IGNOU BLE 11 2026 - Discuss the Role and Functions of National Bank for Agricult

Question

Discuss the Role and Functions of National Bank for Agriculture and Rural Development (NABARD).

19 Jan 2026

Answer :

Word Count : 467

The National Bank for Agriculture and Rural Development (NABARD) plays a crucial role in promoting sustainable and equitable agriculture and rural development in India. Established in 1982, NABARD was created with the objective to provide credit support and other facilities for the development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts. It serves as the apex institution responsible for coordinating and refinancing the activities of rural financial institutions. NABARD's primary role is to act as a refinancing agency for rural financial institutions like cooperative banks, regional rural banks, and other development banks. It provides long-term and short-term loans to these institutions, enabling them to extend credit to the agricultural and rural sectors efficiently. By refinancing, NABARD helps maintain the flow of credit to these sectors, which

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