Economics • Banking & FinanceMedium
What is the primary operational mandate of the 'National Bank for Agriculture and Rural Development (NABARD)'?
A. Regulating foreign institutional investments in Indian equity and debt markets
B. Providing refinance support and credit regulation for promotion of agriculture, small-scale industries, and rural development✓ Correct Answer
C. Issuing currency notes and managing foreign exchange reserves of the central government
D. Providing long-term industrial loans exclusively to large public sector manufacturing enterprises
💡 Solution & Explanation
NABARD was established in July 1982 on the recommendations of the B. Sivaraman Committee to serve as an apex development bank supporting agriculture, cottage industries, and rural infrastructure. It took over the agricultural credit functions previously discharged by the Reserve Bank of India. Regional rural banks and cooperative banks operate under the direct developmental supervision of NABARD.
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