The National Bank for Agriculture and Rural Development (NABARD) has sanctioned a study on the impact evaluation of Geographical Indication (GI) products.
About NABARD (National Bank for Agriculture and Rural Development):
- NABARD is India’s apex development bank dedicated to agriculture and rural development.
- The bank is fully owned by the Government of India and operates out of its headquarters in Mumbai.
- Established under the National Bank for Agriculture and Rural Development Act of 1981, NABARD focuses on sustainable and equitable development in agricultural and rural sectors.
Historical Background:
- NABARD was established in 1982, following legislation passed by Parliament based on the B. Sivaraman committee report of 1979.
- The Reserve Bank of India (RBI) played a crucial role in the formation of NABARD by creating CRAFICARD to evaluate institutional credit for agriculture and rural development.
- The foundation of NABARD involved amalgamating the Agricultural Credit Department, the Rural Planning and Credit Cell of the RBI, and the Agricultural Refinance and Development Corporation.
Transformation of NABARD:
- The NABARD (Amendment) Bill of 2017, passed in 2018, increased its authorized capital from Rs. 5,000 crore to Rs. 30,000 crore.
- This amendment also transferred RBI’s shares to the central government, which now holds at least 51% of NABARD’s share capital.
- NABARD’s scope was expanded to include support for MSMEs in the manufacturing and service sectors, with increased financial thresholds.
Structure of Governance:
- NABARD is governed by a Board of Directors, which includes a Chairperson, rural economy experts, three RBI directors, government officials, and elected non-government shareholder members.
- An Executive Committee, a subset of the board, is tasked with handling specific functions delegated by the board.
Functions of NABARD:
- NABARD offers financial and refinance support for rural infrastructure and agricultural development.
- It is involved in developing and implementing government schemes, providing training, and offering marketing support to artisans.
- The bank supervises and supports Cooperative Banks and Regional Rural Banks, integrating them with modern banking technologies like the Core Banking Solution.
- Additionally, NABARD prepares district-level credit plans to guide the banking sector in achieving targets for agricultural credit.
Ref: Source
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