NABARD Full Form, Headquarters, Chairman, Functions and Objectives

NABARD full form is National Bank for Agriculture and Rural Development. Know about its headquarters in Mumbai, chairman Shaji K V, key functions, objectives, and major initiatives promoting rural credit, infrastructure, and inclusive growth.

Priyanka

June 28, 2025

NABARD Full Form, Headquarters, Chairman, Functions and Objectives

NABARD (National Bank for Agriculture and Rural Development) is India’s apex development financial institution dedicated to promoting sustainable and equitable agriculture and rural development. It was established on July 12, 1982, through an Act of Parliament, marking a key step in the nation’s journey toward rural prosperity. Headquartered in Mumbai, NABARD has significantly transformed the rural landscape of India through innovative financing mechanisms, infrastructural support, policy formulation, and institutional development.

What is NABARD?

NABARD is the principal institution in India responsible for overseeing the development of agriculture and rural infrastructure. Its broad mandate includes credit planning, financing, supervision, and development activities to foster rural prosperity. The NABARD full form is National Bank for Agriculture and Rural Development, which reflects its primary focus and mission.

Also Read: Rural Development in India

NABARD Overview
Particulars Details
NABARD Full Form National Bank for Agriculture and Rural Development
What is NABARD Apex Development financial institution for agriculture and rural development in India
NABARD Established 12 July 1982, under an Act of Parliament
NABARD Headquarters Mumbai, Maharashtra
NABARD Chairman Mr. Shaji K. V
Ownership 100% Government of India
Vision Development Bank of the Nation for Fostering Rural Prosperity
Mission Promote sustainable and equitable agriculture and rural development through financial and non-financial interventions
Key Functions Credit provision, refinancing, supervision, infrastructure funding, policy support
NABARD Functions and Objectives Support agriculture, rural infrastructure, financial inclusion, and institutional development
Subsidiaries NABKISAN, NABFINS, NABCONS, NABFOUNDATION, NABVENTURES, NABSAMRUDDHI, NABSanrakshan
Major Initiatives SHG-Bank Linkage, Kisan Credit Card, Watershed Development, RIDF, UPNRM
Regional Offices 31 Regional Offices + 1 Cell in Srinagar
Training Establishments 4 (Northern, Eastern & Southern India)
District Development Managers 415 functioning at the district level
Partner Institutions Commercial Banks, RRBs, Cooperative Banks, NBFCs, NGOs, FPOs, State Governments
Primary Areas of Operation Agriculture finance, rural development, infrastructure, microfinance, capacity building
Website www.nabard.org

Enroll now for UPSC Online Course

NABARD Full Form

The NABARD full form is National Bank for Agriculture and Rural Development. It is a premier development financial institution in India, dedicated to strengthening rural economies by facilitating credit, infrastructure, and institutional support for agriculture and allied sectors. The name itself reflects the core mandate of the institution—supporting agricultural prosperity and comprehensive rural development through financial and policy-based interventions.

Genesis and Establishment of NABARD

The roots of NABARD lie in the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), constituted under the chairmanship of Shri B. Sivaraman in 1979. Based on its recommendations, NABARD was established by the Parliament through Act 61 of 1981. On 5 November 1982, it was formally dedicated to the service of the nation by the then Prime Minister, Smt. Indira Gandhi.

To streamline rural credit delivery, NABARD inherited the agricultural credit functions of the Reserve Bank of India (RBI) and the refinance functions of the Agricultural Refinance and Development Corporation (ARDC).

Also Read: India’s Banking Sector And Monetary Policy

NABARD Chairman

The NABARD Chairman holds the key responsibility of steering India’s apex rural development financial institution toward achieving its vision of fostering rural prosperity. The Chairman leads the formulation and execution of policies, oversees operational strategies, and ensures alignment with the Government of India’s objectives related to agriculture and rural development.

As of 2025, Mr. Shaji K V is the Chairman of NABARD. With a distinguished career in rural and agricultural banking, he brings decades of experience in financial services, having served in various leadership roles at Canara Bank and the Reserve Bank of India. 

NABARD

Source: PIB

Mr. Shaji’s visionary leadership continues to uphold NABARD’s mission of enabling equitable and sustainable rural transformation through participatory financial and developmental interventions.

NABARD Headquarters

The NABARD Headquarters serves as the central command of the National Bank for Agriculture and Rural Development, from where all policy, finance, development, and supervisory operations are coordinated. 

Strategically located in the financial hub of Mumbai, Maharashtra, the headquarters houses the top leadership, key functional departments, policy-making bodies, and national-level operational teams.

NABARD

Source: Wikipedia

The headquarters functions as:

  • The apex authority for planning and monitoring nationwide rural credit and development programs
  • The central office for coordination with the Ministry of Finance, the Reserve Bank of India, and international development agencies
  • The base for supervising and guiding 31 regional offices, 415 District Development Managers, and associated training establishments

NABARD’s Mumbai office is not just an administrative unit but a center of innovation and decision-making that drives the vision of rural upliftment and economic sustainability across India.

