ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Curtailing Capability of NABARD

Credit delivery to the farm and informal sectors has deteriorated because the institutional structures have been allowed to weaken. The latest example is the curtailment of the refinancing capabilities of the National Bank for Agriculture and Rural Development. The time has come to reorient such an approach and ensure that NABARD operates as a non-commercial apex institution engaged in refinancing and promoting bank lending activities for the informal sector. For this, a number of steps have to be taken: restarting RBI contributions to the National Rural Credit (Long-term Operations) Fund, continuing the general line of credit limits, allowing market borrowings through priority sector bonds and providing tax exemption on NABARD profits.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top