Key Concepts & Self-Assessment15 Key Facts
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#1
NABARD was established on July 12, 1982 by Act 61 of 1981 based on the B. Sivaraman Committee (CRAFICARD) report.
#2
NABARD took over the refinancing functions of the Agricultural Refinance and Development Corporation (ARDC) and RBI's agricultural departments.
#3
Following the NABARD (Amendment) Act, 2018, the Government of India holds 100% equity in NABARD, ending RBI's prior partial shareholding.
#4
The authorized capital of NABARD was enhanced from ₹5,000 crore to ₹30,000 crore under the 2018 statutory amendment.
#5
NABARD is headquartered in Mumbai and functions under the administrative control of the Department of Financial Services, Ministry of Finance.
#6
The Rural Infrastructure Development Fund (RIDF) was set up within NABARD in 1995-96 to finance state government rural infrastructure projects.
#7
Commercial banks with shortfalls in achieving priority sector lending targets (40% total, 18% agriculture) must deposit the deficit into RIDF.
#8
The Kisan Credit Card (KCC) scheme was formulated by NABARD in 1998 following the recommendations of the R.V. Gupta Committee.
#9
NABARD launched the SHG Bank Linkage Programme (SHG-BLP) in 1992, which has evolved into the world's largest microfinance initiative.
#10
Under Section 35(6) of the Banking Regulation Act, 1949, NABARD inspects Regional Rural Banks and State/District Central Cooperative Banks.
#11
The Long Term Irrigation Fund (LTIF) was created in NABARD with an initial corpus of ₹20,000 crore to fund Fast-Track AIBP irrigation projects.
#12
The Micro Irrigation Fund (MIF) of ₹5,000 crore was set up in NABARD to facilitate subsidized micro-irrigation expansion under PMKSY.
#13
NABARD acts as an accredited National Implementing Entity (NIE) for the Adaptation Fund and Green Climate Fund under the UNFCCC framework.
#14
E-Shakti is NABARD's initiative launched for the complete digitization of Self-Help Groups across India to improve bank credit delivery.
#15
NABARD provides short-term refinance to Cooperative Banks and RRBs under the Short-Term Cooperative Rural Credit (Refinance) Fund.
Subject Specialist Commentary
Analytical perspective & practical exam advice from the Master10 academic board
The National Bank for Agriculture and Rural Development is India’s apex development bank for financing rural prosperity and agricultural growth. Established in 1982 on the recommendations of the B. Sivaraman Committee, NABARD replaced the Reserve Bank’s agricultural credit departments. Today, it is fully owned by the Government of India. Rather than lending directly to individual farmers, it provides refinance support to cooperative banks and Regional Rural Banks while supervising their operational health.
In UPSC Civil Services and State PSC exams, NABARD is an essential topic with recurring factual questions. A frequent question trap claims that the RBI still owns shares in NABARD; remember that the 2018 amendment transferred 100 percent ownership to the Central Government. Be prepared for questions on key rural initiatives started by NABARD, including the 1992 Self-Help Group Bank Linkage Programme, the 1998 Kisan Credit Card scheme, and the Rural Infrastructure Development Fund funded by bank priority lending shortfalls.
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