- About NABARD:
The Indian economy, in the pre-independence period, was agricultural. After independence, the developing Indian economy mainly focused on trade and commerce. However, a major population of India live in rural areas. Therefore, it is important to develop the financial activities of rural sectors and mainly for this reason NABARD has been set up by the Indian government. The bank plays a major role in dealing with the matters like policy, planning and functions in the sector of agriculture and other financial activities of rural India. All the works related to the development of small industries, cottage industries and rural projects have been handled by NABARD.
- Background:
With the initial capital of 100 crores, NABARD was established on 12 July 1982 on the recommendations of the B. Sivaraman Committee. The headquarter of NABARD is situated in Mumbai with its many rural divisions and branches. The main function of NABARD is to develop the current rural credit system. NABARD supervises and regulates the Co-operative banks and Regional Rural Banks, those which provide half the credit in the rural areas. NABARD is instrumental in various social innovations and projects. With the partnership of multiple organizations, many innovative projects like SHG-Bank linking, schemes for soil preservation and water conservation have been performed by NABARD. Over the last thirty years, the institution has gained the trust of the farmers and villagers.
- Departments and Team:
NABARD has several departments –
- Department of Business Initiatives
- Central Vigilance Cell
- Department of Corporate Communications
- Department of Corporate Planning
- Department for Data Management Analytics and Business Intelligence
- Department of Financial Inclusion and Banking Technology
- Department of Information Technology
- Department of Premises, Security and Procurement
- Department of Refinance
- Department of Storage and Marketing
- Department of Subsidiaries and Strategic Investments
- Department of Supervision
- Department of Farm Sector Development
- Finance Department
- Human Resource Management Department
- Inspection Department
- Institutional Development Department
- Law Department
- Micro Credit Innovations Department
- Off-Farm Development Department
- Rajbhasha Prabhat
- Risk Management Department
- Secretary’s Department
- State Projects Department
- Strategic Planning and Product Innovation Department
A Board of Directors governed the external and internal affairs of NABARD. The Indian government appoints the Board of Directors in consonance with NABARD Act. Names and Addresses of the Board of Directors of NABARD are:
- G.R. Chintala ( Chairman )
National Bank for Agriculture and Rural Development, Mumbai.
- M.D. Patra ( Director )
Deputy Governor, Reserve Bank of India, Shahid Bhagat Singh Road, Mumbai.
- Revathy Iyer ( Director )
- Ashok Gulati ( Director )
- Sanjay Gulati ( Director )
Secretary, Ministry of Agriculture, Department of Agriculture, Cooperation & Farmers’ Welfare, Government of India, New Delhi.
- Shri Nagendra Nath Sinha ( Director )
Secretary, Ministry of Rural Development, Government of India, New Delhi.
- Shri Sanjeev Kaushik ( Director )
Additional Secretary, Department of Financial Services, Ministry of Finance, Government of India, New Delhi.
- Shri Alok Sinha ( Director )
Additional Chief Secretary and Agriculture Production Commissioner, Government of Uttar Pradesh.
- Shri Hans Raj Verma ( Director )
Additional Chief Secretary, Rural Development & Panchayati Raj, Government of Tamil Nadu.
- M.V.Rao ( Director )
Additional Chief Secretary, Cooperation & Panchayati Raj, Government of West Bengal.
- Shri Lalhmingthanga ( Director )
Commissioner & Secretary, Agriculture And Rural Development, Government of Mizoram.
- Shri P.V.S. Suryakumar ( Deputy Managing Director )
National Bank for Agriculture and Rural Development, Mumbai.
- Shri Shaji K V ( Deputy Managing Director )
National Bank for Agriculture and Rural Development, Mumbai.
- Functions of NABARD:
NABARD performs mainly three types of functions, which includes credit functions, functions of development and functions of supervision –
- It makes a policy for rural credit in India for all financial organizations.
- NABARD has the power to provide finance and refinancing provisions to the banks and rural regional banks.
- It recognizes the credit potentiality and preparation of the credits for all regions.
- NABARD helps the organizations and regional banks under its supervision with the making of their credit policies and plans.
- It works as a bridge in the agreement of co-operative banks and state governments.
- NABARD also supervises the implementations of recommended plans and programmes realistically
- It helps the banks to improve their technology and development of human resources.
- According to the Banking Regulation Act 1949, NABARD must inspect all the regional rural banks and other co-operative banks.
- NABARD consults with the Reserve Bank of India in different matters like issuing licenses for new establishments of banks, the opening of rural banks etc.
- It also investigates the investment portfolios of rural and regional banks.
- Rural Innovation :
National Bank For Agriculture & Rural Development ( NABARD ) plays a significant role in promoting credit flow for agricultural developments as well as the growth of cottage industries and small village industries. The role of NABARD is crucial in the rural and agricultural development of India. NABARD sets the Rural Innovation Fund with the assistance of the Swiss Agency for Development and Cooperation. Another important scheme of NABARD is Rural Infrastructure Development Fund ( RIDF ), under which 51 crores have been sanctioned for almost 2 lakh 45 thousand projects that include soil preservation, rural roads and bridge health education and other schemes. RIDF is designed to assist innovative and new experiments to increase the opportunities for livelihood and income of the rural people. The support is extended to different NGOs, Cooperative Banks, Panchayati Raj Institutions who have the expertise and desire to implement the ideas for making the village life better.
- Partner Institutions :
- Scheduled Commercial Banks
- Non-Banking Finance Companies
- State Cooperative Banks
- State Governments
- Regional Rural Banks
- Scheduled Urban Cooperative Banks
- Farmers’ Collectives and Producers’ Organization
- Rural Financial Institutions
- NGOs and Voluntary Agencies
- Rural Innovators
- Self-Help Groups
- Farmers’ Clubs
- Research’s Organizations
- Joint Liability Groups etc.
- Recent Initiatives :
NABARD has taken some recent initiatives regarding COVID-19 which speaks about the preventive measures of COVID-19, Operational and Business Continuity Measures, Emergency Team at Residential Premises. It also includes Sanitation Campaign Corner, Formulation of Long Term Refinance Schemes etc.
NABARD is the most significant institution in the country which looks after the all-around development of rural industries.
