Question

What are the functions of NABARD?

Answer 1

Functions of NABARD:

• NABARD has inherited its apex role from RBI i.e, it is performing all the functions performed
  by RBI with regard to agricultural credit.

1. NABARD acts as a refinancing institution for all kinds of production and investment credit to agriculture, small-scale industries, cottage, and village industries, handicrafts and rural crafts and real artisans, and other allied economic activities with a view to promoting integrated rural development.
2. NABARD gives long-term loans (up to 20 Years) to State Government to enable them to subscribe to the share capital of co – cooperative credit societies.
3. NABARD gives long-term loans to any institution approved by the Central Government or contributes to the share capital or invests in securities of any institution concerned with agriculture and rural development.
4. NABARD has the responsibility of coordinating the activities of Central and State Governments, the Planning Commission (now NITI Aayog), and other all India and State level institutions entrusted with the development of small scale industries, village and cottage industries, rural crafts, industries in the tiny and decentralized sectors, etc.
5. It maintains a Research and Development Fund to promote research in agriculture and rural development.