Previous Year Question
Through which Act of 1981 did Parliament approve the establishment of the National Bank for Agriculture and Rural Development (NABARD)?
Correct Answer: B
Detailed Solution
Parliament enacted the National Bank for Agriculture and Rural Development Act, 1981 for the establishment of NABARD.
The purpose of the Act was to establish a development bank for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other allied economic activities in rural areas. Section 3 of the Act specifically deals with the establishment and incorporation of NABARD.
Most provisions of the Act came into force on 1 May 1982, while certain provisions, including Section 3 relating to the establishment of NABARD, came into force on 12 July 1982. Thus, the statute was enacted in 1981, while NABARD became operational as an institution in 1982.
Remember:
NABARD Act = 1981
Act Number = 61
Section relating to establishment = Section 3
Establishment effective = 12 July 1982