Examine the role of the 'National Bank for Agriculture and Rural Development' (NABARD) in India. Which of the following institutions served as the statutory precursor whose agricultural credit functions were transferred to NABARD upon its establishment in 1982?

💡 Solution & Explanation

NABARD was established on July 12, 1982, pursuant to the National Bank for Agriculture and Rural Development Act, 1981, based on the recommendations of the B. Sivaraman Committee. It took over the agricultural credit functions of the Reserve Bank of India and the entire refinance operations of the erstwhile Agricultural Refinance and Development Corporation. NABARD operates as an apex development bank providing refinancing facilities for agriculture, small-scale industries, cottage industries, and rural crafts. A related apex institution is the Small Industries Development Bank of India, which focuses on micro, small, and medium enterprises.