GENESIS AND HISTORICAL

BACKGROUND
The Committee to Review Arrangements for
Institutional Credit for Agriculture and Rural
Development (CRAFICARD) set up by the RBI
under the Chairmanship of Shri. B Sivaraman in
its report submitted to Governor, Reserve Bank of
India on November 28, 1979 recommended the
establishment of NABARD. The Parliament
through the Act 61 of 81, approved its setting up.
 Overview
Government of India setup the National Bank for
Agriculture and Rural Development (NABARD)
on July 12,1982 to act as an agency for promoting
integrated rural development and to provide all
sort of production and investment credit for
agriculture and rural development.
 Cont..

With a capital base of Rs 2,000 crore provided by

the Government of India and Reserve Bank of
India.
It operates through its head office at Mumbai,
with 28 regional offices situated in state capitals
and 391 district offices at districts.
NABARD is entrusted with

Providing refinance to lending institutions in

rural areas
Bringing about or promoting institutional
development and
Evaluating, monitoring and inspecting the
client banks
Mission and Vision of NABARD
Mission
Promoting sustainable and equitable agriculture
and rural development through effective credit
support, related services, institution building and
other innovative initiatives.
Vision
Empowerment of rural poor by improving their
access to the formal credit system through
various MF innovations in a cost effective and
sustainable manner
 NABARD and Micro finance
INVOLVING ENCOURAGING
INFLUENCING INSTITUTION INNOVATIONS
POLICIES

