Economics • Banking & FinanceEasy
What is the primary role of the 'National Bank for Agriculture and Rural Development (NABARD)'?
A. Regulating foreign exchange reserves and managing sovereign debt
B. Providing refinance support and development financing for agriculture, small-scale industries, and rural development✓ Correct Answer
C. Issuing currency notes and coins up to five hundred rupees
D. Acting as the clearing house for all commercial banks in metropolitan areas
💡 Solution & Explanation
The National Bank for Agriculture and Rural Development acts as an apex development financial institution providing refinancing support and promotional funding for agriculture, cottage industries, and rural development. Monetary authorities like the Reserve Bank of India handle currency issuance and foreign exchange reserves, keeping them distinct from specialized rural development banks. Established in 1982 on the recommendation of the B. Sivaraman Committee, it remains pivotal for rural credit delivery.
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