National Bank for Agriculture and Rural Development

The importance of institutional credit in boosting rural economy has been clear to the Government of India right from its early stages of planning. Therefore, the Reserve Bank of India (RBI) at the insistence of the Government of India, constituted a Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) to look into these very critical aspects. The Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, former member of the Planning Commission, Government of India.

The Committee’s interim report, submitted on 28 November 1979, outlined the need for a new organisational device for providing undivided attention, forceful direction and pointed focus to credit related issues linked with rural development. Its recommendation was the formation of a unique development financial institution which would address these aspirations, and the formation of National Bank for Agriculture and Rural Development (NABARD) was approved by the Parliament through Act 61 of 1981.

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 5 November 1982. Set up with an initial capital of Rs.100 crore, its paid up capital stood at Rs.14,080 crore as of 31 March 2020. Consequent to the revision in the composition of share capital between the Government of India and RBI, NABARD today is fully owned by the Government of India. The authorized share capital is Rs.30,000 crore.

NABARD has seven subsidiaries, established to leverage the institute's expertise with its own specialists catering to specific sectors.

NABKISAN

The main objective of the NABKISAN is to provide credit for promotion, expansion and commercialization of enterprises in agriculture, allied and rural non-farm activities. It has extended support to 550 FPOs across various states in the country with cumulative assistance of more than Rs 225 crore.

NABSAMRUDDHI

The objective of NABSAMRUDDHI is to provide credit facilities to legal entities for promotion, expansion, commercialization and modernization in non-farm activities including microfinance, MSME, housing, education, transport, etc. In March 2024, it launched the first phase of a nationwide funding awareness campaign, 'Climate Ready WASH', for women joint liability group (JLG) borrowers of microfinance institutions, to take forward the common mandate of sustainable rural development.

NABFINS

NABFINS' approach to the business of microfinance is defined by its tagline "Balancing Business with Inclusion". It adopts a unique model which leverages social collateral provided by the Self Help Groups (SHGs) & Joint Liability Groups (JLGs) by offering micro-credit at their doorstep, at the lowest interest rate among NBFC-MFIs to low income households, comprising predominantly women.