NABARD
Functions of NABARD
Long term refinance
Interest rates
Developmental functions
Supervisory functions
Government sponsered schemes
NABARAD'S initiatives
2. INTRODUCTION
NABARD was established on 12 July 1982
Headquarter-Mumbai.
NABARD is set up as apex development bank
It also has the mandate to support all other allied
economic activities promote integrated and
Sustainable rural development and secure
prosperity of rural areas.
3. Continued
It transferred the
Agriculture credit functions of RBI
Refinance functions of the then agriculture refinance and development
corporation (ARDC).
NABARD was dedicated to the service of the nation by the late prime
minister Smt. Indira Gandhi on 05 November 1982
NABARD was set up with an initial capital of 100 crore.
Headquarters –Mumbai, Maharashtra, India
Chairman –Dr. Prakash Bakshi
Currency –(rupees)
Reserves-Rs81200crore (2007)
Website –www.nabard.org
4. FUNCTIONS OF NABARD
I. FINANCIAL FUNCTION
• REFINANCE
• DIRECT FINANCE
2.DEVELOPMENTAL FUNCTION
3.SUPERVISORY FUNCTIONS
5. FINANCIAL FUNCTIONS -REFINANCE
SHORT TERM REFINANCE
For using high yielding varieties of
seeds ,fertilisers, insecticides and
costly agricultural implements
For increasing the production,
productivity, marketing, and
raising the level of surplus and
savings
The ST limit would consist of
different purposes viz
Agriculture and allied activities
Marketing of crops
Fisheries sector
LONG TERM REFINANCE
Loan period normally 3 to 15
years
Investment credit leads to
capital formation through asset
creation.
Artisans, small scale industries,
non farm sector (small and
micro enterprises), handicrafts,
handlooms, power looms ,etc.
Activities of voluntary agencies
and self help groups working
among the rural poor
6. Long term refinance (contd)
Eligible institutions
State co-operative agriculture and rural development
banks (SCARDBs)
Regional Rural Banks(RRBs)
State co-operative banks(SCBs)
Commercial Banks(CBs)
State Agricultural Development Finance Companies(ADFCs)
Primary Urban Co-operative banks(PUCBs)
North east development finance corporation(NEDFC)
Non banking financial companies (NBFCs)
7. INTEREST RATES
NABARD recently reduced the rate of interest for
refinance
With the objective to give a spur to investments in agriculture
20 basis points on medium and long term refinance facility
50 bps on short term refinance facility
New rate
9.30 per cent for 5 years and above
9.50 per cent for 3-5 years
9.50 per cent for 18 months to 3 years period.
8. FINANCIAL FUNCTIONS
-DIRECT FINANCE
1. Loans for food processing units in designated food
parks
2. Loans to warehouses, cold storage and cold chain
infrastructure
3. Credit facility to marketing federation
4. Rural infrastructure development fund
5. Direct lending to CCBs
6. Financing and supporting producers organizations
etc.
9. Developmental functions
1) Institutional development
2) Farm sector
3) Non farm sector
4) Financial inclusion
5) Micro credit innovations
6) Research and development
7) Core banking solution to cooperative banks
8) Climate change
10. SUPERVISORY FUNCTIONS
Section 35(6) of the banking regulation act, 1949,
empowers NABARD to conduct inspection of state
cooperative banks (SCBs), central cooperatives
banks(CCBs) and regional rural banks (RRBs). In
addition, NABARD has also been conducting periodic
inspection of state level cooperative institutions such
as state cooperative agriculture and rural
development banks (SCARDBs), apex weavers
societies, marketing federation etc, on a voluntary
basis.
11. Government Sponsored Schemes
Dairy Entrepreneurship Development
scheme
Rural Godowns
Agricultural and marketing infrastructure,
grading and standardization
Installation of solar
National livestock mission, etc…
12. NABARD’s initiatives
1.Rupee to RuPay
NABARD Supported cooperative
Banks and RRBs for issuing RuPay Kisan credit
Cards (KCC) to farmers and
provided point of sale terminals to agriculture
Input suppliers
to allow farming community to benefit from
The dynamics of a cashless system.
The first RuPay KCC card
Launched by Dr Prakash Bakshi chairman ,NABARD
Issued by: Raigad District central co-operative bank at alibag Maharashtra
On May 2013.
In 2013-14, 15 lakh rupay debit and 6 lakh rupay kisan cards were issued by RRBs while 6 cooperative banks began
issuing rupay kisan cards.