Question

NABARD acts as a coordinator in the operation of rural credit institutions.

• A. True
• B. False

Answer 1

The correct option is A True

True

NABARD was set up as an apex Development Bank with a mandate for facilitating

credit flow to agriculture, small-scale industries, cottage and village industries,

handicrafts and other rural crafts. It also plays a vital role in supporting all other

allied economic activities in rural areas. Its operations include :

• Providing refinance to lending institutions in rural areas

• Promoting institutional development

• Evaluating, monitoring and inspecting the client banks

• Acts as a coordinator in the operations of rural credit institutions

• Extends assistance to the government, the Reserve Bank of India and other

organizations in matters relating to rural development

• Offers training and research facilities for banks, cooperatives and

organizations working in the field of rural development

• Helps the state governments in reaching their targets of providing assistance

to eligible institutions in agriculture and rural development

• Acts as regulator for cooperative banks and RRBs