NABARD

National Bank for Agriculture and Rural Development

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

apex regulatory body for overall regulation of regional rural banks and apex
cooperative banks in Indian.
• It is under the jurisdiction of Ministry of Finance and GOI.  The bank has been
entrusted with "matter s 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
• NABARD was established on the recommendations of B.Sivaramman Committee (by Act
61, 1981 of Parliament) 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 RBI and Agricultural Refinance and
Development Corporation (ARDC). It is one of the premier agencies providing Rs.14080
crore (100% share). The authorized share capital is Rs.30,000 crore.
• International associates of NABARD include World bank-affiliated organisations and global
developmental agencies working in the field of agriculture and rural development. These
organisations help NABARD by advising and giving monetary aid for the upliftment of the
people in the rural areas and optimising the agricultural process
 Role

• NABARD Regional Office, Lucknow

• 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.
• 1.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 :
• Serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural areas
• 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.
• Co-ordinates the rural financing activities of all institutions engaged in
developmental work at the field level and maintains liaison with GoI, state
governments, RBI and other national level institutions concerned with policy
formulation
• Undertakes monitoring and evaluation of projects refinanced by it.
• NABARD refinances the financial institutions which finances the rural sector.
• NABARD partakes in development of institutions which help the rural economy.
• NABARD also keeps a check on its client institutes.
• It regulates the institutions which provide financial help to the rural economy.
• It provides training facilities to the institutions working in the field of rural
upliftment.
• It regulates and supervise the cooperative banks and the RRB's, throughout entire
India.
• Bank Regulation
• NABARD supervises State Cooperative Banks (StCBs), Distrcict cooperative Central
Banks (DCCBs), and  Regional Rural Banks  (RRBs) and conducts statutory inspections of
these banks
• Refinancing
• NABARD's refinance fund from World Bank and Asian Development Bank 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. While the ultimate beneficiaries of investment credit can be
individuals, partnership concerns, companies, State-owned corporations or co-operative
societies, production credit is generally given to individuals.