Introduction

NABARD, an acronym that plays a vital role in the development of India’s rural economy, is a well-known term in the financial and developmental ecosystem. Established with the objective of supporting rural infrastructure and providing financial backing to agricultural and allied sectors, NABARD has significantly transformed the rural landscape of India. In this article, we will explore the NABARD full form, functions, structure, and its importance in the country’s economic framework.

NABARD full form Full Form

The NABARD full form is National Bank for Agriculture and Rural Development.

Let’s break down the NABARD full form to understand it better:

• National – Indicates that the bank operates at a national level and is not restricted to any particular region or state.
• Bank – Refers to a financial institution that provides loans, credits, and other financial services.
• Agriculture – Highlights the primary focus of the institution, which is the agricultural sector and its allied industries.
• Rural Development – Emphasizes the vision to uplift the rural economy and improve the living conditions in rural areas.

Together, the full form of NABARD signifies the institution’s holistic mission to foster rural prosperity by championing agriculture and rural development through financial and policy support.

What is NABARD full form?

NABARD stands for National Bank for Agriculture and Rural Development. It is a premier development financial institution in India that deals primarily with policy planning and operations in the field of credit for agriculture and other economic activities in rural areas. NABARD was established to implement and monitor developmental projects at the grassroots level, with the vision to encourage sustainable growth in the rural and agricultural sectors.

NABARD also acts as a refinancing agency, providing loans to banks and financial institutions involved in rural development. Its role isn’t limited to financing; it also supports institutions, capacity-building initiatives, and handles infrastructural development for rural areas.

History and Background

NABARD was established on 12 July 1982 by the Government of India through an act of Parliament. It was created based on the recommendations of the Shivaraman Committee. NABARD took over the functions of the erstwhile:

• Agricultural Credit Department (ACD)
• Rural Planning and Credit Cell (RPCC) of Reserve Bank of India (RBI)
• Agricultural Refinance and Development Corporation (ARDC)

The formation of NABARD marked a strategic shift in India’s approach to rural credit and development. Being fully owned by the Government of India and the Reserve Bank of India initially, NABARD became a cornerstone of rural empowerment and financial inclusion across the country.

Functions and Responsibilities

NABARD performs a wide range of functions to support agricultural and rural development in India. The key functions of NABARD include:

• Refinancing – Provides refinancing to agriculture and rural development institutions.
• Financial Assistance – Disburses direct loans for rural infrastructure development.
• Credit Planning – Crafts and monitors rural credit distribution policies and planning.
• Institutional Development – Helps in strengthening cooperative banks and RRBs.
• Developmental Activities – Promotes innovations, conducts research and supports agri-entrepreneurs.
• Supervision – Supervises and regulates cooperative banks and regional rural banks (RRBs).
• Infrastructure Development – Provides long-term support for building rural roads, storage facilities, irrigation systems, etc.
• Microfinance Initiatives – Extensively supports self-help group (SHG) models and microcredit schemes.

Departments / Structure (if applicable)

NABARD has a well-established organizational structure with several specialized departments aimed at holistically addressing rural development. Some major departments include:

• Department of Agricultural Finance
• Department of Financial Inclusion and Banking Technology
• Department of Rural Infrastructure Development
• Development Policy Department
• Department of Institutional Development
• Human Resources Department
• Micro Credit Innovations Department (MCID)

NABARD’s head office is located in Mumbai, and it has regional offices (ROs) in multiple states and union territories, ensuring localized attention to regional needs across rural India.

Eligibility / Selection Process (if applicable)

NABARD conducts recruitment for various positions such as Assistant Manager (Grade A) and Manager (Grade B), among others. Here’s an outline of the eligibility and selection process:

Eligibility Criteria

• Nationality: Must be a citizen of India.
• Educational Qualification: A graduate or postgraduate degree with certain specializations depending on the role (e.g., Agriculture, Economics, Finance, etc.)
• Age Limit: Usually between 21 to 30 years, with relaxation for reserved categories as per government norms.

Selection Process

1. Preliminary Exam – Objective test including sections on reasoning, English, quantitative aptitude, and general awareness.
2. Main Exam – Descriptive and objective paper focusing on the chosen specialization and current affairs related to agriculture and rural development.
3. Interview – Final round consisting of a personal interview to assess the candidate’s suitability for the role.

Salary / Career Scope (if applicable)

Salary Structure

Career Advancement

• Regular promotions based on performance and experience.
• Opportunities to rise to the position of Chief General Manager and beyond.
• Challenging roles in policy making and rural infrastructure management.
• Transfers to regional and international development organizations.

Importance in India

NABARD plays a pivotal role in the Indian economy for several reasons. It bridges the financial gap between urban financial institutions and rural needs. Here’s why NABARD matters:

• Supports 60% of the Indian population dependent on agriculture.
• Improves rural infrastructure through long-term finance for roads, irrigation, warehousing, etc.
• Empowers women and micro-entrepreneurs through SHG and microfinance models.
• Promotes financial inclusion in remote areas under Banking Correspondent (BC) schemes.
• Ensures food security by enhancing agricultural productivity.
• Strengthens cooperative banks and RRBs through technical and financial support.

Advantages and Key Facts

• Government-Owned – Operates with full government backing.
• Focus on Sustainable Development – Encourages eco-friendly and sustainable farming.
• Pioneer in Microfinance – Promoted more than 120 million SHG members.
• Innovative Fund Launches – E.g., RIDF (Rural Infrastructure Development Fund), NABARD Infrastructure Development Assistance (NIDA).
• GIS and IT Initiatives – Implements technology like GIS for better monitoring of rural projects.
• Active Collaboration – Works with international bodies like World Bank, Asian Development Bank, etc.

Frequently Asked Questions (FAQs)

1. What does NABARD full form stand for?

The NABARD full form is National Bank for Agriculture and Rural Development.

2. When was NABARD established?

NABARD was established on 12 July 1982 by the Government of India.

3. Who regulates NABARD?

NABARD is regulated by the Reserve Bank of India (RBI) and operates under the Ministry of Finance, Government of India.

4. Can engineering graduates apply for NABARD jobs?

Yes, engineering graduates may apply for specific streams in NABARD recruitment, especially those related to infrastructure development and related technical roles.

5. What is the NABARD Grade A officer salary?

The starting basic pay for NABARD Grade A officers is Rs. 28,150 with an overall monthly salary of approximately Rs. 62,600.

6. How does NABARD help rural farmers?

NABARD helps rural farmers through refinancing to banks, infrastructure development, training, financial literacy programs, and direct support to farmer-producer organizations (FPOs).

Conclusion

In summary, the NABARD full form – National Bank for Agriculture and Rural Development – embodies its core mission to drive economic progress and financial inclusion in rural India. As a multi-faceted development bank, NABARD has been instrumental in transforming the rural economy through its extensive network, innovative funding mechanisms, and dedication to agricultural prosperity. Whether you are a job aspirant, a policy-maker, or a student, understanding NABARD’s role and functions can provide valuable insights into India’s rural development journey.