NABARD the apex institution providing financial assistance to
agriculture and other economic activities in rural areas came into existence on
July 12, 1982.
It took over the functions of erstwhile Agriculture Credit
Department. Rural Planning and Credit Department. Rural Planning and Credit
Cell of Reserve Bank of India and Agriculture Refinance and Development
Corporation.
The main functions of NABARD pertain lo policy development,
coordination, research, training, etc., relating to rural credit. It provides
refinance lo cooperatives, regional rural banks, etc. Moreover it makes loans
and advances to stale governments for a period not exceeding more than 20 years
to enable (hem lo subscribe directly or indirectly lo share the capital of
cooperative credit societies.
It also promotes research in agriculture and rural development
through its research and development fund. It undertakes inspection of
co-operative banks and RRBs and advises the government on related matters.
NABARD undertakes monitoring and evolution of the projects
financed by it. The NABARD maintains two funds; The National Rural Credit Fund
(long-term operations) and the National Rural Credit Fund (Stabilisation).
The Central and State Governments contribute to the fund. The
NABARD operates throughout the country through its 16 regional offices located
in the capitals of all the major Stales and 3 sub offices, the paid-up capital
of NABARD stood at Rs.2000 crore as on March 31, 2010. The profit after tax
amounted to Rs.1558 crore during the year 2009-10 as against Rs. 1390 crore
during the year 2008-09. Sources of Fund
NABARD had a paid-up share capital of Rs. 100 crore, since this
has been raised through stages to Rs. 5,000 crore. The NABARD is empowered to
borrow from central government.
It is also permitted to borrow foreign currency. It can also
borrow long-term loans from any other authority or organisation or institution
approved by the Board, It is empowered to issue bonds, debentures and other
financial instruments.
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