About NABARD, its roles and functions and some popular schemes.

1. NABARD
NATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT

2. Index
• Genesis
• Vision and Mission
• Where are the various NABARD branches located ?
• Objectives
• Role
• Functions
• Some of the milestones of NABARDS activities
• Challenges
• Conclusion

3. GENISIS
• NABARD came into existence on 12 July 1982 by transferring the
agricultural credit functions of RBI and refinance functions of the then
Agricultural Refinance and Development Corporation (ARDC).
• The Reserve Bank of India (RBI) at the insistence of the Government of
India, constituted a Committee to Review the Arrangements For Institutional
Credit for Agriculture and Rural Development (CRAFICARD) to look into
these very critical aspects. The Committee was formed on 30 March 1979,
under the Chairmanship of Shri B. Sivaraman, former member of Planning
Commission, Government of India.

4. • NABARD is designated as an apex development bank in the country. This
national bank was established, with a mandate to uplift rural India by
facilitating credit flow in agriculture, cottage and village industries,
handicrafts and small-scale industries. It is also required to support non-farm
sector while promoting other allied economic activities in rural areas.
NABARD functions to promote sustainable rural development for attaining
prosperity of rural areas in India.
• It is basically concerned with “matters concerning policy, as well as planning
and operations in the field of credit for agriculture and other economic
activities in rural areas in India”. It is worth noting with reference to
NABARD that RBI has sold its own stake to the Government of India.
Therefore, Government of India holds 99% stake in NABARD.

5. • The initial corpus of NABARD was Rs.100 crores.
• its’ paid up capital stood at Rs.10,580 crore as on 31 March 2018.
• International associates of NABARD include World Bank-affiliated
organizations and global developmental agencies working in the field of
agriculture and rural development. These organizations help NABARD by
advising and giving monetary aid for the upliftment of the people in the
rural areas and optimizing the agricultural process.

6. • VISION
Development Bank of the Nation for Fostering Rural Prosperity.
• MISSION
Promote sustainable and equitable agriculture and rural development through
participative financial and non-financial interventions, innovations, technology
and institutional development for securing prosperity.

11. Objectives
• More than 50% of the rural credit is disbursed by the Co-operative Banks
and Regional Rural Banks. NABARD is responsible for regulating and
supervising the functions of Co-operative banks and Railway Recruitment
Board (RRBs). NABARD works towards providing a strong and efficient
rural credit delivery system, capable of taking care of the expanding and
diverse credit needs of agriculture and rural development.

12. ROLE
• It is an apex institution which has power to deal with all matters concerning policy,
planning as well as operations in giving credit for agriculture and other economic
activities in the rural areas.
• It is a refinancing agency for those institutions that provide investment and
production credit for promoting the several developmental programs for rural
development.
• It is improving the absorptive capacity of the credit delivery system in India,
including monitoring, formulation of rehabilitation schemes, restructuring of credit
institutions, and training of personnel.

13. • It co-ordinates the rural credit financing activities of all sorts of institutions
engaged in developmental work at the field level while maintaining liaison
with Government of India, and State Governments, and also RBI and other
national level institutions that are concerned with policy formulation.
• NABARD also has a portfolio of Natural Resource Management
Programmes involving diverse fields like Watershed Development, Tribal
Development and Farm Innovation through dedicated funds set up for the
purpose.
• It prepares rural credit plans, annually, for all districts in the country.
• It also promotes research in rural banking, and the field of agriculture and
rural development.

14. • It regulates the institutions which provide financial help to the rural
economy.
• It provides training facilities to the institutions working in the field of rural
upliftment.
• It regulates the cooperative banks and the RRB’s, and manages talent
acquisition through Institute of banking personal selection common written
examination.

15. FUNCTIONS
• Credit Functions:
• Framing policy and guidelines for rural financial institutions.
• Providing credit facilities to issuing organizations
• Monitoring the flow of ground level rural credit.
• Preparation of credit plans annually for all districts for identification of
credit potential.

16. • Development Functions:
• Help cooperative banks and Regional Rural Banks to prepare development actions
plans for themselves.
• Help Regional Rural Banks and the sponsor banks to enter into MoUs with state
governments and cooperative banks to improve the affairs of the Regional Rural
Banks.
• Monitor implementation of development action plans of banks.
• Provide financial support for the training institutes of cooperative banks,
commercial banks and Regional Rural Banks.
• Provide financial assistance to cooperative banks for building improved
management information system, computerisation of operations and development
of human resources.

