Understanding NABARD's Establishment Year

The question asks about the year in which the National Bank for Agriculture and Rural Development (NABARD) was established. Understanding the history and purpose of key financial institutions like NABARD is crucial for various exams.

NABARD is a development bank that focuses on providing credit and other facilities for the promotion of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts and allied economic activities in rural areas. Its main goal is to promote integrated rural development and secure prosperity of rural areas.

Formation of NABARD

The formation of NABARD was recommended by the Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), which was set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. Sivaraman.

Based on the recommendations of this committee, NABARD was established.

The Establishment Date

NABARD was established on July 12, 1982. This was done by an act of the Parliament, the National Bank for Agriculture and Rural Development Act, 1981.

It took over the functions of the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the RBI and the Agricultural Refinance and Development Corporation (ARDC).

Analyzing the Options

Let's look at the given options:

• 1982: This is the year NABARD was established.
• 1991: This year is associated with significant economic reforms in India, but not NABARD's establishment.
• 1987: This year does not correspond to the establishment of NABARD.
• 1975: This year is also not the establishment year of NABARD.

Key Information about NABARD

Conclusion

Based on the historical facts and the analysis of the options, the National Bank for Agriculture and Rural Development (NABARD) was established in 1982.

Revision Table: NABARD Establishment

Additional Information on Rural Financial Institutions

Apart from NABARD, several other institutions play a vital role in rural finance in India:

• Regional Rural Banks (RRBs): Established in 1975, they aim to provide credit and banking facilities to small farmers, agricultural labourers, and artisans in rural areas.
• Cooperative Banks: These include Short-term Cooperative Credit Structures (STCCS) and Long-term Cooperative Credit Structures (LTCCS) that cater to the credit needs of farmers at various levels (primary, district, state).
• Commercial Banks: Public and private sector commercial banks also have a significant presence in rural lending, mandated through priority sector lending norms.

NABARD serves as the apex body for matters relating to policy, planning, and operations in the field of credit for agriculture and other economic activities in rural areas in India. It refinances these institutions and also provides direct finance in some cases.