Banking Awareness : What is NABARD ?

What is Nabard
What is NABARD ?

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In this post What is NABARD, we will read through all important points related to NABARD as almost all banking exams consists of one or more questions based on NABARD.

Important points covered in this post about NABARD are :

What is NABARD ?

What is the full form of NABARD ?

History of NABARD and When was NABARD established ?

What are NABARD functions ?

Who is current NABARD Chairman ?

Where is the NABARD headquarter situated ?

Let us get started !!

What is NABARD ?

NABARD is a Development Bank of the Nation for Fostering Rural Prosperity by promoting sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development

Vision of NABARD : Development Bank of the Nation for Fostering Rural Prosperity.

What is the full form of NABARD ?

NABARD stands for National Bank for Agriculture and Rural Development.

History of NABARD and When was NABARD established ?

On the insistence of government of India, Reserve Bank of India ( RBI ) constituted a Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) to look into these very critical aspects.

The Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, former member of Planning Commission, Government of India.

The Committee’s interim report, submitted on 28 November 1979, outlined the need for a new organisational device for providing undivided attention, forceful direction and pointed focus to credit related issues linked with rural development.

Its recommendation was formation of a unique development financial institution which would address these aspirations and formation of National Bank for Agriculture and Rural Development (NABARD) was approved by the Parliament through Act 61 of 1981.

National Bank for Agriculture and Rural Development came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).

It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982. Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.10,580 crore as on 31 March 2018.

Consequent to the revision in the composition of share capital between Government of India and RBI, NABARD today is fully owned by Government of India.

NABARD’s activities are governed by a Board of Directors. The Board of Directors are appointed by the Government of India in harmony with NABARD Act 1981.

What are NABARD functions ?

  • National Bank for Agriculture and Rural Development acts as an financing agency for the financial institutions providing investment and production credit for promoting various developmental activities in rural areas.
  • It supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks under the provisions of Banking Regulation Act, 1949.
  • NABARD's refinance fund from World Bank and Asian Development Bank to state co-operative agriculture and rural development banks (SCARDBs), state co-operative banks (SCBs), regional rural banks (RRBs), commercial banks (CBs) and other financial institutions approved by RBI.
  • It provides recommendations to Reserve Bank of India on issue of licenses to Cooperative Banks, opening of new branches by State Cooperative Banks and Regional Rural Banks (RRBs).
  • It help cooperative banks and Regional Rural Banks to prepare development actions plans for themselves.
  • It prepares rural credit plans, annually, for all districts in the country.

Who is current NABARD Chairman ?

Dr. Harsh Kumar Bhanwala is the current NABARD chairman.

Where is the NABARD headquarter situated ?

NABARD headquarter is situated at Mumbai, Maharastra, India.

At last, If you had any query or questions related to NABARD, please post in comment box below. We will try to resolve it as soon as possible.

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