Check Out UPSC CSE Books From PW Store

NABARD Functions and Objectives

The functions of NABARD are comprehensive and touch every aspect of rural life. Broadly categorised, the NABARD functions and objectives include:

Primary Objectives

  • Agricultural and Rural Promotion: Encouraging increased production and rural upliftment through institutional credit and infrastructure.
  • Institutional Strengthening: Enhancing the capacity and efficiency of rural financial institutions.
  • Infrastructure Support: Financing roads, markets, irrigation systems, and warehousing.
  • Financial Inclusion: Ensuring banking services reach the remotest villages.
  • Sustainable Practices: Supporting watershed management, organic farming, and climate-resilient agriculture.
  • Innovation and Startups: Funding rural enterprises and agri-startups to boost employment.

Key Functions

  • Credit Functions: Providing short and long-term refinances to banks and financial institutions engaged in rural lending.
  • Development Functions: Guiding, training, and capacity-building for Cooperative Banks, RRBs, SHGs, and NGOs.
  • Supervisory Functions: Monitoring and inspecting the functioning of Cooperative Banks and RRBs to ensure financial discipline.
  • Policy Formulation: Assisting the RBI, Government of India, and State Governments in designing rural credit and development policies.

Major Initiatives by NABARD

NABARD has been at the forefront of landmark projects and innovations. Some landmark initiatives by NABARD include:

  • SHG-Bank Linkage Programme (1992): The World’s largest microfinance initiative, empowering millions of rural women.
  • Kisan Credit Card (KCC): A credit tool aiding farmers with easy access to finance.
  • Watershed Development Projects: Significant in climate-proofing and sustainable agriculture.
  • Rural Infrastructure Development Fund (RIDF): Supporting road, irrigation, and market projects.
  • Umbrella Programme for Natural Resource Management (UPNRM): Direct lending to individuals and organisations for sustainable development.

Subsidiaries of NABARD

To extend its developmental mandate, NABARD operates through seven specialised subsidiaries:

  1. NABKISAN: Financing agriculture and rural enterprises.
  2. NABSAMRUDDHI: Advisory services for sustainable development.
  3. NABFINS: Financial services for the rural poor.
  4. NABFOUNDATION: CSR arm for inclusive rural development.
  5. NABCONS: Consultancy in agriculture and rural development.
  6. NABVENTURES: Venture capital for agri-startups.
  7. NABSanrakshan: Promoting rural livelihoods and climate adaptation.

Each subsidiary caters to a specific domain, ensuring holistic rural development.

Partner Institutions

NABARD collaborates with a range of institutions, including:

  • Scheduled Commercial Banks
  • Regional Rural Banks (RRBs)
  • Cooperative Banks
  • Non-Banking Financial Companies (NBFCs)
  • Self-Help Groups (SHGs)
  • Farmers’ Producer Organisations (FPOs)
  • State Governments and Development Agencies

Enroll now for UPSC Online Classes

Importance of NABARD

The significance of NABARD in India’s rural development cannot be overstated. Through its multifaceted approach, NABARD:

  • Boosts rural credit flow
  • Strengthens rural institutions
  • Enhances rural livelihood through infrastructure and employment generation
  • Promotes entrepreneurship and innovation
  • Supports the rural economy’s shift from subsistence to sustainability

Its strategic interventions have helped millions of rural Indians gain access to credit, training, infrastructure, and support services. NABARD’s influence is felt in nearly every village and block of the country, making it a cornerstone of India’s rural development framework.

Conclusion

In essence, NABARD is the backbone of India’s rural financial architecture. From refinancing rural credit to supervising rural banks, from funding sustainable agriculture to empowering women and artisans, NABARD functions seamlessly to transform the socio-economic landscape of rural India. Its unwavering commitment to innovation, institutional growth, and inclusive development ensures it remains a Development Bank of the Nation for Fostering Rural Prosperity.

As India continues its journey toward becoming a global economic power, NABARD’s role in ensuring balanced regional development and financial inclusivity will be more critical than ever. By understanding What is NABARD, acknowledging its functions and objectives, and recognising its impact, we appreciate the silent yet significant revolution it leads in the rural heartlands of India.

Ready to boost your UPSC 2025 preparation? Join PW’s UPSC online courses today!

 

NABARD FAQs

NABARD is the National Bank for Agriculture and Rural Development, which promotes sustainable rural and agricultural development in India.

The NABARD full form is National Bank for Agriculture and Rural Development, established to support rural credit and development.

NABARD was established on July 12, 1982, under an Act of Parliament to enhance institutional rural credit and development.

The NABARD headquarters is situated at Bandra-Kurla Complex, Mumbai, Maharashtra.

As of 2025, Mr. Shaji K V is the NABARD chairman, steering policies for agricultural and rural development.

Key NABARD functions and objectives include rural credit, infrastructure funding, financial inclusion, and capacity building of rural institutions.

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 123456
78910111213
14151617181920
21222324252627
28293031  

by month

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Aiming for UPSC?

Download Our App

      
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.