Question

Justify the following statement.

The NABARD has been recognized as the apex institution for agricultural finance.

Answer 1

1. India is an agricultural country.
2. Agriculture and its allied activities act as the main source of livelihood for most of the rural population of India.
3. The government of India is aware of the need of boosting institutional credit in rural economies.
4. The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take a review of agricultural credit in India.
5. The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July 12, 1982, under the special Act of the Parliament, with the objective of providing credit and other facilities for the development of agriculture.
6. Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.