Page 85 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes
The farmers will also be taken for exposure visits to organic farms within the state and
outside.
The 'Joint Liability Training' programme will be led by experts from agricultural fields
along with NABARD district officials.

Question
Discuss the role of NABARD in agriculture and rural development.

Source: http://www.thehindubusinessline.in

6.3 Summary

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development
Bank in India.

It has been accredited with matters concerning policy, planning and operations in the field
of credit for agriculture and other economic activities in rural areas in India.
NABARD plays an important role in the development of agriculture and rural credit in
India.
It serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural areas.
It takes measures towards institution building for improving absorptive capacity of the
credit delivery system, including monitoring, formulation of rehabilitation schemes,
restructuring of credit institutions, training of personnel, etc.
It co-ordinates the rural financing activities of all institutions engaged in developmental
work at the field level and maintains liaison with Government of India, State Governments,
Reserve Bank of India (RBI) and other national level institutions concerned with policy
formulation.
It undertakes monitoring and evaluation of projects refinanced by it.

6.4 Keywords

Microfinance: The provision of financial services to low-income clients, including consumers
and the self-employed.
Refinancing: The replacement of an existing debt obligation with a debt obligation bearing
different terms.

Restructure: Reorganizing the legal, ownership, operational, or other structures of a company
for the purpose of making it more profitable or better organized for its present needs.

6.5 Self Assessment

Fill in the blanks:
1. It takes measures towards institution building for improving .............. capacity of the
credit delivery system.

2. NABARD prepares, .............. plans for all districts in India.
3. NABARD includes promoting .............. and .............. agriculture and rural development.

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