CLIAMS:
CLAIMS
What is claimed is:
1. A method for managingagricultural related financial activities, the method includes:

Creating a loan account to a farmer,with multiple lines of Credit under a single loan account wherein the loan account is connected to his savings Bank account issued with aKisan card;

Setting a withdrawal limits under different lines of credit; wherein the withdrawal limit is for managing the transaction flow of withdrawal through a switch connected to the loan account or other similar account and a Savings Account;

Allowing the withdrawalof money based on different stages of agriculture;

Facilitating the withdrawingof moneyby the farmer from an automated teller machine (ATM) or a point of sale (POS) through the Kisan card based on thepreset withdrawal limit.

2. The method of claim 1, wherein the loan account is created by collecting the farmer details, bank detailsthrough a farmer profile.

3. The method of claim 1, whereinthe loan account is connected to at least one of lines of credit (LOC).

4. The method of claim 1, wherein the withdrawal limit is set by the bank authorities based on different stages of agriculture.

5. The method of claim 1, wherein the loan account is connected to a borrowing accountto provide a facility of operation through a savings or other similar account in the bank.

6. The method of claim 1 further includesmanaging government subsidies and payments through theloan account, as applicable toloan account and through the linked savings bank account in other cases.

7. The method of claim 1 further includes an inter-relationship between the lines of credit whereby including sequencing of priorities for repayment of loan by choice oriented or automated.

8. A Kisan Loan System comprising:

A System (KLS) configured to store the farmer details, loan details, transaction details;

AKisan Loan Systemconnected to the core banking solution (CBS)for managing the transactions;

a switchconnected to the Core Banking Solution (CBS) and the Kisan Loan System; whereby the switch is provided to message the request for the withdrawal of money from an automated teller machine (ATM) and a point of sale (POS) by the farmer;

A data unit,a processing unit and a transaction unit embedded in the system; wherein the data unit comprises farmerprofile; the processing unit for processing a loan application of the farmer; the transaction involves at least one of line of credit, withdrawal and repayment.

,TagSPECI:FORM 2

THE PATENTS ACT, 1970
(39 OF 1970)

COMPLETE SPECIFICATION
(Section 10, Rule 13)

TITLE

SYSTEM AND METHOD FOR MANAGING AGRICULTURAL LOAN RELATED FINANCIAL ACTIVITIES

APPLICANT

Name: M/s. VSOFT TECHNOLOGIES PRIVATE LIMITED

Nationality: Indian Company

Address: MY HOME HUB, BLOCK-I, 4TH FLOOR, HYDERABAD-500081, TELANGANA, INDIA.

The following specification particularly describes the invention and the manner in which it is to be performed:-

TECHNICAL FIELD

[1] The present disclosure generally relates to the field offinancial transaction management systems. More particularly, the present disclosure relates to asystem and method for agricultural loan related financial activities.

BACKGROUND

[2] Agriculture is the major source of income for a majority of people living in the developing countries, but agricultural income is considered to be volatile due to various factors including,relatively high production costs, and lack of timely and adequate credit and market risks. The developing countriesendeavour to encourage their agriculture sectorwith financialsupportthrough structures for credit support via their banking systems.However, there are various bottle necks in the free flow of credit, resulting in dependency of farmers on various informal channels of credit,often at usurious rates of interest andadverse terms and conditions. Resultantly,the farmers have not been able to secure reasonable surplus fromagriculture. This inability of farmers to make a reasonable surplus from their producehas numerous adverse effects on the agriculture sector and in turn on the economy. Among others,this also affects the share of income available for loan repayment by the farmers, which in consequence leads to higher loan defaults. Consequently the impetusfor bank’s lending tofarmers is also adversely affected.

[3] In the above context one can discern a vicious circle in, on one hand the hesitancy in banks, farmer’s cooperatives and other lenders,in providing credit support to farmers and the lack of timely availability of credit from the formal credit agencies for the farmers, while at the same time informal agencies making a profit on the very same business.Inflexible and untimely loaning by banks to farmers results in minimal productive usage of the loans,by them.More often it is the moneylender in the rural areas who provides the credit as per the timely needs of seasonal operations of the farmer, albiet at exorbitantinterest rates. The geographic penetration of formal institutional credit agencies through their own brick and mortar branch networks isalso limited in the rural areas. There is therefore a need for a mechanismthat mitigates the various constraints in providing timely, hassle free and low cost credit to the farmers, particularly the small and marginal farmers through the institutional credit agencies, which at the same time meets all the regulatory requirements.

