NABARD – An Apex Development Bank

Introduction
 
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:
 
•With its effective overseeing and monitoring of the implementation of the Government of India's program to double the flow of credit to agriculture over a three-year period from 2004-2005, the total disbursement of credit reached Rs 1,25,309 during 2004-2005. Ground level credit flow to agriculture and allied activities reached Rs 1,57,480 crore in 2005-2006.
 
•Refinance disbursement to commercial banks, state cooperative banks, state cooperative agriculture and rural development banks, RRBs and other eligible financial institutions aggregated Rs 8,622.37 crore.
 
•As on 31 January 2007 through the Rural Infrastructure Development Fund (RIDF), Rs, 59,795.35 crore have been sanctioned for 2,31,702 projects covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, etc. Developing among hosts of other infrastructures, RIDF will create 20971 schools, 6239 primary health centers and provide drinking water supply in 7267 villages
 
•Watershed Development Fund , with cumulative sanctions of Rs.578.95 crore for 427 projects in 124 districts of 14 states, has created a People’s Movement in rural India.
 
•Farmers now enjoy financial access and security through 582.50 lakh
Kisan Credit Cards that have been issued through a vast rural banking network.
 
•District Rural Industries Project (DRIP) has generated employment for 23.34 lakh persons with 10.95 lakh units in 105 districts.

 
URL - www.nabard.org/introduction.asp