What are the objectives of NABARD?

What are the objectives of NABARD?

NABARD is an apex Development Bank authorised for providing and regulating credit and other facilities for the promotion and development 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 promote …

Why do we need regional rural bank?

Regional Rural Banks assist rural businesses by providing them short- term loans, insurance facilities, etc., and help to improve the role of entrepreneurship in rural areas. Many public and private sector banks do not deal with farmers and rural section due to their small financial needs, fewer incomes, etc.

Which banks comes under NABARD?

Institutional Development

  • Regional Rural Banks (RRBs)
  • State Cooperative Banks (StCBs)
  • District Central Cooperative Banks (DCCBs)
  • Primary Agricultural Credit Societies (PACS)
  • State Cooperative Agriculture and Rural Development Banks (SCARDBs)
  • Primary Cooperative Agriculture and Rural Development Banks (PCARDBs)

    NABARD, as a Development Bank, is mandated for providing and regulating credit and other facilities for the promotion and development 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 …

    What is regional rural bank and its function?

    The RRB Act 1976 states the functions of RRBs to provide financial assistance to farmers, Medium and Small Enterprises (MSMEs), local craftsmen and artisans, for agriculture, industries, trade, commerce, and their economic development. 25 RRBs were established within a year from the passing of this Act.

    What are the objectives of regional rural banks?

    The objectives of RRBs can be summarized as follows: (i) To provide cheap and liberal credit facilities to small and marginal farmers, agri­culture labourers, artisans, small entrepreneurs and other weaker sections. (ii) To save the rural poor from the moneylenders.

    Who are the sponsors of regional rural banks in India?

    The ownership of shares of Regional Rural Banks in India is divided among the Central Government, State government, and the sponsoring banks: The sponsor bank helps the growth of an RRB by providing trainings to the staff of an RRB, providing management consultations to the bank for a minimum period of 5 years.

    What are the functions of a RRB bank?

    In brief RRBs do all such functions as are done by domestic banks like accepting deposits from public, providing credit, remittance services etc. They can also invest in Government securities and deposit schemes of Banks and Financial Institutions.

    Why are RRBs important to the rural population in India?

    There were established with an objective of providing easily accessible banking and credit services to the rural population and mobilising financial resources from the urban areas to rural districts of India. Hence, RRBs form a vital component of the financial service sector in India.