Role and Functions of NABARD
- Credit Functions: NABARD provides financial help to farmers, rural entrepreneurs, and others in the rural sector through credit schemes like RIDF, FSPF, and MDF.
- Development Functions: NABARD develops rural infrastructure and offers technical services to promote sustainable agriculture practices.
- Supervisory Functions: NABARD supervises and regulates the functions of cooperative banks and RRBs in India.
- Promoting Financial Inclusion: NABARD promotes financial inclusion by providing access to banking services, credit, and financial products in rural areas through initiatives like NRFIP and e-Shakti.
- Policy and Planning: NABARD advises the government on policy matters related to agriculture, rural infrastructure, and rural finance.
Difference Between NABARD and RBI
The Reserve Bank of India and the National Bank for Agriculture and Rural Development are the most important financial institutions in India. Both organizations play a critical role in the economic development of India. But their primary objectives, functions, and roles are different. RBI and NABARD both of them play an essential role in the banking system of India despite their different purposes. RBI ensures the financial system’s stability and oversees the country’s overall monetary policy On the other hand, NABARD focuses on providing banking support to the rural sector and promoting rural development.
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