National Bank for Agriculture and Rural Development came into existence on 12th July 1982, under Parliament Act –National Bank For Agriculture And Rural Development Act 1981 on the recommendation of B .Sivaraman Committee with a focus primarily on the rural sector of the society.
It is the apex bank to provide finance for agriculture and rural development. Before this , RBI was extending agriculture credit through state- level cooperative and land development banks. In 1963, RBI set up the Agriculture Refinance Development Corporation (ARDC) to meet the long term credit requirement of rural areas . But with NABARD formation all credit functions of RBI and the refinance functions of ARDC was taken by it and ARDC was merged with it .
NABARD has its headquarters in Mumbai.The authorized share capital is 500 crore and paid capital is 100 crore which is contributed equally by the RBI and the Government . Deputy Governor of the RBI is appointed as chairman of NABARD and three of its central board directors are nominated as a member of the board of NABARD .
Functions of NABARD
NABARD plays a very important role in the upliftment of the rural economy and its overall development. Its functions include-
- Building an empowered and financially inclusive rural India through specific goal- oriented departments categorized into three heads – financial , development and supervision.
- Refinance support for buildings and infrastructure
- Providing short, medium and long term credit to state cooperative banks, RRBs, commercial bank for investment in agriculture and other allied activities .
- Provide training to handicraft artisans and help them in developing a marketing platform for selling these articles.
- Supervise cooperative banks and RRBs’ functioning and help them in integrating to the CBS (core banking solution ) platform – CBS is the networking of branches , enabling customers to operate their accounts and avail banking services from any branch of the bank , regardless of where he/she maintains an account.
- Helps the Central government in designing development schemes and their implementation thus helping in the overall development of small scale village and cottage industries , rural crafts and other industries in the unorganized sector.
- Receives financial assistance and advisory services from world- leading global organizations and mobilizes resources by issuing bonds and debentures guaranteed by the Central Government .
- It also maintains a Research And Development Fund known as RIFD ( Rural Infrastructure Development Fund ) to promote research in agriculture and rural development .
NABARD has contributed to every aspect of rural economy whether it is finance –refinancing short, long term loans, food processing fund, warehouse infrastructure fund, credit facility to marketing federation etc or development – Kisan credit card scheme for farmers, climate- resilient agriculture, RuPay Kisan Cards, umbrella programme on natural resource management etc.
NABARD also proves to be a great organization to work in. It recruits eligible candidates through an online examination for two major posts: NABARD Grade A & NABARD Grade B. A large number of candidates await and apply for these posts.