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VOL. 8, ISSUE 2 (2026)
Role of National Bank for Agriculture and Rural Development (NABARD) in rural financing and development of rural economy
Authors
Anjay Sonkar, Dr. Urjaswita Singh
Abstract
This paper examines
the multifaceted role of the National Bank for Agriculture and Rural
Development (NABARD) in rural financing and the development of India's rural
economy. Established in 1982 as the apex development finance institution,
NABARD has been instrumental in channeling credit to agriculture and allied
sectors while fostering rural infrastructure development. The study analyzes
NABARD's refinancing operations, credit facilitation mechanisms, and
developmental initiatives including the Self-Help Group Bank Linkage Programme,
watershed development, and rural infrastructure financing. Using secondary data
from NABARD annual reports and Reserve Bank of India publications spanning
2018-2023, the research evaluates the institution's financial performance and
its correlation with rural development indicators. Findings reveal that
NABARD's credit disbursements have demonstrated consistent growth, with
refinance to cooperative banks and regional rural banks expanding significantly.
The institution's interventions in microfinance have connected over 119 lakh
Self-Help Groups to formal banking channels, substantially improving financial
inclusion in rural areas. The paper concludes that while NABARD has made
considerable progress in rural credit delivery and infrastructure development,
challenges persist in ensuring last-mile connectivity and addressing regional
disparities in credit flow.
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Pages:1-5
How to cite this article:
Anjay Sonkar, Dr. Urjaswita Singh "Role of National Bank for Agriculture and Rural Development (NABARD) in rural financing and development of rural economy". International Journal of Social Research and Development, Vol 8, Issue 2, 2026, Pages 1-5
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