{"id":1304,"date":"2024-10-29T18:07:00","date_gmt":"2024-10-29T12:37:00","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=1304"},"modified":"2024-10-29T18:07:03","modified_gmt":"2024-10-29T12:37:03","slug":"full-form-of-nabard-with-all-details","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/full-form-of-nabard-with-all-details","title":{"rendered":"Full Form of NABARD with All Details"},"content":{"rendered":"\n

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).<\/p>\n\n\n\n

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 provides and regulates credit to rural areas. <\/p>\n\n\n\n

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 realize their dream of becoming a NABARD Grade A or Grade B officer.\u00a0Before applying for any such exam, it is really important for you to get familiarised with the organization first. Knowing the organization, its functions, and many other things motivates you to apply for this exam and also lets you analyze whether you will be a great fit for this organizational role or not.<\/p>\n\n\n\n

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.<\/p>\n\n\n

\"\"<\/figure>\n\n\n

What is NABARD?<\/strong><\/h2>\n\n\n\n
    \n
  • NABARD<\/b> stands for <\/span>National Bank For Agriculture and Rural Development<\/i><\/b>. <\/span><\/li>\n\n\n\n
  • It is a government organization with its headquarters in Mumbai, Maharashtra, and was formed on<\/span> July 12, 1982<\/b>. <\/span><\/li>\n\n\n\n
  • The main motive behind the establishment of this organization was working towards \u2018development assistance\u2019 and \u2018poverty reduction\u2019. <\/span><\/li>\n\n\n\n
  • The term \u2018development assistance\u2019 refers to the cooperation or financial aid provided by the government and other agencies to contribute to the overall development of the \u2018developing countries\u2019. This makes NABARD a <\/span>\u2018development finance institution\u2019<\/b>. <\/span><\/li>\n\n\n\n
  • It works closely in the field of credit for agriculture and other activities in rural areas in India. In other words, NABARD can be referred to as the main bank\/regulatory body for rural development and agriculture in the country.<\/span><\/li>\n\n\n\n
  • NABARD has a number of offices spread across the country,<\/span> having several departments, with each of them assigned specific objectives and responsibilities. <\/span><\/li>\n<\/ul>\n\n\n\n

    Establishment of NABARD<\/strong><\/h2>\n\n\n\n
      \n
    • Before NABARD came into existence, there existed an organisation called <\/span>Agricultural Refinance and Development Corporation<\/span><\/i> which was formulated with the view of providing refinancing facilities. <\/span><\/li>\n\n\n\n
    • Earlier RBI was actively linked and involved with agricultural finance which gradually started becoming difficult. Moreover, the <\/span>Agricultural Refinance and Development  Corporation<\/span><\/i> (ARDC) was unable to fulfill the requirements of refinance. <\/span><\/li>\n\n\n\n
    • Therefore, RBI decided to distance itself from the agricultural finance and that\u2019s when a committee was set up under <\/span>Mr.Sivaraman <\/b>who was its chairman. The recommendations given by Sivaraman committee were accepted and were followed for the formation of NABARD on 12th July 1982. <\/span><\/li>\n\n\n\n
    • The present Chairman of NABARD is: <\/span>Dr. G.R. Chintala.<\/b><\/li>\n<\/ul>\n\n\n\n

      NABARD: Role & Functions<\/h3>\n\n\n\n

      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 :<\/span><\/p>\n\n\n\n

        \n
      • NABARD provides refinance facility to the agricultural sector. <\/span><\/li>\n\n\n\n
      • It deals with the matters concerned with \u2018policy, planning and operations\u2019 in the agricultural sector and other developmental activities in rural India.<\/span><\/li>\n\n\n\n
      • It also takes care of the development of cottage industries, village industries, small scale industries and other rural industries.<\/span><\/li>\n\n\n\n
      • It also refinances the institutions that provide financial aid to the rural areas.<\/span><\/li>\n\n\n\n
      • It is also involved in training the institutions that are working towards the upliftment of the rural areas.<\/span><\/li>\n\n\n\n
      • It is also responsible for the implementation of the programmes aimed at rural development.<\/span><\/li>\n\n\n\n
      • Since NABARD is responsible for coordinating all the finance activities in the rural areas, it also has to stay in constant touch with all the important institutions like the RBI, Central Government, State Government or any other institution that may be involved in the ongoing agriculture and rural development activities.<\/li>\n\n\n\n
      • Regulation and supervision of the RRBs is another important role of NABARD. It supervises State Cooperative Banks (SCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs).<\/span><\/li>\n<\/ul>\n\n\n\n

        NABARD: Refinance Facility<\/strong><\/h2>\n\n\n\n

        Refinance <\/b>as the name suggests is a finance facility provided \u2018again\u2019 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.<\/span><\/p>\n\n\n\n

          \n
        • NABARD has set up the <\/span>Rural Innovation Fund with the help of Swiss Agency for Development and Cooperation.<\/span><\/li>\n\n\n\n
        • It has also initiated another scheme for banks which aims at rural development called <\/span>Rural Infrastructure Development Fund (RIDF).<\/li>\n\n\n\n
        • Till now Rs 51,283 Crore has already been sanctioned for 2,44,651 projects.<\/span><\/li>\n<\/ul>\n\n\n\n
          \n