Topic covered: Inclusive growth and issues arising from it.
RBI extends fresh support of ₹50,000 cr. to NABARD:
To help mitigate the impact of the pandemic and aid economic revival, the RBI said it would extend fresh support of ₹50,000 crore to the All India Financial Institutions for new lending in FY22.
- Accordingly, NABARD will be provided a special liquidity facility (SLF) of ₹25,000 crore for one year to support agriculture and allied activities, the rural non-farm sector and non-banking financial companies-micro finance institutions.
- An SLF of ₹10,000 crore will be extended to the National Housing Bank for one year to support the housing sector.
- SIDBI will be provided ₹15,000 crore under this facility for up to one year for funding of micro, small and medium enterprises (MSMEs).
- It is an apex development and specialized bank established on 12 July 1982 by an act by the parliament of India.
- Its main focus is to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector.
- It was established based on the recommendations of the Committee set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. shivaraman.
- It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
- It has been accredited with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
- It provides refinance support for building rural infrastructure.
- It prepares district level credit plans to guiding and motivating the banking industry in achieving these targets.
- It supervises Cooperative Banks and Regional Rural Banks (RRBs) and helping them develop sound banking practices and integrate them to the CBS (Core Banking Solution) platform.
- It provides training to handicraft artisans and helps them in developing a marketing platform for selling these articles.
- About NABARD.
- Roles and functions.
- What are RRBs?
- What is CBS?
Sources: the Hindu.