what is role of NABARD in rural credit in india?
NABARD stands for National Bank for Agricultural and Rural Development
NABARD has been set up in india in 1982 to promote the integerated rural development.It has adopted a multi-dimensional strategy for the promotion of rural business enterprises in india.Apart from agriculture it also provide support the the rural firms finacially and in terms of technology.it also provide consultancy services.it grants loan to the state cooperative societies which grants loan to district cooperatives and then to primary and finally to the farmers.
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Overview: NABARD is set up by the Government of India as a development bank with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural development. The mandate also covers supporting all other allied economic activities in rural areas, promoting sustainable rural development and ushering in prosperity in the rural areas. With a capital base of Rs 2,000 crore provided by the Government of India and Reserve Bank of India , it operates through its head office at Mumbai, 28 regional offices situated in state capitals and 391 district offices at districts.It is an apex institution handling matters concerning policy, planning and operations in the field of credit for agriculture and for other economic and developmental activities in rural areas. Essentially, it is a refinancing agency for financial institutions offering production credit and investment credit for promoting agriculture and developmental activities in rural areas.
- Initiates measures toward institution-building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
- Coordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with the government of India , State governments, the Reserve Bank of India and other national level institutions concerned with policy formulation.
- Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutions.
- Undertakes monitoring and evaluation of projects refinanced by it.
- Promotes research in the fields of rural banking, agriculture and rural development.
- Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional rural banks.Hope this helps..!!Cheers..!! :)