NABARD

Subject : National Organisations

Context : RBI extends fresh support of ₹50,000 cr. to NABARD, others.

Concept :

About NABARD:

It is an apex development and specialized bank established on 12 July 1982 by an act by the parliament of India.
Its main focus is to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector.
It was established based on the recommendations of the Committee set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. shivaraman.
It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
It has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
The Reserve Bank of India (RBI) recently sold its entire stakes in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank.
The decision to divest its entire stake was taken based on the recommendations of the second Narasimham Committee. The government now holds a 100 per cent stake in both NHB and NABARD.