Question

Write a short note on NABARD.

Answer 1

NABARD was set up in 1982 as an apex body to coordinate the activities of all institutions involved in rural credit.

The main functions of NABARD are

(i) To grant long-term loans to the State Government for subscribing to the share capital of cooperative societies.

(ii) To take the responsibility of inspecting cooperative banks, Regional Rural Banks (RRBs) and primary cooperative societies.

(iii) To promote research in agriculture and rural development.

(iv) To serve as a refinancing agency for the institutions providing finance to rural and agricultural development.

(v) To help tenant farmers and small farmers to consolidate their landholdings.