What is NABARD and its roles in Rural Development?

Agriculture sector of India provides 60% of the products to the nation. Still, the people working in that sector are in pain most of the time. To give a voice to the farmers who contribute a huge share to GDP, the government has many autonomies working for their welfare. Among many, NABARD is a board which totally focuses on the issues and developments of farmers.

 What is NABARD?

NABARD stands for the “National Bank for Agriculture and Rural Development". Established in 1982 with 50:50 contribution from Government of India and Reserve Bank of India. Headquarter is situated in Mumbai, India and has regional offices in all states.

It focuses on development in rural India, promotion of small scale industries and helping villagers to establish a business from handicrafts and other products.

After independence India needed to focus on agricultural finance so in 1981 a committee was set up to assess the arrangements for agricultural and rural development. On July 12th, under the recommendation B. Sivaramman NABARD was formed.

What NABARD does? 

• NABARD is Apex institution India who regulate all the matters of agricultural policies and other economic activities of rural India.
• NABARD is a refinancing agency for the institutions that provide investment and credit to promote the different programs working for rural development.
• It promotes rural credit financing rehabilitation of different schemes, restructures the system and makes the credit process smooth at micro level.
• NABARD is responsible for preparing rural credit plans for all the districts of the country.
• NABARD also has active health institutions working for rural upliftment.
• Maintain harmony between Government of India and Reserve Bank of India by formulating right policies
• Around 50% of rural credits are being paid out by cooperative banks and public sector banks located in rural areas. NABARD is in the organization is responsible to supervise and make sure the functioning of the system. 

Hence NABARD works in credit function by making sure the cash flow helps the rural businesses to develop and promote different research and training programs.

Even though Indian economy shrank due to pandemic steps taken by NABARD and other sustainable models agriculture the sector saw 2.5 % growth.

Many eyes are looking forward to the role of NABARD in revival of the economy as many programs announced by the central government like development fund with total corpus of 15000 Crore, agriculture infrastructure fine of 1 lakh Crore are game changers in showing positive numbers even during pandemic. NABARD also would be actively analyzing and implementing new programs and schemes to promote Aatmnirbhar Bharat.

In the opinion of NABARD chief agriculture sector would be driving the post COVID available for the economy. Current requirements NABARD is focusing on primary agricultural cooperative watersheds in micro food processing.