Write a short note on NABARD.

Question

Accepted Answer

NABARD was set up in 1982 (on 12 July 1982, by an Act of Parliament) as an apex body to coordinate the activities of all institutions involved in the rural financing system. Its objective is to promote the health and strength of credit institutions, namely, cooperatives, commercial banks and regional rural banks, and it also provides financial assistance to the non-farm sector to promote integrated rural development. The main functions of NABARD are:

1. To grant long-term loans to the State Governments for subscribing to the share capital of cooperative societies.

2. To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and primary cooperative societies.

3. To promote research in agriculture and rural development.

4. To serve as a refinancing agency for the institutions providing finance to rural and agricultural development.

5. To help tenant farmers and small farmers to consolidate their landholdings.