Economics • Indian EconomyMedium
What is the primary mandate of the 'National Bank for Agriculture and Rural Development' (NABARD) in the Indian economic framework?
A. To act as an apex development bank providing credit for agriculture, small-scale industries, and rural development✓ Correct Answer
B. To regulate foreign exchange reserves and set commercial lending benchmark rates for urban banks
C. To collect direct income taxes and audit corporate balance sheets across metropolitan centers
D. To operate the national payment and settlement infrastructure including automated clearing houses
💡 Solution & Explanation
NABARD operates as an apex development financial institution in India, providing refinancing facilities and credit support for agriculture, cottage industries, and rural infrastructure projects. Established in 1982 upon recommendations of the B. Sivaraman Committee, it took over agricultural credit functions previously handled by the Reserve Bank of India. Confusing it with a tax authority or central bank ignores its specialized rural developmental mandate. It also supervises regional rural banks and state cooperative banks.
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