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NABARD introduction (Banking Awareness)

NABARD An overview and introduction. NABARD stands for National bank for agriculture and rural development and it has formed with the objective to provide loan to the farmers, artisans and very small scale income group and casual labors. Currently NABARD is the regulator of all the RRBs (Regional rural banks) and RRBs fulfill the objectives which were made for NABARD. RRBs provide the loan and refinancing help to the farmers and rural people with low income. It encourages the agriculture by providing loan for agriculture, seeds, irrigation, small and day to day needs of the farmers, artisans and other low income group rural people. It was formed with the existence of CRAFICARD – Committee for review of arrangements for institutional credit for agriculture and rural development.

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CRAFTICARD was made to investigate and research the areas of growth of agriculture and factors which was affecting the rural growth and its development. It consequently came out with the suggestions to forming a bank for rural development which was called NABARD. NABARD was established on 12th July 1982 on the recommendation of CRAFICARD.

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Here are some useful information regarding NABARD and its operations d objectives which the candidates need to know for the upcoming banking examination. The information has been arranged in the logical order which will help you understand the things clearly and you can learn the details. In the current affairs section, it is often asked in the examination and candidates who have been preparing for the current affairs section should also focus on the banking awareness from which at least 10-12 questions are always asked in the examination.

Some of the Important details to learn about NABARD is given as under:

  • Chairman : Dr. Harsha Kumar Bhanwala
  • Head Quarters : Mumbai

Some other important points to know about NABARD and its functioning are as under:

Here are some of the functions which the candidates have been looking for. Candidates can download the

  • It assists Cooperative Banks, RRBs, Land Development Banks & Scheduled Commercial banks in lending to farmers, rural artisans and other non-farmers in rural areas and to the State Governments for minor irrigation.
  • Land Development Banks are now called State Co-op. Agricultural and Rural Development Banks.
  • NABARD grants short-term loans for 18 months for seasonal agricultural operations. It only refinances.
  • It meets the credit needs of farmers, rural artisans through the above organizations for financing minor irrigation, SHGs, SGSRY, Wasterland Development, Horticulture, Land Development, Farm Mechanization, Animal Husbandry, Fisheries etc. at 6.75% Interest.
  • NABARD manages Financial Inclusion Fund.
  • Rural Infrastructure Development Fund (RIDF) is operated by NABARD, instead in April 1995
  • NABARD is the “Micro-Finance Regulatory Authority”
  • Water Shed Development Fund was instituted with NABARD.
  • The Government of India holds 99% stake. in NABARD and currently 1% is held by the Reserve Bank of India. Initially, the RBI used to held 72.5 per cent of equity in NABARD but from October, 2012 the Reserve Bank of India (RBI) has divested 71.5 per cent stake amounting to Rs 1,430 crore in National Bank for Agriculture and Rural Development (NABARD) in favour of the government
  • 2009-10 budget allotted Rs. 14,00 Cr. under RIDF XV tranch + Rs. 4000 Cr. to Rural roads.
  • NABARD replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC)
  • 2010-11 Budget allots Rs. 400 Cr. for Micro – Finance Eqity Fund. NABARD completed its 30 years on 12th July, 2012. Government of India is planning to take NABARD and National Housing Bank for Rs. 1,900 Cr.

Candidates who have been preparing for the examination should read the working and its functions through the points as given above and they can prepare well for the general awareness section. There are a lot of things to read under General awareness section and candidates should keep preparing for the examination for its details. NABARD has been formed with the objectives to rejuvenate the micros scale businesses as that of artisans and local sellers, provide credit facility to the regional rural banks who are working on behalf of NABARD to provide loan and advances to farmers etc. NABARS also work under RBI and is regulated by Reserve bank of India. It also works under the ministry of finance, government of India.

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