MOTIVATING
CREDIT SUPPORT
PARTERNERS

NABARD
TECHNICAL COORDINATION
SUPPORT WITH PARTNERS

GROUP TRANNING AND

GROUP LINKAGE
FORMATION CAPACITY BUILDING

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NABARD focuses its activities on:-
Credit functions:- involving preparation of potential-
linked credit plans annually for all districts of the country
for identification of credit potential, monitoring the flow
of ground level rural credit, issuing policy and operational
guidelines to rural financing institutions and providing
credit facilities to eligible institutions under various
programmes .
Development functions:- concerning reinforcement of the
credit functions and making credit more productive.
Supervisory functions:- ensuring the proper functioning
of cooperative banks and regional rural banks
Pivotal role
Acts as a coordinator in the operations of rural credit
institutions
Extends assistance to the government, the Reserve
Bank of India and other organizations in matters
relating to rural development
Offers training and research facilities for banks,
cooperatives and organizations working in the field
of rural development
Helps the state governments in reaching their targets
of providing assistance to eligible institutions in
agriculture and rural development
Acts as regulator for cooperative banks and RRBs
 NABARD today
Initiates measures toward institution-building for
improving absorptive capacity of the credit delivery
system, including monitoring, formulation of
rehabilitation schemes, restructuring of credit
institutions, training of personnel, etc.
Prepares, on annual basis, rural credit plans for all the
districts in the country. These plans form the base for
annual credit plans of all rural financial institutions .
It supports State Governments in creation of
infrastructure.
 Coordinates the rural financing activities of all the
institutions engaged in developmental work at the
field level and maintains liaison with the
government of India , State governments, the
Reserve Bank of India and other national level
institutions concerned with policy formulation.
Undertakes monitoring and evaluation of projects
refinanced by it .
Promotes research in the fields of rural banking,
agriculture and rural development.
Functions as a regulatory authority, supervising,
monitoring and guiding cooperative banks and
regional rural banks.
 Role and Functions
NABARD is an apex institution accredited with all
matters concerning policy, planning and operations
in the field of credit for agriculture and other
economic activities in rural areas.
It is an apex refinancing agency for the institutions
providing investment and production credit for
promoting the various developmental activities in
rural areas .
It undertakes monitoring and evaluation of projects
refinanced by it.
 Cont..
It takes measures towards institution building for
improving absorptive capacity of the credit delivery
system, including monitoring, formulation of
rehabilitation schemes, restructuring of credit
institutions, training of personnel, etc.
It co-ordinates the rural financing activities of all the
institutions engaged in developmental work at the
field level and maintains liaison with Government of
India, State Governments, Reserve Bank of India and
other national level institutions concerned with policy
formulation.
Cont.
It prepares, on annual basis, rural credit
plans for all districts in the country; these
plans form the base for annual credit plans
of all rural financial institutions.
It promotes research in the fields of rural
banking, agriculture and rural
development
Schemes
Rural Non-Farm Sector Schemes
National Bank for Agriculture and Rural
Development (Nabard) has introduced a
refinance scheme for regional rural banks,
State and district central cooperative banks,
urban cooperative banks and scheduled
commercial banks to accelerate the pace of
construction of quality warehousing facilities for
agricultural commodities.
The scheme is expected to create around 9
million tonnes of additional storage capacity in
the country
 Investment Credit
NABARD provides refinance under Investment
Credit to eligible banks for a wide spectrum of
manufacturing, processing and service sector
activities under Rural Non-Farm Sector. The
various refinance schemes of NABARD, inter-alia,
cover the entire manufacturing, processing and
approved service activities in the SSI sector with
emphasis on Cottage,Village, Tiny Industries,
Rural Artisans and Rural Crafts
Refinance Schemes for banks
under Non-Farm Sector
Refinance to banks will be provided under:
Automatic Refinance Facility (ARF), without
submission of schemes/ projects for prior
sanction by NABARD up to a prescribed level,
an
Pre-sanction procedure i.e., the banks will have to
submit scheme/project proposals to NABARD
and get them sanctioned before disbursement of
loans to their borrower clients
 Govt of India , Ministry of Rural Development has
sanctioned a Special Project under Swarnjayanti
Gram Swarozgar Yojana (SGSY) on Livelihood
Based Development for 11,500 BPL families in
Sultanpur district, Uttar Pradesh. The total approved
cost of the project is Rs.1497.36 lakh
 PILOT PROJECT FOR INTEGRATED
DEVELOPMENT OF BACKWARD BLOCKS
(PPID)
The objective of the PPID is
comprehensive development of the selected
backward blocks in an integrated manner which
would include economic development,
infrastructure development and other aspects of
human development i.e., education, health,
drinking water supply etc.
Scheme for setting up Agriclinics
and Agribusiness centres
For setting up agriclinics and agribusiness centres
by agriculture graduates has been launched by
GoI with the support of NABARD. These
centres will provide a package of input facilities,
consultancy and other services. They will
strengthen transfer of technology and extension
services and also provide self employment
opportunities to technically trained persons.
 Rural Haat Scheme
NABARD has, decided to support Rural Haats in
all districts for development of infrastructural
facilities in the existing/ new haats by providing
grant assistance @ 90% of the total project cost
with an upper limit of Rs.5 lakh per haat for
minimum infrastructural facilities in the form of
raised platforms with semi-permanent roofing,
sanitation arrangements, provision of drinking
water, compound wall/barbed wire fencing,
parking, notice board etc.
SCHEME OF PROVIDING TECHNOLOGY
SUPPORT TO NGOs

Grant Assistance up to Rs.50,000

Purchase of PC
NGO should have completed 3 years
Should have promoted minimum 500 SHGs
Should not have been black-listed
 Innovative Projects
Setting up of grain banks
Project on processers cards
Project on e-grama
Joint Liability Groups
Setting up of computer munshis
Micro enterprise promotion by SHGs
 NABARD and its Role in
Training
National Bank Staff College, Lucknow .
National Bank Training Centre, Lucknow.
Zonal Training Centre, Hyderabad.
Regional Training Centre, Mangalore.
Regional Training Centre, Bolpur.
Bankers Institute of Rural Development (BIRD),
Lucknow.
 SUBSIDIARY
NABARD Consultancy Services (Nabcons) is a
wholly owned subsidiary promoted by National
Bank for Agriculture and Rural Development
(NABARD) and is engaged in providing
consultancy in all spheres of agriculture, rural
development and allied areas
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