In which year was NABARD established?
1982
Understanding NABARD and its Establishment
The question asks about the establishment year of the National Bank for Agriculture and Rural Development (NABARD). NABARD is a very important financial institution in India, playing a crucial role in agricultural and rural development.
Let's look closely at the options provided:
- 1979
- 1981
- 1978
- 1982
To determine the correct year, we need to recall the history of NABARD's formation.
When was NABARD Established? Key Facts
NABARD was established based on the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), headed by Shri B. Sivaraman. The Parliament of India passed the NABARD Act in 1981. Following the enactment of this Act, NABARD was actually established and came into existence on a specific date.
The establishment date is a key piece of information for anyone studying Indian financial institutions and rural development.
Detailed Explanation of NABARD's Establishment Year
The National Bank for Agriculture and Rural Development (NABARD) was established on July 12, 1982. This was done through an Act of the Parliament, the NABARD Act, 1981. It took over the functions of the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India (RBI) and the Agricultural Refinance and Development Corporation (ARDC).
Therefore, the correct year of NABARD's establishment is 1982.
Functions of NABARD
NABARD serves as the apex regulatory body for overall regulation and licensing of regional rural banks and cooperative banks in India. Its primary role is to promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, and institutional development.
Key functions include:
- Providing refinance facilities to eligible financial institutions for financing production and marketing activities in rural areas.
- Undertaking developmental functions such as institution building, training, and research.
- Supervising cooperative banks and Regional Rural Banks (RRBs).
- Acting as a facilitator for rural development projects.
Analysing the Options for NABARD's Establishment
Let's compare the options with the historical fact:
| Option | Year | Is it the establishment year? |
|---|---|---|
| 1 | 1979 | No |
| 2 | 1981 | No (This is the year the Act was passed) |
| 3 | 1978 | No |
| 4 | 1982 | Yes |
Based on the facts, NABARD was established in 1982. Option 4 correctly states this year.
Conclusion on NABARD's Establishment Year
The National Bank for Agriculture and Rural Development (NABARD) was established in 1982. This institution is vital for providing credit and promoting development in India's agricultural sector and rural areas.
Revision Table: Key Dates for NABARD
| Event | Year |
|---|---|
| CRAFICARD Committee Recommendation | 1979 (Report submitted) |
| NABARD Act Passed by Parliament | 1981 |
| NABARD Established | 1982 (July 12) |
Additional Information on NABARD and Rural Banking
NABARD is not a direct lending institution to farmers. It provides refinance to banks and other financial institutions which then lend directly to farmers and other rural entities. It is supervised by the Department of Financial Services of the Ministry of Finance, Government of India. The Reserve Bank of India (RBI) is a major shareholder. Understanding NABARD's role is crucial for comprehending India's rural financial architecture and development strategies.
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