Evaluate the regulatory role and statutory powers of the National Bank for Agriculture and Rural Development in Indian rural banking. Which of the following functions does it perform?

💡 Solution & Explanation

National Bank for Agriculture and Rural Development was established on July 12, 1982, based on the recommendations of the B. Sivaraman Committee by amalgamating agricultural credit departments of the Reserve Bank of India. It functions as an apex development bank providing refinancing facilities for agriculture, small-scale industries, cottage industries, and rural infrastructure development. It conducts statutory inspections of regional rural banks and state cooperative banks to ensure operational soundness. The institution does not engage in direct retail banking operations with individual public depositors.