National bank for agriculture and rural development wikipedia. Nabard provides refinancing facilities to commercial banks, state cooperative banks, central cooperative banks, regional rural banks and land development banks. Pdf role of national bank for agriculture and rural development. National bank for agricultural and rural development nabard. Particulars of its organization, functions and its duties nabard. Role and functions of nabard the national bank for agriculture and rural development is popularly referred to as nabard. Nabard is a development bank with a mandate for providing and regulating credit and other facilities for the promotion and development of agriculture. The department of refinance dor deals with the short term and long term refinance functions of nabard.
Nabard is designated as an apex development bank in the country. The paper analyses the role and function of nabard in agriculture and rural. Nabard has been instrumental in grounding rural, social innovations and social. Nabard undertakes to make sure that a strong credit distribution system is in place to provide rural credit that can suffice and support the growing and diversifying credit. Role of nabard in overall development of india in general and rural. Shgs, etc from the banking system in a flexible, hassle free and cost effective. Nabard is playing an important role in augmenting the flow of credit for the. The chief focus of nabard id the advancement of rural india by enhancing the flow of. The following are the objectives and functions of nabard. Such loans to banks will be interest free, but banks may charge service. A brief profile set up in 1982, committed to rural prosperity through intervention of credit and developmental activities. Role of national bank for agriculture and rural development.
Functions of nabard iii rbi to act on a certificate of nabard on a question. Nabard is responsible for regulating and supervising the functions of cooperative banks and rrbs. The nabards role is basically a continuation of the rbi role in the sphere of agriculture and rural development. Nabard is an apex development bank authorised for providing and regulating. Upon its formation in 1982, nabard took over the functions of the erstwhile agricultural credit department acd and rural planning and credit cell rpcc of rbi and ardc. National bank for agriculture and rural development nabard was established on july 12, 1982 with the paid up capital of rs. It is an apex institution which has power to deal with all matters concerning policy, planning as well as operations in giving credit for agriculture and other economic. Nabard is required to supervise and regulate the functions of rrbs, i. National bank for agriculture and rural development nabard. Accordingly, the bank sanctioned shortterm credit limits to the extent of rs 3,020 crore in 199091 for financing seasonal agricultural operations at 3 per cent below the bank rate as against rs 2,807 crore in 198990. This national bank was established in 1982 by a special act of the parliament, with a manadate to uplift rural india by facilitating credit flow in agriculture, cottage and village industries, handicrafts and smallscale industries. Nabard works towards providing a strong and efficient rural credit delivery system, capable of taking care of the expanding and diverse credit needs of agriculture and rural development.