NABARD (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     19th March 2024        
Samadhaan

Context: The National Bank for Agriculture and Rural Development (NABARD) will launch a ₹1,000-crore fund to bolster technology-driven agri-startups and rural enterprises.

National Bank for Agriculture and Rural Development

  • About: It is an apex regulatory agency for Regional Rural Banks and Cooperative Banks under the jurisdiction of the Ministry of Finance.
  • Established: 12 July 1982 on the recommendations of B.Sivaraman Committee
  • Headquarters: Mumbai
  • Nodal Ministry: Ministry of Finance
  • It replaced: The Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
  • Structure of Governance of NABARD: Board of Directors (BOD), chairperson, deputy, managing directors, and directors, appointed by Government of India in consultation with Reserve Bank of India.
  • Objective: To empower and economically integrate rural India through specialized, goal-oriented departments, which can be categorized into three distinct groups: financial, developmental, and supervisory.
  • Vision: Development Bank of the Nation for Fostering Rural Prosperity
  • Mission: Promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity.

Functions of NABARD

  • Non-credit related: Credit Planning and Monitoring, Coordination with various agencies and institutions.

oSupporting the financial inclusion efforts of Regional Rural Banks and Cooperative Banks.

  • Credit related: 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.

oPass through agency of select Government of India Capital Investment Subsidy Schemes.

  • Offering advice to RBI regarding the granting of licenses to Cooperative Banks and the expansion of branch networks for State Cooperative Banks and Regional Rural Banks (RRBs).
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