National bank for

Agricultural and rural

development
PROJECT MADE AND PRESENTED BY:-

1. TUSHAR BIRLA ROLL NO. 7

2. AMIT LAL ROLL NO. 23

3. PARANJ PATEL ROLL NO. 32

4. HARDIK SATRA ROLL NO. 41

5. ESHA SHAH ROLL NO. 43

6. PURVISHA SHAH ROLL NO. 45

GROUP NO.: - 6

CLASS : - S.Y.B.M.S.

DIV :-A

SUBJECT : - BUSINESS ASPECTS IN BANKING AND

INSURANCE (BBI)
 INDEX

SR. NO. TOPIC

1 INTRODUCTION

2 HISTORY OF NABARD

3 OBJECTIVES OF NABARD

4 MISSION OF NABARD

5 ROLES AND FUNCTIONS OF NABARD

6 SUBSIDIARIES OF NABARD

7 BALANCE SHEET OF NABARD

INTRODUCTION:-

National Bank for Agriculture and Rural Development is established as a

Development Bank for providing and regulating credit and other facilities for the
promotion and development of agriculture, small industries, cottage and village
industries, handicrafts and other rural crafts and other allied economic activities in
rural areas with a view to promoting integrated rural development and securing
prosperity of rural areas and for matters connected therewith or incidental thereto:-

 Providing refinance to lending institutions in rural areas

 Bringing about or promoting institutional development and

 Evaluating, monitoring and inspecting the client banks

 Besides this pivotal role, NABARD also:

 Acts as a coordinator in the operations of rural credit

institutions

 Extends assistance to the government, the Reserve Bank of

India and other organizations in matters relating to rural
development

 Offers training and research facilities for banks, cooperatives

and organizations working in the field of rural development

 Helps the state governments in reaching their targets of

providing assistance to eligible institutions in agriculture and
rural development

 Acts as regulator for cooperative banks and RRBs

HISTORY OF NABARD:-

The Committee to Review Arrangements for Institutional Credit for Agriculture and
Rural Development (CRAFICARD) set up by the RBI under the Chairmanship of
Shri B Sivaraman in its report submitted to Governor, Reserve Bank of India on
November 28, 1979 recommended the establishment of NABARD. The Parliament
through the Act 61 of 81 approved its setting up.

The Committee after reviewing the arrangements came to the conclusion that a new
arrangement would be necessary at the national level for achieving the desired focus
and thrust towards integration of credit activities in the context of the strategy for
Integrated Rural Development. Against the backdrop of the massive credit needs of
rural development and the need to uplift the weaker sections in the rural areas within
a given time horizon the arrangement called for a separate institutional set-up.
Similarly, The Reserve Bank had onerous responsibilities to discharge in respect of
its many basic functions of central banking in monetary and credit regulations and
was not therefore in a position to devote undivided attention to the operational
details of the emerging complex credit problems. This paved the way for the
establishment of NABARD.

CRAFICARD also found it prudent to integrate short term, medium term and long-
term credit structure for the agriculture sector by establishing a new bank. NABARD
is the result of this recommendation. It was set up with an initial capital of Rs 100
crore, which was enhanced to Rs. 2,000 crore, fully subscribed by the Government
of India and the RBI
OBJECTIVES OF NABARD:-

The main objectives of the NABARD as stated in the statement of objectives while
placing the bill before the Lok Sabha were categorized as under :-

1. The National Bank will be an apex organisation in respect of all matters

relating to policy, planning operational aspects in the field of credit for promotion of
Agriculture, Small Scale Industries, Cottage and Village Industries, Handicrafts and
other rural crafts and other allied economic activities in rural areas.

2. The Bank will serve as a refinancing institution for institutional credit such as
long-term, short-term for the promotion of activities in the rural areas.

3. The Bank will also provide direct lending to any institution as may approved
by the Central Government.

4. The Bank will have organic links with the Reserve Bank and maintain a close
link with in.

MISSION OF NABARD:-

Promoting sustainable and equitable agriculture and rural development through

effective credit support, related services, institution building and other innovative
initiatives.

In pursuing this mission, NABARD focuses its activities on:-

1. CREDIT DISPENSATION

2. DEVELOPMENT AND PROMOTION

3. SUPERVISORY
 1. CREDIT DISPENSATION:-

 Framing policy and guidelines for rural financial institutions

 Providing credit facilities to issuing organizations

 Preparation of potential-linked credit plans annually for all districts for

identification of credit potential

 Monitoring the flow of ground level rural credit

AGENCY CREDIT FACILITIES

Commercial Banks Long Term credit for investment purposes,
financing the working capital requirements
of Weavers' Cooperative Societies (WCS)
and State Handloom/Handicraft
Development Corporations

Regional Rural Banks (RRBs) Short Term (crop and other loans) and term
loans for investment purposes
Urban Cooperative Banks (Scheduled) Long term investment activities both in
farm and non-farm sectors in rural areas.

