NABARD has planned Rs 30,000 cr credit to farmers for irrigation

Highlights: 

  • The state-run National Bank for Agriculture and Rural Development (NABARD) has set an target of providing Rs 30,000 crore as credit to farmers for irrigation over the next three years.
  • The agriculture and rural focused lender has already sanctioned Rs 1,000 crore so far this year,2015-16.
  • This funding will be in addition to the government's recent announcement of providing Rs 50,000 crore of loans to farmers over the next five years under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY).
  • NABARD decided to provide loans amounting to Rs 30,000 crore for irrigation to farmers over the next three years.
  • This year we are looking at providing Rs 10,000 crore of loan for this purpose.
  • Recently,it has celebrated its 34th Foundation Day.
  • The bank has been accredited by the Green Climate Fund (GCF) as the national implementation agency for climate change at the rural level.
  • The idea is to create a Green Climate Fund with a commitment of USD 100 billion against the present commitment of around USD 10 billion.
  • There are 20 such entities like the World Bank and Asian Development Bank among others which have already been shortlisted.
  • In the entire South Asia, NABARD is the only one which has been shortlisted for the purpose.

What is NABARD ?

  • National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.
  • Its headquarters located in Mumbai.
  • It was set up by the Reserve Bank of India (RBI) under the Chairmanship of Shri B. Sivaraman.
  • It was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector.
  • RBI sold its stake in NABARD to the Government of India, which now holds 99% stake.
  • NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion
  • NABARD is the apex institution in the country which looks after the development of the cottage industry, small industry and village industry, and other rural industries.