project report on nabard

2
DECLARATION
I hereby declare that this Minor Project Report titled “Project report on NABARD”
submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka
is a bonafide work undertaken during the period from 1st july 2016 to 22nd
September 2016 by me and has not been submitted to any other University or
Institution for the award of any degree diploma / certificate or published any time
before.
Name: Mahesh Mandal
Enroll. No.: 02661201715
Date: / / 2016

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Director:
Date:
BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled
“Project Repot on NABARD” is the bonafide research work carried out
by …………….student of……………………., in partial fulfillment of
the requirements for the Minor Project Report of the Degree of Bachelor
of Business Administration.
He has worked under my guidance.
Project Guide :
Date:
Director: Dr. Shamsher Singh (Acting Director)
Date:

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Acknowledgement
I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and organizations. I would like to extend
my sincere thanks to all of them.
I am highly indebted ………………………………………………………………………….for their guidance
and constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to express my gratitude towards my parents & my mentor…………………….. for
their kind co-operation and encouragement which help me in completion of this project.
My thanks and appreciations also go to my colleague in developing the project and
people who have willingly helped me out with their abilities.

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List of Table
Contents Page No.
Chapter 1 – Purpose of the study
1.1. Objective of the project report 6
1.2 Scope of the study 7
Chapter 2 - Introduction
2.1. About the organization (history & evolution) 9
2.2 Objective of the organization 12
2.3 Vision & Mission 13
Chapter 3 – Organization Profile
3.1 Organization Structure 15
3.2 Shareholding & Management 16
3.3 Programmes & Services offered 17
3.4 Awards & Achievements 18
3.5 Role & Contribution to Indian Economy 21
3.6 Key challenges/problems facing the organization 27
Chapter 4 – Recent Events
4.1 Recent Events/programmes conducted 29
4.2 Government Regulation 41
Chapter 5 – Findings & Conclusion
Bibliography 45

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Chapter 1-
Purpose of the Study

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1.1 Objective of the Study
 To know about NABARD.
 To give a glance at the working of NABARD.
 To find out the role of NABARD in Indian economy.
 To check the contribution of NABARD in economic growth.
 To know the programs conducted by them.

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1.2 Scope of the Study
This study focuses on the working of NABARD .It tells us about the main
purpose of establishment, major challenges faced by NABARD, strength and
weakness of NABARD .It guides us about the various programs run by NABARD
in rural areas .It shows the contribution of NABARD in the Indian economy.It
guides us the major problems of the Indian economy which leads to the
development of NABARD.

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2.1 About the Organization
 Government of India RBI, constituted a committee to review the arrangements for
institutional credit for agriculture and rural development (CRAFICARD) on 30
March 1979, under the Chairmanship of Shri B.Sivaraman, to review the
arrangements for institutional credit for agriculture and rural development.
 The Committee, submitted on 28 November 1979, felt the need for a new
organisational device to focus to the credit problems arising out of integrated rural
development and recommended the formation of NABARD.
 The Parliament, through Act 61 of 1981, approved the setting up of NABARD.
 The bank came into existence on 12 July 1982 by special act by the parliament
and focusing to uplift rural India by increasing the credit flow for elevation of
agriculture and rural non-farm sector.

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 It transferred the:
- Agricultural credit functions of RBI.
- Refinance functions of the then Agricultural Refinance and Development
Corporation (ARDC).
 NABARD was dedicated to the service of the nation by the late Prime Minister
Smt.Indira Gandhi on 05 November 1982.
 NABARD was set up with an initial capital of 100 crore.
 Consequently GOI and RBI, the paid up capital as on 31 March 2013, stood
at 4000 crore with Government of India holding 3,980 crore (99.50%) and
Reserve Bank of India 20.00 crore (0.50%).
 NABARD is an apex development bank in India.
 Completed its 25 years on 12 July 2007.

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History
 NABARD was established on the recommendations of Shivaraman 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 developmental credit in rural areas.
NABARD is India's specialized bank for Agriculture and Rural Development in
India.
 The initial corpus of NABARD was Rs.100 crores. Consequent to the revision in the
composition of share capital between Government of India and RBI, the paid up
capital as on 31 March 2015, stood at Rs.5000 crore with Government of India
holding Rs.4,980 crore (99.60%) and Reserve Bank of India Rs.20.00 crore (0.40%).

