SATHEE: NABARD

NABARD

NABARD Vision & Mission

Vision:

To be a world-class development bank committed to promoting sustainable and inclusive rural development.

Mission:

To provide financial and developmental support to the rural sector, with a focus on agriculture, rural industries, and infrastructure, in order to improve the quality of life of rural people.

Key Objectives:

To increase the flow of credit to the rural sector.
To promote rural development through innovative financial products and services.
To support the development of rural infrastructure.
To promote the development of rural industries.
To improve the quality of life of rural people.

Core Values:

Commitment to rural development
Professionalism
Integrity
Transparency
Accountability

Strategic Priorities:

To increase the flow of credit to the rural sector by 20% per annum.
To develop and implement innovative financial products and services for the rural sector.
To support the development of rural infrastructure by providing financial assistance to state governments and other agencies.
To promote the development of rural industries by providing financial assistance to entrepreneurs and cooperatives.
To improve the quality of life of rural people by providing financial assistance for education, health, and other social sector projects.

Key Performance Indicators:

Growth in the flow of credit to the rural sector
Number of innovative financial products and services developed and implemented
Amount of financial assistance provided for rural infrastructure development
Number of rural industries supported
Improvement in the quality of life of rural people

NABARD is committed to promoting sustainable and inclusive rural development. Through its vision, mission, key objectives, core values, strategic priorities, and key performance indicators, NABARD is working to improve the quality of life of rural people.

NABARD Structure

The National Bank for Agriculture and Rural Development (NABARD) is a development bank in India that provides financial services to the rural sector. It was established in 1982 by an Act of Parliament and is headquartered in Mumbai. NABARD has a three-tier structure:

1. Head Office:

The Head Office of NABARD is located in Mumbai and is responsible for overall policy formulation, planning, and coordination of the bank’s activities. It also provides support services to the regional offices and oversees the implementation of various programs and schemes.

2. Regional Offices:

NABARD has 31 regional offices located in different states and union territories of India. These offices are responsible for implementing the bank’s policies and programs at the regional level. They provide financial assistance to state governments, cooperative banks, regional rural banks, and other financial institutions. The regional offices also monitor and supervise the performance of these institutions and provide technical assistance to them.

3. District Offices:

NABARD has 600 district offices located in different districts of India. These offices are responsible for implementing the bank’s policies and programs at the district level. They provide financial assistance to farmers, self-help groups, and other rural enterprises. The district offices also monitor and supervise the performance of these institutions and provide technical assistance to them.

Organizational Structure of NABARD:

NABARD’s organizational structure consists of the following key components:

1. Board of Directors:

The Board of Directors is the apex body of NABARD and is responsible for the overall governance and management of the bank. It is chaired by the Governor of the Reserve Bank of India (RBI) and includes representatives from the Government of India, state governments, cooperative banks, and other financial institutions.

2. Executive Committee:

The Executive Committee is the highest decision-making body of NABARD and is responsible for implementing the policies and decisions of the Board of Directors. It is chaired by the Chairman of NABARD and includes the Managing Director, Executive Directors, and other senior officials of the bank.

3. Functional Departments:

NABARD has various functional departments that are responsible for specific areas of operations. These departments include:

Agricultural Credit Department
Rural Development Department
Financial Inclusion Department
Microfinance Department
Research and Development Department
Human Resources Department
Finance Department
Information Technology Department

4. Regional Offices:

NABARD has 31 regional offices located across India. These offices are responsible for implementing the bank’s policies and programs at the regional level. They provide financial assistance to state governments, cooperative banks, regional rural banks, and other financial institutions.

5. District Offices:

NABARD has 600 district offices located across India. These offices are responsible for implementing the bank’s policies and programs at the district level. They provide financial assistance to farmers, self-help groups, and other rural enterprises.

6. Rural Development Fund (RDF):

The RDF is a special fund established by NABARD to provide financial assistance to state governments and other agencies for rural development projects. The fund is used to finance projects in areas such as agriculture, irrigation, rural infrastructure, and social development.

7. Microfinance Institutions (MFIs):

NABARD promotes and supports microfinance institutions (MFIs) that provide financial services to the poor and marginalized sections of society. MFIs provide small loans, savings, and other financial services to help people start and grow their businesses.

8. Self-Help Groups (SHGs):

NABARD promotes and supports self-help groups (SHGs) as a means of empowering women and providing them with access to financial services. SHGs are groups of women who come together to save money and provide loans to each other.

