Established in 1982, National Bank for Agricultural and Rural Development (NABARD) controls and regulates the activities of rural banking institutions. Some Functions of NABARD are discussed below.
Functions of NABARD
- To act as the apex rural credit institute: NABARD serves as the apex agency for financial institutions that advance credit for various rural developmental activities.
- To take necessary steps for improving the credit delivery system: NABARD takes appropriate steps or measures to improve the credit delivery system. These measures include monitoring, formulation, restructuring of institutions, and training of manpower.
- To coordinate the rural financing activities: NABARD coordinates the rural financing activities of all credit institutions engaged in developmental work at the grassroots level.
- To refinance and monitor other financial institutions: NABARD refinances institutions that are involved in financing the rural sector. In addition, it also monitors and evaluates the projects that it refinances.
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