[4] In the light of aforementioned discussion there exists a need for a system and method that would ameliorate or overcome the above mentioned disadvantages.

BRIEF SUMMARY

[5] The following presents a simplified summary of the disclosure in order to provide a basic understanding to the reader. This summary is not an extensive overview of the disclosure and it does not identify key/critical elements of the invention or delineate the scope of the invention. Its sole purpose is to present some concepts disclosed herein in a simplified form as a prelude to the more detailed description that is presented later.

[6] Exemplary embodiments of the present disclosure are directed atsystem and method for managing agricultural loan related financial activities.

[7] An exemplary objective the present disclosure is toencompass a wider domain from farmer profiling and setting standards for loan origination and processing.

[8] Another exemplary objective of the present subject matter is to handle multiple lines of credit with varied terms of repayment as well as interest rates (purpose wise /slab wise/borrower class wise etc.),through a single loan account which can be linked to the savings bank account of the borrower.

[9] Another exemplary objectiveof the present subject matter is to handle the inter-relationship as between the lines of credit, including sequencing of priorities for repayment of dues both choice oriented as well as automated and coverage of various statutory needs like insurance and capital contribution (for Cooperatives).

[10] Another exemplary objectiveof the present subject matter is to manage entire credit operations, particularly the Indian seasonal oriented agricultural credit process with all its nuances, through debit card on the savings bank account seamlessly, handling additionally government subsidies and payments through same account.

[11] Another exemplary objectiveof the present subject matter is to handle the entire gamut of loan origination, operations, delinquency and provisioning, enabling users of primary agricultural credit cooperatives access to the banking and payments facilities through a licensed bank, as virtual window for transactions at its level.

BRIEF DESCRIPTION OF DRAWINGS

[12] Other objects and advantages of the present invention will become apparent to those skilled in the art upon reading the following detailed description of the preferred embodiments, in conjunction with the accompanying drawings, wherein like reference numerals have been used to designate like elements, and wherein:

[13] FIG. 1 is a diagram depicting a system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure.

[14] FIG. 2A is a block diagram depicting a data unit of the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure.

[15] FIG. 2B is a block diagram depicting a processing unit of the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure.

[16] FIG. 2C is a block diagram depicting a transaction unit of the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure.

[17] FIG. 3 is a flowchart depicting a method for managingagricultural related financial activities, according to an exemplary embodiment of the present disclosure.

DETAILED DESCRIPTION

[18] It is to be understood that the present disclosure is not limited in its application to the details of construction and the arrangement of components set forth in the following description or illustrated in the drawings. The present disclosure is capable of other embodiments and of being practiced or of being carried out in various ways. Also, it is to be understood that the phraseology and terminology used herein is for the purpose of description and should not be regarded as limiting.

[19] The use of “including”, “comprising” or “having” and variations thereof herein is meant to encompass the items listed thereafter and equivalents thereof as well as additional items. The terms “a” and “an” herein do not denote a limitation of quantity, but rather denote the presence of at least one of the referenced item. Further, the use of terms “first”, “second”, and “third”, and the like, herein do not denote any order, quantity, or importance, but rather are used to distinguish one element from another.

[20] According to a non-limiting exemplary embodiment of the present disclosure,a system and method for managing agricultural loanrelated financial activitiesare disclosed.

[21] Referring to FIG. 1 is a diagram 100 depicting the system for managing an agricultural related financial activity, according to an exemplary embodiment of the present disclosure. The system 102comprisesa switch 104, a core banking solution (CBS) 106, and a Kisan Loan System 108.

[22] The switch 104is connected to the core banking solution (CBS) 106 and the Kisan Loan System 108.The transactions are performed through a point of sale (POS) 110 and automated teller machine (ATM) 112. The transaction details are stored in the Kisan Loan system (KLS) 108 and also passed on to the core banking solution (CBS) 106.The Kisan Loan System 108 manages the transactions through the switch 104. The switch 104, the core banking solution (CBS) 106, the Kisan Loan System 108 are connected to the point of sale (POS) 110 and automated teller machine (ATM) 112 through the network 114. The network 114 may include, but not limited to a telecommunication network.The system 102 also comprises a data unit 116, a processing unit 118 and a transaction unit 120.

