What is NABARD? and its Function

NABARD (National Bank for Agriculture and Rural Development) is an apex development financial institution in India, established on July 12, 1982, by an Act of Parliament. It is fully owned by the Government of India and plays a pivotal role in promoting sustainable and equitable agricultural and rural development across the country

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Key Functions of NABARD

Refinancing: NABARD serves as the main refinancing agency for institutions providing investment and production credit for various developmental activities in rural areas. This includes refinancing loans for agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts
Promotion and Development: It works to promote and develop agriculture, rural industries, and allied economic activities. This involves financial and non-financial interventions, innovations, technology transfer, and institutional development
Supervision and Monitoring: NABARD supervises and monitors the functioning of Regional Rural Banks (RRBs), State Cooperative Banks, and District Central Cooperative Banks. It also evaluates, inspects, and guides these institutions to ensure efficient banking practices and compliance with regulatory standards
Credit Planning and Coordination: NABARD coordinates the rural financing activities of various institutions, maintains liaison with the Government of India, state governments, and the Reserve Bank of India (RBI), and assists in the formulation of policies for rural development
Support for Rural Infrastructure and Livelihoods: It provides financial support for building rural infrastructure and helps artisans and farmers by offering training, marketing platforms, and advisory services
Institutional Development: NABARD promotes the development of rural financial institutions and supports their integration with core banking solutions for better service delivery

In summary, NABARD is a critical institution for fostering rural prosperity through credit, development, supervision, and coordination in the Indian agricultural and rural sectors

NABARD: A Pillar of Rural Development in India – SOCIAL ...

National Bank For Agriculture And Rural Development - NABARD

NABARD promotes sustainable rural development in India through a comprehensive, multi-pronged approach that combines financial support, capacity building, policy advocacy, and direct interventions.

Refinancing and Credit Flow: NABARD acts as the main refinancing agency for rural financial institutions, ensuring a consistent flow of affordable credit to agriculture and rural sectors. This enables farmers, rural entrepreneurs, and local cooperatives to access funds for improving productivity and starting new ventures2 5 8.
Infrastructure Development: NABARD funds critical rural infrastructure projects such as irrigation systems, rural roads, warehouses, and cold storage facilities. These investments improve connectivity, reduce post-harvest losses, and enhance market access for farmers, thereby boosting productivity and incomes3 4 7.
Support for Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs): By promoting and linking SHGs and FPOs with banks, NABARD empowers rural communities—especially women and marginalized groups—to engage in collective economic activities. This fosters financial inclusion, social upliftment, and economic independence
Promotion of Sustainable Agriculture: NABARD supports climate-resilient and eco-friendly farming practices, including organic farming, watershed management, and natural resource conservation. These initiatives help farmers adapt to climate change, improve soil health, and ensure long-term agricultural sustainability
Capacity Building and Training: NABARD conducts training programs for farmers, rural entrepreneurs, and bankers to enhance skills and knowledge. It also supports research and development to promote efficient and innovative farming techniques
Policy Advocacy and Research: NABARD plays a key role in policy formulation and advocacy, providing insights and recommendations for effective rural development strategies. It also undertakes research to identify emerging challenges and opportunities in the rural sector
Microfinance and Financial Literacy: Through microfinance initiatives and financial literacy programs, NABARD promotes broader financial inclusion and empowers rural households to manage their finances effectively

By integrating these efforts, NABARD contributes significantly to improving rural livelihoods, bridging the urban-rural divide, and fostering inclusive and sustainable development across India

NABARD supports climate-resilient farming practices in India through a combination of financial mechanisms, technical partnerships, and capacity-building initiatives aimed at helping farmers adapt to climate change and reduce agricultural vulnerability.

Innovative Financial Instruments and Carbon Funds: NABARD has established a Carbon Fund of Rs. 300 crore to support early investments in projects that can generate high-quality carbon credits, aligning with India’s transition to a low-carbon economy. This fund encourages private sector participation and empowers Farmer Producer Organizations (FPOs) and cooperatives to develop projects that promote sustainable agriculture and climate resilience
Collaborations and Partnerships: NABARD collaborates with international organizations such as the Food and Agriculture Organization (FAO) to design and scale carbon finance solutions, leveraging global expertise to pilot innovative financial instruments for climate-smart agriculture.
Promotion of Sustainable and Climate-Resilient Practices: NABARD supports the adoption of drought-resistant crop varieties, water conservation techniques, organic farming, and precision agriculture. These practices help farmers adapt to changing climate patterns, improve soil health, and reduce environmental impact, What is NABARD?
Integrated Farming Systems: Through partnerships with organizations like the Dalmia Bharat Foundation, NABARD introduces integrated farming systems that combine crops, livestock, and agroforestry. This approach enhances resource efficiency, reduces vulnerability to climate impacts, and ensures stable livelihoods for farmer
Capacity Building and Training: NABARD provides training and exposure visits to farmers, equipping them with knowledge and tools to implement climate-resilient practices. This includes on-site training, residential programs at Krishi Vigyan Kendras (KVKs), and visits to model farms
Policy and Institutional Support: As the Direct Access Entity/National Implementing Entity for climate funds such as the Green Climate Fund (GCF) and Adaptation Fund, NABARD supports projects that promote renewable energy, water conservation, forest restoration, and other climate adaptation measures. It also works on developing a green taxonomy to guide investments in climate-resilient agriculture

By integrating these approaches, NABARD plays a pivotal role in building climate resilience in India’s agricultural sector, supporting farmers in adapting to climate change and ensuring sustainable rural development. Civil service

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