Functions of NABARD

Credit Functions:

(i) Framing policy and guidelines for rural financial institutions.

(ii) Providing credit facilities to issuing organizations.

(iii) Monitoring the flow of ground level rural credit.

(iv) Preparation of credit plans annually for all districts for identification of credit potential.

Development Functions:

(i) Help cooperative banks and Regional Rural Banks to prepare development actions plans for themselves.

(ii) Help Regional Rural Banks and the sponsor banks to enter into MoUs with state governments and cooperative banks to improve the affairs of the Regional Rural Banks.

(iii) Monitor implementation of development action plans of banks.

(iv) Provide financial support for the training institutes of cooperative banks, commercial banks and Regional Rural Banks.

Supervisory Functions:

(i) Undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Banks (other than urban/primary cooperative banks) under the provisions of Banking Regulation Act, 1949.

(ii) Undertakes inspection of State Cooperative Agriculture and Rural Development Banks (SCARDBs) and apex non- credit cooperative societies on a voluntary basis.

(iii) 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).

(iv) Undertakes portfolio inspections besides off-site surveillance of Cooperative Banks and Regional Rural Banks (RRBs).