National Bank For Agricultural and Rural Development- NABARD was established in July 1982 on the recommendations of the CRAFICARD committee, whose chairman was B. Shivaraman. The Agricultural Refinance Corporation established in 1963 by the Reserve Bank of India was renamed as Agricultural Refinance and Development Corporation (ARDC) in 1975.
Role of NABARD in rural credit system :
1. NABARD is the highest institution for rural credit.
2. It provides long term loans to state cooperative banks, regional rural banks, and commercial banks.
3. This bank is responsible for coordination, integration and control of all functions related to agricultural and rural sector.
4. NABARD provides short term loans for seasonal agricultural activities.
5. NABARD provides medium term loans to cooperative banks and regional rural banks.
6. NABARD provides long term loans to the state government for cooperating towards cooperative credit institutes.
7. NABARD maintains a research and development fund in order to encourage agricultural and rural development programmes.
