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National Bank For Agriculture And Rural Development (NABARD)

NABARD is an apex development bank in India having headquarters based in Mumbai (Maharashtra) and other branches are all over the country. It was established on 12 July 1982 on the recommendations of Shivaraman Committee, by an act 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 Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). Its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector. NABARD will complete its 31 years on 12 July 2012. It has been accredited with "matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India". RBI sold its stake in NABARD to the Government of India, which now holds 99% stake.

Role of Nabard

NABARD is the apex institution in the country which looks after the development of the cottage industry, small industry and village industry, and other rural industries. NABARD also reaches out to allied economies and supports and promotes integrated development. And to help NABARD discharge its duty, it has been given certain roles as follows:
  1. Serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas
  2. 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.
  3. Co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation
  4. Undertakes monitoring and evaluation of projects refinanced by it.
  5. NABARD refinances the financial institutions which finances the rural sector.
  6. NABARD helps to develop the institutions which help the rural economy.
  7. NABARD also keeps a check on its client institutes.
  8. It regulates the institution which provides financial help to the rural economy.
  9. It provides training facilities to the institutions working the field of rural upliftment.
  10. It regulates the cooperative banks and the RRB’s.

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