ASSESSING THE ROLE OF NABARD IN THE RURAL DEVELOPMENT

The National Bank for Agriculture and Rural Development (NABARD) was set up in the year 1982 as an apex and specialized institution to solve the needs of agriculture and rural economy. The major objectives of this development bank were to develop the rural credit system, rural infrastructure, promote financial inclusion, rural entrepreneurs, etc.

Present research attempts to assess the role of NABARD in the Rural Development of country.

The research revealed that NABARD has taken up various multifaceted activities in the field of agriculture. These include the creation of rural infrastructure (road, bridges, irrigation projects, storage facilities, cold chain, market yard, health & education) direct & indirect finance to regional rural banks & co-operatives, monitoring credit system, farmers support & development, financial inclusion, technology & innovation and so on.

NABARD balance sheet has reached the level of Rs 9.10 lakh crore which is a testimony of its diverse activities. It has brought core banking solutions to Co-operatives, Regional Rural Banks, State Co-operatives, District Central Co-operative Banks & so on.

There is a significant impact of NABARD working on agriculture & rural development. It has resulted in an increase in rural households’ income, expenditure as well as savings. The NABARD scheme of the Rural Infrastructure Development Fund has transformed the rural economy by creating irrigation facilities, rural roads, bridges which have multiplier effect on rural income & employment.