- NABARD was established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981.
- NABARD is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas.
- It is responsible for the development of the small industries, cottage industries, and any other such village or rural projects.
- NABARD also provides direct term loans at affordable rates of interest to certain activities like Designated Food Parks (DFPs) and food processing units in the DFPs.
- NABARD is wholly owned by the Government of India.
Functions of NABARD
- Credit Planning and Monitoring, Coordination with various agencies and institutions.
- Assist in policy formulation of GoI, RBI and State Governments on matters related to agricultural credit and rural development
- Institutional development and capacity building of Cooperatives and Regional Rural Banks (RRBs) to strengthen the rural credit delivery system.
- Statutory inspection of Regional Rural Banks (RRBs), State Cooperative Banks and District Central Cooperative Banks (DCCBs), voluntary inspection of State Cooperative Agriculture and Rural Development Banks (SCARDBs) and their off-site surveillance
- Promotional and developmental initiatives in the areas of farm, off-farm, micro finance, financial inclusion, Convergence with Govt sponsored programmes.
- Supporting the financial inclusion efforts of Regional Rural Banks and Cooperative Banks
- Thrust on promotion of livelihood opportunities and Micro Enterprises
- Capacity Building of Personnel and Board Members of Credit Cooperatives and Staff of Rural Financial Institutions.
- Support for research and development, rural innovations, etc.
- Refinance to Rural Financial Institutions for investment credit (long term loan) and production and marketing credit (short term loan) purposes for farm and off-farm activities in rural areas.
- Loans to State Governments for developing rural infrastructure and strengthening of the Cooperative Credit Structure
- Loans for warehousing infrastructure to State Governments, State/ Central government Owned/ assisted entities, Cooperatives, Federation of cooperatives, Farmers’ Producers Organizations,(FPOs), Federations of Farmers’ Collectives, Primary Agricultural Credit Societies (PACS) / Cooperative Marketing Societies (CMS) or similar institutions, Corporates/ Companies, Individual entrepreneurs, etc.,
- Direct lending to Cooperatives and Producers’ Organization, support to State owned institutions /corporations under NABARD Infrastructure Development Assistance and direct lending to individuals, partnership firms, corporates, NGOs, MFIs, Farmers’ collectives etc. under Umbrella Programme for Natural Resource Management (UPNRM)
Why in the News?
- NABARD has recently commemorated its 40th foundation day.