NABARD – Full Form, Meaning, Features, Functions and History
NABARD Full Form
The full form of NABARD in banking is National Bank for Agriculture and Rural Development. NABARD provides a range of financial products and services to farmers, rural entrepreneurs, and other stakeholders involved in rural development, including loans, grants, and subsidies for agriculture and rural infrastructure development, microfinance, and capacity-building initiatives. The primary objective of NABARD is to promote sustainable and equitable agriculture and rural development through institutional development, credit support, and other related services.
Features of NABARD
Some of the primary features of NABARD are as follows:
- Design new projects for rural development
- Offer credit facilities to farmers
- Oversee the functions of Regional Rural Banks and Cooperative Banks
- Provide training assistance to skilled artisans
- Facilitate financial inclusion in rural areas through initiatives such as microfinance and self-help groups
- Support research and development in agriculture and rural development through its Rural Innovation Fund and other programmes
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Functions of NABARD
The functionalities of NABARD are:
- Providing refinance facilities to banks and other financial institutions that lend to agriculture, rural development, and other allied sectors
- Providing credit facilities to farmers and rural entrepreneurs through direct lending or through its partnership with other financial institutions
- Supporting the development of rural infrastructure such as irrigation, rural roads, and warehouses
- Promoting sustainable agriculture practices through capacity-building initiatives, research and development, and other programs
- Facilitating the development of the rural non-farm sector through credit support and other initiatives
- Promoting financial inclusion in rural areas by supporting the development of microfinance institutions, self-help groups, and other community-based organisations
- Supporting watershed development and soil conservation initiatives to improve land productivity and promote sustainable agriculture
- Conducting research and development in the field of agriculture and rural development to identify best practices and improve the effectiveness of its programs
History of NABARD
- NABARD started its operations on 12 November 1982, with its headquarters in Mumbai, India
- It was set up with an initial capital of Rs.100 crore, its paid up capital stood at Rs.17,080 crore as on 31 March 2022
- Over the years, NABARD has played a critical role in promoting inclusive and sustainable growth in rural India
Final Word
NABARD (full form – National Bank for Agriculture and Rural Development) has expanded its reach and scope, and today it is involved in a range of initiatives related to sustainable agriculture, rural infrastructure development, financial inclusion, and capacity-building. NABARD has also worked closely with the government of India and other stakeholders to develop policies and programs that promote rural development.
