(Rupees)
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai (Maharashtra)
and other branches are all over the country. The Committee to Review
Arrangements for Institutional Credit for Agriculture and Rural
Development (CRAFICARD), set up by the Reserve Bank of India (RBI) under
the Chairmanship of Shri B. Sivaraman, conceived and recommended the
establishment of the National Bank for Agriculture and Rural Development
(NABARD). It was established on 12 July 1982 by a special act by the
parliament and its main focus was to uplift rural India by increasing
the credit flow for elevation of agriculture & rural non farm sector
and completed its 25 years on 12 July 2007. It has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture
and other economic activities in rural areas in India”. RBI sold its
stake in NABARD to the Government of India, which now holds 99% stake. NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.
Role
NABARD is the apex institution in the country which looks after the
development of the cottage industry, small industry and village
industry, and other rural industries. NABARD also reaches out to allied
economies and supports and promotes integrated development. And to help
NABARD discharge its duty, it has been given certain roles as follows:
- Serves as an apex financing agency for the institutions providing
investment and production credit for promoting the various developmental
activities in rural areas - Takes measures towards institution building for improving absorptive
capacity of the credit delivery system, including monitoring,
formulation of rehabilitation schemes, restructuring of credit
institutions, training of personnel, etc. - Co-ordinates the rural financing activities of all institutions
engaged in developmental work at the field level and maintains liaison
with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation - Undertakes monitoring and evaluation of projects refinanced by it.
- NABARD refinances the financial institutions which finances the rural sector.
- The institutions which help the rural economy, NABARD helps develop.
- NABARD also keeps a check on its client institutes.
- It regulates the institution which provides financial help to the rural economy.
- It provides training facilities to the institutions working the field of rural upliftment.
- It regulates the cooperative banks and the RRB’s, and manages talent acquisition through IBPS CWE
