What is the role of NABARD in promoting finance for small business?
Answers
Role of NABARD:
It is an apex institution which has power to deal with all matters concerning policy, planning as well as operations in giving credit for agriculture and other economic activities in the rural areas.
it is a refinancing agency for those institutions that provide investment and production credit for promoting the several developmental programs for rural development.
It is improving the absorptive capacity of the credit delivery system in India, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, and training of personnel.
It co-ordinates the rural credit financing activities of all sorts of institutions engaged in developmental work at the field level while maintaining liaison with Government of India, and State Governments, and also RBI and other national level institutions that are concerned with policy formulation.
It prepares rural credit plans, annually, for all districts in the country.
It also promotes research in rural banking, and the field of agriculture and rural development.
NABARD or National Bank of Agriculture and Rural Development was formed on the recommendation of the committee based on the agriculture and rural development.
All of the issues that were associated to the rural credits was actually dealt with the Reserve bank of India.
NABARD therefore became the primary insititution wich helped in planning policies and providing different facilities to the rural finance institutions.