NABARD’s organizational structure is designed to ensure effective implementation of its policies and programs and to reach out to the rural population in a comprehensive manner.

NABARD – Partner Institutions or Clients

NABARD – Roles & Functions

The National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India. It was established on 12 July 1982 by an Act of Parliament to provide credit and other facilities for the promotion and development of agriculture, rural industries, and other rural sectors.

Roles of NABARD

NABARD plays a crucial role in the development of the rural economy of India. Its main roles include:

Providing refinance to financial institutions: NABARD provides refinance to cooperative banks, regional rural banks, and other financial institutions that lend to the agricultural and rural sectors. This helps to ensure that these institutions have sufficient funds to meet the credit needs of their borrowers.
Promoting rural development: NABARD promotes rural development by providing financial assistance to various rural development projects. These projects include irrigation, watershed management, rural infrastructure, and rural housing.
Supporting agricultural research and development: NABARD supports agricultural research and development by providing financial assistance to agricultural universities and research institutions. This helps to improve agricultural productivity and sustainability.
Promoting financial inclusion: NABARD promotes financial inclusion by providing financial services to the unbanked and underbanked population in rural areas. This includes providing microfinance, credit for self-help groups, and mobile banking services.
Supervising cooperative banks: NABARD supervises cooperative banks to ensure that they are financially sound and operating in accordance with the law. This helps to protect the interests of depositors and borrowers.

Functions of NABARD

NABARD performs a wide range of functions to fulfill its roles. Some of its key functions include:

Providing loans and advances to financial institutions: NABARD provides loans and advances to cooperative banks, regional rural banks, and other financial institutions that lend to the agricultural and rural sectors.
Issuing bonds and debentures: NABARD issues bonds and debentures to raise funds from the market. These funds are used to provide refinance to financial institutions and to support rural development projects.
Providing technical assistance: NABARD provides technical assistance to financial institutions, government agencies, and non-governmental organizations (NGOs) involved in rural development. This assistance includes training, research, and consultancy services.
Conducting research: NABARD conducts research on various aspects of rural development, including agriculture, credit, and financial inclusion. This research helps to inform policymaking and program design.
Monitoring and evaluation: NABARD monitors and evaluates the progress of rural development projects and programs. This helps to ensure that these projects and programs are achieving their objectives and making a positive impact on the lives of rural people.

NABARD is a key player in the development of the rural economy of India. Its roles and functions are essential for ensuring that the agricultural and rural sectors have access to the financial resources and support they need to thrive.

NABARD FAQs

What is NABARD?

NABARD stands for National Bank for Agriculture and Rural Development.
It is an apex development bank in India, headquartered in Mumbai.
NABARD was established on July 12, 1982, by an Act of Parliament.

What are the main objectives of NABARD?

To provide refinance to banks and other financial institutions for lending to the agriculture and rural sector.
To promote rural development through various schemes and initiatives.
To regulate the cooperative banking sector in India.

What are the different types of loans provided by NABARD?

NABARD provides various types of loans, including:
- Crop loans
- Term loans
- Project loans
- Microfinance loans
- Rural housing loans
- Education loans

Who is eligible for NABARD loans?

Farmers, agricultural laborers, rural artisans, small businesses, and other individuals and entities engaged in agriculture and rural development activities are eligible for NABARD loans.

What are the interest rates on NABARD loans?

The interest rates on NABARD loans vary depending on the type of loan and the borrower’s creditworthiness.
The current interest rates on NABARD loans range from 7% to 12%.

How to apply for a NABARD loan?

To apply for a NABARD loan, you can contact your nearest NABARD office or a bank or financial institution that is accredited by NABARD.
You will need to submit a loan application form along with the required documents.

What are the repayment terms for NABARD loans?

The repayment terms for NABARD loans vary depending on the type of loan.
The repayment period for crop loans is generally 12 months, while the repayment period for term loans can be up to 10 years.

What are the penalties for late repayment of NABARD loans?

NABARD charges a penalty of 2% per month on overdue loan installments.

How to contact NABARD?

You can contact NABARD by:
- Visiting the NABARD website: www.nabard.org
- Calling the NABARD customer care number: 1800-222-234
- Writing to the NABARD head office: National Bank for Agriculture and Rural Development Plot No. C-24, ‘G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051