[23] Referring to FIG. 2A is a block diagram 200adepicting adata unitof the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure. The data unit 116 comprises a farmerprofile 202 for creating a loan account. The farmer profile may include, but not limited to,farmer details 204, bank details 206, land details 208and primary agricultural credit societies (PACS) details 210. The farmer may be a member in PACS.

[24] The farmer details 204 may include, but not limited to, personal details, contact details, digital proofs, and the like. The bank details 206 may include, but not limited to, bank name, bank code, district name, loan limit per farmer, loan limit amount, priority order, maximum share amount, business date, maximum days to allow loan inconsistency and the like. The land details 208 may include, but not limited to, village, sub village, survey number, B S number, R S number, land type, total land area, cultivated land area and the like. The PACS details 210 may include, but not limited to, branch name, PACS name, village, location, secretary name, PACS bank account number and the like.

[25] FIG. 2B is a block diagram 200b depicting a processing unit of the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure. The processing unit 118comprises a loan application by the farmer. The loan application may be a master application 212 or an individual application 214. The master application 212 includes loan scheme 216, product information218, interest category220and slabwise rate of interest (ROI)222. The individual application 214 includes scale of finance 224, land type 226, crop details 228, and season details 230.

[26] The master application212may include, but not limited to, PACS name, application type, application date, default crop name and the like. The loan scheme216may include, but not limited to, scheme name, product name and the like. The product information 218may include, but not limited to, product type, product name, release date, share percentage, ATM applicable, recovery sequence, and the like. The interest category 220may include, but not limited to, interest category name. The slab wise ROI 222may include, but not limited to, interest category name, effective date, from amount, to amount, from period, to period, rate of interest, and the like.

[27] The individual application 214may include, but not limited to master application number, loan application number, priority and the like. The scale of finance 224 may include, but not limited to, district name, crop name, land type, loan amount per acre and the like. The crop details 228 may include, but not limited to, crop name and the like. The season details 230 may include, but not limited to, season name, season start date, season end date, and the like.

[28] The loan application by the farmeris processed for an inspection by the loan inspector. The loan is sanctioned by the authority after a successful inspection.The sanctioned loan limits or lines of creditare linked to the loan accountand withdrawn by the farmer on the relative line of credit.

[29] Referring to FIG. 2C is a block diagram 200c depicting a transaction unit of the system for managing agricultural related financial activities, according to an exemplary embodiment of the present disclosure. The transaction unit 120comprises a line of credit (LOC) 232. The loan account is connected to a line of credit (LOC) 232. The inter-relation between lines of credit includes sequencing of priorities for repayment of loan by choice oriented or automated.

[30] A withdrawal limit is set by the bank authorities to manage the withdrawals. The withdrawal limit varies with the different stages of agriculture. The different stages of agriculture may include different seasons, crops, and the like, without limiting the scope of the disclosure. A switch is provided to manage the withdrawals. The system 102 (FIG. 1) allows farmer to withdraw money from the loan account. A Kisan card connected to the loan account is provided to perform withdrawal transactions. The withdrawal can be performed through an automated teller machine (ATM) 112 or a point of sale (POS) 110.The Kisan card may include, but not limited to, debit card, credit card, and the like. The Kisan card is used to perform transactions seamlessly.

[31] Referring back to FIG. 1,aKisan cardis used at automated teller machine (ATM) 112 or a point of sale (POS) 110 to withdraw, a request is sent to the Kisan Loan System to validate the account and return response. In the next step, the response is routed to the Kisan Loan System. In the next step, if withdrawal limit is available, a success response is transmitted, else failure. In the next step, a response is sent from core banking solution (CBS) 106to the switch through a message in international organization for standardization (ISO) format. In the next step, a credit or debit message is sent to core banking solution (CBS) 106in ISO format by the switch to perform a transaction. In the next step, a request for transaction is sent from a national financial switch(NFS) to the switch. In the next step, a return response from the switch is sent to the NFS by allowing the withdrawal transaction. In the next step, proceed to the withdrawal through ATM or POS. In the next step, the farmer details and loan details are updated in bank and PACS.

