ROLE OF NABARD

Yash koyal – 2021312

Suchit Sakpal-2021319
Yash Sawant- 2021321
 ABOUT NABARD:
 National Bank for Agriculture
and Rural
Development (NABARD) is an
apex regulatory body for overall
regulation and licensing of 
regional rural banks and apex
cooperative banks in India. It is
under the jurisdiction of 
Ministry of Finance , 
Government of India.[5] 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 & implementing 
Financial Inclusion .
 Abstract of topic
 NABARD has been regularly preparing and updating the profile of various income
generating activities which could be taken up in the context of available potential in the
district. In the year 2012-13 Base PLP was prepared for five years coterminous with the XII
Five year plan (2012-17).
 The Base PLP projected a five year credit potential under priority sector covering Primary,
Secondary and Tertiary sectors, with emphasis on the Primary sector. These projections were
based on parameters such as technical feasibility, availability of infrastructure, availability of
exploitable resources, cropping pattern, agriculture practices and other developmental
indices such as access to markets, etc. Some of these parameters may have undergone a
change in the district since the finalization of Base PLP on account of factors such as changes
in Government’s priorities and policies, strengthening of rural infrastructure, market forces,
cost escalation, etc., necessitating a relook at the credit potential for the year 2016-17.
 The PLP has been prepared after consultation with all the stakeholders and incorporating
information of possible economic activities which can be taken up with the help of bank
credit. The factors such as latest changes in infrastructure, policy changes and economic
scenario in the district have also been taken care of.
 The valuable views of the state and district authorities responsible in ensuring and
facilitating the development of the district were taken into consideration. Suitable importance
has also been given to the banking and other financial institutions keeping in view the fact
that Potential Linked Credit Plan is primarily a Plan which is to be implemented with the
active support and cooperation of the banking system. PLP as a potential linked document
has taken deep roots in facilitating and guiding while planning District Credit Plans.
 Role of Nabard
NABARD has been instrumental in grounding rural, social innovations and social
enterprises in the rural hinterlands. As of May, 2020, NABARD operates at 32 Regional
Offices in the country. It has in the process partnered with about 4000 partner
organizations in grounding many of the interventions be it, SHG-Bank Linkage
programme, tree-based tribal communities’ livelihoods initiative, watershed approach in
soil and water conservation, increasing crop productivity initiatives through lead crop
initiative or dissemination of information flow to agrarian communities through Farmer
clubs. Despite all this, it pays huge taxes too, to the exchequer – figuring in the top 50 tax
payers consistently. NABARD virtually ploughs back all the profits for development
spending, in their unending search for solutions and answers. Thus the organization had
developed a huge amount of trust capital in its 3 decades of work with rural communities.
 NABARD is the most important institution in the country which looks after the
development of the cottage industry, small scale industry and village industry, and other
rural industries.
 2.NABARD also reaches out to allied economies and supports and promotes integrated
development.
 3.NABARD discharge its duty by undertaking the following roles :
 4.Serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural areas
 5.Takes measures towards institution building for improving absorptive capacity of the
credit delivery system, including monitoring, formulation of rehabilitation schemes,
restructuring of credit institutions, training of personnel, etc.
 Banks under Nabard

1) ●
Regional Rural Banks

2) ●
State Cooperative Banks (StCBs)

3) ●
District Central Cooperative Banks (DCCBs) 

4) ●
Primary Agricultural Credit Societies (PACS)

5) State Cooperative Agriculture and Rural Development Banks

●

(SCARDBs)
 Regional rural banks
 Regional Rural Banks (RRBs) are 
government owned scheduled commercial banks of India that
operate at regional level in different states of India. These banks are
under the ownership of Ministry of Finance , Government of India.
They were created to serve rural areas with basic banking and 
financial services. However, RRBs also have urban branches.
 The area of operation is limited to the area notified by the
government of India covering, and it covers one or more districts in
the State. RRBs perform various functions such as providing
banking facilities to rural and semi-urban areas, carrying out
government operations like disbursement of wages of MGNREGA
 workers and distribution of pensions, providing Para-banking
facilities like locker facilities, debit and credit cards, mobile
banking, internet banking, and UPI services.
 Banks under Nabard

STATE COOPERATIVE BANKS DISTRICT CENTRAL

(STCBS) COOPERATIVE BANKS (DCCBS)
 The state cooperative bank is a  The banking model consists of a district central
bank for each district in every state of India
federation of the central known with a name as a respective District
cooperative bank and acts as Central Co-operative Bank. The members and
custodian of the cooperative their elected directors who represent a multitude
banking structure in the State. Its of professional cooperative bodies like milk
unions, urban cooperatives, rural cooperatives,
funds are obtained from the social agricultural and non-agricultural cooperatives,
capital, deposits, loans and and various others in turn elect the bank's
overdrafts of the Reserve Bank of president.
India.  These banks are collectively represented by a
State Apex Central Co-operative bank for each
 There are total of 31 State Co- state and it acts as the ultimate bank and apex
operative Banks. body for the DCCBs in each state.
 Providing loans to small borrowers  It has been widely observed all over the country
that the local politicians who hold the sway over
and small businesses. the cooperatives get elected as President of the
 Extending credit facilities like term DCC bank and a president post would mean
loans and working capital loans. nurturing for their future political ambitions.[
citation needed] However, this trend, which has
 Giving advances against shares and become a national phenomenon, carries its own
debentures. advantages and disadvantages.  
 Banks under Nabard
PRIMARY AGRICULTURAL
CREDIT SOCIETIES (PACS)
 A Primary Agricultural Credit
Society (PACS) is a basic unit and smallest
co-operative credit institutions in India. [1] It
works on the grassroots level (gram
panchayat and village level).
 The Primary Agricultural Credit Societies are
the association of persons, unlike in the case
of the Joint Stock Companies, where there is
just accumulation of capital.
 Primary Agricultural Credit Societies confers
equal rights to all its members without
considering their holding of share and their
social standing. A Primary Agriculture Credit
Societies (PACS) can raise funds for carrying
out its activities by following means:
 Deposits from members
 Loans
 Donations
 Entrance fee
STATE COOPERATIVE AGRICULTURE AND
RURAL DEVELOPMENT BANKS (SCARDBS)
 These co-operative banks were earlier known as
Land Development Banks. They are now called
Agriculture and Rural Development Banks. They
operate under a two-tier system known as (a)
State Co-operative Agriculture and Rural
Development Banks (SCARDB) and (b) Primary
Co-operative Agriculture and Rural
Development Banks (PCARDB).
 State cooperative banks are mainly interested
in providing loans and advances to the
cooperative societies. More than 98 per cent
loans are granted to these societies of which
about 75 per cent are for the short-period. Mostly
the loans are given for agricultural purposes.
 1)They aim to provide goods and services. 2)
They aim to eliminate the unnecessary profits of
middlemen in trade and commerce. 3) They seek
to prevent the exploitation of the weaker
members of society. 4) They aim to protect the
rights of people both as producers and
consumers.
 Regional rural
banks
●
Maharashtra Gramin Bank

State Cooperative
Banks (StCBs)
●
Apna Sahakari bank Ltd
District Central
Cooperative Banks Mumbai District Central Cooperative Bank
●

(DCCBs) 

Primary Agricultural
Credit Societies (PACS)