Page 80 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Rupesh Roshan Singh, Lovely Professional University
Unit 6: NABARD

Unit 6: NABARD Notes

CONTENTS
Objectives
Introduction

6.1 Role of NABARD
6.2 Functions of NABARD
6.3 Summary
6.4 Keywords

6.5 Self Assessment
6.6 Review Questions
6.7 Further Readings

Objectives

After studying this unit, you will be able to:

State the introduction to NABARD
Explain role of NABARD in Indian economy
Describe the functions of NABARD

Introduction

National Bank for Agriculture and Rural Development, more popularly known as NABARD
was established by an Act of Parliament on 12th July 1982 to implement the National Bank for
Agriculture and Rural Development Act, 1981.

It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell
(RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation
(ARDC). It is one of the premiere agencies to provide credit in rural areas
NABARD was established in terms of the Preamble to the Act,
"for providing credit for the promotion of agriculture, small scale industries, cottage and village industries,
handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting
IRDP and securing prosperity of rural areas and for matters connected therewith in incidental thereto".

The main objectives of the NABARD as stated in the statement of objectives while placing the
bill before the Lok Sabha were categorized as under:
1. The National Bank will be an apex organisation in respect of all matters relating to policy,
planning operational aspects in the field of credit for promotion of Agriculture, Small
Scale Industries, Cottage and Village Industries, Handicrafts and other rural crafts and
other allied economic activities in rural areas.
2. The bank will serve as a refinancing institution for institutional credit such as long-term,
short-term for the promotion of activities in the rural areas.

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