NABARD

Key Highlights

• NABARD is an apex development bank in India that focuses on promoting sustainable and equitable agriculture and rural development.

• NABARD provides funds to banks and financial institutions that lend money to farmers and rural businesses, helping them thrive.

• It promotes and develops microfinance institutions and rural banks, making financial services accessible to underserved communities.

• The primary objective of NABARD is to promote sustainable and equitable agriculture and rural development in India by providing credit for the development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.

NABARD Full Form: National Bank for Agriculture and Rural Development

What is NABARD?

NABARD is an apex development bank in India that focuses on promoting sustainable and equitable agriculture and rural development. It was established on 12 July 1982 by a special act of Parliament and acts as the principal agency of the Government of India to provide financial and other support to the country's agricultural and rural sectors.

Functions of NABARD

NABARD's main functions include:

1. Refinancing: It provides funds to banks and financial institutions that lend money to farmers and rural businesses, helping them thrive.

2. Support for Microfinance: NABARD promotes and develops microfinance institutions and rural banks, making financial services accessible to underserved communities.

3. Assistance to Governments: It offers financial and technical support to both state and central governments for various development programs, ensuring effective implementation.

4. Implementation of Schemes: NABARD plays a crucial role in running government initiatives like the Pradhan Mantri Gramin Awaas Yojana (PMGAY), which focuses on providing housing in rural areas, and the Deendayal Antyodaya Yojana (DAY) which focuses on improving the livelihoods of those living in poverty.

Objectives of NABARD

The primary objective of NABARD is to promote sustainable and equitable agriculture and rural development in India by providing credit for the development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.

In addition to this primary mission, NABARD has several secondary objectives as well. These include:

• To provide credit for the activation and promotion of agriculture, small-scale industries, cottage and village industries, and handloom industries in rural areas.

• To promote integrated rural development through development banking schemes and other developmental activities.

• To ensure that credit flows wherever required by eligible institutions like cooperative societies, self-help groups, agricultural universities, and research institutions.

• To support infrastructural projects relating to rural areas such as roads & bridges; electrification; drinking water facilities; telecommunication systems; housing & warehousing facilities; health care centers etc., either directly or through state governments or other agencies/institutions set up for this purpose.

• To facilitate effective coordination among State level stakeholders in the field of rural banking, agricultural production techniques, etc.