Objective & Function of NABARD


National Bank for Agriculture and Rural Development (NABARD):

Established: 12th July 1982 (By Recommendations of B.Sivaraman Committee, Under Act 61, 1981 of Parliament)

Headquarter: Mumbai

Chairman: Click here

Paid Up Capital (Opening time): 500 Cr. (Government of India= 50%, RBI = 50%)

Paid Up Capital (At Present):       200 Cr. (Government of India= 99%, RBI= 01%)

The objective of NABARD:

  1. NABARD provides refinance assistance for agriculture, promoting rural development activities. It also provides all necessary finance and assistance to small scale industries.
  2. NABARD in coordination with the State Governments provides agriculture.
  3. It improves small and minor irrigation by way of promoting agricultural activities.
  4. It undertakes R&D in agriculture, rural industries.
  5. NABARD promotes various organizations involved in agricultural production by contributing to their capital.
  6. Thus, the objects of NABARD can be brought under three major heads:

Credit function.

Development function.

Promotional function.

The function of NABARD:
  1. An apex body of Agriculture
  2. Specialized Bank/ Development Bank
  3. There is no function of Cheque and CASA deposit
  4. Refinance System
  5. NABARD has the power to inspect the books of according RRB’s & also provide finance facility to RRB
Availability of quality seeds of improved cultivars is considered crucial for realizing productivity and adoption of cultivars in different agro-climatic conditions. The good quality seed should have the following characters:
  1.  Genetic purity, and uniformity and should conform to the standards of the particular cultivar.
  2.  Disease-free, viable seeds.
  3.  Free from admixtures of other crop seeds, weeds, and inert matter.
  4.  Acceptable uniformity with respect to size, shape, and color.
Seed Production
Systemized crop production is known as seed production. In seed production adequate care is given from the purchase of seeds up to harvest adopting proper seed and crop management techniques.
The benefits of seed production are
  1.  Higher income
  2.  The higher quality seed for next sowing
There are two types (major) of seed production i.e. Varietal and hybrid based on the type of seed used for multiplication
1. Varietal Seed Production: Single Parent multiplication, Isolation distance requirement is comparatively  less, Production is by open pollination, Seed can be used continuously for 3/4/5 generations, Production technique is uniform (multiplication), Production care is comparatively  less, Yield will be lower and hence Profit is lower
2. Hybrid Seed Production: Needs two too many parents for multiplication, Isolation distance requirement is comparatively less, Production is by managed control pollination(Female), Seed has to be changed every time, Production technique differs with the crop, Production care is comparatively more, Yield will be higher and hence Profit is more.
The seed is the critical determinant of agricultural production on which depends on the performance and efficacy of other inputs. Quality seeds appropriate to different agro-climatic conditions and in sufficient quantity at affordable prices are required to raise productivity.
According to the National seeds Policy 2002, the thrust areas have to be-
  1.  Varietal Development.
  2.  Seed Production.
  3.  Seed Replacement Rate Enhancement.
  4.  Primary responsibility for the production of breeder seed to be that of the ICAR/State Agriculture Universities.
  5.  An effective seed production programme.
  6.  The popularization of new varieties.
  7.  Availability of newly developed varieties to farmers with a minimum time gap.
  8.  Provision of incentives to domestic seed industry to enable it to produce seeds of high yielding varieties and hybrid seeds at a faster pace to meet the challenges of domestic requirements.


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