Development Banks
National Bank for Agriculture and Rural Development (NABARD)
- Establishment: NABARD was established on July 12, 1982, under the National Bank for Agriculture and Rural Development Act, 1981.
- Objective: NABARD’s primary objective is to promote sustainable agriculture and rural development in India by providing credit and other financial support to agriculture, rural cottage industries, handicrafts, and other allied activities.
- Functions:
- Credit Facilitation: NABARD provides credit facilities to various institutions involved in agriculture and rural development, such as regional rural banks (RRBs), cooperative banks, and microfinance institutions.
- Refinance: It refinances loans provided by cooperative banks, RRBs, and other financial institutions for agricultural and rural development purposes.
- Developmental Functions: NABARD undertakes various developmental activities, including watershed development, rural infrastructure development, and promoting rural entrepreneurship.
- Institution Building: NABARD promotes institutional development in rural areas by providing training, consultancy services, and technical assistance to rural development institutions.
- Policy Advocacy: It plays a crucial role in influencing policies related to agriculture and rural development by providing inputs and recommendations to the government.
- Organizational Structure:
- NABARD operates through its Head Office in Mumbai and regional offices across various states and union territories in India.
- It is governed by a Board of Directors appointed by the Government of India, consisting of representatives from the Reserve Bank of India (RBI), central government, and experts from the field of agriculture and rural development.
- Financial Assistance: NABARD provides financial assistance in the form of loans, grants, and subsidies to eligible institutions and individuals engaged in agriculture, rural industries, and allied sectors.
- Special Funds and Schemes: NABARD manages various special funds and schemes, such as the Rural Infrastructure Development Fund (RIDF), Farm Sector Promotion Fund (FSPF), and Watershed Development Fund (WDF), to support specific developmental activities.