Which of the following committee's recommendations led to the formation of NABARD?
Shri B. Sivaraman Committee
Understanding NABARD Formation and Key Committees
The question asks about the specific committee whose recommendations were instrumental in the establishment of the National Bank for Agriculture and Rural Development (NABARD). Understanding the origins of key financial institutions like NABARD is important for anyone studying banking and rural development in India.
Analyzing the Options for NABARD's Founding Committee
Let's look at the committees listed in the options:
- Shri Homi Sethna Committee: This committee is known for its work related to the Indian space program, specifically associated with the Indian National Committee for Space Research (INCOSPAR) and ISRO. It is not connected to banking or rural development finance.
- Shri Naresh Chandra Committee: This committee focused on issues related to company law and corporate governance, submitting reports in the early 2000s. It is not associated with the formation of NABARD.
- Shri Dharma Vira Committee: This committee was primarily concerned with administrative reforms and issues related to the police force in India. It does not have a link to the establishment of financial institutions like NABARD.
- Shri B. Sivaraman Committee: This committee, officially the Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), was constituted by the Reserve Bank of India (RBI) in 1979. Its recommendations were crucial and directly led to the formation of NABARD.
The Shri B. Sivaraman Committee and NABARD's Establishment
The Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), headed by Shri B. Sivaraman, examined the existing system of providing institutional credit for agriculture and rural development in India. The committee found a need for a single apex institution to coordinate the flow of credit to the rural sector, which was being handled by multiple agencies like the Reserve Bank of India (RBI), Agricultural Refinance and Development Corporation (ARDC), and Agricultural Credit Department (ACD) of RBI.
Based on the detailed recommendations of the Shri B. Sivaraman Committee, the Indian Parliament passed the National Bank for Agriculture and Rural Development Act, 1981. Subsequently, NABARD was established on July 12, 1982, consolidating the functions of ARDC, ACD, and Rural Planning and Credit Cell (RPCC) of RBI.
Therefore, the recommendations of the Shri B. Sivaraman Committee were directly responsible for the formation of NABARD.
Conclusion: Identifying the Correct Committee
Based on the analysis, the committee whose recommendations led to the formation of NABARD is the Shri B. Sivaraman Committee.
| Committee Name | Key Focus/Recommendations | Connection to NABARD |
|---|---|---|
| Shri Homi Sethna Committee | Space Program (ISRO) | None |
| Shri Naresh Chandra Committee | Company Law, Corporate Governance | None |
| Shri Dharma Vira Committee | Administrative Reforms, Police | None |
| Shri B. Sivaraman Committee (CRAFICARD) | Institutional Credit for Agriculture & Rural Development | Recommendations led to NABARD's formation |
Revision Table: Key Facts about NABARD
| Aspect | Detail |
|---|---|
| Institution Full Form | National Bank for Agriculture and Rural Development |
| Establishment Date | July 12, 1982 |
| Basis of Formation | Recommendations of Shri B. Sivaraman Committee (CRAFICARD) |
| Act Governing Formation | National Bank for Agriculture and Rural Development Act, 1981 |
| Parent Body | Primarily Government of India (initially jointly owned by GoI and RBI) |
| Mandate | Promoting sustainable and equitable agriculture and rural development |
Additional Information on NABARD and Rural Credit
NABARD serves as an apex development financial institution in India, focusing on agriculture and rural areas. It provides finance and credit for promoting agriculture and rural development activities. It also serves as a regulator for cooperative banks and Regional Rural Banks (RRBs). The establishment of NABARD was a significant step towards streamlining and strengthening the rural credit delivery system in India, addressing the gaps identified by the Shri B. Sivaraman Committee (CRAFICARD).
The committee's report highlighted the need for a dedicated institution with a holistic view of rural credit, encompassing not just agriculture but also allied activities and rural industries. This broad perspective is reflected in NABARD's current mandate and operations.
Important Questions from Committees and Recommendation
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