NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD)
At the instance of Government of India Reserve Bank of India (RBI),
constituted a committee to review the arrangements for institutional
credit for agriculture and rural development (CRAFICARD) on 30 March
1979, under the Chairmanship of Shri B.Sivaraman, former member of
Planning Commission, Government of India to review the arrangements for
institutional credit for agriculture and rural development. The
Committee, in its interim report, submitted on 28 November 1979, felt
the need for a new organisational device for providing undivided
attention, forceful direction and pointed focus to the credit problems
arising out of integrated rural development and recommended the
formation of National Bank for Agriculture and Rural Development (NABARD).
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
dedicated to the service of the nation by the late Prime Minister Smt.
Indira Gandhi on 5th November, 1982.
NABARD was set up with an initial capital of
crore. Consequent to the revision in the composition of share capital
between Government of India and RBI, the paid up capital as on 31 March
2013, stood at
crore with Government of India holding
crore (99.50%) and Reserve Bank of India 20.00 crore (0.50%).
Promote sustainable and equitable agriculture
and rural prosperity through effective credit support, related services,
institution development and other innovative initiatives.
Particulars of NABARD, functions and its duties
NABARD is a Development Bank with a mandate for
providing and regulating credit and other facilities for the promotion
and development of agriculture, small-scale industries, cottage and
village industries, handicrafts and other rural crafts and other allied
economic activities in rural areas with a view to promoting integrated
rural development and securing prosperity of rural areas, and for
matters connected therewith or incidental thereto.
In discharging its role as a facilitator for rural
prosperity, NABARD is entrusted with
Providing refinance to lending institutions in
Bringing about or promoting institutional
Evaluating, monitoring and inspecting the client
Besides this pivotal role, NABARD also:
Acts as a coordinator in the operations of rural
Extends assistance to the government, the Reserve
Bank of India and other organizations in matters relating to rural
Offers training and research facilities for
banks, cooperatives and organizations working in the field of rural
Helps the state governments in reaching their
targets of providing assistance to eligible institutions in
agriculture and rural development
Acts as regulator for cooperative banks and RRBs
Some of the milestones in NABARD's activities are:
Production Credit: NABARD sanctioned
aggregating of 66,418 crore short term loans to Cooperative
Banks and Regional Rural Banks (RRBs) during 2012-13, against
which, the maximum outstanding was 65,176 crore.
Investment Credit : Investment Credit for
capital formation in agriculture & allied sectors, non-farm
sector activities and services sector to commercial banks, RRBs
and co-operative banks reached a level of 17,674.29 crore as on
31 March 2013 registering an increase of 14.6 per cent, over the
Rural Infrastructure Development Fund (RIDF):
Through the Rural Infrastructure Development Fund (RIDF)
16,292.26 crore was disbursed during 2012-13. A cumulative
amount of 1,62,083 crore has been sanctioned for 5.08 lakh
projects as on 31 March 2013 covering irrigation, rural roads
and bridges, health and education, soil conservation, drinking
water schemes, flood protection, forest management etc.
New Business Initiatives:
NABARD Infrastructure Development Assistance
(NIDA): NABARD has set up NIDA, a new line of credit support for
funding of rural infrastructure projects. The sanctions under
NIDA during the year 2012-13 was 2,818.46 crore and disbursement
was 859.70 crore.
Producers Organisations Development Fund (PODF):
In its endeavour to support Producer’s Organizations in a
comprehensive manner, NABARD sanctioned as assistance of 55.95
crore out of Producer Organization Development Fund (PODF) to 34
PO’s during 2012-13. The disbursment amounted to 29.18 crore
covering major activities like dairy, fishery, marketing
infrastructure and agro processing infrastructure.
Direct refinance assistance to CCBs for short
term multipurpose credit:
Direct refinance assistance to CCBs was conceived and additional
line of finance for CCBs in the light of recommendations of the
“Task Force on Revival of Short Term Rural Cooperative Credit
Structutre, which enables the latter to raise financial
resources other than from StCBs. During 2012-13, refinance
assistance aggregating 3,385 crore was sanctioned to 42 CCBs and
three StCBs and disbursement stood at 2,363.45 crore.
Support to develop PACS as Multi Service
Centres: Keeping in mind the wide coverage of PACS at the ground
level and the limited products at their disposal, NABARD
extended financial support to StCBs/CCBs/PACS to develop PACS as
Multi Service Centre (MSCs) so as to serve as “one Stop
Shop”unit for meeting the various requirements of the farmers.
During 212-13,747 PACS were supported with sanction of 141.17
crore and the disbursements thereagainst stood at 48.84 core,
assistance for estabilishment of agro service, processing,
storage and information centres, etc.
NABARD Initiated Project on Core Banking
Solutions (CBS) in Co-operatives :
Through Core Banking Solution (CBS), Co-operatives are being
brought to a higher technology platform so as to compete with
other banks for business and growth. The programme made rapid
strides with 5,543 branches of 163 banks across 10 States
joining the platform in the first phase and 42 banks joining in
the second phase, a total of 7,088 branches of 205 StCBs and
CCBs across 16 States and three UTs came into the umbrella of
the programme as on 31 March 2013.
Watershed Development Fund (WDF): The
cumulative number of watershed projects sanctioned under
Watershed Development Fund (WDF) stood at 586 in 16 States
covering an area of 5.40 lakh ha with total commitment (loan and
grant component) of 306.36 crore as on 31 March 2013.
Farm Innovation and Promotion Fund (FIPF) and
Farmers’ Technology Transfer Fund (FTTF): The funds were created
out of the operating profits of NABARD to support innovative
ventures and to support technology transfer in farm sector and
its corpus stood at 50.00 crore and 61.21 crore respectively as
on 31 March 2013. Grant assistance of 9.90 croreand 39.79 crore,
respectively, were disbursed for various interventions under the
programme during 2012-13.
Farmers’ Clubs: With the launching of 24,802
new Farmers’ Clubs during the year, the number of clubs reached
1.27 lakh as on 31 March 2013.
Umbrella Programme on Natural Resource
Management (UPNRM): UPNRM aims to boost rural livelihoods by
supporting community-managed sustainable natural resource
management projects. Assistance of 174.30 crore was sanctioned
during 2012-13 taking the cumulative sanction to 386.92 crore as
at the end of March 2013. The cumulative disbursment under the
programme amounted to 217.57 crore, including 207.23 crore as
loan and 10.34 crore as grant.
Tribal Development Fund (TDF): During the
year 2012-13, financial assistance of 224.26 crore was
sanctioned for 69 projects benefiting 53,700 tribal families in
14 States. The cumulative sanction as on 31 March 2013 was 1,432
crore, covering 3.80 lakh families in 484 projects across 26
Financial Inclusion Fund (FIF) and the
Financial Inclusion Technology Fund (FITF) :
As on 31 March 2013, the cumulative sanctions under FIF and FITF
were 181.64 crore and 365.49 crore, respectively againstwhich
disbursements were 69.77 crore and 201.30 crore, respectively.
SHG-Bank Linkage Programme: As on 31 March 2013, there were more than
73.18 lakh savings linked Self Help Groups (SHG) and more than 44.51
lakh credit-linked SHGs covering over 10.3 crore poor households under
the micro-finance programme. NABARD carried forward its guiding role in
the microfinance programme during 2012-13 by taking a host of new
initiatives and consolidating some of the already operational
Some of the Initiatives of NABARD in Tamenglong