Why is NABARD preffered over RBI for rural deelopmet?
NABARD is an apex institution that undertakes matters concerning policies, planning and operations in the field of agriculture credit for agriculture and other development activities in the rural areas in India. NABARD was established as an apex institution specially set up for facilitating and promoting rural development. It is preferred over RBI in terms of rural development; as it was thought to operate especially for the rural development and letting RBI focus on other important core areas of the Indian economy. In this regard, RBI performs a much wider function as 'development role' for the whole economy and not particularly on the rural development. On the other hand, NABRAD performs a comparative narrow function by focusing on the rural development. Also, NABARD has a greater degree of specialisation, as it focuses only on one parameter that is rural development and supervises and coordinates the operations of the financial institutions in the rural areas. Therefore, we can say that NABARD acts as an extension assistant to RBI for matters pertaining to rural development.