NABARD An Appraisal of its Working

Abstract

Every sector of national economy-industry trade, transport and various sector services need credit both for carrying on day to day activities and also for growth and progress.It is an essential ingredient for effecting changes in the scale of production and technology. But technology or innovation will have no meaning unless the capital starved farmer is provided credit for capital investment and for meeting the needs of working capital. To make the rural development process self-sustaining, financial support from banking institutions was expected to take up the cause of rural development by providing liberal credit facilities gradually eliminating the money lenders from the rural credit scenario. There was an urgent and growing need for the establishment of a central apex institution like RBI which would co-ordinate the efforts of all the agricultural and rural finance institution for developing the potential opportunities of excluded sections of sectors through selective and strategic input of credit.Thus the National Bank named National Bank for Agriculture and Rural Development was set up in July 1982 by an act of the Parliament to take over all the agricultural credit functions of RBI as well as the refinance functions of ARDC, with the objective of Promoting sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives. newline