Understanding The NABARD and Its

Impact on Rural Development

Mr. Akash Sanjay Paval
Masters in Management Studies Academic Year
2023-24

Under the Guidance of

Mr. Sunil Parkar

University of Mumbai’s
Alkesh Dinesh Mody Institute for Financial and Management Studies

University of Mumbai’s
Alkesh Dinesh Mody Institute
 For Financial and Management Studies

Certificate

I, Professor Mr. Sunil Parkar hereby certify that Mr. Akash Sanjay Paval,
SYMMS Student of Alkesh Dinesh Mody Institute for Financial and
Management Studies, has completed a project titled Understanding the
NABARD and its Impact on Rural Development in the area of
specialization Finance for the academic year 2023-2024. The work of the
student is original and the information included in the project is true to
the best of my knowledge.

Dr. Naina Salve Dr. Smita Shukla

Coordinator Academics Director

Mr. Sunil Parkar External Guide

Internal Guide

Declaration
2
 I, Mr./Ms. Akash Sanjay Paval SYMMS (Finance) Student of
Alkesh Dinesh Mody Institute for Financial and Management Studies,
hereby declare that I have completed the project titled Understanding the
NABARD and its Impact on Rural Development during the academic
year 2023-2024.

The report work is original and the information/data included in

the report is true to the best of my Knowledge. Due credit is extended on
the work of Literature/Secondary Survey by endorsing it in the
Bibliography as per prescribed format.

Signature

Akash Sanjay Paval

ACKNOWLEDGEMENT

3
 TABLE OF CONTENT

SR. NO. TITLE PAGE NO.

Front Page
Certificate
Declaration
Acknowledgement
Table of Content
List of Figures
List of tables
1 Executive Summary
2 Introduction
2.1 Establishment of Nabard
2.2 Objectives of NABARD
2.3 Vision
2.4 Mission
2.5 Functions of NABARD
2.6 Credit Role
2.7 Credit Operations Performed by the bank
2.8 Current Position
3 Review of Literature
4 Objectives
5 Methodology
6 Result and Findings
6.1 Agro-Rural Banking Reforms
6.2 Agricultural Credit Structure in India
6.3 role of nabard`s for credit and financial services
6.4 NABARD Government Schemes
6.5 Impact of NABARD

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 6.6 Challenges and Gaps
7 Conclusion
8 Bibliography
9 Annexure

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 LIST OF FIGURES

SR. TITLE PAGE

NO. NO.
1 NABARD Logo
2 NABARD Head Office
3 Graphical Presentation- Percentage of Agriculture Credit
4 Structure of Institutional Credit
5 Status of NABARD Project Funds
6 Performance of Women SHG`s
7 Kisan Credit Card
8 SHG`s Conduction Kerla
9 Goat Rearing Project Gujrat
10 Showcase Draft of MY PAD MY RIGHT
11 Jammu & Kashmir Bridge Construction by NABARD
12 KOSI River Bridge Bihar

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 LIST OF TABLES
SR. TITLE PAGE
NO. NO.
1 Percentage of Agriculture Credit (Pre and Post Reform)
2 Salient Features of NWS Scheme
3 Kisan Credit Card Saturation Progress FY 2023

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ABSTRACT

The aim of this study is to identify and appraise literatures on relationships between financial
well-being and mental health. Conducting a systematic review on what is available from the
literature is fundamental as a mean for keeping track of the study progress and synthesizing the
emerging setting. The search was performed using related keywords of the two constructs from
Psychinfo, Scopus and Google Scholar databases between the year 2001 and 2019. The initial
search yields a combination of 2,222 papers and after performing the exclusion criteria, a total
of 37 documents were used as the data. Analyses of the studies were conducted to answer the
questions of what are the measures of financial wellbeing and mental health and how does
financial wellbeing affect mental health? The findings suggest a diverse perspective of financial
wellbeing and the term financial hardship, financial situation, financial strain, financial stress and
financial security that carry similar meaning were used in literature. There were also various
indicators that measure mental health and the use of CES-D, Brief Symptom Inventory (BSI),
general health questionnaire (GHQ-28), Mental Health Index (MHI-5), International Diagnostic
Interview (WHO-CIDI), Rosenberg Self-Esteem Scale, Goldberg Depression and Anxiety Scales,
Depression Anxiety Stress (DASS-21) and Kessler 10 Measure of Psychological Distress (K10) was
common. There is an increasing trend of the study and also consistent findings that indicate for
significant relationship between financial wellbeing and mental health. Hence, taking a
proactive prevention to keep a healthy financial wellbeing such as financial educating and
financial literacy is very crucial to reduce the burden of mental depression, and further the
burden of healthcare and social

