NABARD
The National Bank for Agriculture and Rural Development (NABARD) is a premier development financial institution in India that plays a pivotal role in promoting sustainable agriculture and rural development. Established on 12 July 1982, under the recommendations of the B.Sivaraman Committee, NABARD was created by an act of Parliament to take over the functions of the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India (RBI), and the Agricultural Refinance and Development Corporation (ARDC).
Objectives and Role:
NABARD’s primary aim is to foster rural prosperity by extending credit and support services to agriculture and rural infrastructure. Its roles include:
Refinancing loans given by cooperative banks, regional rural banks (RRBs), and other financial institutions for agriculture and rural development.
Supporting infrastructure development in rural areas, such as irrigation, roads, warehousing, and drinking water.
Promoting self-help groups (SHGs) and microfinance to empower rural communities, especially women.
Facilitating the development of agricultural and rural enterprises through financial and technical assistance.
Supervising and regulating cooperative banks and RRBs in coordination with the RBI.
Key Functions:
Credit Planning: Formulates district-level credit plans and monitors rural credit flow.
Developmental Role: Capacity building of rural banks, skill development, and promoting innovation in rural finance.
Financial Inclusion: Encourages the use of digital banking and financial services in underserved areas.
Natural Resource Management: Supports watershed development, tribal development, and climate-resilient agriculture.
Milestones and Achievements:
NABARD has been instrumental in launching various initiatives like the Rural Infrastructure Development Fund (RIDF).
It has played a key role in India’s success in the SHG-Bank linkage programme, the world’s largest microfinance initiative.
The bank has also been actively involved in climate adaptation projects, in partnership with international bodies like the Green Climate Fund (GCF).