NABARD stands for National Bank for Agriculture and Rural Development is an Apex Development Financial Institution in India. 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 the Financial Inclusion policy. NABARD has its head office at Mumbai, India.
NABARD was established on the recommendations of the B.Sivaramman Committee on 12 July 1982. it had an initial capital of 100 crores. To implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department and Rural Planning and Credit Cell of Reserve Bank of India, and Agricultural Refinance and Development Corporation. It is one of the premier agencies providing developmental credit in rural areas. NABARD is India’s specialized bank for Agriculture and Rural Development in India.
International associates of NABARD include World Bank-affiliated organizations and global developmental agencies working in the field of agriculture and rural development. These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process.
Functions of NABARD
- Framing policy and guidelines for rural financial institutions.
- Providing credit facilities to issuing organizations
- Monitoring the flow of ground-level rural credit.
- Preparation of credit plans annually.
- To help cooperative banks and Regional Rural Banks to prepare development actions plans for themselves.
- Monitor the implementation of development action plans of banks.
- Provide financial support for the training institutes of cooperative banks, commercial banks, and RRBs.
- Provide financial assistance to cooperative banks.
- Undertakes inspection of Regional Rural Banks and Cooperative Banks under the provisions of the Banking Regulation Act, 1949.
- Undertakes inspection of State Cooperative Agriculture and Rural Development Banks and apex non- credit cooperative societies on a voluntary basis.
- Provides recommendations to Reserve Bank of India on the issue of licenses to Cooperative Banks, Opening of new branches by State Cooperative Banks and Regional Rural Banks (RRBs).
- Undertakes portfolio inspections besides off-site surveillance of Cooperative Banks and Regional Rural Banks.