Note4Students
From UPSC perspective, the following things are important :
Prelims level: NABARD, ‘Climate Strategy 2030’;
Mains level: Climate Strategy 2030’;
Why in the news?
The National Bank for Agriculture and Rural Development (NABARD) revealed its ‘Climate Strategy 2030’ document, aiming to address India’s need for enhanced green financing.
Key Pillars of Climate Strategy 2030:
- The strategy focuses on four key pillars:
- Accelerating green lending across sectors,
- Playing a broader market-making role,
- Internal green transformation, and
- Strategic resource mobilization.
Green Financing Scenario in India
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About NABARD:
- It was established on July 12, 1982, based on the recommendation of the Sivaraman Committee to promote sustainable rural development and agricultural growth in India.
- Aim: To facilitate credit flow for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
- It operates as a statutory body under the Reserve Bank of India (RBI) Act, 1934, with its headquarters located in Mumbai.
- It is governed by a Board of Directors appointed by the GoI:
- Representatives from the RBI;
- Central and state governments;
- Experts from various fields related to Rural Development and Finance.
Functions of NABARD:
- Refinance Support: NABARD provides refinance facilities to banks and financial institutions for agricultural and rural development activities, including crop loans and rural infrastructure projects.
- Financial Inclusion: It promotes financial inclusion by expanding banking services in rural areas, supporting SHGs, FPOs, and MFIs, and facilitating access to credit for rural communities.
- Priority Sector Lending: NABARD plays a crucial role in channelling credit to priority sectors such as agriculture, small-scale industries, and rural infrastructure, in alignment with the Reserve Bank of India’s priority sector lending guidelines.
- Direct Lending: It extends direct loans to institutions for specific rural development projects, such as agricultural production, rural infrastructure development, and agri-processing units.
- Scheme Implementation: The organization administers government schemes and funds like Rural Infrastructure Development Fund (RIDF), Watershed Development Fund (WDF) to finance rural infrastructure projects and watershed development activities.
- Credit Planning: NABARD collaborates with central and state governments, RBI, and other stakeholders to formulate credit policies and plans for agriculture and rural sectors.
- Research and Training: NABARD promotes research and development in agriculture, supports capacity building and training programs for rural stakeholders, and facilitates technology transfer initiatives.
PYQ:[2013] Which of the following grants/grants direct credit assistance to rural households?
Select the correct answer using the codes given below: (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 |
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