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What is the full form of NABARD?

By Anushree Goswami Last updated : April 20, 2024

NABARD: National Bank for Agriculture and Rural Development

NABARD is an abbreviation of National Bank for Agriculture and Rural Development.

On 12 July 1982, it was established by an act of parliament to put into service the National Bank for Agriculture and Rural Development Act 1981. It is an apex development bank that has been assigned responsibility with matters regarding Policy Planning and offers a service to credit flow for development of small industries, agriculture, cottage industries and other small businesses in rural areas. NABARD is dynamic in developing Financial Inclusion policy. Its head office is situated in Mumbai, Maharashtra and its branches are to be found all over the country.

Image source: https://en.wikipedia.org/wiki/National_Bank_for_Agriculture_and_Rural_Development

NABARD History

• On the 12th of July 1982, NABARD was established on the proposal and suggestion of Shivaraman Committee.
• It was established to put into service the National Bank for Agriculture and Rural Development Act 1981.
• The primary capital of NABARD was 100 crore.
• As of 31st May 2017, NABARD paid-up capital stood at Rs. 6700 crores with Government of India holding Rs.6700 crore which is 100% share.
• The official sanctioned share capital is Rs.30,000 crore.
• Global connections of NABARD comprise World Bank associated organizations and international developmental groups operational in the sector of agriculture and rural development.
• These World Bank associated organizations and international developmental groups assist NABARD by giving counseling and financial support for the upliftment of the people in the rural areas and making the most effective use of the agricultural progression.

NABARD Functionalities

Following given below is a list of some outstanding and noteworthy functionalities of NABARD:

• It provides service as an apex financing agency for a variety of development and upliftment programs in rural areas.
• It process, improve and controls the financial institutions which finance the rural sector.
• It controls the cooperative banks and RRBs and administers talent through IBPS CWE.
• It offers services of training to the institutions which work for rural development.
• It takes estimations in the direction of institution-building for upgrading and enhancing the absorptive capacity of the credit delivery system, comprising monitoring, formulation of rehabilitation plans, reorganization of credit institutions, training of workers an employee's, etc.
• It takes under the monitoring, appraisal, and assessment of projects which again financed by it.
• It also maintains monitoring on its client institutes.