NABARD Vis-À-Vis Strategic Development Program in India

Abstract

The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) was set up by RBI under the Chairmanship of Shri. B. Sivaraman. The Committee in its report submitted to RBI on November 28, 1979 recommended the establishment of NABARD. The Committee after reviewing the arrangements came to the conclusion that a new arrangement would be necessary at the national level for achieving the desired focus and thrust towards integration of credit activities in the context of the strategy for Integrated Rural Development. Against the backdrop of the huge credit needs of rural development and the need to uplift the weaker sections in the rural areas within a given time horizon the arrangement called for a separate institutional set-up. Similarly. The Reserve Bank had onerous responsibilities to discharge in respect of its many basic functions of central banking in monetary and credit regulations and was not therefore in a position to devote undivided attention to the operational details of the emerging complex credit problems. This cemented the way for the establishment of NABARD.