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OBJECTIVES OF NABARD
NABARD was established in terms of the Preamble to the Act, "for providing credit for
the promotion of agriculture, small scale industries, cottage and village industries,
handicrafts and other rural crafts and other allied economic activities in rural areas with a
view to promoting IRDP and securing prosperity of rural areas and for matters connected
therewith in incidental there to".
The National Bank will be an apex organisation in respect of all matters relating to
policy, planning operational aspects in the field of credit for promotion of Agriculture,
Small Scale Industries, Cottage and Village Industries, Handicrafts and other rural crafts
and other allied economic activities in rural areas.The Bank will serve as a refinancing
institution for institutional credit such as long-term, short-term for the promotion of
activities in the rural areas.The Bank will also provide direct lending to any institution as
may approved by the Central Government.The Bank will have organic links with the
Reserve Bank and maintain a close link with in major activities. Preparing of Potential
Linked Credit Plans for identification of exploitable potentials under agriculture and
other activities available for development through bank credit . Refinancing banks for
extending loans for investment and production purpose in rural areas. Providing loans to
State Government/Non Government Organizations (NGOs)/Panchayati Raj Institutions
(PRIs) for developing rural infrastructure. Supporting credit innovations of Non
Government Organizations (NGOs) and other non-formal agencies .Extending formal
banking services to the unreached rural poor by evolving a supplementary credit delivery
strategy in a cost effective manner by promoting Self Help Groups (SHGs)Promoting
participatory watershed development for enhancing productivity and profitability of
rainfed agriculture in a sustainable manner.On-site inspection of cooperative banks and
Regional Rural Banks (RRBs) and its-site surveillance over health of cooperatives and
RRBs role and functions.

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VISION AND MISSION
VISION
To facilitate sustained access to financial services for the unreached poor in rural areas
through various micro Finance innovations in a cost effective and sustainable manner.
MISSION
 Promote sustainable and equitable agriculture and rural prosperity through
effective credit support, related services, institution development and other
innovative initiatives
 NABARD recorded high levels of performance in purveying rural credit
during 2014-15.
 The aggregate assets held by NABARD rose to 2,13,170 crore as on 31 March
2015, an increase of 30,700 crore (17 %) compared to the position as on 31
March 2014

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CHAPTER 3
ORGANISATION PROFILE

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SHAREHOLDING AND MANAGEMENT
Initially, RBI held 72.5 per cent of equity in NABARD amounting to Rs 1450 crore.
The remaining shareholding of Rs 550 crore was with the Government of India. The
Union Cabinet in May 2008 approved the Reserve Bank's proposal to transfer its share
holding in NABARD to the Government of India. Accordingly, the Government of
India issued a notification on September 16, 2010 prescribing the proportion of
subscription/ownership of Government of India and Reserve Bank in NABARD as 99 per
cent and 1 per cent respectively. In terms of RBI circular dated 14th October, 2010, RBI
had divested its stake amounting to Rs 1430 crore (Rupees one thousand four hundred
and thirty crore) in National Bank for Agriculture and Rural Development (NABARD)
on October 13, 2010. With this, the Reserve Bank's holding in NABARD came down to
one per cent of shareholding in NABARD. In September, 2013, Government of India
gave an amount of Rs.700 crore towards Share Capital.Consequent to this the
shareholding of Government of India and RBI in the Paid up capital of NABARD as on
31 March 2014 was at 99.57 : 0.43.

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Programmes & Services offered
Automatic refinance scheme (ARS)
The various schemes formulated over the years have been categorized into five distinct
and compact schemes.
1. Composite Loan Scheme (CLS)
Under this scheme refinance is given to meet the block and /or working capital
requirements of small/micro enterprises. Max. refinance of 10 lakh per unit.
2. Integrated Loan Scheme (ILS)
Under this scheme refinance is given to block capital and working capital for one
operating cycle. Max. Refinance of 15 lakh per borrower.
3. Self Employment Scheme for Ex-servicemen (SEMFEX)
The scheme has been in operation since 15 January 1988 which is specially designed to
provide a comprehensive package of credit for encouraging ex-servicemen to undertake
agricultural and allied activities or to set up non-farm units in rural areas to earn their
livelihood for leading a dignified life. NABARD provides refinance assistance under
Automatic Refinance Facility (ARF) to eligible banks for a wide spectrum of
manufacturing, processing and service sector activities under RNFS (Investment Credit).
4. Soft Loan Assistance for Margin Money (SLAMM)
The scheme is to provide financial assistance to the prospective entrepreneurs who have
the requisite talent and skill of entrepreneurship but lack necessary monetary resources to
meet the margin requirements stipulated under relevant NABARD refinance schemes.

