National Bank for Agriculture and Rural Development (NABARD)
NABARD was set up with an initial capital of Rs.100 crore. Majority share is with Government of India and marginal percent with Reserve Bank of India.
Mission of NABARD: promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.
NABARD provides relief to farmers whose crops are damaged due to natural calamities, by way of conversion of current short term agricultural loans into medium term loans.
It also provides investment credit and refinances for production activities to State Cooperative Banks, Regional Rural Banks and even Commercial Banks and NBFCs.
Through assistance of Swiss Agency for Development and Cooperation, NABARD set up the Rural Infrastructure Development Fund. It funds projects covering irrigation, rural roads and bridges, health and education, soil conservation, water schemes etc.
NABARD can also advance direct loans to public as well as private sector, for example, for construction of warehouses, cold storage, cold chains and silos under the NABARD Warehousing Scheme.