Economics • Banking & FinanceEasy
Which institution in India acts as the apex financial institution for agricultural and rural development, providing refinancing facilities?
A. Reserve Bank of India (RBI)
B. Small Industries Development Bank of India (SIDBI)
C. National Bank for Agriculture and Rural Development (NABARD)✓ Correct Answer
D. Export-Import Bank of India (EXIM Bank)
💡 Solution & Explanation
The National Bank for Agriculture and Rural Development functions as the apex development bank in India, providing refinance support and credit planning for agricultural and rural upliftment. It was established in 1982 following recommendations from the B. Sivaraman Committee under an Act of Parliament. Unlike the Reserve Bank of India which regulates the entire banking framework, NABARD focuses exclusively on rural prosperity and cottage industries.
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