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5. Small Road and Water Transport Operators (SRWTO)
Under this scheme the facilities for acquisition of transport vehicles, which are to be used
for transportation of farm produce/industrial products to rural/urban marketing centers
including passenger transport vehicle and water transport units. Margin money assistance
will be extended on a very selective basis up to 10% of the cost of the vehicle.
From these schemes ,the following benefits are derived:
 Rural Housing
Housing in the rural areas, both agriculturist and non-agriculturists, combine the business
as well as dwelling needs and thereby leads to overall rural development, NABARD is
giving refinance (investment credit) to the eligible banks.
 Renewable Energy
While addressing India’s energy security challenges, Ministry of New and Renewable
Energy (MNRE), Government of India and the Jawaharlal Nehru National Solar Mission
(JNNSM). In order to achieve this objective, the MNRE has launched a capital cum
interest subsidy scheme for creation of off-grid, decentralised solar powered energy
harvesting devices through application of photo voltaic technology for the purpose of
lighting, heating, etc. at the level of domestic and mini commercial applications.
NABARD is the nodal agency for giving feasibility and Refinance for eligible projects.

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AWARDS AND ACHIEVEMENTS
After the setting up of NABARD, there has been considerable increase in the rural
finance and development of small scale and cottage industries. By way of short-term
credit, nearly Rs. 4,000 crores has been distributed during 90’s compared to Rs. 1,200
crores during 80’s.
By way of medium term finance, nearly Rs. 400 crores have been provided and they have
been utilized mainly by States affected by natural calamities. In long-term loan, more
than Rs. 240 crores have been sanctioned for contributing to the share capital of co-
operative institutions.
NABARD has also played a significant role in improving storage facilities for
agricultural commodities in the country. It has also promoted the export of agricultural
commodities which include vegetables and fruits. It has played a supplementary role in
sustaining Green Revolution in the country.
White Revolution and Blue Revolution in the form of increased milk production and
fisheries have also been contributed by the sustained efforts of NABARD. India stands
the top most country in the world in production of dairy milk

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ROLE AND CONTRIBUTION TOWARDS INDIAN ECONOMY
Role
FINANCIAL FUNCTION
Refinance
Short term refinance:
 For using high yielding varieties of seeds, fertilisers, insecticides and costly
agricultural implements
 For increasing the production, productivity, marketing and raising the level of
surplus and savings.
Functions
Financial
Refinance
Direct finance
Developmental
Supervisory

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 Production Credit Department (PCD) deals with ST refinance facilities, for
various types of production, marketing and procurement activities, being provided
to client institutions.
 Refinance is given for production purposes at concessional rate of interest to State
Cooperative Banks (SCBs) and Regional Rural Banks (RRBs) by way of sanction
of credit limits. Each withdrawal against the sanctioned credit limit is repayable
within 12 months.
 A new refinance product for financing of PACS through PSBs & RRBs, wherever
Cooperative Banks are weak or not in a position to lend to PACS adequately, was
introduced during last year. (2011-12)
 The ST limit would consist of different purposes:
 Agriculture and Allied Activities
 Marketing of crops
 Fisheries Sector
 Industrial Cooperative Societies (other than weavers)
 Rural artisan including weavers members of PACS/LAMPS/FSS,
 Purchases, Stocking and Distribution of Chemical Fertilisers and other
agricultural inputs on the basis of bank wise RLP for respective purposes.
 The limit is sanctioned to RRBs and SCBs
MT Conversion:
 NABARD provides relief to farmers whose crops are damaged due to natural
calamities, by way of
 conversion of current short term loans into medium term loans and
 Re-phase / reschedule of existing MT (Conversion) loans.
 Consolidated limit sanctioned to RRBs and SCBs in respect of eligible DCCBs.