Keywords: shorts mental health, financial wellbeing, financial hardship, depression, poverty and
stress

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Introduction

Depression, anxiety and stress are common mental health issues and have become the
world’s most pressing public health concerns. Data from the Global Health Data Exchange
suggests the state of poor mental health problem is growing, with 17.3 percent or approximately
84 million people in Europe are suffering from the mental health challenge. Depression, anxiety,
and stress are symptoms of poor mental health with depression and anxiety become the two
most common mental health disorders in community (Organization, 2017). Likewise, a great
concern of the public health is the rise of the anxiety and mood disorders (Greenglass et al.,
2015). Meanwhile, a finding by (Fiksenbaum et al., 2017) also reported that 3.6% of people
worldwide show the symptom of anxiety disorders, and 4.4% are suffering from depressive
disorder. The mental health problem can lead to premature mortality and affects the quality
of life. Research have also found mental health problems are among the most important
contributors to the burden of other diseases and disability. Mental illness is a major source of
loss of productivity and wellbeing. Losing the mental stability is additional burden to the
economic development.

Many factors explain for mental health such as psychosocial stress (Alyousef, 2019), work
related factors (Mo et al., 2020) and socio-economic factors (Anderson et al., 2018). Yet,
statistics have shown for a consistent link between how the mental condition is affected by the
status of financial wellbeing. As the world is facing serious issues of poverty, income instability
and poor economic status and global financial crisis, more and more people are trapped in the
financial stress situations. Data from the World Health Organization (WHO) indicates there is a
steady rise in the percentage of individuals suffering from the financial hardship. This has
triggered some worries on the financial burden and explained for today’s mental health crisis.

Nowadays, the attention toward the personal financial wellbeing is increasing. Generally
financial wellbeing is referring to person’s ability to manage the current situation and also
ongoing of financial obligations. It is how people feel secure about their financial matters at
present or in the future, as the financial ability to make selections for them to enjoy life (Bureau,
2017). In fact, financial wellbeing is associated with financial literacy and financial behaviour. In
the same way financial behaviour is one of the components that relates to financial satisfaction
or financial wellbeing (Gerrans et al., 2014; Xiao et al., 2014). Likewise, financial wellbeing is
broadly defined as the concept used to explain an individual’s or a family’s financial
situation (Mokhtar et al., 2015). It is a subjective sentence towards person’s financial status as
in condition of zero burden, financially happy and financial healthy (Sabri & Zakaria, 2015).
Certainly, financial wellbeing also defines the perception of people’s regarding their financial
knowledge and the way of controlling money and monetary value (De Witte et al., 2015). While
there are studies that examine for the relationship between financial wellbeing and mental
health, attempts to explore the literature on the association is still lacking. Conducting a
systematic review on what is available from the literature is fundamental as a mean for keeping
track of the study progress and synthesizing the emerging setting. Therefore, the study was

9
Objective

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Methodology

The study has undertaken a systematic review of literature, known as a research synthesis
for answering the research questions. Research synthesis and systematic literature reviews have
gained increasing acceptance within social science research. It is aimed to overcome the issue of
researcher bias by using a comprehensive search and analysis framework that combines
cross-referencing between researchers, extensive searches of research databases and the
application of exclusion criteria (Hedges & Cooper, 2009). Based on Cooper and Hedges (2009),
there are six stages that govern a research synthesis; 1) define the problem, 2) collect the
research evidence, 3) evaluate of the evidences for inclusion and exclusion (selection
criteria), 4) analyse or integrate the evidences, 5) interpret the cumulative evidence and 6)
present the synthesis methods and results. The main aim of Financial Wellbeing and Mental
Health: A Systematic Review 3 the paper is to provide the understanding of the indicators used
to measure financial wellbeing and mental health, and to understand how financial wellbeing
affects mental health. The document retrieval started by searching for the evidences from
Scopus-indexed journals, the articles require further evaluations for inclusion and exclusion
criteria. conducted to answer the following research questions, “what are the measures of
financial

The primary purpose of this research was to examine the effect of financial stressors on Physical
health, well-being, and social functioning. To examine this association, the TTSC Served as the
framework to provide direction for the variables to be used in the modeling. Secondary cross-
sectional data from the Core 2012 Health and Retirement Study (HRS) served As the principal
data source for this research. However, when available, some of the variables Were also
obtained from the “Leave Behind” Psychosocial and Lifestyle Questionnaire from the HRS, or the
user-friendly HRS data prepared by the RAND Centre for the Study of Aging to Supplement the
Core database.

