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The RBI has said it would extend fresh support of Rs50,000 crore to the All India Financial Institutions for new lending in FY22.
- The move is aimed to mitigate the impact of the pandemic and aid economic revival.
About
- 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-microfinance 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).
- All three facilities will be available at the prevailing policy repo rate.
National Bank for Agriculture And Rural Development (NABARD)
- About: It is an apex regulatory agency for Regional Rural Banks and Cooperative Banks under the jurisdiction of the Ministry of Finance.
- Establishment: In 1982 on the recommendations of B.Sivaraman Committee to implement the National Bank for Agriculture and Rural Development Act 1981.
- 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).
- The initial corpus of NABARD was Rs.100 crores.
- Aim & Objectives:Promoting agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity.
- Functions: Refinance support for building rural infrastructure.
- Prepares district level credit plans to guide and motivate the banking industry in achieving these targets.
- Supervises Cooperative Banks and Regional Rural Banks (RRBs) and helps them develop sound banking practices and integrate them to the CBS (Core Banking Solution) platform.
- Provides training to handicraft artisans and helps them in developing a marketing platform for selling these articles.
Source: TH
