Previous Year Question
______ is a central or apex institution for financing the agriculture and rural sectors.
Correct Answer: C
Detailed Solution
NABARD stands for National Bank for Agriculture and Rural Development. It functions as an apex development financial institution for agriculture and rural development in India. According to the Department of Financial Services, Government of India, NABARD aims to promote sustainable and equitable agriculture and rural development through financial and developmental interventions.
NABARD came into existence on 12 July 1982. At the time of its establishment, the agricultural credit functions of the RBI and the refinance functions of the then Agricultural Refinance and Development Corporation (ARDC) were transferred to NABARD. At present, NABARD is fully owned by the Government of India.
NABARD's role is not limited to providing finance. It is also involved in refinance support, rural infrastructure financing, district-level credit planning, supervision of Cooperative Banks and Regional Rural Banks, and rural-development programmes. Therefore, it is regarded as the apex institution in the agricultural and rural finance system.