Full Form of NABARD with All Details

Nabard Full Form

Nabard Full Form

As compared to urban areas, the pace of development in the rural areas has always been slow due to the lack of resources and institutions. Therefore, to promote the development of rural areas, to boost financial operations, and promote sustainable agriculture, the Government of India established the National Bank for Agricultural and Rural Development (NABARD).

NABARD is responsible for regulating India’s rural banking system and hence, it is considered as a ‘development finance institution’. It works on three main areas- Finance, Development and Supervision. So, to enhance the rural development of the country, this bank is providing and regulating credit to the rural areas.

Moreover, to ensure that the rural development of the country happens smoothly, NABARD conducts a recruitment drive every year to recruit eligible candidates in Grade A and Grade B. Therefore, NABARD Grade A and Grade B exam is one of the most sought after exams in India. Thousands of candidates appear every year to realise their dream of becoming a NABARD Grade A or Grade B officer. 

In this blog, we will go over all the details regarding what NABARD is, its role, functions and schemes. This article will be quite helpful from the exam point of view, so we encourage you to read it till the end.

Nabard Full Form

What is NABARD?

Establishment of NABARD

NABARD: Role & Functions

NABARD is the topmost development finance institution which deals with the development of rural areas of India. It is majorly responsible for sorting out the financial requirements of the rural India, especially the farmers. Some of the main responsibilities that NABARD is entrusted with are :

NABARD: Refinance Facility

Refinance as the name suggests is a finance facility provided ‘again’ by an institution to a borrower. It is the substitution of an existing loan with another loan on lower interest rates and different terms. To support the rural areas, NABARD provides refinance facility to promote capital infusion in the agriculture sector, with a repayment period of five years. These terms and conditions may vary according to the state or country. NABARD also receives its refinance funds from the World Bank and Asian Development Bank.

Also See: Why Should You Prepare for RBI Grade B, NABARD Grade A and SEBI Grade A together?

NABARD Schemes

Apart from providing credit for agriculture and promoting rural development, NABARD is also responsible for circulating its various schemes through banks and other credit-lending institutions across India.

Given below are the interest rates (as of April 2022) offered by NABARD for refinancing to banks and other credit-lending institutions under the NABARD Scheme.

Short Term Refinance Assistance

4.50% for the following institutions:

  • State Cooperative Banks for financing crop loans
  • RRBs for financing crop loans
  • DCCBs directly financing for crop loans
  • Commercial Banks./RRBs in respect of their finance to PACS towards crop loans

5.50% for ST – Additional SAO/ST(Others)/ ST (SAO ) -SCARDBs (Annual Product)

8.10% for StCBs/RRBs – Conversion of Short Term – Crop loans into Medium Term loans

Long Term Refinance Assistance

5.80% – Long Term loan to State Government for contribution to share capital of cooperative credit institutions

Regional Rural Banks (RRBs) & State Cooperative Banks (StCBs)

6.40% – Refinance for 5 years and above

6.00% – Refinance for 3 years to less than 5 years

5.50% – Refinance for 18 months to less than 3 years

State Cooperative Agriculture and Rural Development Banks (SCARDBs)

6.45% – Refinance for 5 years and above

6.05% – Refinance for 3 years to less than 5 years

5.55% – Refinance for 18 months to less than 3 years

Direct Lending

Bank Rate – 1.50%

Please Note-

Features of NABARD Scheme

Loans & Funds under the NABARD Scheme

Direct Finance Schemes

Refinance Schemes

Schemes for Farmers

Off-Farm Sector Schemes

Study with ixamBee for NABARD

Online Course

The NABARD 2022 notification is expected to release soon. Therefore, to help you realise your goal of becoming a part of this prestigious organisation, ixamBee is providing the NABARD Grade A Online Course and NABARD Grade B Online Course. Both these courses have been curated for you by our experts, who have first-hand experience in this field.

Free Mock Tests

Furthermore, we also encourage you to take the NABARD Grade A Free Mock Tests and NABARD Grade B Free Mock Tests. This will enable you stay updated with the latest question trend. Moreover, you will give you a clear picture of your exam preparation and performance.

We wish you the best always!!

At ixamBee, you can find free Online Test Series, GK updates in the form of BeePedia, as well as latest updates for SBI PO, Bank Clerk, SSC, RBI, NABARD, and Other Government Jobs.

Also Read:

NABARD Grade A and B 2022: Expected Date & Preparation Strategy

NABARD 2022 Study Plan: 90-Day Study Plan for Grade A & Grade B!

Agriculture Current Affairs for IBPS AFO, NABARD, FCI, UPSC

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