Understanding the Share of Government of India in NABARD

NABARD stands for National Bank for Agriculture and Rural Development. It is an apex development financial institution in India, headquartered in Mumbai, with regional offices all over India. It is a statutory body established in 1982 under an Act of Parliament.

NABARD's primary role is to promote sustainable agriculture and rural development through various financial and non-financial interventions. It provides refinance facilities to banks, finances rural infrastructure development projects, supervises cooperative banks and Regional Rural Banks (RRBs), and supports various rural development initiatives.

Government Ownership in NABARD

Originally, the Reserve Bank of India (RBI) held a significant stake in NABARD. However, over time, the ownership structure was revised. Currently, the majority shareholding in NABARD is held by the Government of India.

As per the revised structure and official information, the Government of India holds a dominant share in NABARD. This large shareholding reflects the government's commitment to agricultural and rural development as key sectors for national growth.

Determining the Government Share Percentage

The question asks for the specific percentage of the Government of India's share in NABARD. Based on the current ownership structure, the Government of India holds 99% of the total share capital of NABARD. The remaining 1% is held by the Reserve Bank of India (RBI).

This significant stake allows the Government of India to steer the policy direction and focus areas of NABARD in line with national priorities for agriculture and rural areas.

Revision Table: Key Facts about NABARD Ownership

Additional Information on NABARD's Role

• Refinance Function: NABARD provides refinance support to various financial institutions, including Commercial Banks, Cooperative Banks, and Regional Rural Banks (RRBs), to enhance credit flow to the agriculture and rural sectors.
• Rural Infrastructure Development Fund (RIDF): NABARD manages RIDF, which finances rural infrastructure projects like irrigation, rural roads, and bridges sanctioned by state governments.
• Supervision: It supervises the functioning of cooperative banks and Regional Rural Banks to ensure their financial health and regulatory compliance.
• Development Initiatives: NABARD supports various developmental programs aimed at livelihood promotion, microfinance, watershed development, and tribal development in rural areas.