AGRI Grovestudies
NABARD
(
National Bank for Agriculture and rural development )
NABARD is an apex development
bank in India having headquarters based in Mumbai (Maharashtra) and other
branches and all over the country.
It is an apex development Bank
authorized for providing and regulating credit and other facilities for the
promotion and development of agriculture, small – scale industries , cottage
and village industries , handicrafts and other rural crafts and other allied
economic activities in rural areas with
a view to promote integrated rural development and prosperity.
The committee to review
arrangements for institutional credit for agriculture and rural development, (
CRAFICARD ) , set up by the Reserve bank of India ( RBI ) under the
chairmanship of shri B. Sivaraman ,
conceived and recommended the establishment of the National bank for
agriculture and rural development (NABARD ).
It was established on 12th July 1982 by a special act by the
parliament and its main focus was to uplift rural India by increasing and rural
non farm sectors.
It has been accredited with a
matters concerning policy, planning and operations in the field of credit for
agriculture and other economic activities in rural areas in India.
History :-
Reserve bank of India (RBI) ,
constituted a committee to review the arrangement for institutional credit for
agriculture and rural development (CRAFICARD) on 30 March 1979, under the chairman ship of Shri
B. Sivaraman , former members of planning commission , government of India
to review the arrangements for institutional credit for agriculture and rural
development. He recommended the establishment of the National Bank for
Agriculture and rural Development (NABARD).
NABARD was established with an initial capital of 100cr., and on 12th July1892 by a special
act parliament 1981, by transferring the agricultural credit functions of RBI.
Board of Management :-
·
The board of management is
represented by the RBI, government of India, state Government and other
institutions.
·
Apart from MD and chairman
, the Board of Management consists of 13 other directors and these directors
will act as “ aAdvisory council” of NABARD. The act of 13-directors of Advisory
council.
·
à 2 are experts of Co-operations.
·
à 3 are representatives of commercial banks.
·
à 3 are the officials of government of India
·
à 2 are officials belong to state government.
Capital source of NABARD :-
Authorized source of capital of NABARD is RS. 500 cr. Equally contributed
by Govt. of India and RBI and issued and paid up capital of Rs. 100 cr.
The subscribed and paid up
capital as of March 2015 is Rs 5000cr. Out of which control government has
contributed 4980 cr. And RBI 20 br. Was granted by RBI.
Government of India holds 99%
state and RBI holds 1% state in NABARD.
Other sources are :-
Borrowings
from government of India (GOI) and any Institution approved by GOI.
Borrowing from RBI
Deposits from state government
and social authorities, gifts and grants received.
Objectives of NABARD :-
·
NABARD provides refinance
assistance for agriculture promoting rural development activities. It also
provides all necessary finance and assistance to small scale industries.
·
NABARD in coordination with the
state government provide agriculture.
·
It improves small and
minor irrigation by way of promoting agricultural activities.
·
NABARD promotes various organization
involved in agricultural production by contributing to their capital.
The objects of NABARD can be brought under three major heads
:-
1. Credit function
2. Development function
3. Promotional function
