Full Form of NABARD :
National Bank for Agriculture and Rural Development
NABARD Full Form is National Bank for Agriculture and Rural Development. This is an apex development Bank based in Mumbai and having its branches all over India. It was established in the year 1982 in order to promote equitable and sustainable rural and agricultural property. This is to be achieved through institutional development, good credit support, and related services along with innovative initiatives.
NABARD extends refinance support to various RFIs or Rural Financial Institutions in India. It is lending to various state-owned corporates, cooperatives and other central and state government owned entities. It also facilitates and supports credit planning, policy formulation, financial inclusion, self-help linkage program, and more. NABARD contributes greatly towards the rural economy in India.
NABARD Full Form – Additional Information
National bank for Agriculture and Rural Development is an apex development bank based in India, which is headquartered in Mumbai, Maharashtra. The bank has many branches situated in different places of the country. The idea behind the establishment and development of NABARD was conceptualized by the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (abbreviated as CRAFICARD), which was constituted by the apex bank, the Reserve Bank of India (Abbreviated as RBI).
The NABARD was set up on June 12, in the year 1982 vide an Act of Parliament. The main purpose behind the establishment of NABARD was to work towards the upliftment of Rural areas by improving the flow of credit to non-farm and agriculture sector. The bank has successfully completed 34 years on June 12, in the year 2016.
The Bank has been empowered with functions that enable it to look into issues relating to policy, operations, and planning in the areas concerning agriculture and other fields affecting rural India. The RBI has sold off its stakes in the NABARD to the Union Government, which now holds about 99% stake in the same. NABARD is an active Apex body, which is a member of the Alliance for Financial Inclusion.
The aforementioned paragraphs give a brief introduction to the development and functions of the NABARD, which is one of the key institutions dedicated towards the development of a rural population of the country. It is perhaps one of the finest attempts by the Indian government for the upliftment and betterment of the Rural India and therefore, the subject-matter must be dealt with great elaboration. So, here are five points about NABARD that are essential to its overall institution and for the readers:
History behind the establishment of NABARD
The Shivaraman committee, which is also known as the Committee to Review Arrangement for Institutional Credit for Agriculture and Rural Development, made recommendations for the establishment of an institution that would be dedicated to the credit needs of Rural India. Following the recommendations, the Parliament enacted the National Bank for Agriculture and Rural Development Act 1981 that paved the way for the set up of NABARD. NABARD came into existence and replaced Rural Planning and Credit Cell (abbreviated as RPCC) of the RBI and the Agricultural Credit Department (abbreviated as ACD), and the Agricultural Refinance and Development Corporation (abbreviated as ARDC). NABARD has attained the character of a specialized bank for rural India.
NABARD is affiliated with many international institutions and organizations such as the World Bank and other organizations affiliated with the World Bank. These organizations contribute financially to the policies and plans of the NABARD and are, therefore, very essential to NABARD. All of this has made NABARD one of the prestigious agencies that is dedicated towards developmental credit in non-farm and agricultural areas in Rural India. With time, it has grown more and attained greater respect in the national and international domain.
Role of NABARD
NABARD performs many functions to achieve its aim and some of such functions have been enumerated below:
- It acts as a key institution that directs and promotes development activities in Rural India.
- It comes up with several measures that help improve the absorptive capacity of the rural credit delivery system, which includes rehabilitation schemes, overhauling of the credit institutions, skill training of the staff, etc.
- It coordinates with several financial institutions of the country such as the RBI for undertaking development activities in the country.
- It acts as a financing institution contributing finances to those agencies that provide monetary support in rural areas.
- It ensures the provision of skill training programme to its staff.
- It monitors the activities of the Regional Rural Banks (abbreviated as RRBs) and Co-operative banks and undertakes the management of skill development through IBPS CWE (which stands for Institute of Banking Personnel Selection’s Common Written Examination).
- It monitors the activities of the client institutions.
- It undertakes monitoring of projects that are undertaken under its name.
- It promotes integrated development in Rural areas.
- NABARD is popular for the SHG Bank Linkage Programme that is aimed at encouraging Indian banks to provide financial help to Self-Help Groups (abbreviated as SHG).
There is no gainsaying that NABARD has performed a great role in the development of credit financing facility in the country. With the help of the Swiss Agency for Development and Cooperation, the bank has established Rural Innovation Fund. It has come up with another notable scheme Vrajlal Sapovada Rural Infrastructure Development Fund (abbreviated as RIDF). Under this scheme, the bank has covered essential areas such as road, irrigation, bridges, education and heath, water schemes, soil conservation, etc.
NABARD has started the Umbrella Programme for Natural Resource Management (abbreviated as UPNRM), which is aimed at providing credit at the reasonable rate of interests. It has sanctioned many projects and much of them concern with the developmental projects relating to tribal areas.
Thus, it is apparent from the number of schemes sanctioned that the institute is keen on promoting developmental projects in rural areas and all these schemes are proofs showing its dedication. Its RIDF programme has come up with some of the most innovative programs in rural areas and has even encouraged participation from Non-governmental Organizations (abbreviated as NGO), etc.
A CSR company
NABARD takes it social responsibility quite seriously. It has been a key institution in the development of social enterprises in the country. It is in the process of partnering with 4000 organizations to ensure the success of SHG-Bank Linkage programme, watershed programme, water conservation, crop productivity, a tree-based programme for tribal areas, led crop initiatives, etc.
Career options available with NABARD
NABARD is one of the most respected institutions in the country and working with it will give whole new exposure to various facets of rural development. There are many career options available such as Assistant Manager Development Assistant. NABARD conducts its own examination for many of its posts. The examination is conducted online.
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