INTRODUCTION

The National Bank for Agricultural and Rural Development has been established solely for the development
of agriculture and rural areas in our nation. It has been established by Reserve Bank of India (RBI) at the
insistence of the Government of India, constituted a Committee to Review the Arrangements For Institutional
Credit for Agriculture and Rural Development (CRAFICARD) to look into these very critical aspects. The
Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, former member of
Planning Commission, Government of India.
NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and
refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was
dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.
Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.14,080 crore as on 31 March
2020. Consequent to the revision in the composition of share capital between Government of India and RBI,
NABARD today is fully owned by Government of India.
Financial, Developmental and Supervision are three broad heads which enable NABARD to touch almost
every aspect of rural economy: providing refinance support, building rural infrastructure, preparing district
level credit plans, guiding and motivating the banking industry in achieving credit targets, supervising
Cooperative Banks and Regional Rural Banks (RRBs), helping them develop sound banking practices,
enabling them to on-board to the Core Banking Solution (CBS) platform, designing new projects for rural
development, implementing GoI's development schemes, training handicraft artisans and providing them a
marketing platform for selling their articles among others.

VISION AND MISSION OF NABARD

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
➢ It provides credit to the financial institutions which are involved in agricultural credit to provide
agricultural credit to the farmers.
➢ It provides credit facilities for the development of infrastructure in the rural areas.
➢ It tries to provide appropriate irrigation facilities in rural areas by the construction of dams and canals.
➢ It provides funds for Pradhan Mantri Awas Yojna in rural areas.
➢ It provides funds for the Swach Bharat Mission in rural areas.
➢ It provides credit facilities to the cooperatives.
➢ It provides credit facilities for the development of cottage industries in the rural areas.
➢ It promotes the development of handicrafts and other traditional craft which are made by the people
in rural areas.
➢ It provides credit facilities for the development of dairy industries in Jharkhand.
➢ It provides credit facilities for the development of fisheries and and aquaculture.