NABARD was established on the recommendations of B.
Sivaramman Committee (by Act 61, 1981 of
Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act
1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC)
of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is one of the
premier agencies providing developmental credit in rural areas. NABARD is India's specialised bank for
Agriculture and Rural Development in India.
The initial corpus of NABARD was Rs.100 crores. Consequent to the revision in the composition of share
capital between Government of India and RBI, the paid up capital as on 31 March 2020, stood at Rs.14080
crore with Government of India holding Rs.14080 crore (100% share). The authorized share capital is
Rs.30,000 crore.
International associates of NABARD include World Bank-affiliated organisations and global developmental
agencies working in the field of agriculture and rural development. These organisations help NABARD by
advising and giving monetary aid for the upliftment of the people in the rural areas and optimising the
agricultural process.
Role:
NABARD has been instrumental in grounding rural, social innovations and social enterprises in the rural
hinterlands. As of May, 2020, NABARD operates at 32 Regional Offices in the country. It has in the process
partnered with about 4000 partner organisations in grounding many of the interventions be it, SHG-Bank
Linkage programme, tree-based tribal communities’ livelihoods initiative, watershed approach in soil and
water conservation, increasing crop productivity initiatives through lead crop initiative or dissemination
of information flow to agrarian communities through Farmer clubs. Despite all this, it pays huge taxes too,
to the exchequer – figuring in the top 50 tax payers consistently. NABARD virtually ploughs back all the
profits for development spending, in their unending search for solutions and answers. Thus the
organisation had developed a huge amount of trust capital in its 3 decades of work with rural
communities.
1.NABARD is the most important institution in the country which looks after the development of the
cottage industry, small scale industry and village industry, and other rural industries.
2.NABARD also reaches out to allied economies and supports and promotes integrated development.
3.NABARD discharge its duty by undertaking the following roles :
1. Serves as an apex financing agency for the institutions providing investment and production credit
for promoting the various developmental activities in rural areas
2. Takes measures towards institution building for improving absorptive capacity of the credit
delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of
credit institutions, training of personnel, etc.
3. Co-ordinates the rural financing activities of all institutions engaged in developmental work at the
field level and maintains liaison with Government of India, state governments, Reserve Bank of
India (RBI) and other national level institutions concerned with policy formulation
4. Undertakes monitoring and evaluation of projects refinanced by it.
5. NABARD refinances the financial institutions which finances the rural sector.
6. NABARD partakes in development of institutions which help the rural economy.
7. NABARD also keeps a check on its client institutes.
8. It regulates the institutions which provide financial help to the rural economy.
9. It provides training facilities to the institutions working in the field of rural upliftment.
10. It regulates and supervise the cooperative banks and the RRB's, through out entire India.
