The full form of NABARD is the National Bank for Agriculture and Rural Development (NABARD), an organisation under the central government of India. The primary objective of the bank is to secure rural prosperity through financial and non-financial assistance. The primary functions of this financial institution include the development and promotion of the rural economy; financing and refinancing farmers, artisans, and small factory owners; and planning a sustainable rural economy. This rural development bank has its headquarters in Mumbai. There are 31 regional offices and 4 training establishments all across the country.
History of NABARD
This financial institution was established by an Act of Parliament on July 12, 1982. This organisation has the responsibility to provide credit and non-credit facilities for the development of cottage, village, and small-scale industries; agriculture; handicrafts and indigenous craft; and other allied economic activities in hinterlands and villages of India. With its services, NABARD aims to promote integrated rural development and bring prosperity to village areas of the nation.
Vision and Mision of NABARD
Given below are the vision and mission of the National Bank for Agriculture and Development Bank:
To foster rural prosperity.
To advocate equitable and sustainable development of agriculture and rural areas through non-financial measures like interventions, technological innovations, and institutional development and financial support.
Functions of NABARD
We must not limit ourselves to the knowledge about the full form of NABARD, but learn about the Credit and Non-Credit functions of the National Bank for Agriculture and Development Bank.
Some of the credit-related functions of this national development bank are as follows:
- Loans to State Governments to improve the Co-operative Credit Structure and rural infrastructure.
- Direct lending to farmer’s organisations; co-operatives; private and government-owned companies; individual entrepreneurs, and other stakeholders for improving warehousing infrastructure in rural landscape.
- Refinance to rural financial institutions for long-term loans (investment credit) and short-term loans (marketing and production credit) for on-field and off-field activities in village areas.
The non-credit functions of NABARD are listed below:
- Assist the central government of the Republic of India, State Governments, and the Reserve Bank of India (RBI) in formulating policies related to rural development and agricultural credit.
- Capacity building of RRBs, SCARDBs, DCCBs, and their off-site surveillance.
- Monitoring rural and agricultural development.
- Co-operating with other authorities engaged in rural development.
- Promote micro business enterprises and livelihood opportunities in rural areas.
Tabulated below are the Credit-Related and Development-Oriented partner institutions of NABARD:
|Credit-Related Partners||Development-Oriented Partners|
|Governments of States;
Corporations and Authorities under State Governments;
District Central Co-operative Banks (DCCBs);
Non-Banking Finance Companies (NBFCs);
State Co-operative Banks;
Scheduled Commercial Banks;
Regional Rural Banks (RRBs);
Small Finance BanksFarmer’s organisations;
Scheduled Urban Co-operative Banks;
Individual entrepreneurs and companies operating under public-private partnership (PPP);
State Co-operative Agriculture and Rural Development Banks (SCARDBs)
|Non-Government Organisations (NGOs);
Rural Financial Institutions;
Clubs of Farmers;
Self-Help Groups (SHGs);
Development Training Centers;
Self-Employment Training Entities;
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