Institutional Development
The rural financial system in the country calls for a strong and efficient credit delivery system, capable of taking care of the expanding and diverse credit needs of agriculture and rural development. More than 50% of the rural credit is disbursed by the Co-operative Banks and Regional Rural Banks. NABARD is responsible for regulating and supervising the functions of Co-operative banks and RRBs. In this direction NABARD has been taking various initiatives in association with Government of India and RBI to improve the health of Co-operative banks and Regional Rural Banks.
Who is it for ?
As part of its Institutional Development (ID) initiatives, NABARD supports the following institutions:
Rural Credit Cooperatives
State Cooperative Banks (StCBs)
Central Cooperative Banks (CCBs)
Primary Agricultural Credit Societies (PACS)
State Cooperative Agriculture and Rural Development Banks (SCARDBs)
Primary  Cooperative Agriculture and Rural Development Banks (PCARDBs)

Sum up of Institutional Development Initiatives of NABARD
  • Assistance in Implementation of Revival Package for improving the health of Short Term Rural Cooperative Credit system (STCCS)
  • Sanction of credit limits under Short Term Seasonal Agricultural and other Operations to StCBs
  • Direct refinance assistance to CCBs for short term multipurpose credit
  • Support for Seasonal Agricultural Operations to Commercial Banks for financing PACS
  • Refinance for lending to farmers against Negotiable Warehouse Receipts
  • Support from Producers Organization Development Fund (PODF) to develop PACS as Multi Service Centers
  • Refinance and Credit Facility to Marketing Federations
  • Special Package with concessional rate of interest for North Eastern and other regions
  • Interest subvention for short term crop loans on the own funds involved by Cooperative Banks
  • Creation of Cooperative Development Fund (CDF), primarily for Capacity Building & Infrastructure            Development of PACS
  • Setting up of Short Term Cooperative Rural Credit (Refinance) Fund (STCRC) to augment NABARD            resources for Short Term Credit facilities to Cooperatives
  • Providing level playing field to Co-operatives through Core Banking Solution (CBS)
  • Assistance for Setting up of PACS Development Cell (PDC) in Cooperative Banks
  • Establishment of Centre for Professional Excellence in Co-operatives (C-PEC) by NABARD for supporting Co-operative Training Institutes (CTIs) to impart quality training

Additional Information