NABARD is the apex development bank of India that was established in 1982 to provide credit and related services for agriculture and rural development. It replaced the agricultural credit departments of the RBI and provides refinancing support to rural financial institutions. NABARD also works to enhance access to financial services in rural areas through programs like self-help group bank linkage and develops rural infrastructure through funds like RIDF.

1. National Bank for Agriculture
and
Rural Development
NABARD

2. Headquarters:
Mumbai, Maharashtra,
India
Established:
12 July 1982

3. Chairman
Dr. Harsh Kumar Bhanwala
Currency
(Rupees)
Reserves
Rs.81,220 crore (2007)
Website
www.nabard.org
NABARD is the apex development bank in
India

4.  NABARD is an apex development bank in
india.
 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,
conceived and recommended the estb. Of
NABARD.
 Estb. In 12 july 1982 by special act by the
parliament & focussing to uplift rural india by
increasing the credit flow for elevation of
agriculture and rural non-farm sector.

5.  Completed its 25 years on 12 july 2007.
 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”.
 RBI sold its stake in NABARD to Govt. of india ,
which now holds 99% stake.
 NABARD is active in developing financial
inclusion policy and is a member of the alliance
for financial institution.
 It replaced agriculture credit dept.(ACD) and
Rural planning & credit cell(RPCC) of RBI and
agriculture refinance & development
corporation(ARDC).
 It is one of the priemer agency to provide credit in
rural areas.NABARD is India’s specialised bank.

6.  International associates of NABARD ranges
from world bank affliated organisations to
global developmental agencies working in the
field of agriculture and rural development.
 These organisations help NABARD by
advising and giving monetary aid for the
upliftment of the people in rural areas and
optimising the agricultural process.

7.  NABARD is an apex institution in the country .
 It looks after the development of cottages
industry, small industry & village industry , and
other rural industries.
 NABARD also reaches out to allied economies &
support & promotes integrated development.
 It has been given a certain rules as follows :
1. Serves as an apex financing agency for the
institutions providing investment and production
credit for promoting the various developmental
activites in rural areas.

8. 2.Takes measures towards institution building for
the institution building for improving
absorptive capacity of the credit delivery
system,including monitoring, training of
personnel etc.
3.co-ordinates the rural financing activites of all
institutions engaged in developmental work at
the field level and maintains liason with govt.
of india , State govt. , RBI and other national
level institutionsconcerned with policy
formulation.
4.Undertakes monitoring and evaluation of
projects financed by it .
5.NABARD refinances the financial institutions
which finances the rural sector.

9. 6.The instituions which help the rural economy
,NABARD helps develop.
7.NABARD also checks on its client institutes.
8.It regulates the institution which provide financial
help to rural economy.
9.It provides training facilities to the institutions
working on the field of rural upliftment
10.It regulates the cooperative banks and the RRB’s
and manages talent acquisition through IBPS
CWE.
NABARD’S refinance is available to state co-operative
agriculture and rural development
bank(SCARDBs),state co-operative banks(SCBs),
Regional rural banks(RRBs),commercial banks and
other financial institution approved by RBI.

10.  NABARD has 28 regional offices and one sub
office,located in the capitals of all the staes/union
territories .
 Each regional office has chief general manager as
its head and head office has several top
executives.
 It has 336 district offices across the country ,one
sub-office at port blair and one special cell at
srinagar.
 It has also 6 training establishments.
 NABARD is known for ‘SHG bank linkage
programme’ which encourages India’s banks to
lend to self-help groups(SHG) composed mainly
of poor womens.

11.  NABARD role in rural development in India is
phenomenal.
 The credit flow to agriculture activities
sanctioned by NABARD reached
Rs1,57,480crore in 2005-2006.
 Role of NABARD in overall development of
India in general and rural & agriculture in
specific is highly pivotal.

12.  FUND designed to suport innovative,risk
friendly,unconventional experiments in these
sectors that would have the potential to promote
livelihood opportunities & employment in rural
areas.
 The assistance is extende to
individuals,NGOs,cooperatives,SHGs,Panchayati
Raj Institutions who have the expertise &
willingness to implement innovative ideas for
improving the quality of life in rural areas.
 600000 cooperatives are working in India at grass
root level in almost every sector of economy.

13.  Guiding principles of RIF:
 The activities must have rural poor in focus &
must be innovative , experimental &
demonstrative in nature leading to replicability &
commercial viability.
 The activities funded may involve development
of new products, processes , prototypes,
technology , patenting & extension support.
 Appropriate action research and studies
contributing to better understanding of rural
development issues , policy & process
implementation may be undertaken.

