Chapter 6 Institutes Supporting Business
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Information on OC & Management
NABARD stands for the National Bank for Agriculture and
Rural Development. It is a development financial institution in India that
focuses on promoting sustainable and equitable agriculture and rural
development. Here are some key points about NABARD:
1. Establishment: NABARD was
established on July 12, 1982, by an Act of Parliament. It was created to
implement the National Bank for Agriculture and Rural Development Act 1981.
2. Objective: The primary
objective of NABARD is to provide and regulate credit and other facilities for
the promotion and development of agriculture, small-scale industries, cottage
and village industries, handicrafts, and other rural crafts. It aims to support
the rural economy by facilitating financial inclusion and improving infrastructure.
3. Functions:
• Refinance
Support: NABARD provides refinance to lending institutions in rural areas. This
includes cooperatives, regional rural banks (RRBs), commercial banks, and other
financial institutions.
• Developmental
Role: NABARD is involved in various developmental initiatives, including
capacity building, institution development, and promoting innovative projects.
• Supervision:
NABARD supervises Cooperative Banks and Regional Rural Banks (RRBs) to ensure
they adhere to regulatory requirements and function effectively.
• Financial
Inclusion: It promotes financial inclusion by supporting microfinance
initiatives and self-help groups (SHGs).
• Rural
Infrastructure Development: NABARD administers several funds aimed at improving
rural infrastructure, such as the Rural Infrastructure Development Fund (RIDF).
4. Funding: NABARD raises resources
through market borrowings, which include bonds and debentures. It also receives
funds from the government and international organizations for various development
projects.
5. Initiatives:
• SHG-Bank
Linkage Programme: This program connects self-help groups with banks to
facilitate microcredit and promote women's empowerment.
• Watershed
Development: NABARD supports watershed development projects to enhance water
conservation and agricultural productivity.
• Tribal
Development Fund (TDF): This fund aims to support the socio-economic
development of tribal communities through various projects and initiatives.
NABARD plays a crucial role in the rural and agricultural development of India, helping to bridge the financial gaps and promote sustainable economic growth in rural areas.