Question
Write a note on $NABARD.$

Answer

India constituted $NABARD ($National Bank for Agriculture and Rural Development$)$ in $1982,$ other regional rural banks were also made.
  • $RBI$ and Indian government have equal shareholding in $NABARD.$
  • It is one of the important part of the Central Bank of India.
  • It helps regional rural banks and Land Development banks to grow.
  • $NABARD$ works only for agriculture sector so it is also known as Central Bank of Agriculture.
  • Working of $NABARD:$
  • Farmers should be able to avail finance easily and at a low rate of interest, so $NABARD$ is doing the following:
$(1)$ It looks after the financial needs of the rural areas.
$(2)$ Looks after working of regional landing.
$(3)$ Gives loans for medium and long term to regional rural banks and other financial institutes.
$(4)\ NABARD$ helps for small irrigation, mechanization of farming etc to land development banks, Regional Rural Bank, State Government Banks etc.
$(5)$ Helps in farming and rural development by doing research and imparting education.
It undertakes various researches and gives information to the farmers for the same.
$(6)$ Gives loans for long term to State Government Co-operatives and also participates in their shareholding.
$(7)$ Established $RIDF ($Rural Infrastructure Development Fund$)$ for creating better infrastructure in rural areas.
  • In short, $NABARD$ helps in rural financing.
  • It also helps other institutes which give rural financing and it also looks after the working of other Rural Co operative Banks.

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