14.  Type of projects that can be supported under RIF:
 All innovations & activities in the farm , rural non-farm
& microfinance sectors can have access to
RIF.
 Activities which are in keeping with the guidelines
principles of RIF &specifically those which provide
technology , skill upgradation , sustainable
employment , infrastructure development ,
improved flow & access of credit to rural
entrepreneurs.

15.  Preffered sectors
 Dry land/rain fed farming
 Innovative rain water harvesting for rural dwelling
 Rural enrgy from biomass/agricultural wastes
 Techniques for increasing the value of crop
residues & non-crop biomass.
 Eligibility
 Individuals , NGOs , community based
organizations , SHG ,farmers club , panchayati raj
institutions & corporates who have expertise &
willingness to implement innovative ideas for
improving the quality of rural areas may apply.

16.  Financial Support
 Support available under RIF can be in form of
loan/grant/incubation fund support or a mix of
all three components.
 The support would be need based , cost effective &
dependent on the requirements of the project.

17.  Through assistance of Swiss agency for
development and co-operation ,NABARD set
up the rural infrastructure development fund.
 Vrajlal Sapovadia noted schemes for the bank
for rural development.
 Under RIDF scheme Rs 51,283 crore have been
snactioned for 2,44,651 projects covering
irrigation , rural roads & bridges , health &
education , soil conservation , water schemes
etc.

18.  Criteria for selection of projects :
 Should be of high priority to state government
 Should be completed in 3-5 years
 Economic rate of return(ERR) should be more
than 15%.
 Benefit cost(BC) ratio should be more than 1 at
15% discounting factor.
 Borrowing institutions
 State govt. , Panchayat raj institutions ,non-governmental
organizations ,SHG etc.

19.  Nodal department for RIDF
 The finance department of state govt. acts as nodal
department for operationalising RIDF.
 The project proposals are routed through finance
department only & proposals from other departments
directly are not received.
 Eligible activities
 The eligible activities covered under the RIDF can be
broadly classified into the following sector –
• Agricultural sector projects(RIDF loan 95% of TFO)
1. Minor irrigation projects/micro irrigation
2. Soil conservation
3. Flood protection
4. Watershed development

20. 5. Drainage
6. Forest development
7. Market yard/ godown
8. Cold storage
9. Plantation and horticulture
10. Fishing harbour / jetties
11. Riverine fisheries
12. Animal husbandry
13. Village knowledge centres etc
 Social sector projects ( RIDF loan 85% of TFO)
1. Drinking water
2. Infrastructure for rural education institutions
3. “pay & use” toilets in rural areas
4. Construction of anganwadi centres etc

21.  Rural connectivity projects( RIDF LOAN 80% of
TFO)
1. Rural roads
2. Rural bridges
 Phasing ( period of implementation)
• Phasing is normally 2-3 years for smaller projects
in diversified sectors.
• Max 5 years of phasing for projects related with
major & medium irrigation & other stand alone
projects involving RIDF loan of Rs 50 crore & ↑.
• Max phasing period of 3 years for all other
projects .

22.  Expenditure incurred on or after 1 April of the
corresponding year would be eligible for
reimbursement under the respective tranche.
 RIDF loans are released to the state govt.
 By regional offices of NABARD.
 The state govt. will be reqd. to pay interest as
decided by RBI, on loans disbursed under various
tranches.
 Each drawal by state govt. would be treated as a
separate loan and would be repayable in 7 years
inclusive of a grace period of 2 years.
 Interest will be payable during grace period.
 The state govt. shall utilise the loan amount solely
& exclusively for the purpose for which it is
sanctioned by NABARD.

23.  The state govt. shall execute and complete the
projects for which the loans are granted within
such time as stipulated in sanctioned letter.
 The state govt. shall make suitable budgetary
provisions for timely payment of interests &
repayment of loan installments.
 The state govt. shall remove any legal or other
procedural hurdles in the smooth implementation
of the projects.
 The project implementing authority shall
undertake desk / field monitoring and quality
control tests as per the internal instructions /
manual of implementing department.

24.  REFINANCE TO BANKS
 RIDF to state govt.
 Special scheme for warehouse projects
 NABARD infrastructure development
assistance (NIDA)
 Direct lending to cooperative banks
 Direct lending to procedures organisation
 Subsidy schemes & revival packages
 SHG-bank linkage programme
 Joint liability groups

25.  Farmers club
 Watershed developments
 Tribal developments
 Promotional development
 Institutional development-regional rural
banks(RRB)
 Institution development- short & long term
cooperatives
 Core banking solutions (CBS) for cooperatives

28. THE END