Banking Awareness about NABARD for Upcoming Competitive Exams

Banking Awareness All About NABARD

In the field of rural credit an improvement is made with the establishment of the National Bank for Agriculture and Rural Development in July, 1982. This is popularly known as "NABARD". The Agricultural Refinance and Development corporation has also been merged with NABARD. The authorised share capital of NABARD is Rs. 500 Crores and paid up capital is Rs.100 crores contributed equally by the Reserve Bank of India and Government of India.

Functions:

1. It works as an apex bank to look after the credit needs of the rural sector.
2. It provides short-term credit (up to 18 months) to State Co-operative Banks for seasonal agricultural operations.
3. It provides medium-term credit (18 months to 7 years) to State Co-operative Banks and Regional Rural Banks for approved agricultural purpose.
4. It provides long-term loans up to 20 years to the State Governments.

Working of NABARD:

     The National Bank is an apex organisation with respect to all matters relating to policy, planning and operational aspects in the flow of 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. It is the single integrated institution for meeting the credit requirements of all types of agricultural and rural development activities. It performs various functions smoothly and efficiently. It does not deal directly with farmers and other rural people. It grants assistance to them through the C0-operative Banks, Commercial Banks, Regional Rural Banks etc.,

• NABARD provided short-term finance to the tune of Rs. 6229 crore in the year 1996-97.
• It also provided medium-term credit amounting to Rs. 46 crore in 1997-98.
• It sanctioned long-term credit assistance amounting to Rs. 150 crore in 1997-98.

An important place in schematic lending of NABARD of the farm mechanisation, land development, IRDP etc., are more important schemes which are financed by NABARD. State Cooperative Agricultural and Rural Development Banks (SCARDB's- formely the Land Development Banks) now lead in availing refinance facilities from NABARD. It has vigorously continued its efforts in promoting investments in the agricultural sector in the less developed/under developed States- U.P, Bihar, M.P, Rajasthan and Orissa. In that order, have been the biggest beneficiaries. Thus NABARD has taken the entire rural credit schemes. Much is expected to give a tremendous push to agricultural  credit to promote agriculture and rural development.

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