NABARD Full Form
Many of us have often come across the term NABARD. Almost all of us majorly use it as an abbreviation. But none of us know the full form of the term. NABARD stands for National Bank for Agriculture and Rural Development. It is a financial institution that is solely owned by the Government of India. This bank is responsible for taking care of the policy matters regarding agriculture in the rural areas of the country. The head office of NABARD is located in Mumbai. The regional offices of NABARD are located in all states. This bank also looks after economic activities. But how was NABARD established and what is its role in building the economy of the nation? Well, to know such things let’s brush up a little bit of history.
- B. Sivaramman Committee established NABARD as per the parliament act of 1981. NABARD was established on 12th July 1982. The National Bank of Agriculture and Rural Development Act was also made and passed.
- The NABARD replaced three departments of the RBI (Reserve Bank of India) i.e. ACD (Agriculture Credit Department), RPCC (Rural Planning and Credit Cell), and ARDC (Agriculture Refinance and Development Corporation). These were some of the primary agencies that provided development in the rural areas.
- NABARD began with Rs. 100 Crores as the initial corpus. The Government and the RBI gave the capital amount of Rs. 14,000 Crores to NABARD. Today the share capital of NABARD is around Rs. 32,000 Crores.
- World Bank is one of the international associates of NABARD. These international associations give financial aid to the people residing in rural areas.
Now, let’s look at some roles and functions of NABARD. NABARD has been able to set up various social enterprises in rural areas. According to the reports, NABARD has many regional offices in India. There are around 4,000 organizations that NABARD has partnered with. Some of these organizations are SHG Bank Linkage Program, watershed approach in soil and water conservation, etc. The watershed approach in soil and water conservation helps in providing irrigation facilities to the farmers. This helps the farmers in increasing crop productivity. NABARD is working for 30 years, thereby, providing a huge capital amount in the years of its work.
Now, let us look at some important points regarding NABARD.
- NABARD is one of the important institutions of India. NABARD looks after small-cottage industries, village industries, and other small-scale industries.
- NABARD promotes integrated development by reaching out to its partnered organizations.
- NABARD helps in the development of several institutions which thereby, helps in the development of the rural economy.
- NABARD is responsible for the regulation of several banks in India.
- The partner organizations of NABARD are given an overview of the agency. Necessary training is also provided to these organizations so that they can help in the development of the rural sector.
- NABARD acts as a financial agency thereby, providing production credit and investment credit that will help in the development of the rural sector.
These are some of the roles/ functions of NABARD. Well, it is important to note that the regional offices are headed by the CGMs i.e. Chief General Managers. Apart from the CGMs, there are Managing Directors, Directors, and the Chairperson. But the CGM is the office in-charge and is responsible for all the actions taken in the department.
NABARD is majorly known for SHG Bank Linkage Program. This is because many rural women are associated with this program and this program is aimed at uplifting rural women. NABARD has also laid its hands-on projects like watershed development, tribal development, irrigation innovation, etc. NABARD has performed several roles for 30 years thereby providing a stable economy and developing the rural sector.
The National Bank for Agriculture and Rural Development was set up by the government of India to develop the rural areas. Many activities and initiatives have been undertaken by the agency so that the rural sector is developed. NABARD has also replaced three major departments that were also the financial agency. NABARD is now under the Government of India and RBI thereby, providing financial aid to the rural sector. Thus, NABARD is one of the most important institutions of the country.