The National Bank for Agricultural and Rural Development (NABARD) is a statutory body

established in 1982 under the NABARD Act, 1981.

NABARD was set up on the recommendation of B. Sivaraman Committee.

NaBARD is the primary financial institution responsible for Rural and Agricultural Development by
promoting, financing and developmental activities in Agricultural and allied activities.

Thus NABARD has a range of functions pertaining to financial, supervision and developmental
roles. It acts as the principal body for the implementation of Govt Schemes in Agro-Rural
Development.
1. Financial Functions

NABARD helps in financing rural and agricultural development by

1) Direct Financing
a. Financing of Warehousing Infrastructure through WIF
b. Financing of food parks
c. Financing of Cold Storages
d. Financing of Micro-Irrigation projects through NIDA
e. Rural Infrastructure Development Fund (RIDF)
f. PM Awas Yojna - Gramin
g. Swachh Bharat Mission - Gramin
h. Producers Organisation Support
2) Refinancing of RRBs, Co-operative Banks, and Credit Societies which can disburse loans to
Farmers, Self-Help Groups and Communities for short-term & finance long-term Rural
infrastructure projects.

2. Supervising functions

NABARD supervises Regional Rural Banks, State Cooperative banks, District Central cooperative
banks, SCARDB and PCARDB.
NABARD recommends the RBI for giving licenses to different entities.

3. Developmental Functions

a. Institutional Development like RRBs and Cooperative Banks.

b. Farm Sector Development: Pomoting new technologies and innovations in farming
c. Non-farm sector development: Promoting and marketing agricultural produces by promoting
Haat/Mart, GI Tags, etc.
d. Financial Inclusion and Literacy: Spread financial literacy, improve banking infrastructure and
services
e. Micro Credit Innovation services like Kisan Credit card
f. R & D
g. Responsible for disbursing loans under Green Climate Fund and National Adaption Fund