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Long term refinance
 Loan Period: normally 3 to 15 years.
 Investment credit leads to capital formation through asset creation.
 It induces technological upgradation resulting in increased production,
productivity and incremental income to farmers and entrepreneurs
 Artisans, small scale industries, Non-Farm Sector (Small and Micro Enterprises),
handicrafts, handlooms, power looms, etc.
 Activities of voluntary agencies and self help groups working among the rural
poor
DIRECT FINANCE
1. Loans for food processing units in designated food parks
2. Loans to warehouses, cold storage and cold chain infrastructure
3. Credit facility to marketing federation
4. Rural infrastructure development fund
5. Direct lending to CCB’s
6. Financing and supporting producers organizations etc
Development role
1) Institutional development
2) Farm sector
3) Non farm sector
4) Financial inclusion
5) Micro credit innovations

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6) Research and development
7) Core banking solution to cooperative banks
8) Climate change
9) Institutional development
10) Farm sector
11) Non farm sector
12) Financial inclusion
13) Micro credit innovations
14) Research and development
15) Core banking solution to cooperative banks
16) Climate change
Supervisory Role
As an apex bank involved in refinancing credit needs of major financial institutions in the
country engaged in offering financial assistance to agriculture and rural development
operations and programmes, NABARD has been sharing with the Reserve Bank of India
certain supervisory functions in respect of cooperative banks and Regional Rural Banks
(RRBs).
As part of these functions, it
 Undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Banks
(other than urban/primary cooperative banks) under the provisions of Banking
Regulation Act, 1949.
 Undertakes inspection of State Cooperative Agriculture and Rural Development
Banks (SCARDBs) and apex non-credit cooperative societies on a voluntary
basis.
 Undertakes portfolio inspections, systems study, besides off-site surveillance of
Cooperative Banks and Regional Rural Banks (RRBs).
 Provides recommendations to Reserve Bank of India on issue of licenses to
Cooperative Banks, opening of new branches by State Cooperative Banks and
Regional Rural Banks (RRBs).
 Administering Credit Monitoring Arrangements (CMA) in SCBs and CCBs.

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Contribution towards Indian economy
NABARD has been instrumental in grounding rural, social innovations and social
enterprises in the rural hinterlands. It has in the process partnered with about 4000 partner
organisations in grounding many of the interventions be it, SHG-Bank Linkage
programme, tree-based tribal communities’ livelihoods initiative, watershed approach in
soil and water conservation, increasing crop productivity initiatives through lead crop
initiative or dissemination of information flow to agrarian communities through Farmer
clubs. Despite all this, it pays huge taxes too, to the exchequer – figuring in the top 50 tax
payers consistently. NABARD virtually ploughs back all the profits for development
spending, in their unending search for solutions and answers. Thus the organisation had
developed a huge amount of trust capital in its 3 decades of work with rural
communities.[7]
1.NABARD is the most important institution in the country which looks after the
development of the cottage industry, small industry and village industry, and other rural
industries.
2.NABARD also reaches out to allied economies and supports and promotes integrated
development.
3.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

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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 the cooperative banks and the RRB’s, and manages talent acquisition
through IBPS CWE.
NABARD's refinance is available to state co-operative agriculture and rural development
banks (SCARDBs), state co-operative banks (SCBs), regional rural banks (RRBs),
commercial banks (CBs) and other financial institutions approved by RBI. While the
ultimate beneficiaries of investment credit can be individuals, partnership concerns,
companies, State-owned corporations or co-operative societies, production credit is
generally given to individuals. NABARD has its head office at Mumbai, India.
NABARD Regional Office[RO] has a Chief General Manager [CGMs] as its head, and
the Head office has several top executives viz the Executive Directors[ED], Managing
Directors[MD], and the Chairperson.It has 336 District Offices across the country, one
special cell at Srinagar. It also has 6 training establishments.
NABARD is also known for its 'SHG Bank Linkage Programme' which encourages
India's banks to lend to self-help groups (SHGs). Largely because SHGs are composed
mainly of poor women, this has evolved into an important Indian tool for microfinance.
By March 2006, 22 lakh SHGs representing 3.3 core members had to be linked to credit
through this programme.[8]
NABARD also has a portfolio of Natural Resource Management Programmes involving
diverse fields like Watershed Development, Tribal Development and Farm Innovation
through dedicated funds set up for the purpose.

