CURRENT AFFAIRS

Detailed explanation-1: -Accordingly, NABARD will be provided a special liquidity facility (SLF) of ₹25, 000 crore for a period of one year to support agriculture and allied activities, the rural non-farm sector and non-banking financial companies-micro finance institutions (NBFC-MFIs).

Detailed explanation-2: -1.1 The Reserve Bank of India (RBI) provides export credit refinance facility to banks under Section 17(3A) of the Reserve Bank of India Act 1934. This facility is given on the basis of banks’ eligible outstanding rupee export credit both at the pre-shipment and post-shipment stages.

Detailed explanation-3: -Short-term Refinance (ST) NABARD provides Co-operative Banks and Regional Rural Banks loans and advances, repayable on demand or on the expiry of fixed periods not exceeding 12 months, by way of refinance for production, marketing and procurement activities.

Detailed explanation-4: -Divestment of RBI’s shareholding in NABARD was done in two phases. The Bank held 72.5 per cent of equity in NABARD amounting to ₹ 1450 crore out of which 71.5 per cent amounting to ₹ 1430 crore was divested in October 2010 based on the Government of India notification on September 16, 2010.

Detailed explanation-5: -RBI had sold its stake and now the Government of India (GOI) has 99 percent in it. It was established to provide credit for the promotion of the agriculture, SSI and Cottage and village industry. It is an apex bank for agriculture.