National Bank for Agriculture and Rural Development 56

Introduction to National Bank for Agriculture and Rural Development (NABARD)

The National Bank for Agriculture and Rural Development (NABARD) is a premier development financial institution in India, established with the primary objective of promoting sustainable and equitable agriculture and rural development. NABARD was set up on 12 July 1982 by an Act of Parliament, replacing the functions of the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India (RBI), as well as the Agricultural Refinance and Development Corporation (ARDC). Its creation was based on recommendations from the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), chaired by Shri B. Sivaraman. NABARD acts as an apex institution for financing and regulating rural credit, aiming to foster rural prosperity through various developmental and promotional activities. The bank’s mandate covers the entire rural sector, including agriculture, cottage and small industries, and other allied economic activities. NABARD’s establishment marked a significant step in India’s efforts to strengthen the rural credit system and ensure the flow of funds to rural areas for development.

• NABARD was established on 12 July 1982 by an Act of Parliament.
• It replaced functions of ACD, RPCC of RBI, and ARDC.
• NABARD acts as an apex institution for rural credit and development.
• Its mandate covers agriculture, cottage industries, and allied activities.
• The bank was formed based on CRAFICARD recommendations.
• NABARD aims to promote sustainable and equitable rural development.
• 📌 NABARD: National Bank for Agriculture and Rural Development, apex development bank for rural credit.
• 📌 CRAFICARD: Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development.

Objectives of NABARD

The objectives of NABARD are clearly outlined in the NCERT textbook. The primary aim is to promote sustainable and equitable agriculture and rural development through effective credit support, related services, and institutional development. NABARD seeks to provide and regulate credit for agricultural and rural development, facilitate the flow of funds to rural areas, and ensure the proper functioning of rural financial institutions. It also aims to foster rural prosperity by supporting infrastructure, promoting rural industries, and enhancing the productivity of the rural sector. The bank is responsible for coordinating and supervising rural credit institutions to ensure their efficiency and effectiveness. NABARD’s objectives are aligned with the broader goals of inclusive growth and poverty alleviation in rural India.

• Promote sustainable and equitable agriculture and rural development.
• Provide and regulate credit for rural development.
• Facilitate flow of funds to rural areas.
• Support rural infrastructure and industries.
• Coordinate and supervise rural credit institutions.
• Enhance productivity and prosperity in rural sector.
• 📌 Sustainable Development: Development that meets present needs without compromising future generations.
• 📌 Equitable Development: Fair and inclusive growth across all sections of society.