All About NABARD, Objectives and Schemes for Exam
About the NABARD
National Bank for Agriculture and Rural Development (NABARD) is a development finance institution in India, headquartered in Mumbai. It was established on 12 July 1982 by a special act of the Indian parliament, with an initial capital of 100 crore rupees.
NABARD’s primary mandate is to promote sustainable and equitable agriculture and rural development through financial support, policy advocacy, and institution building.
Objectives of the NABARD are:
- To promote sustainable and equitable agriculture and rural development through financial support, policy advocacy, and institution building.
- To provide refinancing support to Cooperative banks and Regional Rural Banks (RRBs) for lending to agriculture and rural development.
- To provide direct lending to farmers, micro-enterprises, and other rural poor through a variety of credit programs.
- To provide technical assistance and capacity-building support to cooperatives, RRBs, and other rural financial institutions.
- To promote micro-finance and financial inclusion in rural areas.
- To conduct research and policy advocacy in areas related to agriculture and rural development
- To administer various funds such as Rural Infrastructure Development Fund (RIDF), Long Term Irrigation Fund, and Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
- To develop and promote sustainable and profitable agricultural and rural businesses.
- To promote sustainable and equitable rural development through financial support, policy advocacy, and institution building.
- To provide financial and development support to small and marginal farmers, landless laborers, rural artisans, and other vulnerable groups.
Overall, the main goal of NABARD is to improve the quality of life of people in rural India through sustainable and inclusive economic growth by providing financial and development support to farmers and other rural communities. It aims to play a key role in the Government of India’s efforts to provide financial services to farmers and rural communities in the country.
Schemes and Programmes by the NABARD
National Bank for Agriculture and Rural Development (NABARD) administers a number of schemes to support agriculture and rural development in India. Some of the notable schemes are:
- Rural Infrastructure Development Fund (RIDF): Provides financial assistance to state governments and other eligible agencies for the development of rural infrastructure, such as rural roads, bridges, irrigation, water supply projects, and rural electrification projects.
- Long-Term Irrigation Fund (LTIF): Provides long-term finance at a concessional interest rate for the modernization and expansion of irrigation systems.
- Agriculture Infrastructure Fund (AIF): Provides financial assistance to eligible agencies for the construction of various agriculture-related infrastructure such as farm ponds, community wells, check dams, etc.
- Dairy Entrepreneurship Development Scheme (DEDS): This aims to increase milk production in the country by promoting dairy entrepreneurship, building infrastructure, and providing technical assistance.
- Watershed Development Fund (WDF): Provides financial assistance to state governments, local bodies, and other eligible agencies for the development of watersheds,
- National Rural Livelihoods Promotion Mission (NRLM): aim to promote sustainable livelihoods for the poor in rural areas, by building institutions for the poor and linking them to financial services.
- Promotion of Rural Micro Enterprises (PRIME): Provides assistance to micro-enterprises in rural areas in the form of term loans and working capital.
- Farmer Finance and Development (FFD): Provide assistance to small farmers and farm labourers to access credit from institutional sources.
- Fisheries and Aquaculture Infrastructure Development Fund (FIDF): Provide financial assistance to the fisheries and aquaculture sector in India for the development of infrastructure facilities such as the construction of fishing harbours, fish landing centres, fish markets, cold storage facilities, ice plants, and fish processing units.
- Agri Clinics and Agri-Business Centres (ACABC) scheme: The Agri Clinics and Agri-Business Centres (ACABC) scheme is a scheme launched by the National Bank for Agriculture and Rural Development (NABARD) to promote entrepreneurship in the agricultural and allied sectors in India. The scheme aims to provide a range of services to farmers, including extension services, diagnostics, and marketing advice, as well as to create opportunities for self-employment and business development in the agricultural sector.
- Interest Subvention Scheme: Provide financial assistance to farmers for short-term crop loans. Under the scheme, farmers can avail of short-term crop loans from banks at a lower interest rate, which is known as the “subvention rate”. This helps farmers to manage their working capital requirements and improve their productivity.
Hello, I am Sonu Verma, M.Sc. (Horti.) Agriculture content writer, and an enthusiast who loves to share knowledge. No Culture Without Agriculture.