NABARD - A APEX FINANCIAL INSTITUTION

National Bank for Agricultural and Rural Development was established in July 1982. It was established by an act of parliament based on the recommendation of CRAFICARD. It is the apex financial institution mainly operating in the field of agriculture and other rural economic activities.

The refinance provided by NABARD has two objectives:

·         Supplementing the resources of the cooperatives banks and RRB for meeting the credit needs of its client.

·         Ensuring simultaneously the buildup of a sound, efficient, effective and viable cooperative credit structure and RRB for purveying credit.

NABARD participates in forming annual action plan at the block, district and state level. It monitors the implementation of credit plan in the respective level. Moreover it provides guidance in respect of implementation of credit plan to the credit institution.

Development and promotional activities:

1.       Nurturing and strengthening the rural financial institution.

2.       Fostering the growth of the Self Help Group bank linkage programme.

3.       Development and promotional initiatives in farm and non-farm sector.

4.       Extending assistance for research and development.

Since NABARD is a apex Development Bank it shares with the central bank of country some supervisory function in relation to co-operative bank and RRB (Regional Rural Bank) .