{"id":155530,"date":"2025-06-23T13:27:30","date_gmt":"2025-06-23T07:57:30","guid":{"rendered":"https:\/\/www.practicemock.com\/blog\/?p=155530"},"modified":"2025-06-23T17:08:41","modified_gmt":"2025-06-23T11:38:41","slug":"what-is-nabard","status":"publish","type":"post","link":"https:\/\/www.practicemock.com\/blog\/what-is-nabard\/","title":{"rendered":"What is NABARD? Check History, Functions, and Other Details"},"content":{"rendered":"\n

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Home<\/a><\/span> \u00bb Banking Awareness<\/a><\/span> \u00bb What is NABARD?<\/span><\/span><\/div>\n\n\n

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The full form of NABARD is National Bank for Agriculture and Rural Development.<\/strong> It <\/strong>is a regulating body in India, headquartered in Mumbai, that regulates economic activities in the rural areas of India. It was established in 1982 to promote sustainable development. Its main objective is to improve the livelihood of people in rural areas through various initiatives. The question related to NABARD and its functions is generally asked in the banking examinations. Also, it conducts its recruitment for NABARD Grade A and Grade B positions. Therefore, it becomes an important topic to be covered for the government exam aspirants. Continue reading till the last and know all the details regarding the National Bank for Agriculture and Rural Development.<\/p>\n\n\n\n

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NABARD Overview<\/h2>\n\n\n\n

The table below provides an overview of the National Bank of Agricultural and Rural Development. <\/p>\n\n\n\n

Particulars<\/th>Details<\/th><\/tr><\/thead>
Full Form<\/strong><\/td>National Bank for Agriculture and Rural Development<\/td><\/tr>
Established<\/strong><\/td>12 July 1982<\/td><\/tr>
Headquarters<\/strong><\/td>Mumbai, Maharashtra<\/td><\/tr>
Regulated By<\/strong><\/td>Ministry of Finance, Government of India<\/td><\/tr>
Ownership<\/strong><\/td>100% owned by Government of India (after RBI transferred its stake in 2018)<\/td><\/tr>
Objective<\/strong><\/td>Promote sustainable and equitable agriculture and rural development<\/td><\/tr>
Main Functions<\/strong><\/td>– Refinance for agriculture and rural development
– Developmental and supervisory role
– Financial inclusion and rural credit monitoring<\/td><\/tr>
Key Areas of Operation<\/strong><\/td>– Agriculture finance
– Rural infrastructure
– Microfinance
– SHGs
– Cooperative Banks and RRBs<\/a><\/td><\/tr>
Refinancing Role<\/strong><\/td>Provides refinance support to Cooperative Banks, RRBs, Commercial Banks<\/td><\/tr>
Development Role<\/strong><\/td>Capacity building, training, institution development<\/td><\/tr>
Supervisory Role<\/strong><\/td>Inspects and supervises Cooperative Banks and Regional Rural Banks<\/td><\/tr>
Flagship Funds Managed<\/strong><\/td>– RIDF (Rural Infrastructure Development Fund)
– Long-Term Irrigation Fund
– Micro Irrigation Fund<\/td><\/tr>
Chairman (as of 2024)<\/strong><\/td>Shaji K.V.<\/td><\/tr>
Tagline<\/strong><\/td>“Development Bank of the Nation for Fostering Rural Prosperity”<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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About NABARD – Establishment<\/h2>\n\n\n\n

The National Bank for Agriculture and Rural Development is wholly owned by the Government of India. It operates under the Department of Financial Services (DFS) within the Ministry of Finance.<\/strong> It was established on the recommendations of the B. Shivaraman Committee<\/strong>. This committee was formed to review the arrangements of institutional credit for agriculture and rural development. This committee’s report led to the creation of NABARD. It was established by an act of Parliament in 1981 <\/strong>and became operational on July 12, 1982. The headquarters of NABARD is in Mumbai <\/strong>and is called the apex development bank of India. It was established under the sixth five-year plan with the passing of an Act of Parliament. The current Chairman of NABARD is Mr. Shaji K V, who assumed charge on 7th December 2022. The tagline of NABARD is “Development Bank of the Nation for Fostering Rural Prosperity”<\/strong>. B. Sivaraman is called the “Father of NABARD” for his pivotal role in the establishment of NABARD. The first Female Chairman of NABARD is Ranjana Kumar. It works in collaboration with the Reserve Bank of India (RBI) on various developmental and regulatory projects. Now let’s know about the history and functions of NABARD.<\/p>\n\n\n\n

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History of NABARD – Timeline<\/h2>\n\n\n\n

The complete history of NABARD starts with its pre-establishment phase and continues till the present. It represents its major contributions, mergers, and key roles in uplifting the economic situation the rural India. Let’s have a look at the timeline of the NABARD from 1982 to present times.<\/p>\n\n\n\n

Period<\/th>Development<\/th><\/tr><\/thead>
Pre-1982<\/strong><\/td>Agricultural credit and rural development functions were performed by RBI and its departments like ARDC (Agricultural Refinance and Development Corporation).<\/td><\/tr>
1979<\/strong><\/td>The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD)<\/strong> was set up under the chairmanship of B. Sivaraman<\/strong>.<\/td><\/tr>
1981<\/strong><\/td>Based on CRAFICARD\u2019s recommendations, the National Bank for Agriculture and Rural Development Act, 1981<\/strong> was enacted by the Parliament.<\/td><\/tr>
12 July 1982<\/strong><\/td>NABARD was established<\/strong> as an apex development bank by transferring the functions of ARDC and the rural credit departments of the RBI. It started operations with an initial capital of \u20b9100 crore.<\/strong><\/td><\/tr>
1982\u20131990s<\/strong><\/td>NABARD started refinancing rural credit, promoted Self-Help Groups (SHGs), and supported rural infrastructure development.<\/td><\/tr>
1995<\/strong><\/td>Rural Infrastructure Development Fund (RIDF)<\/strong> was established with NABARD\u2019s management to support rural infrastructure projects.<\/td><\/tr>
2000s<\/strong><\/td>NABARD became actively involved in microfinance, SHG\u2013Bank Linkage Programme (world\u2019s largest), and financial inclusion efforts.<\/td><\/tr>
2007<\/strong><\/td>Started supporting climate change-related initiatives and sustainable agriculture through funds and international partnerships.<\/td><\/tr>
2018<\/strong><\/td>The RBI transferred its 0.4% stake to the Government of India<\/strong>, making NABARD fully government-owned.<\/td><\/tr>
2020s\u2013present<\/strong><\/td>NABARD continues to play a pivotal role in financing rural infrastructure, digitizing rural banks, and supporting agritech and sustainable development initiatives.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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Origin Entities that Merged into NABARD<\/h3>\n\n\n\n