What is NABARD

National bank of Agriculture and Rural Development is a non -bank statutory financial organization .It is popular is in short form as NABARD.

DEFINITION :NABARD is a Development Bank with a mandate for providing and regulating credit and other facilities for promotion and development of agriculture ,small scale industries ,cottage and village industries,handcraft and other rural craft or any economic activity in rural areas with a view to promote integrated rural development and securing prosperity of rural areas .

ESTABLISHMENT:It was set up on July 12,1982 under an Act of Parliament as a central or apex institution for financing agriculture and rural sector.

Organizational structure: The Structure of NABARD comprises of Board of Directors,Chairman,Managing Director , 2 Executive Director .They All look after 26 Head Office Department ,28 Regional Offices ,6 Training Establishment.There are 391 District Development Offices and one Sub Office Special Cell under the Regional Offices.

Role of NABARD:

1.Act as coordinator in operation of Rural Credit Institution.

2.It gives assistance to the government ,RBI and other organization in matter relating to rural development.

3.It offers training and research facility for banks,cooperatives and other organization working in rural field.

4.Act as regulator of Cooperative Banks and RRBs.

5.It has been associate with the implementation of the many project from Word Bank and International Funds for Agriculture Development.(IFDA)

Function of NABARD:

• CREDIT FUNCTION :

1.Framing policy and guideline for rural financial institution.

2.Providing credit facilities to issuing organization

3. Monitoring the flow of ground level rural credit.

• Financial Function:

1.It provides short term and  medium term loans to RRBs (Regional Ruarl Bank), CCBs (central Cooperative bank) and SCBs(state Cooperative banks) and other institution involve in Agriculture and rural development.

2.It provides long term loan to the Agriculture and allied activities ,Artisans,small scale industries ,Handcrafts and other non form sectors.

3.It directly finance the ware houses,cold storage and cold chain infrastructures.also for food parks and food processing units.

• Development Function:

1.Help Cooperative banks and other rural banks to prepare their action plan.

2.Monitor implementation of development action plan of banks and fulfillment of obligation under MoU.

3.Provide financial support to training institutes of cooperative banks.

4.Helping in development of farm and non farm sector by giving financial,technical,educational and other supports.

• Supervisory Action:

1.Undertake inspection of RRBs,Cooperative Banks,SCARDBs,and apex non credit cooperative societies.

Resources:

Resources comprise of a line of credit from RBI,loans from Central Banks,Word banks,Sales of Bonds and debentures,deposits,gifts , grants,direct borrowing etc.

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