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Key challenges facedby NABARD
1. NABARD is facing the problem of inadequate finance. They are dependent on
NABARD to collect finance for their further operation. Poor rural people are unable to
save anything due to poverty and low per capita income. The low level of saving of these
customer create obstacle for NABARD to collect sufficient deposits.
2. High over dues and poor recovery of loan is one of the biggest concern affecting the
functioning of NABARD. Reasons being poor access of granting loan, insufficient and
untrained staff, unproductive or less productive use of credit, inadequate production,
poor marketing facilities and improper channel of recovery system.
3. There is also a problem of regional imbalance in banking facilities provided by
NABARD.
They are creating this problem by concentrating their branches in some specific states
and districts & loose other prospective group of customers.
4. NABARD is suffering from the problem of heavy loans because of low repaying
capacity of their customer, untrained staff, low level of deposits and heavy sanction of
loan without checking the creditworthiness of their customers.
5. These banks have still not played a significant role in poverty alleviation of the
country. Although various efforts have been made in this regard but lack of economic
infrastructure, poor marketing strategies, poor knowledge of customers, low production,
low awareness about savings have created many hurdles for NABARD.
6. Lack of proper co-ordination between NABARD and other financial institution like
commercial banks, NABARD and other co-operative bank has badly affected the
performance of these banks.

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RecentEvents/programme conducted
NABARD conducts Financial Literacy Awareness Programme
Fig
A leaflet on financial literacy being released at the awareness programme organised by
NABARD at Edanganasalai village in Salem district on Sunday.
The National Bank for Agriculture and Rural Development (NABARD) as a part of its
34th “Foundation Day” celebrations, conducted a Financial Literacy Awareness
Programme (FLAP) at Edanganasalai village in Magudanchavady block on Sunday.
The programme was organised in co-ordination with banks, local administration and
NGO Best Empowerment Services Trust (BEST).
Farmers, members of women self-help groups and joint liability groups (JLGs), students
and general public attended the programme.

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A. Bhama Buvaneswari, Assistant General Manager (DD), NABARD, Salem, briefed
about the need for conducting the programme. She explained about the various loan
products available from the banking channel and also the need for taking up
supplementary activities like dairying; sheep / goat rearing, etc. and the Government of
India subsidy schemes available.
K. Sivalingam, president, Edanganasalai Town Panchayat, insisted that people make use
of the banking sector for improving their livelihood.
J. Ravichandran, Lead District Manager, spoke on the need for saving and also
highlighted on the insurance and pension schemes of the Central Government.
M. Venugopal, General Manager, Pallavan Grama Bank and P. Ravikumar, CRO, Salem
District Central Co-operative Bank, explained the need for saving, insurance and pension
and informed about the various savings products of their respective banks.
Schemes
A. K. Palanivelrajan, Counsellor, Financial Literacy Centre, Indian Bank, explained in
detail about the various government schemes. The Chief Manager - Financial Inclusion
Chidambareshwaran and the FLC Counsellor of Pallavan Grama Bank explained about
the functioning of the FLC at their Head Office, Salem.
R. Santhanam, Principal, Indian Bank Self Employment Training Institute (INDSETI),
addressed the gathering and explained to them the various training camps being
conducted in the Institute for the benefit of the rural people and the guidance offered by
the Institute in helping the trainees take up self-employment by availing bank credit.
V. Mohan, Branch Manager, Pallavan Grama Bank, Magudanchavady branch disbursed
the loans sanctioned to various Joint Liability Groups promoted by BEST. K. Kannagi,
Managing Trustee, BEST, also spoke.

