National Bank for Agriculture and Rural Development (NABARD)

National Bank for Agriculture and Rural Development (NABARD) has released a study named, ‘Achieving Nutritional Security in India: Vision 2030’, in December 2020. The report assesses the trends for nutritional security and identifies determining factors that have a significant effect on reducing malnutrition levels in India. With this, it becomes important for IAS Exam candidates to learn what NABARD is and why is it an important entity in the Indian Economy.

NABARD is India’s apex development bank – National Bank for Agriculture and Rural Development. With headquarters in Mumbai, NABARD has branches across India. This is an important topic in the section of Indian Economy as well as Indian Polity of the USPC Syllabus.

NABARD Logo

Logo of NABARD

Candidates reading about NABARD can also read about related topics that are linked below:

What is NABARD?

Important Facts about NABARD

It came into existence on 12th July 1982
Its origin lies with CRAFICARD was formed on 30th March 1979.

B. Sivaraman was the chairman of the committee.

Who owns NABARD? Government of India
What is the vision of NABARD? Rural prosperity
Who are NABARD subsidiaries?
  • NABKISAN Finance Limited (NABKISAN)
  • NABSAMRUDDHI Finance Limited (NSFL)
  • NABFINS Limited (NABFINS)
  • NABFOUNDATION
  • NABCONS (NABARD Consultancy Services)
  • NABVENTURES Limited
  • NABSanrakshan Trustee Company Private Limited
Government Schemes with NABARD partnership
  • Dairy Entrepreneurship Development Scheme
  • Commercial production units of organic inputs
  • Agriclinic and Agribusiness Centres Scheme
  • National Livestock Mission
  • GSS – Ensuring End Use of Subsidy Released
  • Interest subvention Scheme
  • New Agricultural Marketing Infrastructure
NABARD Official Website https://www.nabard.org/

In the year 1982, CRAFICARD or the Committee to Review Arrangements of Institutional Credit for Agriculture and Rural Development recommended the establishment of a developmental bank and accordingly, NABARD was set up. 

It was formed by a special parliamentary act. The chief focus of the organisation was the advancement of rural India by enhancing the flow of credit for the upliftment of agriculture as well as the rural non-agricultural sector. 

Functions of NABARD

The functions of NABARD are described below.

  • In order to build an empowered and financially inclusive rural India, NABARD has specific departments that work towards the desired goals. These departments can be collectively categorized into three majors units:
    • Financial
    • Developmental
    • Supervision
  • The financial support necessary to build rural infrastructure is provided by NABARD.
  • Preparation of district-level credit plans by NABARD are used to guide and motivate the banking industry to achieve required targets. 
  • NABARD also supervises the Regional Rural Banks (RRBs) and Cooperative Banks along with developing their banking practices and integrating them to the Core Banking Solution (CBS) platform.
What is the CBS platform?

Core Banking Solution (CBS) is a networking of branches, which enables customers to operate their accounts, and avail banking services from any branch of the Bank on the CBS network, regardless of where he maintains his account. The customer is no longer the customer of a Branch. He becomes the Bank’s Customer.

  • NABARD also helps handicraft artisans sell their products by training and providing a marketing platform for them.
  • NABARD has partnered with various leading global organisations and institutions affiliated with the World Bank that have played a role in transforming agriculture.
    • It offers advisory services and financial assistance provided by these international partners to help in consultation with rural development and other agricultural practices.

Important Contributions of NABARD

NABARD Contributions
Kisan Credit Card Scheme:

  • This scheme was introduced in 1998 in association with RBI to provide crop loans.
RuPay Kisan Cards:

  • All farmer clients were provided with RuPay cards trying to bring a technological change in the rural financial sector.

National Bank for Agriculture and Rural Development (NABARD):- Download PDF Here

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