Core 2012 Health and Retirement Study

The University of Michigan HRS survey is a biennial longitudinal survey sponsored by The
National Institute on Aging and the Social Security Administration, consisting of Approximately
20,000 individuals who are representative of the United States population over 50 Years of age
(Smith et al., 2013). The purpose of the survey is to provide an overview of the Growing older
population in the United States (Juster & Suzman, 1995). The survey contains Detail about
respondents’ demographics, health status, housing, family structure, work history, Current
employment, disability, retirement plans, net worth, income, and health and life Insurance. The
content of the survey was designed to reflect the analytic and policy interests of Researchers
working in the area of retirement and aging (Survey Research Center, Institute for Social
Research, 2008).

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HRS uses a national area probability sample of U.S. households with supplemental Oversamples
of Blacks, Hispanics, and residents of the state of Florida. The majority of the sample population
is approaching retirement or already retired, but the sample also includes Individuals who are
not currently working or who have never worked outside the home (Hearing & Connor, 1995).
The HRS observational unit is an eligible “household financial unit” Which must include at least
one age-eligible member born in 1959 or earlier, who is either: (a) a Single unmarried age-
eligible person, (b) a married couple in which both persons are age eligible, Or © a married
couple in which only one spouse is age eligible (Heeringa & Connor, 1995).Originally, the overall
HRS sample size was simply the consequence of a decision about Survey length and budget
constraint (Survey Research Centre, Institute for Social Research, 2008). The final sample size
that emerged was based on recommendations given the amount of Statistical power needed for
certain analysis. In the end, the targets for sample size and response Rates were maintained
(Survey Research Center, Institute for Social Research, 2008). The sample For the HRS has been
built up over time. In 1998, a sample representative of the population over Age 50 in the United
States was created. Since then, HRS has refreshed the sample with a new Six-year birth cohort
every six years. According to the Institute for Social Research at the University of Michigan
regarding

Sample selection:

The HRS sample is selected under a multi-stage area probability sample design. The Sample
includes four distinct selection stages. The primary stage of sampling involves Probability
proportionate to size (PPS) selection of U.S. Metropolitan Statistical Areas (MSAs) and non-MSA
counties. This stage is followed by a second stage sampling of Area segments (SSUs) within
sampled primary stage units (PSUs). The third stage of Sample selection is preceded by a
complete listing (enumeration) of all housing units that are physically located within the bounds
of the selected SSU.

Social functioning.

Recall that as one of the long-term effects under the TTSC, social Functioning is defined as one’s
satisfaction with interpersonal relationships and whether one Possesses the necessary
disposition and interpersonal skills to fulfill their societal roles (Lazarus & Folkman, 1984). By
examining adaptations to stress for social functioning, a better Understanding may be obtained
of how financial stress affects one’s interaction with their social Contacts. However, social
functioning should not be confused with social support. Social support Focuses on the
relationship quality rather than social integration. Additionally, social support Examines the
perceived support that one receives from their spouse, children, family, and friends, Whereas
social functioning focuses on the integration and number of ties.

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Statistical Analysis

This research primarily examined the association between financial stressors and Outcomes for
health status, morale, and social functioning. To test these hypotheses, SAS

Statistical software was employed to provide the analytics for this research. Prior to conducting

Statistical analysis on the variables, and to ensure integrity of the results, the data was screened
to

Check for missing responses and for violation of regression assumptions. To check for missing

Responses, a frequency distribution was first conducted on each variable. Some of the variables

Had missing data so the method of list-wise deletion was utilized to remove those responses
from

The analysis. Parameter bias was not anticipated from this procedure.

Given the continuous nature of the “morale” and “social functioning” dependent

Variables, OLS regression was utilized to model these variables. Variance inflation factor (VIF)

Testing was also conducted to check for multi-collinearity. Given the data requirements of the

Statistical methodology, these variables were also examined for data normality prior to
modeling.

To determine the strength of the model, the adjusted R-squared was noted and the p-values for

The independent variables were examined for significance.

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Given the ordered nature of the “subjective health,” “objective health,” and “composite”

Outcome dependent variables, cumulative logistic regression analysis in SAS was used to

Determine the relationship with the independent and control variables for each of the
dependent

Variables. Data normality for these dependent variables was not a concern given the data

Requirements of the statistical methodology. However, prior to running cumulative logistic

Regression, testing for multi-collinearity was conducted through OLS regression using VIF

14