plz explain functions of NABARD in more brief with example so as to easy to understand.

Established in 1982, NABARD controls and regulates the activities of rural banking institutions. Some of its functions are discussed below.

i. To act as the apex rural credit institute: NABARD serves as the apex agency for financial institutions that advance credit for various rural developmental activities such as agriculture, paultry etc. Credit allows the rural population to initiate various profitable ventures which could not be initiated earlier due to unavailability of funds.

ii. To take necessary steps for improving the credit delivery system: NABARD takes appropriate steps or measures to improve the credit delivery system. These measures include monitoring, formulation, restructuring of institutions and training of manpower.Ensuring timely and safe delivery of credit allows the rural population to maintain financial balance.

iii. To coordinate the rural financing activities: NABARD coordinates the rural financing activities of all credit institutions engaged in developmental work at the grass-roots level. For example, NABARD monitors commercial banks and other small credit agencies to determine whether they are working in the same direction for rural credit development or not.

iv. To refinance and monitor other financial institutions: NABARD refinances institutions that are involved in financing the rural sector. In addition, it also monitors and evaluates the projects that it refinances.For example, NABARD offers financial support to the institutions already operating in rural areas and various schemes initiated by them to ensure continous rural development.


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