Non-Governmental Organisations Revolving Fund Assistance for Micro

(NGOs) - Informal Credit Delivery Credit Delivery Innovations and
System Promotional Projects
2. DEVELOPMENTAL AND PROMOTIONAL:-

 Concerning reinforcement of the credit functions and making credit more

productive NABARD has been undertaking a number of developmental and
promotional activities such as:-

 Development and promotional initiatives in farm and non-farm sector.

Extending assistance for Research and Development.

 Acting as a catalyst for Agriculture and rural development in rural areas

 Help cooperative banks and Regional Rural Banks to prepare development

action plans for themselves

 Provide financial support for the training institutes of cooperative banks

 Provide training for senior and middle level executives of commercial banks,
Regional Rural Banks and cooperative banks

 Provide financial assistance to cooperatives and Regional Rural Banks for

establishment of technical, monitoring and evaluations cells
3. SUPERVISORY:-

 Ensures the proper functioning of cooperative banks and regional rural banks

 Undertakes inspection of Regional Rural Banks (RRBs) and cooperative

banks (other than urban/primary cooperative banks) under the provisions of

Banking Regulation Act, 1949.

 Undertakes portfolio inspections, systems study, besides off-site surveillance

of cooperative banks and Regional Rural Banks (RRBs)

 Provides recommendations to Reserve Bank of India on opening of new

branches by State Cooperative Banks and Regional Rural Banks (RRBs)

 Removal of regional/sectoral imbalances

 Poverty Alleviation and Employment Generation

 Development of rural micro-enterprises

 Strengthening Rural Financial Institutions (RFIs)

 Rural Infrastructure Development

ROLE AND FUNCTIONS:-

 NABARD is an apex institution accredited with all matters concerning policy,

planning and operations in the field of credit for agriculture and other
economic activities in rural areas.

 It is an apex refinancing agency for the institutions providing investment and

production credit for promoting the various developmental activities in rural
areas

 It takes measures towards institution building for improving absorptive

capacity of the credit delivery system, including monitoring, formulation of
rehabilitation schemes, restructuring of credit institutions, training of
personnel, etc.

 It co-ordinates the rural financing activities of all the institutions engaged in

developmental work at the field level and maintains liaison with Government
of India, State Governments, Reserve Bank of India and other national level
institutions concerned with policy formulation.

 It prepares, on annual basis, rural credit plans for all districts in the country;
these plans form the base for annual credit plans of all rural financial
institutions

 It undertakes monitoring and evaluation of projects refinanced by it.

 It promotes research in the fields of rural banking, agriculture and rural

development
SUBSIDIARIES OF NABARD:-

1. NABCONS:-
NABARD Consultancy Services (Nabcons) is a wholly owned subsidiary promoted
by National Bank for Agriculture and Rural Development (NABARD) and is
engaged in providing consultancy in all spheres of agriculture, rural development
and allied areas. Nabcons leverages on the core competence of the NABARD in the
areas of agricultural and rural development, especially multidisciplinary projects,
banking, institutional development, infrastructure, training, etc., internalized for
more than two decades.

The Company is registered under the Company's Act, 1956, with an authorized
capital of Rs. 250 million (US $5.75 million) and paid up capital of Rs. 50 million
(US $1.15 million).

In tune with NABARD's mission to bring about rural prosperity, Nabcons has more
than just commercial interest in the assignments it undertakes.

2. BANKERS’ INSTITUTE OF RURAL DEVELOPMENT

(BIRD):-
Established in 1983, at Lucknow, is an autonomous institute promoted and funded
by NABARD. BIRD was established primarily to cater to the training needs of RRB
personnel. The Institute, has, since 1st April 1992, been catering to the training and
information needs of rural bankers through its topical training programs/seminars.
The Institute's mandate also includes Research and Consultancy in the related areas
 QUESTIONNAIRE

1. How and when was NABARD formed?

2. Does NABARD provide loans only to the farmers?

3. What are the Sources of Funds of NABARD?

 4. What are the recent developments made by NABARD?

5. Does market has any effect on NABARD?

BALANCE SHEET OF NABARD