What are the Functions of National Bank for Agriculture and Rural Development (NABARD)?

National Bank for Agriculture and Rural Development (NABARD) was setup in July 1982. It is the apex body in the sphere of rural credit system. It took over the functions of agricultural credit department of the RBI and Agricultural Refinance and Development Corporation (ARDC). It has got the power to borrow from Union Government. It is also empowered to borrow foreign currency.

Functions of National Bank for Agriculture and Rural Development (NABARD) are:

  1. It provides all sorts of reference to cooperatives, commercial banks and also Regional Rural Banks (RRB).
  2. It inspects the above three agencies and advises the government thereon.
  3. It makes loans to State Governments to enable them to subscribe to the share capital of cooperative Banks.
  4. It helps in prompting research in agriculture and rural development.
  5. NABARD undertakes evaluation and monitoring projects financed by it.
  6. It is responsible for the development operation and coordination relating to rural credit.

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