17. • Supervisory Functions:
• Undertakes inspection of Regional Rural Banks (RRBs) and Cooperative
Banks (other than urban/primary cooperative banks) under the provisions of
Banking Regulation Act, 1949.
• Undertakes inspection of State Cooperative Agriculture and Rural
Development Banks (SCARDBs) and apex non- credit cooperative societies
on a voluntary basis.
• Provides recommendations to Reserve Bank of India on issue of licenses to
Cooperative Banks, opening of new branches by State Cooperative Banks
and Regional Rural Banks (RRBs).
• Undertakes portfolio inspections besides off-site surveillance of Cooperative
Banks and Regional Rural Banks (RRBs).

18. Some of the milestones in NABARD's
activities are:
• Business Operations:
• 1. Production Credit: NABARD sanctioned aggregating of 66,418 crore short
term loans to Cooperative Banks and Regional Rural Banks (RRBs) during 2012-13,
against which, the maximum outstanding was 65,176 crore.
• 2. Investment Credit: Investment Credit for capital formation in agriculture &
allied sectors, non-farm sector activities and services sector to commercial banks,
RRBs and co-operative banks reached a level of 17,674.29 crore as on 31 March
2013 registering an increase of 14.6 per cent, over the previous year.

19. • 3.Self Help Group: More famously called as SHG are a group of
homogenous members who voluntarily collaborate mainly to overcome
financial difficulties. With the modest beginning of just 500 SHGs in 1992,
the program boasts of as many as 6, 20,109 groups in the year 2005-06
alone.
• 4. Rural Infrastructure Development Fund: It is very important to have
proper infrastructure for agriculture, industrial and overall economic
development. Moreover infrastructure also provides basic amenities that
improve the quality of life of people also provide basic amenities that
improve the quality of life of people at large. NABARD has sanctioned
funds under RIDF for improvement of sanctioned funds under RIDF for
improvement of rural connectivity through road network & bridges, power
development of social sector.

20. • 4.Watershed Development :With the entire country facing the problems of
water scarcity, NABARD was engaged in perfecting its experiments in creating a
sustainable cost effective solution to the water harvesting techniques in rural
India.
• 5.Tribal Development & WADI Approach: With over 8% of the population
comprising tribal largely development on forests, livestock and agriculture,
NABARD found a holistic approach by addressing production, processing and
marketing of the produce with WADI as the core of the program.
• 6.Attracting youth to rural non-farm sector: NABARD has formulated
several schemes like Assistance to Rural Women in Non-Farm Development
(ASWIND), Assistance for marketing of Non-Farm products of Rural Women
(MAHIMA), development of Women Through Area program (DEWTA) for
providing support to women in rural areas.

21. • Rural Entrepreneurship Development Program (REDP): REDP is a
promotional program to motivate train educated unemployed rural youth to set up
their enterprises.
• Marketing: A number of marketing interventions have been made for marketing
of rural non-farm products since marketing is a key factor in the success of any
program. With the support of NABARD under in various promotional programs
like rural marts, participation in fairs, exhibition etc. artisans and entrepreneurs get
larger marker to showcase their talents and products to urban markets.
• Rural Innovation Fund: In association with Swiss Agency for Development and
Cooperation (SDC) NABARD has constituted the NABARD-SIDC Rural
Innovation Fund (RIF) to support innovative projects in farm, non-farm and micro-
finance sectors.

22. Key challenges faced by NABARD
• 1. NABARD is facing the problem of inadequate finance. They are dependent on
NABARD to collect finance for their further operation. Poor rural people are
unable to save anything due to poverty and low per capita income. The low level of
saving of these customer create obstacle for NABARD to collect sufficient deposits.
• 2. High over dues and poor recovery of loan is one of the biggest concern affecting
the functioning of NABARD. Reasons being poor access of granting loan,
insufficient and untrained staff, unproductive or less productive use of credit,
inadequate production, poor marketing facilities and improper channel of recovery
system.

23. • 3. There is also a problem of regional imbalance in banking facilities provided by
NABARD. They are creating this problem by concentrating their branches in some specific
states and districts & loose other prospective group of customers.
• 4. NABARD is suffering from the problem of heavy loans because of low repaying
capacity of their customer, untrained staff, low level of deposits and heavy sanction of loan
without checking the creditworthiness of their customers.
• 5. These banks have still not played a significant role in poverty alleviation of the country.
Although various efforts have been made in this regard but lack of economic infrastructure,
poor marketing strategies, poor knowledge of customers, low production, low awareness
about savings have created many hurdles for NABARD.
• 6. Lack of proper co-ordination between NABARD and other financial institution like
commercial banks, NABARD and other co-operative bank has badly affected the
performance of these banks.

24. CONCLUSION
• As the financial system has grown rapidly, Nabard has taken initiative that
credit made available by small and marginal farmers is productively
employed. Other bank should also take initiative as Nabard is taking the
initiative.

25. • Any questions ?
• THANK YOU