In order to expand the role of National Bank for Agriculture and Rural Development (NABARD) in rural economy and to benefit the larger section of the farmer population in the country, the Government has introduced bill in parliament to raise the authorised capital four times to Rs 20,000 crore. The bill further proposes creation of the National Rural Credit Fund for providing financial assistance by way of loans and advances.
Further, the amended NABARD Bill 2013 also made provisions for change of ownership of remaining one percent equity of NABARD from the RBI to the Government of India (GOI). The Bill proposes to enlarge the meaning of cooperative society to include multi-state cooperative societies registered under any central law and state law. If the proposed changes made in the Act, NABARD, would be able to undertake short term lending operations.
NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas.
