Nabard short essay

NABARD does not help the farmers and other rural people directly, rather it flows the credit to these people through co-operative banks, commercial banks, RRBs, etc. It is thus working as an apex body dealing with policy, planning and other operational aspects of rural credit for the around development of rural economy.

Essay # 1. Introduction to NABARD: One of the most important landmark in respect of rural credit in recent years is setting up of the National Bank for Agricultural and Rural Development on 12th July, 1982.

The preamble of the NABARD Act mentions the following objectives for the rural based bank, its primary function should be to promote agriculture, provide credit aid small scale industries whether cottage or village handcrafts and other rural crafts and activities that are associated with it. The prosperity of rural areas is it most major concern.

The disbursements by NABARD during the year, including short, medium and long-term, to various agencies, was Rs. 11,110 crore. The term credit sanctioned by NABARD to commercial banks, co­operatives and to the newly set up agricultural development finance companies was Rs. 4,160 crore in 1997-98 compared to Rs. 3,801 crore in the previous year.