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National Bank for Agriculture and Rural Development was established on 12th July 1982 with its Head Quarter at Mumbai with an aim of Promotion and Development of Agriculture, Small Scale Industries, cottage and village industries, handicrafts and other rural crafts.
Ø CRAFICARD committee set up by RBI, under the chairmanship of Sh. B.Shivaraman recommended the establishment of NABARD.
Ø CRAFICARD –Committee to review arrangements for Institutional credit for Agricultural and rural Development.
Ø Initial capital of NABARD was Rs. 100 crore. Paid up capital as on 31st March, 2013, stood at 4000 crore with government of India holding 3,980 crore i.e. 99.50 % and RBI 20 crore i.e. 0.50 %.
MAIN ROLES OF NABARD:
Ø It manages and controls all the matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas.
Ø It harmonize the rural financing activities of all institutions engaged in developmental work at the field level.
Ø It monitors and evaluates the projects refinanced by it.
Ø It refinances the financial institutions which finances the rural sector.
Ø It ensures training facilities to the institutions working in the field of rural upliftment.
Ø It regulates the co0operative banks at the RRB’s.
NOTE: Before the establishment of NABARD, Reserve Bank of India was responsible for Development of the Agricultural and Rural Sector.