NABARD is an apex development bank, having headquarter in Mumbai (Maharashtra). It was set up by the Reserve Bank of India on 12 July 1982 under the chairmanship of Shri B. Sivaraman. It has branches all over the country. NABARD is designated with a mandate to aid development and promotion of agriculture, small scale industries, Cottage and village industries, handicrafts and other rural crafts by providing and regulating credit and other facilities.
Roles and functions of NABARD: - It plays following important roles.
- It regulates the institution that provides financial aid to the rural economy.
- It gives training to the institutions that works for the upliftment of rural economy.
- It governs the cooperative banks and the RRB, and also manages the talent acquisition through IBPS-CWE.
- It also undertakes the monitoring and evaluation of projects run with it.
- It boosts R & D in the rural banking and the field of agriculture and rural development.
- It maintains liaison with Government of India, State Governments and RBI and other national financial institutions for policy formulation.
- It provides refinancing of lending institutions in rural areas.
- It monitors, evaluates and inspects the client banks.
Apart from the above milestones NABARD’s activities are: -
A. Business Operations: - It includes: -
1. Production Credits
2. Investment Risks
3. Rural infrastructure Development Fund
B. Development initiatives: -
1. Watershed development Board
2. Farmers’ Club
3. Tribal development fund
4. Umbrella program on natural resource Management etc.
C. New Business initiatives: -
1. Producers organizations Development Fund.
2. NABARD Infrastructure Development Assistance.
3. Support to develop PACS as Multi Service Centers.