BANKING AFFAIRS

Detailed explanation-1: -National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India. It is under the jurisdiction of Ministry of Finance, Government of India.

Detailed explanation-2: -NABARD an apex development bank owned by the Government of India was set up under an Act of Parliament for supporting and promoting agriculture and rural development. NABARD has been playing a crucial role in the development of various activities in the farm and non-farm sector in the country.

Detailed explanation-3: -Ans. NABARD is called Apex Bank because it is also a banker of the bank for agriculture sectors. It promotes and develops financial institutions in rural areas where there are not enough financial institutions.

Detailed explanation-4: -NABARD provides long-term (LT) loans to State Governments to contribute to the share capital of cooperative credit institutions. This reimbursement-based support is intended to encourage larger lending programmes by these cooperatives to meet the agricultural credit requirements.