National Bank for Agriculture
and Rural Development: Banking Awareness Notes
NABARD
National Bank for Agriculture
and Rural Development set up as an apex Development Bank by the Government of
India with a mandate for facilitating credit flow for promotion and development
of agriculture, cottage and village industries etc.
CHAIRMAN
Dr. Harsh Kumar Bhanwala,
Chairman, NABARD, is a Post Graduate in Management from IIM, Ahmedabad
HEAD OFFICE-
NABARD has its head
office at Mumbai, India.
HISTORY
- At the instance of Government of
India and Reserve Bank of India (RBI), constituted a committee
to review the arrangements for institutional credit for
agriculture and rural development (CRAFICARD) on 30 March 1979,
under the Chairmanship of Shri B.Sivaraman, former member of
Planning Commission, Government of India to review the arrangements for
institutional credit for agriculture and rural development.
- The Committee, in its interim
report, submitted on 28 November 1979, felt the need for a new
organisational device for providing undivided attention, forceful
direction and pointed focus to the credit problems arising out of
integrated rural development and recommended the formation of
National Bank for Agriculture and Rural Development(NABARD).
- The Parliament, through
Act,61 of 1981, approved the setting up of NABARD. The bank 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). NABARD was
dedicated to the service of the nation by the late Prime Minister Smt.
Indira Gandhi on 05 November 1982.
- NABARD was set up with an initial
capital of 100 crore. Consequent to the revision in the
composition of share capital between Government of India and RBI, the paid
up capital as on 31 March 2015, stood at 5000 crore with Government
of India holding 4,980 crore (99.60%) and Reserve Bank of India
20.00 crore (0.40%).
- It has 336 District
Offices across the country, one special cell at Srinagar. It also has
6 training establishments.
MISSION
Promote sustainable and
equitable agriculture and rural prosperity through effective credit support,
related services, institution development and other innovative initiatives.
ROLE
It works as an
institution which looks after the development of the cottage industry, small
industry and village industry, and other rural industries.
NABARD
Refinance Available 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.
While the ultimate
beneficiaries of investment credit can be individuals, partnership
concerns, companies, State-owned corporations or co-operative societies,
production credit is generally given to individuals.
NABARD is also known for
its 'SHG Bank Linkage Programme' which encourages India's
banks to lend to self-help groups (SHGs). Largely because SHGs are composed
mainly of poor women, this has evolved into an important Indian tool for
microfinance. By March 2006, 22 lakh SHGs representing 3.3 core members had to
be linked to credit through this programme.
NABARD also has a
portfolio of Natural Resource Management Programmes involving
diverse fields like Watershed Development, Tribal Development and Farm
Innovation through dedicated funds set up for the purpose
IMPORTANT
SCHEME Under NABARD
- Solar Scheme
- Capital Subsidy Schemes for
Promoting Solar Photovoltaic Water Pumping Systems for Irrigation Purpose
- Capital Subsidy/Refinance Scheme
for Installation of Solar Off Grid under Jawaharlal Nehru-National Solar
Mission (JNNSM) of the Ministry of New and Renewable Energy
- Solar Water Heating System
- Agricultural Marketing
Infrastructure, Grading and Standardization scheme
- Rural Godowns Scheme
- Dairy Enterpreneurship
Development Scheme.
