Skip to main content

NABARD- its Functions & Role

How NABARD Promotes Financial Inclusion


NABARD

NABARD (National Bank for Agriculture and Rural Development) was established in 1982 by a special act of the parliament (NABARD Act-1981) for the upliftment of agriculture, rural and non-farm activities in rural India.

 It looks for the credit flow in villages and empowering the rural economy. NABARD is an apex institution for the development of rural India. It has paid-up capital of Rs. 10,000 crores with 100% government of India undertaking.

Role of NABARD: -



  1. It is refinancing agency for the projects that provide the loan for the development of rural India.
  2. It improves the credit delivery system in rural India.
  3. It promotes financial inclusion in rural India.
  4. It is empowered to make policies related to Rural India.
  5. It promotes the interest subvention scheme by refinancing the institutions giving KCC (Kisan Credit Card) loans.

Functions of NABARD: -


  1. It makes corpus and ascertains their proper usage like AMIF, FIDF etc on behalf of the government.
  2. It promotes entrepreneurship in the rural segment by various schemes.
  3. It provides license and regulates the RRBs (Regional Rural Banks) and cooperative banks.
  4. It finances the project for the welfare of rural people and rural economic development.
  5. It supervises and implements various government schemes on behalf of the government.
  6. It conducts surveys like NAFIS.

Conclusion


As said by Mahatma Gandhi- "The future of India lies in its villages". Institutions like NABARD are of utmost importance in a country like India as around two-third population is in rural and around 70% are directly or indirectly dependent on the agriculture.

From inception, it has worked for upliftment and rural development. With the ICAR and NABARD collaboration, agriculture is getting more sustainable and technology-driven.

Comments

Post a Comment

Popular posts from this blog

Essay on Boosting Economic Growth of India

Boosting Economic Growth India's GDP growth rate slowed down to 5 per cent in Q1 of FY20 and is expected to be around 6 per cent or below in this financial year. As former Reserve Bank of India governor Y V Reddy mentioned recently, a combination of cyclical and structural factors have been responsible for the slowdown.  One example is the auto sector. There seems to be a collapse of aggregate demand in the economy. Global uncertainties have added to the problem.  In the last few weeks, the government has announced several measures to improve both consumption and investment in different sectors and for the economy as a whole. The announcement of reduction in corporate tax rates may help in reviving the sentiments of the private sector but the tax revenue may also decline and put pressure on fiscal deficit. These stimulus and structural measures and monetary policy may help reviving the economy to some extent in the near future. But, these measures alone may...
Post a Comment
Read more

How to Improve Indian Financial System

How to Improve Indian Financial System India had been successful in managing the global financial crisis of 2008 but present condition of its banking sector is worst.  The reasons for this are mounting bad loans, poor accounting standards and lax supervision.  India's ratio of NPA has grown from lowest to highest in 8 years among G-20 club. The sudden rise in bad loan ratio is due to RBI strict monitoring  in recent years which was left hidden. Bad loan problem is high for SBI but private banks also have it. According to IMF Indian banks are more vulnerable to financial shocks then other emerging markets banks. Very few recommendation of Nayak Committee which was formed to suggest reforms to strengthen have been implemented even after three-and-a-half years. Government should undertake structural reforms for state-owned banks to improve Indian Financial system and boost growth and investment.
Post a Comment
Read more

Role and Function of NABARD

Discuss the Role and Function of NABARD (image source- NABARD website) National Bank for Agriculture and Rural Development was established on 12th July 1982 by an act of the parliament. It is an apex institution providing and regulating credit and other facilities for the promotion and development of agriculture, small scale industries, cottage industries, handicrafts, other rural crafts and allied economic activities in rural areas. Vision: Development Bank of the Nation for Fostering Rural Prosperity The main role of the NABARD is policymaking, planning as well as operation in giving credit to agriculture. Refinancing institution for the development of rural infrastructure. Not only giving credit facility but also monitoring, rehabilitation, restructuring and personnel training. It promotes sustainable agriculture and rural development through financial and non-financial innovation, technology for better prosperity. The Non-credit related function of the ...
Post a Comment
Read more