ROLE OF NABARD IN DEVELOPMENT OF

CO-OPERATIVE BANKS

1.

NABARD is set up as an apex Development Bank with a mandate for facilitating

credit flow for promotion and development of agriculture, small-scale industries,
cottage and village industries, handicrafts and other rural crafts.

Co -operation is a form of organisation in which persons voluntarily

associate together on the basis of equality for the promotion of their
economic interests.

Objectives
To prepare policy relating to:
a.
b.
c.

Agriculture
Allied activities
Rural artisans & industries

CONT
1.

To sanction refinance to:

RRBs
Co-operative banks(for S.T., M.T., & L.T. LOANS)

To conduct inspection of Co-operative banks.

Acts as regulator for cooperative banks and RRBs

Development of Cooperatives

Strengthening of rural financial institutions, which

deliver credit to the sector, has been identified by
NABARD to strengthen the cooperative credit
structure.

Help cooperative banks and Regional Rural Banks to

prepare development actions plans for themselves.

Enter into MoU with state governments and

cooperative banks specifying their respective
obligations to improve the affairs of the banks in a
stipulated timeframe

CONT

Monitor implementation of development action

plans of banks and fulfillment of obligations under
MoUs.

Provide financial assistance to cooperatives for

establishment of technical, monitoring and
evaluations cells.

Provide financial support for the training institutes

of cooperative banks

CONT

Provide training for senior and middle level

executives of commercial banks, Regional Rural
Banks and cooperative banks.

Provide financial assistance to cooperative

banks for building improved management
information system, computerization of
operations and development of human
resources