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A leaflet in Tamil on various aspects of financial inclusion including the recently
launched social security schemes were distributed to the participants and the local public.
Training of Trainers, LDMs, Bank officers for Stand-Up India
 Arrange for handholding support for trainee borrowers
 Liaise with banks for follow up in potential cases through the LDM
 Coordinate with LDM for easing bottlenecks
 Assist the SLBC and DLCC in reviews and monitoring
 Organize events, as frequently as necessary and at least once in each quarter, for
experience sharing etc. amongst stakeholders
1. Rupee to RuPay
NABARD supported cooperative banks and RRBs for issuing RuPay Kisan Credit Cards
(KCC) to farmers and provided point-of-sale terminals to agri-input suppliers to allow
farming community to benefit from the dynamics of a cashless system.
The first RuPay KCC card

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 Launched by Dr Prakash Bakshi, Chairman, NABARD
 Issued by : Raigad District Central Co-operative Bank at Alibag, Maharashtra
 On: May 2013.
 In 2013-14, 15 lakh RuPay debit and 6 lakh RuPay Kisan cards were issued by
RRBs while 6 cooperative banks began issuing RuPay kisan cards.
2. Cellphone Extension
 SMS-based crop advisory, weather forecasts and mandi prices
 Under the Farmers’ Technology Transfer Fund (FTTF), NABARD in co-
ordination with the Reuters Market Light
 to enhance farm productivity
 to members of Farmers’ Clubs in 13 states.

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3. Empowering Rural Women
Fig
 Self Help Group Bank Linkage Programme
 rural households -> Self Help Groups -> Banking System
 world’s largest micro-credit programme
• ~103 million rural households
• 7.96million Self-Help Groups (SHGs).
 next level - SHG 2 will focus on livelihoods and women SHGs in the Left Wing
Extremism-affected districts.
4. Rural Infrastructure Key to Rural Development

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Fig
 Under Rural Infrastructure Development Fund (RIDF), NABARD financed 5.08
lakh projects in 29 states with a loan assistance of Rs 1,62,083 crore.
 Result:
o 3.56 lakhs kms of rural roads
o 8.10 lakh meters of rural bridges
o 200 lakh hectare of additional irrigated area.
o 28,699 anganwadi centers
o 19,986 primary schools
o 12,912 public health facility centers
o launching of 12,170 drinking water schemes in rural India.

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5. Financial Inclusion for Promoting Inclusive Growth
Fig
 Financial Inclusion Fund (FIF) promoting financial literacy through
• audio-visual medium,
• folk arts
• setting up of Financial Literacy Centers by RRBs & Co-operative Banks.
 Financial Inclusion Technology Fund (FITF)
• helped RRBs migrate to Core Banking Solutions (CBS) platform
• supported ICT-based Business Correspondent model
6. Promoting farm productivity

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fig
Farm Innovation and Promotion Fund (FIPF)
 Systemic Rice Intensification (SRI) method of cultivation of paddy and lead
crops
 enhancing farm productivity and reducing the cost of cultivation through a pilot
project involving 1.42 lakh farmers in 13 states.
7. Tech-savvy Co-operative Banks
Fig
working towards a fully tech-enabled environment for Co-operative Banks
by helping them adopt the CBS platform on par with commercial banks and RRBs.

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8. The Power of Green
Fig
 NABARD’s green initiatives range from
• financing India’s first 1MW canal-top solar-power project under
NABARD Infrastructure Development Assistance (NIDA) in Gujarat
• installing rooftop solar-power units for energy generation and
conservation at its head office.
 promoted use of solar energy in rural areas under
• Umbrella Programme for Natural Resources Management (UPNRM)
• Jawaharlal Nehru National Solar Mission (JNNSM)

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9. Fruits of Development for Tribals
Fig
 To provide sustainable livelihoods to marginalized tribal families
 implemented a horticulture-based “Wadi” programme.
 covered 3.63 lakh acres benefiting 4.15 lakh tribal families living in hills and
forests in 26 states.
10. Government-sponsored Programmes:

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Fig
A big Draw NABARD has implemented several government-sponsored subsidy
programmes that include :
• rural godowns,
• agri-market infrastructure,
• small ruminants,
• dairy, poultry, piggery,
• rural slaughter houses, etc., helping the beneficiaries in a big way.

