The National Bank For Agriculture and Rural Development (NABARD), a developing bank, came into existence on July 12, 1982, under an Act of Parliament with an initial capital of Rs. 100 crores. It is an apex institution set up 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. The NABARD has taken over the functions of ARDC (Agricultural Refinance and Development Corporation) and refinancing functions of RBI in respect of co-operative banks and the RRBs.
(a) Integrated rural development is main objective of NABARD.
(b) To provide training and Research facilities for rural Development.
(c) To keep a check on all the projects which are refinanced by NABARD; through timely inspection, monitoring and evaluation.
(d) To Act as a coordinator and regulator for rural credit institutions.
(e) Promotion and development of agriculture, Small Scale industries, cottage and village industries, handicrafts and other rural crafts.
(f) To formulate rural credit plans on annual basis for all districts in country.