Union Cabinet approves proposal for amendments to NABARD Act, 1981

The proposed increase in the authorized capital of NABARD will allow the organisation to respond to the commitments it has undertaken.

Created On: Mar 23, 2017 13:18 IST

NABARDThe Union Cabinet, chaired by the Prime Minister Narendra Modi, on 22 March 2017 approved the proposal for Amendments to the National Bank for Agriculture and Rural Development (NABARD) Act, 1981.

CA eBook


Key Highlights

• Amendments to National Bank for Agriculture and Rural Development Act, 1981 include provisions that enable Union Government to increase the authorized capital of NABARD from Rs 5000 crore to Rs 30000 crore.
• It also proposes to increase the authorised capital beyond Rs 30000 crore in consultation with RBI, as deemed necessary from time to time.
• It also proposes the transfer of 0.4 per cent shareholding of RBI in NABARD to the Union Government. The shareholding of RBI amounts to Rs 20 crore.
• The proposed amendments also include changes in the long title and certain Sections to bring Medium Enterprises and Handlooms in NABARD’s mandate.   

Comment
The proposed increase in the authorized capital of NABARD will allow the organisation to respond to the commitments it has undertaken, particularly in respect of the Long Term Irrigation Fund and the recent Cabinet decision regarding on-lending to cooperative banks.

It will also enable NABARD to augment its business and enhance its activities to facilitate promotion of integrated rural development and securing prosperity of rural areas including generation of more employment.

The transfer of entire shareholding in NABARD held by RBI to the Union Government will remove the conflict in RBI's role as banking regulator and shareholder in NABARD.

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

AndroidIOS

Related Stories

Comment (0)

Post Comment

1 + 5 =
Post
Disclaimer: Comments will be moderated by Jagranjosh editorial team. Comments that are abusive, personal, incendiary or irrelevant will not be published. Please use a genuine email ID and provide your name, to avoid rejection.

    Monthly Current Affairs PDF

    • Current Affairs PDF November 2021
    • Current Affairs PDF October 2021
    • Current Affairs PDF September 2021
    • Current Affairs PDF August 2021
    • Current Affairs PDF July 2021
    • Current Affairs PDF June 2021
    View all

    Monthly Current Affairs Quiz PDF

    • Current Affairs Quiz PDF November 2021
    • Current Affairs Quiz PDF October 2021
    • Current Affairs Quiz PDF September 2021
    • Current Affairs Quiz PDF August 2021
    • Current Affairs Quiz PDF July 2021
    • Current Affairs Quiz PDF June 2021
    View all