ROLE OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD) & REGIONAL RURAL BANK (RRBS) CONTRIBUTION IN INDIAN ECONOMY DEVELOPMENT

Abstract

Indian economy is agricultural economy and real India lies in villages. Without the development of the rural economy, the objectives of economic planning cannot be achieved. Hence, banks and other financial institutions are considered to be a vital role for the development of the rural economy in India. NABARD are playinga pivotal role in the economy development of the rural India. In the Indiancontext rural development assumes greater significance as nearly 70% of its population lives in rural areas. Most of the people living in rural area draw their livelihood from agriculture and allied sectors. Such areas are distinct from more intensively settled urban and suburbanareas. Life stylesin rural area are different than those in urban areas, mainly because limited services are available. Governmental services like law enforcement, schools, fire departments may be distant,limited in scope, or unavailable. Rural developmentisa national necessity and has considerable importance in India. The main objective of the rural development programme is to raise the economic and social level of the rural people. National Bank for Agriculture and Rural Development (NABARD) is set up as an apex institution by the Government of India with the main objective of providing and regulating credit and other facilities for the promotion of rural development. It is a single integrated organisation which looks after the credit requirements of all types of agricultural and rural development activities. The present study is a modest attempt to the credit potential for agriculture during the year 2021-22. The study covered aspects such as functions, objectives, management and organizational structure, sources of funds, activities achieved, loan assistance to various institutions, Methodology for preparation of potential linked credit plans (PLPs) and Development Projects in Andaman and Nicobar Islands.