NABARD

National bank for agriculture and rural development.
it is an apex development bank with a mandate for providing credit flow for promotion and development of agriculture, small scale industries and all other allied economic activities in rural area.

inn simple words- NABARD is the mother and father of all agriculture and development activities in the rural area.....

main function is to provide refinance to lending institutions in rural area.
now what this REFINANCE means?

it means NABARD does not provide loans directly to the individual and business. loans needed by individual and business for agriculture and rural development projects is provided by commercial banks, rrb, co operative banks, nbfc working in rural area.
NABARD in turns sanction some percentage of the total loan ( 50% to 95%).

Criteria for refinance
1.	Technical feasibility of the project and adequate response from prospective beneficiaries
2.	Financial viability and adequate incremental income to ultimate borrower to repay the loan within a reasonable period
3.	Organisational capability to ensure close supervision.

other function of nabard

	Prepares, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutions
•	Undertakes monitoring and evaluation of projects refinanced by it
•	Promotes research in the fields of rural banking, agriculture and rural development
•	Functions as a regulatory authority, supervising, monitoring and guiding cooperative banks and regional rural banks for article archives click here

WHAT IS BANK?

bank is a lawful organisation whose basic function is to accept deposit and lends money to individual and business that need it.

TYPES OF BANK
1. scheduled bank -  are those which are registered in SCHEDULE 2(E) of RBI act 1934 with minimum paid up capital of Rs.200 crore.
2. non schedule- bank =s which are not listed in rbi schedule.


1. Central bank ( RBI ). CLICK ON LINK TO LEARN ABOUT RBI

2. commercial bank - banking institutions which accepts deposit and grant loans and advances to customer.
                                  it may be public sector bank, private sector or foreign bank.

3. development bank- business require medium and long term capital for purchase of machinery and equipment, for latest technology or for expansion, which in turn provided by the development banks like INDUSTRIAL FINANCE CORPORATION OF INDIA.

4. COOPERATIVE BANKS
5. SPECIALISED BANK- for providing support and over all requirements for setting up business in specific area or activity. eg. EXIM, SIDBI AND NABARD

for article archives click here