On 2 January 2018, Parliament passed NABARD (Amendment) Bill, 2017 which seeks to amend
NABARD Act, 1981
Understanding the NABARD (Amendment) Bill, 2017
The question asks which specific Act was amended by the NABARD (Amendment) Bill, 2017, which was passed by Parliament on January 2, 2018. This bill aimed to modify the existing legal framework governing the National Bank for Agriculture and Rural Development (NABARD).
The Original NABARD Act
NABARD was established as a statutory body by an Act of the Parliament of India. This foundational legislation defined NABARD's role, functions, capital structure, and governance. To answer the question about the amendment, we need to identify the year of this original Act.
The National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 by an act of Parliament. The Act that established it is the NABARD Act, 1981.
The NABARD (Amendment) Bill, 2017
The NABARD (Amendment) Bill, 2017 was introduced to bring changes to this original 1981 Act. Key objectives and provisions of the 2017 amendment included:
- Increasing the authorized capital of NABARD significantly. The amendment allowed the authorized capital to be increased from ₹5,000 crore to ₹30,000 crore, and further increase it to ₹50,000 crore if needed, as specified by the central government.
- Transferring 99% of the Reserve Bank of India's (RBI) shareholding in NABARD to the Union government. Before the amendment, the RBI held a substantial stake along with the government. The amendment consolidated ownership primarily with the government.
- Amending certain provisions related to the management and definition of "small enterprise" and "village industries" within the Act.
Therefore, the NABARD (Amendment) Bill, 2017 sought to amend the provisions of the NABARD Act, 1981.
| Act/Bill | Purpose | Year |
|---|---|---|
| NABARD Act | Establishment and governance of NABARD | 1981 |
| NABARD (Amendment) Bill | Amendment to the original Act, focusing on capital increase and shareholding transfer | 2017 (Passed 2018) |
Conclusion
Based on the analysis of the NABARD (Amendment) Bill, 2017 and the history of NABARD's establishment, the bill was specifically enacted to amend the existing NABARD Act, 1981.
Revision Table: NABARD Legislation
| Legislation | Year | Significance |
|---|---|---|
| NABARD Act | 1981 | Original Act establishing NABARD |
| NABARD (Amendment) Bill | 2017 (Passed Jan 2018) | Amended the 1981 Act; increased capital, changed ownership structure |
Additional Information: About NABARD
The National Bank for Agriculture and Rural Development (NABARD) is a crucial development financial institution in India. Here are some key facts:
- Establishment: Established on 12 July 1982, based on the recommendations of the B. Sivaraman Committee.
- Mandate: NABARD's core mandate is to promote sustainable and equitable agriculture and rural prosperity through effective credit support, institution development, and other innovative initiatives.
- Role: It serves as the apex regulatory body for overall regulation and licensing of regional rural banks and state cooperative banks. It is also responsible for developing and supervising the rural credit and cooperative sector in India.
- Headquarters: Mumbai, India.
The 2017 amendment significantly strengthened NABARD's financial capacity by increasing its authorized capital, enabling it to better support rural development initiatives.
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