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  • 20 May, 2020

  • 2 Min Read



The Parliament has recently passed the National Bank for Agriculture and Rural Development (Amendment) Bill, 2017. The Bill seeks to amend the NABARD Act, 1981 which establishes NABARD by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC).

  • The amendment bill seeks to increase the authorised capital of the Bank to 30,000 crore rupees from 5,000 crore rupees.
  • Currently the Central government is holding 99.60% share of the bank and the rest is with RBI (0.40%).
  • The capital can be increased further by the government in consultation with the RBI.
  • NABARD is responsible for providing and regulating facilities like credit for agricultural and industrial development in the rural areas.
  • It provides both direct finance (lending directly to customers) and refinance (lending to financial institutions to provide loans to customers)

Direct Finance


  1. Loans for Food Parks and Food Processing Units in Designated Food Parks
  2. Loans to Warehouses, Cold Storage and Cold Chain Infrastructure
  3. Rural Infrastructure Development Fund
  4. Long Term Irrigation Fund
  5. Alternative Investment Fund
  1. State Cooperative Banks and Regional Rural Banks for providing short term agricultural loans

  1. Cooperative Banks - State, District, Primary Urban; RRB, Commercial Banks, Agriculture Development Finance Companies, NBFC for providing credit for investment activities in agriculture and allied activities.

Source: PIB


26 Oct,2021

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