Page 81 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 3. The bank will also provide direct lending to any institution as may be approved by the
Central Government.
4. The bank will have organic links with the Reserve Bank and maintain a close link with in.

NABARD operates throughout the country through its 28 Regional Offices and one Sub-office,
located in the capitals of all the states/union territories. Each Regional Office (RO) has a Chief
General Manager (CGM) as its head, and the Head office has several Top executives like the
Executive Directors (EDs), Managing Directors (MDs), and the Chairperson. It has 336 District
Offices across the country, one Sub-office at Port Blair and one special cell at Srinagar. It also has
6 training establishments.

6.1 Role of NABARD

NABARD is set up as an Apex Development Bank with a mandate for facilitating credit flow for
promotion and development of agriculture, small-scale industries, cottage and village industries,
handicrafts and other rural crafts. It also has the mandate to support all other allied economic
activities in rural areas, promote integrated and sustainable rural development and secure
prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is
entrusted with:
1. Providing refinance to lending institutions in rural areas,

2. Bringing about or promoting institutional development, and
3. Evaluating, monitoring and inspecting the client banks.
Besides this pivotal role, NABARD also:
1. Acts as a coordinator in the operations of rural credit institutions.
2. Extends assistance to the government, the Reserve Bank of India and other organizations
in matters relating to rural development.
3. Offers training and research facilities for banks, cooperatives and organizations working
in the field of rural development.
4. Helps the State Governments in reaching their targets of providing assistance to eligible
institutions in agriculture and rural development.
5. Acts as regulator for cooperative banks and RRBs.
Some of the milestones in NABARD's activities are:
1. Refinance disbursement under ST-Agri & Others and MT-Conversion/Liquidity support
aggregated 16952.83 crores during 2007-08.
2. Refinance disbursement under Investment Credit to Commercial Banks, State Cooperative
Banks, State Cooperative Agriculture and Rural Development Banks, RRBs and other
eligible financial institutions during 2007-08 aggregated 9046.27 crores.
3. Through the Rural Infrastructure Development Fund (RIDF) 8034.93 crores were disbursed
during 2007-08. With this, a cumulative amount of 74073.41 crores has been sanctioned
for 280227 projects as on 31st March 2008 covering irrigation, rural roads and bridges,
health and education, soil conservation, drinking water schemes, flood protection, forest
management etc.

4. Under Watershed Development Fund with a corpus of 613.71 crores as on 31st March
2008, 416 projects in 94 districts of 14 states have benefited.

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