Agricultural Banks are primarily meant for financing agriculture and rural development activities.
It also, in addition to their normal specialized financial activities, do many activities of the commercial banks.
A kind of bank lending money to farmers or cultivators for longer time periods and charging them lower interest rates than other kinds of banks.
“An Agricultural Bank (Land Bank) is a credit bank specifically established to assist agricultural development, particularly by granting loans for longer periods than is usual with commercial banks.”
Generally, these banks provide the following products and services:
- Savings and Time Deposits ( also called CDs)
- Checking Accounts
- Cash Management Services
- Online Banking
- Remote Deposit Services
- Debit Card
- Mobile Banking
- Bill pay
- Secure Email
Agricultural Banks finance all kinds of agricultural functions. The main financing sectors are:
- Crop production
- Transportation, marketing, import, and export of agro-products and machinery
- Cottage industry
- Horticulture and Nursery
- Minor irrigation facilities
- Building cold storages
- Building warehouses
- Rice and wheat milling
- Shrimp storage and processing
- Marketing of agricultural and fishery products
- Self-employment of unemployed and under-employed educated youth, males, females, and landless in rural areas.
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