Rural Non Farm Sector (RNFS) holds the key to faster economic development of the country. It has potential and promise for generating employment and increased income in the rural areas, while arresting the migration of rural population to urban areas in search of livelihood opportunities. Hence, NABARD has identified financing, development and promotion of RNFS as one of its thrust areas.

NABARD has evolved several refinance and promotional schemes over the years and has been making constant efforts to liberalise, broad base and refine / rationalize the schemes in response to the field level needs. The focus has been on greater credit flow and provision of linkages for small, cottage and village industries, handicrafts and other rural crafts and service sector in the decentralized sector in the rural areas.

NABARD also promotes rural innovations in Farm, Non-Farm and Micro-credit sectors through its Rural Innovation Fund (RIF).