India Cluster268 Verified Questions

NABARD & Rural Refinance Architecture GK Questions & Answers

The National Bank for Agriculture and Rural Development (NABARD) was established on July 12, 1982, pursuant to the National Bank for Agriculture and Rural Development Act, 1981 (Act No. 61 of 1981), operationalizing recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) chaired by B. Sivaraman. NABARD took over the agricultural credit functions of the Reserve Bank of India’s Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC), alongside the refinancing mandate of the Agricultural Refinance and Development Corporation (ARDC). Operating as India’s apex development financial institution for agriculture, allied activities, and rural enterprises, NABARD provides short-term production credit and long-term investment refinance to State Cooperative Banks, District Central Cooperative Banks, and Regional Rural Banks (RRBs). A regulatory structural pillar is the Rural Infrastructure Development Fund (RIDF), established in 1995-96 in NABARD through deposits from commercial banks failing priority sector lending (PSL) targets, financing rural roads, irrigation, and health projects. In 1992, NABARD launched the Self-Help Group (SHG) Bank Linkage Programme, and subsequently conceptualized the Kisan Credit Card (KCC) scheme in 1998 following the R.V. Gupta Committee guidelines. Following the 2018 legislative amendment, the Government of India acquired 100% equity in NABARD, raising authorized capital to ₹30,000 crore.

Essential Concepts & Key Facts

High-yield conceptual summaries for competitive exams and rapid revision.

