NABARD Full Form

What is the full form of NABARD?

The full form of NABARD is the National Bank for Agriculture and Rural Development. It is the premier regulatory body for the overall regulation of local and cooperative banks in India. Based in Mumbai, Maharashtra, it was established on 12th July 1982 by Act of Parliament on the recommendation of the B. Shivaraman Commission.

This Story also Contains

1. What is the full form of NABARD?
2. Role of NABARD
3. NABARDs’ Vision and Mission
4. Partner Institutions/Clients

NABARD, as a development bank, provides credit and funding for the promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural handicrafts, and other related economic activities in rural areas. It is authorized to provide and regulate other facilities. promoting integrated rural development and ensuring rural prosperity, and matters related or related thereto;

Bank is under the Ministry of Finance, Government of India, and is entrusted with 'Matters Concerning Policy, Planning and Administration of Credit for Agricultural and Other Economic Activities in Rural Areas of India'. He is energetic and committed to the development and implementation of financial inclusion.

Role of NABARD

NABARD fulfils its duty by playing the following roles:

• It serves as the apex financial agency for investment and production credit institutions to support various development activities in rural areas.
• Take institution-building measures to improve the absorptive capacity of the lending system. This includes monitoring, designing rehabilitation programs, restructuring credit agencies, and training staff. Government of India, State Governments, Reserve Bank of India (RBI) and other national level bodies involved in policy making.
• Monitors and evaluates projects refinanced by it.
• NABARD refinances financial institutions that finance rural areas.
• NABARD is involved in the development of institutions that help the rural economy.
• NABARD also audits its client institutions.
• Regulates institutions that provide financial assistance to the rural economy.
• Provides training facilities to institutions working in the field of rural upliftment.
• Regulates and supervises cooperative banks and RRBs across India.

NABARD is also known for its 'SHG Bank Linkage Programme', which encourages Indian banks to lend to Self Help Groups (SHGs). Primarily because SHGs are predominantly composed of poor women, it has evolved into an important Indian microfinance tool. By March 2006, 22 lakh SHGs representing 3.3 million members had to be linked with credit through this programme.

NABARD also has a portfolio of natural resource management programs covering various areas such as watershed development, tribal development and farm innovation through earmarked funds set up for the purpose.

NABARDs’ Vision and Mission

NABARDs vision is to work as a development bank of the nation to promote rural prosperity.

And its mission is to promote sustainable and equitable agriculture and rural development through participatory financial and non-financial interventions, innovation, technology, and institutional development to ensure prosperity.

Partner Institutions/Clients

The various clients of NABARD are of two types. One is credit-oriented and the other development oriented. Some of them are listed as follows:

Credit-related

• Planned commercial banks
• State governments
• State-owned bodies and corporations
• Regional rural banks
• State cooperative banks
• District central cooperative banks
• State cooperative banks for agriculture and rural development
• Planned urban cooperative banks
• Small finance banks
• Non-bank financial companies
• Farmer collectives and producer organizations
• Firms/companies, individual entrepreneurs, SPV in PPP mode, etc. for projects within the Warehouse Infrastructure Fund.

Focused on development

• Rural financial institutions
• Non-governmental organizations and voluntary agencies
• Developmental and self-earning educational institutions
• Self-help groups
• Rural innovators
• Shared responsibility groups
• Farming clubs
• Research organizations