Question
Explain the regulatory functions of NABARD.

Answer

NABARD is empowered to undertake inspection of RRBs and Cooperative Banks, other than the Primary Cooperative Banks.
  1. Toopen a new branch, a recommendation of NABARD is imperative by RRBs or Cooperative Banks to seek permission from RBI.
  2. RRBs and Cooperative Banks, along with RBI, are required to file returns and documents with NABARD.

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