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National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 under an Act of Parliament i.e.Nabard Act, 1981. It has paid up capital of Rs 2000 crore held by Government of India and Reserve Bank of India.

NABARD is mandated to provide credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities including rural godowns and rural housing with a view to promoting integrated rural development and securing prosperity to rural areas.

It is mainly engaged in providing refinance to Commercial, Co-operative and Regional Rural Banks for their lending to agriculture, small scale and allied activities. It offers loans to State Governments for contributing to share capital of co-operatives and also for rural infrastructure development.

NABARD also provides support to non-governmental organizations engaged in dispensation of micro credit. It also provides financial/technical assistance to development activities relating to agriculture and other rural development purposes.

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