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CH-6: TOPIC – RESOURCE MOBILIZATION

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SUB-TOPIC: - SFIs NABARD

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development
Financial Institution in India.

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and
refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was
dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November
1982.

1.NABARD is the most important institution in the country which looks after the development of the
cottage industry, small scale industry and village industry, and other rural industries.

2.NABARD also reaches out to allied economies and supports and promotes integrated development.

3.NABARD discharge its duty by undertaking the following roles :

1. Serves as an apex financing agency for the institutions providing investment and production
credit for promoting the various developmental activities in rural areas

2. 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.

3. Co-ordinates the rural financing activities of all institutions engaged in developmental work at
the field level and maintains liaison with Government of India, state governments, Reserve Bank
of India (RBI) and other national level institutions concerned with policy formulation

4. Undertakes monitoring and evaluation of projects refinanced by it.

5. NABARD refinances the financial institutions which finances the rural sector.

6. NABARD partakes in development of institutions which help the rural economy.

7. NABARD also keeps a check on its client institutes.