Objective and Full Form of NABARD

NABARD (National bank for agriculture & rural development).

National bank for agriculture and rural development, more popularly known as NABARD was established by an ACT of parliament on 12^th July 1982 to implement the national bank for agriculture and rural development act, 1981. It replaced the agricultural credit department (ACD) and rural planning and credit cell (RPCC) of reserve bank of India, and agriculture refinance and development corporation (RDC).

SOME FACTS: NABARD

·       ARC- Agricultural refinance corporations 1963.

·       It is the apex banking institution providing finance for agriculture & rural development.

·       It was established on 12th July 1982.

·       Start with paid-up capital of Rs. 100 crore 50:50 (Gov.: RBI) but now it’s (99:1) (GOV: RBI).

·       NABARD amendment bill 2000 was accepted by the president in Jan 2001.

·       Authorized capital of NABARD to Rs. 20000 crore from Rs 5000 crore.

·       Paid-up capital increased in 2 phases of Rs 2000 cr to 5000 crores.

·       In 2006-2007 Bharat Nirman construction of rad under PMGSY total sanctions of NABARD TO NRRDA (National rural road

·       development) under RIDF on 31st Mar 2010 Rs 18500 crore to NRRDA.

Objective of the NABARD

• The national bank will be an apex organization in respect of all matters relating to policy, planning operational aspects in the field of credit for promotion of  agriculture, small scale industries, cottage and village industries, handicrafts, and other rural crafts and other allied economic activities in rural areas.

• The bank will serve as a refinancing institution for institutional credit such as long-term for the promotion of the activities in the rural areas.

• The bank will also provide direct lending to any institution as may be approved by the central government.

• The bank will have organic links with the reserve bank and maintain a close link within.

Role of NABARD

•  Proving refinance to lending institutions in rural areas.

• Bringing about or promoting institutional development.

• Evaluating, monitoring and inspecting the client banks.

• Acts as a coordinator in the operations of rural credit institutions.

• Offering training and research facilities for banks, cooperatives, and organizations working in the field of rural development.

• Help the state the government in reaching their targets of providing assistance to eligible institutions in agriculture and rural development.