Economics • Banking & FinanceMedium
What institutional role does the National Bank for Agriculture and Rural Development (NABARD) primarily fulfill in the Indian financial architecture?
A. Regulating foreign exchange reserves and managing sovereign debt portfolios
B. Acting as an apex development bank providing refinancing for agriculture and rural development✓ Correct Answer
C. Issuing currency notes and coins across metropolitan and semi-urban banking branches
D. Providing commercial retail banking services directly to individual urban households
💡 Solution & Explanation
Established in 1982 under an Act of Parliament, the National Bank for Agriculture and Rural Development serves as an apex development financial institution providing refinancing facilities for agriculture, small-scale industries, and rural development projects. It coordinates the operations of regional rural banks and cooperative credit institutions across the country. It does not engage in direct retail banking with the general public. Its oversight ensures adequate credit flow to priority sectors crucial for agrarian growth.
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