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Contents
INTRODUCTION & HISTORY OF NABARD .................................................................................2
ROLES & RESPONSIBILITIES .......................................................................................................2
FINANCIAL RESPONSIBILITIES- ..............................................................................................3
DEVELOPMENTAL RESPONSIBILITIES:...................................................................................4
SUPERVISORY RESPONSIBILITIES- .........................................................................................5

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INTRODUCTION & HISTORY OF NABARD

• NABARD was established on the recommendations of B.Sivaraman Committee

(Committee to Review the Arrangements For Institutional Credit for Agriculture and
Rural Development (CRAFICARD)) on 12 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 Agricultural Refinance and Development
Corporation (ARDC).

• It is one of the premier agencies providing developmental credit in rural areas.

NABARD is India's specialised bank for Agriculture and Rural Development in India.

• National Bank for Agriculture and Rural Development (NABARD) is an apex

development financial institution in India, headquartered at Mumbai. The Bank has
been entrusted with "matters concerning policy, planning and operations in the
field of credit for agriculture and other economic activities in rural areas in India".
NABARD is active in developing financial inclusion policy and is a member of the
Alliance for Financial Inclusion.

• The initial corpus of NABARD was Rs.100 crores. Consequent to the revision in the
composition of share capital between Government of India and RBI, the paid up
capital as on 31 May 2017, stood at Rs.30,000 crore with Government of India
holding Rs.30,000 crore (100% share).

ROLES & RESPONSIBILITIES

Responsibilities can be categorized broadly into three heads:

RESPONSIBILITIES
OF NABARD

Financial Developmental Supervisory

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FINANCIAL RESPONSIBILITIES-

Refinance- Short Term Loans

• Example- Crop loans are extended to farmers for crop production by financial
institutions, which support in ensuring food security in the country. NABARD sanctions
short-term credit limits for Seasonal Agricultural Operations to financial institutions

Long Term Loans

• NABARD's long-term refinance provides credit to financial institutions for a wide gamut
of activities encompassing farm and non-farm activities with tenors of 18 months to
more than 5 years.
• NABARD's refinance is available to state co-operative agriculture and rural development
banks (SCARDBs), state co-operative banks (SCBs), regional rural banks (RRBs),
commercial banks (CBs) and other financial institutions approved by RBI.

Rural Infrastructure Development Fund

• RIDF was set up with NABARD in 1995-96 by the Reserve Bank of India out of the
shortfall in lending to priority sector by scheduled commercial banks for supporting
rural infrastructure projects
• RIDF was setup with an initial corpus of Rs 2000 crore
• At present, there are 36 eligible activities under RIDF as approved by GoI. The eligible
activities are classified under three broad categories i.e.
• Agriculture and related sector
• Social sector
• Rural connectivity
• Rate Of Interest- With effect from 01 April 2012, the interest rates payable to banks on
deposits placed with NABARD and loans disbursed by NABARD from RIDF have been
linked to the Bank Rate prevailing at that point of time.

Long Term Irrigation Fund

• LTIF was created in 2016-17 with an initial corpus of Rs 20000 crore for funding and fast
tracking the implementation of incomplete major and medium irrigation projects

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Nabard Infrastructure Development Assistance

• NABARD Infrastructure Development Assistance (NIDA), has been designed to
complement RIDF. This line of credit has been opened to financially sound State-
owned institutions and corporations with sustained income streams.

Warehouse Infrastructure Fund

• GoI created Warehouse Infrastructure Fund (WIF) in the year 2013- 14 with
NABARD with a corpus of Rs 5,000 crore for providing loans to meet the
requirements for scientific warehousing infrastructure for agricultural
commodities in the country

DEVELOPMENTAL RESPONSIBILITIES:

Kisan Credit Card Scheme

• The Kisan Credit Card (KCC) scheme was designed by NABARD in association with
the Reserve Bank of India (RBI) in August 1998 for providing crop loans. NABARD
has been at the forefront of technology revolution by helping rural financial
institutions in providing RuPayKisan Cards (RKCs) to all their farmer clients.
Financial Inclusion Fund
• Grant support for holding over 1.60 lakh camps on “Going Digital” to promote
digital banking and financial awarenes
SHG Bank Linkage Programme
• 'SHG Bank Linkage Programme' which encourages India's banks to lend to self-help
groups (SHGs). Largely because SHGs are composed mainly of poor women, this
has evolved into an important Indian tool for microfinance.
• EShakti- In a bid to digitise SHGs, project EShakti was launched on 15 March 2015.
As on 31 March 2018, more than 3.75 lakh SHGs have been brought onto the
EShakti platform.

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SUPERVISORY RESPONSIBILITIES-

Supervision
• NABARD to conduct inspection of State Cooperative Banks (StCBs), Central
Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs)
• NABARD has also been conducting periodic inspections of state level cooperative
institutions such as State Cooperative Agriculture and Rural Development Banks
(SCARDBs)