The National Agricultural Co-operative Marketing
Federation of India 

The National Agricultural Co-operative Marketing Federation of India (NAFED) is an apex organisation of marketing cooperatives in the country.

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Institutions

The National Bank for Agriculture and Rural Development (NABARD) is an Apex Development Bank of the country for supporting and promoting agriculture and rural development was set up on 12 July 1982, by an Act of Parliament. Initially it was set up by merging the Agricultural Credit Department and Rural Planning and Credit Cell of Reserve Bank of India (RBI) and subsequently the entire undertaking of Agricultural Refinance and Development Corporation (ARDC), With a paid up capital of Rs. 500 crores, equally contributed by Government of India and Reserve Bank of India. It operates through its head office at Mumbai, 17 regional offices, one each in major states, 10 sub offices in smaller states/union territories and 213 district offices.

A Board of Directors comprising 15 members manages NABARD. The Board consists of chairman, managing director, two experts in rural economics, three experts from co-operative and commercial banks, three sitting directors from the Board of RBI, three from Government of India and two from the State Governments.

• Credit dispensation
• Development and
• Regulatory

The rate of interest on refinance and the ultimate lending rate by banks are fixed from time to time.

NABARD has been issuing guidelines for formulation of hi-tech and export oriented projects in farm and non-farm sectors. Besides, it undertakes consultancy work for projects even in cases where refinance is non availed from NABARD.

• Maintains a Research and Development fund for:
• Supporting operation research projects.
• Organizing national and international seminars, conferences, seminars, conferences, symposia, workshops etc. by reputed/recognized institutions, academic establishments/developmental organization for encouraging debate and to provide forum for exchange of information on subjects related to rural development and banking.
• Conducting entrepreneurship development programmes.
• Providing grants to select agricultural universities/research institutions for setting up NABARD chair units.
• Providing grants to select krishi vigyan kendra (KVKs).

As the apex development bank, NABARD shares with the Central Bank of the country (RBI) some of the regulatory and supervisory functions in respect of cooperative banks and RRBs.

Under Banking Regulation Act, 1949, NABARD undertakes inspection of RRBs and co-operative banks (other than primary co-operative banks) and assesses if the banks meet the statutory requirements of the real value of their capital and reserves and continue to be managed in ways not detrimental to the interest of depositors.

Any RRB or co-operative bank seeking permission of RBI for opening branches, etc., need recommendation of NABARD for the purpose.

The State and District Central Co-operative banks also need authorization from NABARD for extending assistance to units outside the cooperative sector and non-credit cooperative for certain purposes beyond a cut-off limit.

While all funds are routed through SLDBs/SCBs/CBs/RRBs, the ultimate beneficiaries of investment finance may be individuals, partnership concerns, companies, state-owned corporations or co-operative societies. The ultimate beneficiaries of production credit are generally individuals who are members of primary credit institutions.

Government
(Organization)