Question

Answer in brief.

State any four features of NABARD.

Answer 1

Features of NABARD:

1. Apex Bank: NABARD acts as an apex bank for meeting the credit needs of all types of financial institutions working 1n the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.
2. Refinancing Facilities: It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs), and other approved financial institutions for financing rural economic activities. It also provides short-term, medium-term, and long term credit to these institutes.
3. Provides Credit for Rural Development: It takes initiatives in the development and promotion of different activities in rural areas by providing funds to State governments. It also provides refinancing for the Upliftment of weaker sections of the society. It also works on the improvement of small and minor irrigation by way of promoting agricultural activities.
4. Financing Rural Industries: It provides refinancing facilities to small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among rural youth and encourage them to start enterprises in rural areas.