Question

Answer the following:

Write important features of NABARD.

Answer 1

Important features of NABARD are as follows:

1. Financing Rural Industries: It plays an important role in providing refinance for 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.
2. Assistance to Financial Institutes: It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors the implementation of the developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations, and development of human resources.
3. 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.
4. Credit for Rural Development: It takes initiative in the development and promotion of different activities in rural areas by providing funds to the State government. It also works on the improvement of small and minor irrigation by way of promoting agricultural activities.
5. Apex Bank: NABARD acts as an apex bank for meeting the credit needs of all types of financial institutions working in 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.
6. Recommendations to Reserve Bank of India: It provides recommendations to Reserve Bank of India: on the issue of licenses to Co-operative Banks, the opening of new branches by State Co-operative Banks and Regional Rural Banks.
7. Development of Nation: It plays an important role m the Improvement of storage facilities for agricultural commodities by promoting the development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in the sustainable development of the country through the Green, Blue, and White revolution.
8. Supervision of Financial Institutes Engaged in Agricultural Finance: It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act,1949. It can also undertake an inspection of State 00operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.