What is the role of NABARD in rural credit in India?

Question

Accepted Answer

National Bank for Agriculture and Rural Development (NABARD) was set up in 1982 by an Act of Parliament as an apex bank coordinating the functioning of different financial institutions working for the expansion of rural credit. It took over the agricultural credit functions of the RBI and the refinance functions of the Agricultural Refinance and Development Corporation (ARDC). It serves as a refinancing institution for production and investment credit to agriculture, small-scale industries, cottage and village industries, handicrafts and rural artisans. It is also responsible for coordinating the activities of the Central and State Governments and other all-India and State level institutions for rural development.