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Government regulations
The Indian government is considering giving the National Bank for Agriculture and Rural
Development (NABARD), a development bank that formulates the credit and banking
policy for the rural sector, more supervisory powers over microfinance institutions
(MFIs) in India.
The Micro Financial Sector (Development and Regulation) bill, which was first raised in
2007, is set to be passed in the upcoming parliament session as the Indian Finance
Ministry is putting the bill on a fast track. Under the proposed bill, all non profit MFIs
will be brought under the jurisdiction of NABARD. The Finance Ministry is also
considering bringing non-banking finance corporations (NBFCs), a structure used by
MFIs, under NABARD.
“The state governments are not equipped to handle supervision and a sector supervisor is
the need of the hour,” says Matthew Titus, executive director of MFI Sa-dhan, an Indian
microfinance industry association. Citing an unspecified source within the Indian
government, an article on the Economic Times [1] newspaper website claims that the
Finance Ministry would not include a 24 -percent cap on interest rates in the bill.
According to the website of NABARD, non-governmental organizations that act as MFIs
are currently not regulated as financial institutions. On the other hand, non profit MFIs
are under the supervision of the Reserve Bank of India (RBI) under the Companies Act,
while microfinance cooperatives and NBFCs are under the supervision of state
governments and RBI respectively.
The Indian MFIs reporting data for 2009 to the Microfinance Information Exchange
(MIX), the microfinance information clearinghouse, have an aggregate loan portfolio of
USD 4.6 billion, total assets of USD 5.1 billion and 26.4 million active borrowers.
About the National Bank for Agriculture and Rural Development (NABARD):

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The National Bank for Agriculture and Rural Development (NABARD) is a development
bank in India that formulates the credit and banking policy for the rural sector, supervises
and conducts on-site inspections of cooperatives and regional rural banks and promotes
the development of microfinance activities in the rural sector. NABARD is charged with
the oversight of the Microenterprise Development Programme (MEDI), which focuses
exclusively on the development of microenterprises. In 2010, NABARD set a fiscal year
target of INR 3,750 billion (USD 80.3 billion) for credit disbursement via commercial
banks, state cooperative banks, state cooperative agriculture and rural development banks
and other eligible financial institutions up from INR 3,250 billion (USD 69.6 billion) the
previous year.

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CHAPTER 5
Findings & Conclusion

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The parliament created the NABARD act and the Apex bank in order to aid the rural
farmers that had long been neglected by the Government. There was such an imitative to
uplift industries and capital market that these agricultural sectors were being grossly
neglected. Even the apex bank of the country the Reserve Bank of India was so knee deep
in other responsibilities and duties that it could not give adequate assistance to the rural
farmer and their population which mostly comprised of artisans, small business owners
and small other small enterprises.
There was a need of adequate funding to these sectors in order for them to develop and
flourish like the other sectors that the Indian Government was giving undivided attention
to. Thus this led to the formation of the Rural Apex bank now known as NABARD. The
apex rural bank was able to form the relation between credit deliverance and the
agricultural sector.
The rural bank has been successful in creating multiple funds and schemes in order to aid
the rural farmer. The essential point to note here is that the bank not only facilitates the
funding to the farmer but also makes them self sufficient by training personnel in order to
better understand modern techniques of farming which only propagates the growth and
development relating to rural economies. With the help of the RBI the apex rural bank is
also responsible for formulating policies to further benefit the agricultural farmers and the
rural poor.
The bank realizes the potential of the agricultural sector and terms non credit worthy
farmers as credit worthy ones, these farmers were long rejected by other financial
institutions due to the lack of guarantee on their credit. But recent statistics will show that
the farmers have lived up to the confidence instilled in them and are actually creating
profit and are now operating hassle free when it comes to financing their activities.
Various schemes and funds allow farmers to innovate and create new methods and
inventions that help them in their field and this is solely because of the investments done
by the rural bank.

44
The bank not only helps in credit delivery to the farmers but also to the state government
and NGOs and cooperative banks as well, this proves that when given the opportunity the
rural bank can diversify in other sectors.
Recent development shows that NABARD is all for modern and hi tech technology to
enhance the productivity of the farmer such as genetic modification techniques. The
statistic will only show that the Rural Bank is doing much better and is far more efficient
to its clientele than most Corporate and other Financial Institutions hence proving not
everything "rural" is backward

45
BIBLIOGRAPHY
For completing this project report, I have taken help from the following site:
www.nabard.com
www.google.com/nabard

project report on nabard

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