SSC · Police
The National Bank for Agriculture and Rural Development (NABARD) was formed in:
Answer (Detailed Solution Below)View answer ▾Hide ▴
Answer: Option D — 1982
Detailed Solution
The National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982.
About the establishment of NABARD:
It was set up by an Act of Parliament, the NABARD Act, 1981.
It was created on the recommendation of the "Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development" (CRAFICARD), set up by the Reserve Bank of India in 1979 under the chairmanship of B. Sivaraman.
It took over the agricultural credit functions of the RBI and the refinance functions of the Agricultural Refinance and Development Corporation (ARDC).
It was dedicated to the nation by Prime Minister Indira Gandhi on 5 November 1982.
About NABARD:
- It is India's apex development bank for agriculture and rural development.
- Its headquarters is in Mumbai.
- It is fully owned by the Government of India (the RBI's share was transferred to the government in stages, the last in 2018).
Its main functions are:
- Refinancing banks, such as regional rural banks, cooperative banks and commercial banks, for agricultural and rural loans.
- Funding rural infrastructure.
- Supervising regional rural banks (RRBs) and state and district cooperative banks.
- Promoting self-help groups (SHGs), farmer producer organisations (FPOs), watershed development and rural non-farm activities.
Important initiatives:
SHG-Bank Linkage Programme (1992): linked self-help groups of poor people, especially women, with banks. It became one of the largest microfinance programmes in the world.
Kisan Credit Card (KCC) scheme (1998): prepared by NABARD on the recommendation of the R. V. Gupta Committee, to provide farmers with timely credit.
It manages several funds for rural development and is the national implementing entity in India for the UN's Adaptation Fund and the Green Climate Fund.
Other development finance institutions:
- Small Industries Development Bank of India (SIDBI): 1990, Lucknow.
- Export-Import Bank of India (EXIM Bank): 1982, Mumbai.
- National Housing Bank (NHB): 1988, New Delhi.
- National Bank for Financing Infrastructure and Development (NaBFID): 2021, Mumbai.
Why not the other options?
- ✗1969 is the year 14 major banks were nationalised.
- ✗1975 is the year regional rural banks were set up.
- ✗1990 is the year SIDBI was set up.
Quick tip
Remember: NABARD = 12 July 1982 (NABARD Act 1981; B. Sivaraman committee/CRAFICARD; HQ Mumbai; SHG-Bank Linkage 1992; Kisan Credit Card 1998); RRBs = 1975; SIDBI = 1990; EXIM Bank = 1982.
💬 Discussions on this question
Ask a doubt ›Still stuck on this question? Ask our faculty and fellow students — answers appear here.
Ask a doubtMore Money, Banking & RBI Questions
View all ›- Q1.The Reserve Bank of India was established on:
- Q2.In which year was the Reserve Bank of India nationalised?
- Q3.Who was the first Governor of the Reserve Bank of India?
- Q4.The rate at which the RBI lends money to commercial banks for the short term, against government securities, is called the:
- Q5.Which is the most liquid measure of money supply in India?
More General Knowledge Questions
- Q1.The techniques of Rasa and Bhava used in Indian classical dance trace their origin to which ancient text?Indian Dance Forms
- Q2.Lavani, Powada, Koli, Waghya Murali and Dhangari Gaja are folk dances of which state?Indian Dance Forms
- Q3.The one-act play associated with the Sattriya tradition of Assam is called:Indian Dance Forms
- Q4.Which dance form of Goa is known as the 'Warrior Dance'?Indian Dance Forms
- Q5.Manipuri dance is based on the Rasleela themes of:Indian Dance Forms
Money, Banking & RBI — Preparation
This question tests your understanding of Money, Banking & RBI, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers money and its functions, the banking system in India, the Reserve Bank of India and monetary policy, policy tools such as the repo rate, reverse repo rate, CRR and SLR, bank nationalisation, types of banks, and payment systems such as NEFT, RTGS and UPI. Banking exams test this topic in depth. Questions often ask when the RBI was set up (1935, on the recommendation of the Hilton Young Commission), when it was nationalised (1949), what each policy rate means, and when major banks were nationalised (14 banks in 1969 and 6 in 1980). Current policy rates change often, so check the latest RBI announcements. Practise the money, banking and RBI questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.