NABARD

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is entrusted with

1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutional development and

3. Evaluating, monitoring and inspecting the client banks

Besides this pivotal role, NABARD also:

• 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

Some of the milestones in NABARD's activities are:

A. Business Operations:

• Production Credit: Production Credit (or Crop Loans) to Cooperative Banks and Regional Rural Banks (RRBs) stood at 48,981 crore during 2011-12, registering a growth of 45 per cent over the previous year.

• Investment Credit : Investment Credit for capital formation in agriculture & allied sectors, non-farm sector activities and services sector to commercial banks, RRBs and co-operative banks reached a level of 15,421 crore as on 31 March 2012 registering an increase of 14 per cent, over the previous year.