Question

NABARD was established on the recommendation of:
1. Public Account Committee
2. Shivaraman Committee
3. Narsimham Committee
4. None of the above

Answer 1

Correct Answer - Option 2 : Shivaraman Committee

The correct answer is Shivaraman Committee.

• NABARD was established on the recommendations of the B.Sivaramman Committee (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
• It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
• It is one of the premier agencies providing d Rs.14080 crore (100% share).
• The authorized share capital is Rs.30,000 crore.
• International associates of NABARD include World Bank-affiliated organizations and global developmental agencies working in the field of agriculture and rural development.
• These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process.

• Functions of NABARD​
  • NABARD’s initiatives are aimed at building an empowered and financially inclusive rural India through specific goal-oriented departments which can be categorized broadly into three heads: Financial, Developmental, and Supervision.
  • It provides refinance support for building rural infrastructure.
  • It prepares district-level credit plans to guide and motivating the banking industry in achieving these targets.
  • It supervises Cooperative Banks and Regional Rural Banks (RRBs) and helping them develop sound banking practices and integrate them into the CBS (Core Banking Solution) platform.
  • Core Banking Solution (CBS) is the networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on the CBS network, regardless of where he maintains his account.
    • The customer is no more the customer of a Branch.
    • He becomes the Bank’s Customer.
  • It is involved in designing the Union government’s development schemes and their implementation.
  • It provides training to handicraft artisans and helps them in developing a marketing platform for selling these articles.
  • NABARD has various international partnerships including leading global organizations and World Bank-affiliated institutions that are breaking new ground in the fields of rural development as well as agriculture.