- NABARD was established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981.
- NABARD acts as a refinancing institution for all kinds of production and investment credit to agriculture, small-scale industries, cottage and village industries, handicrafts and rural crafts and real artisans and other allied economic activities with a view to promoting integrated rural development.
- NABARD gives long-term loans (upto 20 Years) to State Governments to enable them to subscribe to the share capital of co-operative credit societies.
- 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.
- It has the responsibility to inspect RRBs and co-operative banks, other than primary co-operative societies.
- It maintains a Research and Development Fund to promote research in agriculture and rural development.
- NABARD is wholly owned by the Government of India.
Why in News?
- Union Cooperation Minister Amit Shah participated in the 42nd Foundation Day of NABARD.