Financing and marketing management (1+1)

Unit 5 - Role of NABARD in fisheries development

5.2. Functions

• NABARD is an apex institution accredited with all matters concerning policy, planning and operations in the field of credit for agricultural and other economic activities in rural areas.
• It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas.
• It takes measures towards institution building for improving absorptive capacity to the credit delivery system, including monitoring, formulation of rehabilitation schemes, restricting of credit institutions, training of personnel etc.
• It coordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintain liaison (link, connection, association) with government of India, state governments, RBI and other national level institutions concerned with policy formulation.
• It provides an annual basis rural credit plans for all rural financial institutions.
• It undertakes monitoring and evaluation of projects refinanced by it
• It promotes research in the field of rural banking and rural development

NABARD provides refinance to

• State Land Development Banks (SLDB)
• State Cooperative Banks (SCB)
• Regional Rural Banks (RRB)
• Commercial Banks (CB) and other RBI approved financial institutions in the country.

Depending on the type of proposed project and area of operation, NABARD refinance ranges between 75% and 95% of the total bank loan. In fisheries sector it caters to the long term and medium term credit requirements.