Apex Institute Providing Re-finance Facilities to Institutions Engaged in Providing Rural Credit

The correct answer is option 'B' - NABARD (National Bank for Agriculture and Rural Development). NABARD is the apex institution at the national level that provides re-finance facilities to institutions engaged in providing rural credit.

NABARD: National Bank for Agriculture and Rural Development

NABARD is an apex development financial institution in India that focuses primarily on the agricultural and rural sectors. It was established in 1982 by an act of Parliament with the objective of promoting sustainable and equitable agriculture and rural development.

Functions of NABARD:

1. Refinancing: NABARD provides refinance facilities to various financial institutions engaged in providing credit for agricultural and rural development activities. It refinances the rural credit institutions such as regional rural banks (RRBs), cooperative banks, and commercial banks.

2. Credit Support: NABARD provides credit support to agriculture, rural development, and allied sectors. It provides short-term and long-term loans to financial institutions for financing agricultural activities, rural infrastructure development, and other rural initiatives.

3. Developmental Role: NABARD plays a crucial role in the development of rural areas by promoting and financing various rural development projects and initiatives. It provides financial assistance and technical support for rural infrastructure development, watershed management, rural electrification, and other rural development activities.

4. Research and Development: NABARD conducts research and development activities to identify and promote innovative and sustainable agricultural and rural development practices. It supports research projects, studies, and pilot programs aimed at improving agricultural productivity, rural livelihoods, and rural infrastructure.

5. Capacity Building: NABARD focuses on capacity building and training programs for various stakeholders involved in agricultural and rural development. It conducts training programs for bankers, farmers, and other rural entrepreneurs to enhance their skills and knowledge in rural finance and development.

Conclusion:

NABARD is the apex institution in India that provides re-finance facilities to institutions engaged in providing rural credit. It plays a crucial role in promoting sustainable and equitable agriculture and rural development by providing financial support, refinance facilities, and technical assistance to various stakeholders in the rural sector.

Apex Institute Providing Re-finance Facilities for Rural Credit
The apex institute at the national level that provides re-finance facilities to institutions engaged in providing rural credit is NABARD (National Bank for Agriculture and Rural Development). Here is a detailed explanation:
1. NABARD: National Bank for Agriculture and Rural Development
- NABARD is an apex development financial institution in India.
- It was established in 1982 under the Act of Parliament.
- The primary objective of NABARD is to promote rural development by providing financial support and refinance facilities to institutions involved in agricultural and rural credit.
- NABARD plays a crucial role in channelizing and coordinating the flow of credit to agriculture and rural sectors.
- It provides re-finance facilities to various banks, regional rural banks, cooperative banks, and other financial institutions engaged in providing credit to farmers, rural artisans, and other rural entrepreneurs.
- The re-finance provided by NABARD helps these institutions in meeting the credit requirements of the rural population.
2. Functions of NABARD:
- Promoting and developing agriculture and rural sectors through financial and technical assistance.
- Providing re-finance facilities for agriculture and rural credit.
- Providing loans and grants to state governments and other agencies for rural development projects.
- Promoting rural infrastructure development, including irrigation, rural roads, and warehousing facilities.
- Conducting research and providing training and consultancy services in the field of rural development.
- Monitoring and evaluating the impact of various rural development schemes and programs.
In conclusion, NABARD is the apex institute at the national level that provides re-finance facilities to institutions engaged in providing rural credit. It plays a crucial role in promoting rural development and ensuring the availability of credit to the rural population.