NABARD stands for National Bank for Agriculture and Rural Development in its full form.
India’s economic rate is gradually increasing, and an initiative taken by the government through an agency like NABARD is behind this remarkable ascent of the new India. NABARD owns and controls India’s apex cooperative bank and the regional rural bank.
It is a development institute specializing in the growth of the rural area in small businesses, agriculture, handicraft, shops, etc.
NABARD’s subsidiaries are NABCONS and NABFINS.
NABCONS: In rural areas, this department provides consulting and training services.
NABFINS: This division is responsible for providing financial services to rural communities.
NABARD Brief History
Under the leadership of B. Sivaraman and the Central Bank of India, NABARD was founded on July 12, 1982. Shivaraman Committee, sometimes known as the Craficard Committee, is the name of the committee. It began as a means of offering financial assistance to agricultural and rural development.
The initial investment was 100 crores (73% from R.B.I. and 27% from G.O.I.), and G.O.I. today owns 100% of the company and R.B.I. owns 0%.
Roles and Responsibility of NABARD
- It began as a rural credit refinancing institution, but over time expanded into other areas such as rural economy, policy development, and project execution.
- K.C.C. (Kisan Credit Card) has been launched to simplify the process of lending.
- The rural development fund is one of the most important sources of infrastructure funding in rural India. It has backed projects like as irrigation, rural roads, bridges, and new warehousing facilities.
- NABARD’s principal goal is to ensure that unfinished irrigation projects are completed on time.
Functions of NABARD
- Our country’s financial strength is the responsibility of the departments of finance, development, and supervision.
- NABARD is a theoretical and practical organization, thus on-farm and off-farm practices are required.
- NABARD developed a group of farmers to solve this problem because Indian farmers are mainly tiny farmers with limited land who are unable to generate profit on their own.
- Due to a relationship with NABARD, foreign consultants and financial support are helping to empower rural people and adopt innovative technology.
- NABARD has brought more than 200 cooperative banks with almost 7000 branches across the country fully into the C.B.S. platform through cloud computing. It will ensure government subsidiaries and payments directly into the bank account of its customers.
- To overcome challenges, NABARD’s district development manager collaborates with various officers, administrators, and banks.
Objective of NABARD
Because the primary goal is to lead the general public down the path of progress, the general public’s participation and collaboration are critical.
NABARD continues to collaborate with the government, and every attempt is being made to address the Indian people’s fundamental problem. NABARD’s vision of rural prosperity was shared by the state government, banks, multilateral, bilateral, and NBFCs, over 4000 civil society groups, approximately 1500 farmers clubs, universities, and corporations.