Economics • Banking & FinanceEasy
Which of the following financial institutions in India is statutorily mandated to act as the primary developmental financial institution for promoting agriculture and rural development?
A. Small Industries Development Bank of India (SIDBI)
B. National Bank for Agriculture and Rural Development (NABARD)✓ Correct Answer
C. Export-Import Bank of India (EXIM Bank)
D. National Housing Bank (NHB)
💡 Solution & Explanation
NABARD was established on July 12, 1982, under the National Bank for Agriculture and Rural Development Act of 1981, implementing the institutional recommendations of the B. Sivaraman Committee. It acts as the apex development bank in India, absorbing the agricultural credit functions of the Reserve Bank of India and the Agricultural Refinance and Development Corporation. Other institutions like SIDBI cater specifically to micro, small, and medium enterprises.
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