Question

Consider the following statements regarding the National Bank for Agriculture and Rural Development:
1. It was established by transferring the refinancing functions of RBI.
2. The RBI and the Government have equal shares in it.
3. It is only a refinancing agency.

Which of the above statements is/are incorrect?
(a) 2 only
(b) 1 and 3 only
(c) 1 and 2 only
(d) 1, 2, and 3

Answer 1

Answer:

1 and 3 only

Explanation:

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Answer 2

Option D - 1, 2 and 3

More Information

■ NABARD :-

• 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).

• 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.

• It is both the direct financing as well as refinancing agency.

• As a direct financing agency, it provides finance for the following schemes:

▪ Loans for Food Parks and Food Processing Units in Designated Food Parks.

▪ Loans to Warehouses, Cold Storage and Cold Chain Infrastructure.

▪ Credit Facilities to Marketing Federations.

▪ Rural Infrastructure Development Fund

▪ Direct Refinance to Cooperative Banks

▪ Supporting Producer Organisations

▪ More Direct Finance

▪ Alternative Investment Funds

▪ Long Term Irrigation Fund

▪ Pradhan Mantri Aawas Yojana - Grameen (PMAY-G)

▪ Swachh Bharat Mission-Gramin (SBM-G)

• As a refinancing agency, it provides finance to State Cooperative Banks (SCBs), Regional Rural Banks (RRBs), Weavers, Non-Farm Sectors, etc.

• The SHG Bank Linkage Project launched by NABARD in 1992 has blossomed into the world’s largest microfinance project. Kisan Credit Card, designed by it has become a source of comfort for crores of farmers.

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