The National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India, established for promoting sustainable and equitable agriculture and rural development. It serves as the principal regulator and supervisor of cooperative banks and Regional Rural Banks (RRBs), and provides refinance, institutional credit, and developmental assistance to support rural livelihoods across the country.
| Type | Statutory body / Development financial institution |
|---|---|
| Established | 12 July 1982 |
| Founding statute | National Bank for Agriculture and Rural Development Act, 1981 |
| Headquarters | Mumbai, Maharashtra, India |
| Sector | Agriculture, rural development, cooperative and rural banking |
| Owner | Government of India |
| Parent ministry | Ministry of Finance, Government of India |
| Role | Apex refinance institution; regulator of cooperative banks and RRBs (alongside the RBI) |
NABARD was set up on the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), commonly called the Sivaraman Committee, constituted by the Reserve Bank of India in 1979. The committee recommended the creation of a single apex agency to coordinate rural credit and developmental functions, leading to the enactment of the NABARD Act, 1981.
On its formation, NABARD took over the functions previously performed by the Agricultural Credit Department (ACD) and the Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India, as well as the work of the Agricultural Refinance and Development Corporation (ARDC). This consolidated the functions of agricultural credit policy, refinance, and rural development under a single institution.
NABARD operates through three broad mandates:
NABARD is headed by a Chairman appointed by the Government of India, supported by a Managing Director, Deputy Managing Directors, and a Board of Directors with representation from the Government of India, the Reserve Bank of India, state governments, and experts in rural economy and cooperative banking. The bank operates through regional offices in every state and union territory, training establishments, and district development offices to coordinate with state governments and field-level institutions.
Key training and research institutions associated with NABARD include the Bankers Institute of Rural Development (BIRD) at Lucknow, with centres at Mangaluru and Kolkata.
NABARD plays a central role in the architecture of rural finance in India. By refinancing cooperative banks and RRBs, it strengthens the lower tiers of the rural banking system that serve smallholder farmers, artisans, and rural entrepreneurs. Its development initiatives—particularly the SHG–Bank Linkage Programme and FPO promotion—have been influential in shaping financial inclusion and women's economic empowerment in rural India. Through RIDF and similar funds, NABARD has supported the creation of rural infrastructure across irrigation, connectivity, education, and health.