  • NABARD was established on July 12, 1982 by Act 61 of 1981 based on the B. Sivaraman Committee (CRAFICARD) report.
  • NABARD took over the refinancing functions of the Agricultural Refinance and Development Corporation (ARDC) and RBI's agricultural departments.
  • Following the NABARD (Amendment) Act, 2018, the Government of India holds 100% equity in NABARD, ending RBI's prior partial shareholding.
  • The authorized capital of NABARD was enhanced from ₹5,000 crore to ₹30,000 crore under the 2018 statutory amendment.
  • NABARD is headquartered in Mumbai and functions under the administrative control of the Department of Financial Services, Ministry of Finance.
  • The Rural Infrastructure Development Fund (RIDF) was set up within NABARD in 1995-96 to finance state government rural infrastructure projects.
  • Commercial banks with shortfalls in achieving priority sector lending targets (40% total, 18% agriculture) must deposit the deficit into RIDF.
  • The Kisan Credit Card (KCC) scheme was formulated by NABARD in 1998 following the recommendations of the R.V. Gupta Committee.
  • NABARD launched the SHG Bank Linkage Programme (SHG-BLP) in 1992, which has evolved into the world's largest microfinance initiative.
  • Under Section 35(6) of the Banking Regulation Act, 1949, NABARD inspects Regional Rural Banks and State/District Central Cooperative Banks.
  • The Long Term Irrigation Fund (LTIF) was created in NABARD with an initial corpus of ₹20,000 crore to fund Fast-Track AIBP irrigation projects.
  • The Micro Irrigation Fund (MIF) of ₹5,000 crore was set up in NABARD to facilitate subsidized micro-irrigation expansion under PMKSY.
  • NABARD acts as an accredited National Implementing Entity (NIE) for the Adaptation Fund and Green Climate Fund under the UNFCCC framework.
  • E-Shakti is NABARD's initiative launched for the complete digitization of Self-Help Groups across India to improve bank credit delivery.
  • NABARD provides short-term refinance to Cooperative Banks and RRBs under the Short-Term Cooperative Rural Credit (Refinance) Fund.
Showing 10 Curated Questions268 Total in Bank
Practice in Studio
1ID: GK-AGRI-00003
hardRural Credit, NABARD & Agro-Schemes
National Bank for Agriculture and Rural Development (NABARD) was established in July 1982 based on the recommendations of which committee?
Verified Explanation
NABARD was set up on 12 July 1982 under the NABARD Act 1981 upon the recommendations of the Committee to Review Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD), chaired by B. Sivaraman.
2ID: GK-AGRI-00059
hardRural Credit, NABARD & Agro-Schemes
The Rural Infrastructure Development Fund (RIDF) was instituted in 1995–96 within NABARD by the Government of India primarily funded by what source?
Verified Explanation
RIDF was created in NABARD with initial contribution from scheduled commercial banks having shortfall in lending to priority sector / agriculture.
3ID: GK-AGRI-00183
hardRural Credit, NABARD & Agro-Schemes
On 12 July 1982, the National Bank for Agriculture and Rural Development (NABARD) was established by merging the agricultural credit functions of the Agricultural Refinance and Development Corporation (ARDC) with which department of the Reserve Bank of India?
Verified Explanation
NABARD was set up under Act 61 of 1981 by merging the ACD and RPCC of RBI with the Agricultural Refinance and Development Corporation (ARDC).
4ID: GK-AGRI-00201
easyRural Credit, NABARD & Agro-Schemes
The Rural Infrastructure Development Fund (RIDF), maintained within NABARD since 1995-96, was instituted to finance which primary objective?
Verified Explanation
RIDF was established in NABARD to provide low-cost funding to state governments and state-owned corporations for completing rural roads, bridges, irrigation, and watershed projects.
5ID: GK-AGRI-00208
mediumRural Credit, NABARD & Agro-Schemes
The Self-Help Group (SHG) - Bank Linkage Programme, which became the world's largest microfinance movement, was launched as a pilot initiative by NABARD in which year?
Verified Explanation
In 1992, NABARD launched the SHG-Bank Linkage Programme as a pilot project in consultation with the RBI to provide collateral-free institutional credit to unbanked rural women.
6ID: GK-AGRI-00345
easyRural Credit, NABARD & Agro-Schemes
The National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 based on the recommendations of which high-level committee?
Verified Explanation
NABARD was set up on 12 July 1982 under Act 61 of 1981, implementing the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) headed by B. Sivaraman.
7ID: GK-AGRI-00350
mediumRural Credit, NABARD & Agro-Schemes
Which dedicated fund was created in NABARD in 1995-96 from the shortfall in priority sector lending by commercial banks to finance rural infrastructure projects of state governments?
Verified Explanation
The Rural Infrastructure Development Fund (RIDF) was instituted in NABARD in 1995-96 with an initial corpus of Rs. 2,000 crore to assist state governments in rural infrastructure.
8ID: GK-AGRI-00355
mediumRural Credit, NABARD & Agro-Schemes
The Self-Help Group-Bank Linkage Programme (SHG-BLP), pioneered by NABARD and now recognized as the world's largest microfinance movement, was launched as a pilot project in which year?
Verified Explanation
NABARD launched the SHG-Bank Linkage Programme in 1992 to link informal self-help groups with the formal banking system without collateral, empowering rural women.
9ID: GK-AGRI-00360
hardRural Credit, NABARD & Agro-Schemes
Which specialized subsidiary was promoted by NABARD to provide direct loans and credit support to Farmer Producer Organizations (FPOs), agribusiness startups, and agriculture value chain projects?
Verified Explanation
NABKISAN Finance Limited (formerly Agri Development Finance Ltd) is a specialized subsidiary of NABARD dedicated to lending directly to FPOs, agricultural aggregators, and rural enterprises.
10ID: GK-AGRI-00361
hardRural Credit, NABARD & Agro-Schemes
The dedicated 'Micro Irrigation Fund' (MIF) with an initial corpus of Rs. 5,000 crore was set up in NABARD to assist states in mobilizing resources for expanding micro-irrigation (drip and sprinkler) under which department?
Verified Explanation
The Micro Irrigation Fund (MIF) was established in NABARD under the guidelines of the Department of Agriculture and Farmers Welfare to provide concessional finance to states for micro-irrigation expansion under PMKSY-Per Drop More Crop.

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