Chairman of National Bank for Agriculture and Rural Development (NABARD), H K Bhanwala on 9 February 2014 said that the organisation has sanctioned loans worth over 19100 crore rupees under the Rural Infrastructure Development Fund (RIDF) to states for agriculture and allied activities. The loans were sanctioned till last week, which was a part of 20000 crore rupees allocated to it for 2013-14 in the Budget.
In NABARD’s last meet, the institution sanctioned 33 projects under agricultural and allied sector, 250 projects under the rural connectivity sector and 804 projects under the social sector with the total outlay of over 6000 crore rupees. Sole objective of institution of RIDF in NABARD was to give low cost fund support to state governments and state owned corporation for quick completion of projects related to medium and minor irrigation, soil conservation, watershed management and other forms of rural infrastructure.
National Bank for Agriculture and Rural Development (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
• Providing refinance to lending institutions in rural areas
• Bringing about or promoting institutional development and
• Evaluating, monitoring and inspecting the client banks
NABARD was constituted following an interim report submitted on 28 November 1979 by a committee under chairmanship of B Sivaraman, former member of Planning Commission, Government of India.
The Parliament, through Act 61 of 1981, approved the setting up of NABARD. The bank came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). NABARD was set up with an initial capital of 100 crore rupees.
Rural infrastructure development fund (RIDF)
The RIDF was set up by the Government in 1995-96 for financing ongoing rural Infrastructure projects. The Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD). Domestic commercial banks contribute to the Fund to the extent of their shortfall in stipulated priority sector lending to agriculture. The main objective of the Fund is to provide loans to State Governments and State-owned corporations to enable them to complete ongoing rural infrastructure projects.