NABARD signs pact with SBI on rural projects

#GS3 #ECONOMY

NABARD, Karnataka regional office, Bengaluru signed a Memorandum of Understanding with the State Bank of India (SBI), for providing financial aid to beneficiaries of Tribal Development Fund, Watershed Development Fund, Farmer Producer Organisations (FPOs), and self-help groups SHGs.

 

National Bank for Agriculture and Rural Development (NABARD)

  • NABARD is an apex development finance institution fully owned by Government of India. 
  • The bank has been entrusted with "matters concerning policy, planning, and operations in the field of credit for agriculture and other economic activities in rural areas in India". 
  • NABARD is active in developing & implementing Financial Inclusion.

NABARD discharge its duty by undertaking the following roles:

  1. Serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas
  2. 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.
  3. Co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, state governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation
  4. Undertakes monitoring and evaluation of projects refinanced by it.
  5. NABARD refinances the financial institutions which finances the rural sector.
  6. NABARD partakes in development of institutions which help the rural economy.
  7. NABARD also keeps a check on its client institutes.
  8. It regulates the institutions which provide financial help to the rural economy.
  9. It provides training facilities to the institutions working in the field of rural upliftment.
  10. It regulates and supervise the cooperative banks and the RRB's, throughout entire India.
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