Bank for Agricultural and Rural Development
NABARD was known before 1982 as a ARDC (The Agricultural Refinance and Development CJrporation). The Agricultural Refinance and Development Corporation (ARDC) was established in 1963 by an Act of the lndian Parliament' The prime objective of this corporation is to provide "medium and lorg term credit by way of refinance or otherwise' for the development of agriculture and for other matters connected there with or incidental thereto'" Thus, it was basically setup for augmenting the investible resources available with Central Land Development Bank, State Co-operative Banks and Scheduled Commercial Banks for providing assistance to those agricultural clevelopment projects which otherwise cannot be financed by thern either on account of their large outlay or because of unsuitablity of the terms and conditions of repayment.
Later ARDC was converted into NABARD in 1982. ll started its functioning from 12 July, 1982' NABARD has direct relation with Reserve Bank of India. The capital of NABARD is Rs. 100 crore, which can be extend upto Rs. 500 crore. The 50% o1-NABARD'S capital is contributed by the Central Government and remaining is contributed by the Reserve Bank of India.
Management and Organisation: The Reserve Bank of India has the right to appoint the chairman for NABARD from four Governors of RBI (Any one) and Board of Directors will be appointed by the RBI from three executive directors of RBI. The structure of NABARD will be as follows-One Chairman F From Covernor of RBI
Loan Needs: NABARD required funds/loan can be obtained from:
- World Bank
- Government of lndia
- Other Funding Agencies.
Functions of NA BARD: These are:
- Loans and advances by way of refinance to central land development banks, state co-operative banks and scheduled commercial banks.
- Development of animal husbandry, dairy farming, fisheries and poultry farming.
- Construction of godowns and soils by organisations of agriculturals or by Private entrepreneurs for the use of agriculturists and development of market Yards.
- Forestry development.
- Development of horticulture and plantations such as tea, coffee, rubber, cashewnut, coconut, cardamom and other trees.
- Reclamation and Preparation of land for irrigation under the command of irrigation projects.
- Soil conservation and adoption of dry farming method.
- Farm mechanism.
- Aerial spraying for control of crop pests and diseases by promotion of agro-aviation scheme.
- Minor irrigation works covering compact areas.
- Providing loan to the State Government for a period of 20 years for the purpose of co-operative societies' development.
- To develop the method of agricultural and rural development research.
- Inspection of Regional Rural Banks and Co-operative banks.
- To co-ordinate between the sub-action/function of:
- Central Government-State Government
- Planning Commission-Government of India
- Planning Commission-State Level Institutions
- To provide financial assistance to the State Cooperative Banks, Regional Rural Banks, Land Development Banks and those financial institutions which has been set up with the permission of RBI, in forms of term short term, medium term and long term.
- Monitoring and evaluation of those projects which are is refinanced by the NABARD.
- Direct loans and advances to other co-operative Societies, with the approval of the Reserve Bank of India.
- Subscriptions to the debentures of any institution holding shares of the corporation.
- Guarantee of deferred payment in connection with the purchase of capital goods from outside lndia.
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