NABARD-OBJECTIVES AND FUNCTIONS

Banking Awareness Study Material

NABARD - OBJECTIVES AND FUNCTIONS

NABARD has been established as an apex development bank with a mandate for facilitating credit flow for the promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts. It is also mandatory for NABARD to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of the rural areas.

Objectives

1. To Plan operational aspects in the field of credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas.
2. To serve as a re-financing institution for institutional credit such as long-term, short-term for the promotion of activities in the rural areas.
3. To provide direct lending to any institution as may approved by the Central Government.

Role and Functions

1. It is accredited with all the matters concerning policy planning and operations in the field of credit for agriculture and other economic activities in the rural areas.
2. It act as a re-financing agency for the institutions providing investment and production credit for the promoting the various development activities in rural areas.
3. 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.
4. It coordinates 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.
5. It prepares, on an annual basis, rural credit plans for all districts in the country.
6. It undertakes monitoring and evaluation of projects re-financed by it.
7. It promotes research in the fields of rural banking, agriculture and rural development.