NEW MANAGEMENT OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN INDIA

Dr. P.B. REDDY; Dr.C.B.HARINATHA REDDY; Dr. MORUSU SIVA SANKAR

Volume : VI, Issue : IX, September - 2017

NEW MANAGEMENT OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT IN INDIA

Dr. P. B. Reddy, Dr. C. B. Harinatha Reddy, Dr. Morusu Siva Sankar

Abstract :

This paper is research purpose only. There are financial institutions which help the agriculture, irrigation and rural development of the nation. In this paper, we will try to understand the role of National Bank for Agriculture and Rural Development (NABARD), Small Farmers Agri Business Consortium (SFAC), Irrigation & Water Resources Finance Corporation (IWRFC) and Micro Financial Institutions (MFIs). NABARD is set up by the Government of India as a development bank with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural development. The mandate also covers supporting all other allied economic activities in rural areas, promoting sustainable rural development and ushering in prosperity in the rural areas. With a capital base of 2,000 crores provided by the Government of India and Reserve Bank of India, it operates through its head office at Mumbai, 28 regional offices which is situated in all state capitals in India and 391 district offices at all Districts in India. It is an apex institution handling matters concerning policy, planning and operations in the field of credit for agriculture and for other economic and developmental activities in rural areas. Essentially, it is a refinancing agency for financial institutions offering production credit and investment credit for promoting agriculture and developmental activities in rural areas. In discharging its role as a facilitator for rural prosperity NABARD is entrusted with a) providing refinance to lending institutions in rural areas; b) inging about or promoting institutional development; and c) 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; and acts as regulator for cooperative banks and RRBs.