For the purpose of extending rural banking and agro finance, the NABARD :
Refinances the banks extending rural finance
NABARD (National Bank for Agriculture and Rural Development), set up in 1982, is an apex development finance institution for agriculture and rural development. It works mainly as a refinancing agency, not as a retail lender to farmers.
Rural credit reaches borrowers through commercial banks, regional rural banks, state cooperative banks and other eligible institutions. When these institutions lend for agriculture and rural activities, NABARD provides them refinance (short-term and long-term funds) so that they can keep lending.
It does not ordinarily lend directly to individual rural borrowers or monitor them; refinance is given to the lending institution, not to the borrower; and NABARD is not a direct financier that obtains refinance from the government.
Thus NABARD supports rural finance by refinancing the banks that extend it.
Hence, the answer is Refinances the banks extending rural finance.
Similar Questions
Match the items of List - I with the items of List - II and select a correct code :
List - I List - II (a) SEBI (i) Exchange for small companies (b) RBI (ii) Secondary market in treasury bills (c) STCI (iii) Regulation of secondary market (d) OTCEI (iv) Ad-hoc treasury bills Codes :
(a) (b) (c) (d)
Match the items in List - I with the items in List - II :
List - I List - II (a) ATM card (i) NPA (b) Debts due for more than 30 days (ii) John Shephard Barron (c) Micro finance (iii) State Finance Corporations Act (d) State level finance corporations (iv) NABARD Codes :
(a) (b) (c) (d)
Which among the following is not associated with NABARD ?
(a) NIEAF
(b) BIRD
(c) RIDF
(d) SHPI
Codes :
Which one of the following institutions is promoted by the IFCI :
Which of the following is not provided by EXIM Bank, for financing overseas investments ?
Which of the following is not a development banking institution ?
Important Questions from Financial Institutions
The organisation incorporated for retail payment and settlement systems in India is
Indian national strategy for financial inclusion, 2019-24 aims at:
A. Broadening and deepening of financial inclusion
B. Digitisation and seamless facilitation of financial transactions
C. Access to formal financial services in an affordable manner.
D. Women empowerment and strengthening self help group (SHG) ecosystems.
E. Promoting financial literacy and consumer protection
Choose the most appropriate answer from the options given below:
- The Industrial Finance Corporation of India (IFCI) was established in:
_______ was the first Development Financial Institution of India set up to propel economic growth through development of infrastructure and industry in _______.
Which of the followings are the national financial institutions?
(A) Industrial Development Bank of India
(B) Industrial Finance Corporation of India
(C) The State Industrial Development Corporation
(D) United Nations Development Programme
(E) State Financial Corporations.
Choose the correct answer from the options given below:
