needy person may
contact Manager of the PCARDBs/Branches during working hours for
details for detailed enquiry about schemes, terms and conditions, loan
application etc.
Deposit Mobilisation
To strengthen the resource base of SCARDBs, RBI has granted permission
for accepting rural deposits from the borrowers/non-borrowers of
SCARDBs in rural areas. SCARDBs have formulated their various deposit
mobilisation schemes and are accepting deposits ranging from one year
onwards.

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