Scribd
Upload
127 views2 pages

Functions of NABARD Overview

NABARD is India's apex development bank focused on enhancing credit flow for rural development, particularly agriculture and rural non-farm sectors. It was established in 1982 based on recommendations to set up a development bank for rural credit. NABARD's functions include providing financial support and guidance for rural infrastructure and banking, supervising cooperative banks, and assisting farmers and artisans through programs like the Kisan Credit Card Scheme and RuPay Kisan Cards.

Uploaded by

Pahulpreet Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
127 views2 pages

Functions of NABARD Overview

NABARD is India's apex development bank focused on enhancing credit flow for rural development, particularly agriculture and rural non-farm sectors. It was established in 1982 based on recommendations to set up a development bank for rural credit. NABARD's functions include providing financial support and guidance for rural infrastructure and banking, supervising cooperative banks, and assisting farmers and artisans through programs like the Kisan Credit Card Scheme and RuPay Kisan Cards.

Uploaded by

Pahulpreet Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Introduction to NABARD
  • Functions of NABARD
  • Contributions of NABARD
  • UPSC Questions Related to NABARD
  • Related Links

National Bank for Agriculture and Rural Development

(NABARD)
NABARD is the acronym for India’s apex development bank, which is the National Bank for Agriculture and Rural
Development. With headquarters in Mumbai, NABARD has branches across India. This is an important topic in
the section of Indian Economy as well as Indin Polity of the USPC Syllabus.

What is NABARD?
In the year 1982, CRAFICARD or the Committee to Review
Arrangements of Institutional Credit for Agriculture and Rural
Development recommended the establishment of a developmental
bank and accordingly, NABARD was set up.

It was formed by a special parliamentary act. The chief focus of the


organisation was the advancement of rural India by enhancing the
flow of credit for the upliftment of agriculture as well as the rural non-
agricultural sector.

Functions of NABARD
The functions of NABARD are described below.
• In order to build an empowered and financially inclusive rural India, NABARD has specific
departments that work towards the desired goals. These departments can be collectively categorized
into three majors units:
o Financial
o Developmental
o Supervision
• The financial support necessary to build rural infrastructure is provided by NABARD.
• Preparation of district-level credit plans by NABARD are used to guide and motivate the banking
industry to achieve required targets.
• NABARD also supervises the Regional Rural Banks (RRBs) and Cooperative Banks along with
developing their banking practices and integrating them to the Core Banking Solution (CBS) platform.
o What is CBS platform?
o Core Banking Solution (CBS) is a networking of branches, which enables customers to
operate their accounts, and avail banking services from any branch of the Bank on the CBS
network, regardless of where he maintains his account. The customer is no longer the
customer of a Branch. He becomes the Bank’s Customer.
• NABARD also helps handicraft artisans sell their products by training and providing a marketing
platform for them.
• NABARD has partnered with various leading global organisations and institutions affiliated to the
World Bank that have played a role in transforming agriculture.
o It offers advisory services and financial assistance provided by these international partners
help in consultation with rural development and other agricultural practices.

Important Contributions of NABARD


NABARD contributions

Kisan Credit Card Scheme: RuPay Kisan Cards:


• This scheme was introduced in • All farmer clients were provided with RuPay
1998 in association with RBI to cards trying to bring a technological change
provide crop loans. in the rural financial sector.

UPSC questions related to NABARD


What is NABARD and its functions?
• NABARD is the acronym for the National Bank for Agriculture and Rural Development.
• It is an apex financial institution in India that provides rural and agricultural financing.

Is NABARD under RBI?


• The Reserve Bank of India divested its entire stake in the National Bank for Agriculture and Rural
Development (NABARD) and National Housing Bank (NHB).
• With this divestment, the Government of India holds 100% stake in both of these financial
institutions.

Related Links:
Pradhan Mantri Jan-Dhan Yojana National AYUSH Mission

Pradhan Mantri Fasal Bima Yojana (PMFBY) National Rural Health Mission

IAS 2020 NCERT Books PDFs For UPSC

(https://byjus.com/?utm_source=pdf-click) National Bank for Agriculture and Rural Development (NABARD) NABARD is the
(https://byjus.com/?utm_source=pdf-click) • This scheme was introduced in 1998 in association with RBI to provide crop

You might also like