[32] A borrowing account is opened using the details of the master application.The borrowing account may include, but not limited to account number, account name, purpose, product name, and the like. The borrowing account comprises a borrowing product. The borrowing product may include, but not limited to product type, product name, release date, and the like. The borrowing account is used to withdraw the borrowing disbursement or for a recovery of loan by a borrowing account recovery. The borrowing disbursement comprises the government schemes, and the like. The borrowing account recovery includes recovery of loan money through POS collection. The loan is renewed or closed after the loan amount is recovered.

[33] Referring to FIG. 3 is a flowchart 300 depicting a method for managingagricultural related financial activities, according to an exemplary embodiment of the present disclosure. The method starts at step 302 creating a loan account to a farmer, wherein the loan account is connected to a Kisan card. The method further continues to next step 304 by setting a withdrawal limit for managing the transaction flow of withdrawal through a switch. The method further continues to next step 306 by limiting the withdrawal moneybased on different stages of agriculture. The method further continues to next step 308 by withdrawing money by the farmer from an automated teller machine (ATM) or a point of sale (POS) through the Kisan card based on the preset withdrawal limit.

[34] Although the present disclosure has been described in terms of certain preferred embodiments and illustrations thereof, other embodiments and modifications to preferred embodiments may be possible that are within the principles and spirit of the invention. The above descriptions and figures are therefore to be regarded as illustrative and not restrictive.

[35] Thus the scope of the present disclosure is defined by the appended claims and includes both combinations and sub combinations of the various features described herein above as well as variations and modifications thereof, which would occur to persons skilled in the art upon reading the foregoing description.

CLAIMS
What is claimed is:
1. A method for managingagricultural related financial activities, the method includes:

Creating a loan account to a farmer,with multiple lines of Credit under a single loan account wherein the loan account is connected to his savings Bank account issued with aKisan card;

Setting a withdrawal limits under different lines of credit; wherein the withdrawal limit is for managing the transaction flow of withdrawal through a switch connected to the loan account or other similar account and a Savings Account;

Allowing the withdrawalof money based on different stages of agriculture;

Facilitating the withdrawingof moneyby the farmer from an automated teller machine (ATM) or a point of sale (POS) through the Kisan card based on thepreset withdrawal limit.

2. The method of claim 1, wherein the loan account is created by collecting the farmer details, bank detailsthrough a farmer profile.

3. The method of claim 1, whereinthe loan account is connected to at least one of lines of credit (LOC).

4. The method of claim 1, wherein the withdrawal limit is set by the bank authorities based on different stages of agriculture.

5. The method of claim 1, wherein the loan account is connected to a borrowing accountto provide a facility of operation through a savings or other similar account in the bank.

6. The method of claim 1 further includesmanaging government subsidies and payments through theloan account, as applicable toloan account and through the linked savings bank account in other cases.

7. The method of claim 1 further includes an inter-relationship between the lines of credit whereby including sequencing of priorities for repayment of loan by choice oriented or automated.

8. A Kisan Loan System comprising:

A System (KLS) configured to store the farmer details, loan details, transaction details;

AKisan Loan Systemconnected to the core banking solution (CBS)for managing the transactions;

a switchconnected to the Core Banking Solution (CBS) and the Kisan Loan System; whereby the switch is provided to message the request for the withdrawal of money from an automated teller machine (ATM) and a point of sale (POS) by the farmer;

A data unit,a processing unit and a transaction unit embedded in the system; wherein the data unit comprises farmerprofile; the processing unit for processing a loan application of the farmer; the transaction involves at least one of line of credit, withdrawal and repayment.

ABSTRACT

Exemplary embodiments of the present disclosure are directed towards aconvenient and hassle free method for managing agricultural financial services with great ease of use to the farmer; the method includes creating a loan account to a farmer with multiple lines of credit, wherein the loan account is connected to a Kisan card and setting a withdrawal limit; wherein the withdrawal limit is for managing the transaction flow of withdrawal through a switch connected to the loan account, with the payments routed through a savings bank or other similar account in a bank. The method further continues by limiting the withdrawal money based on different stages of agriculture and withdrawing money by the farmer from an automated teller machine (ATM) or a point of sale (POS) through the Kisan card based on the preset withdrawal limit. The method facilitates multiple withdrawals and repayments as per the farmer’s needs and surpluses on his several lines of Credit.