Agriculture & Rural India Module
Rural Development, Credit & Institutions
Institutional rural credit and cooperative banking networks form the economic backbone of agricultural productivity and rural livelihood generation in India. Established in July 1982 on the recommendations of the B. Sivaraman Committee under Act 61 of 1981, the National Bank for Agriculture and Rural Development (NABARD) serves as the apex refinancing institution for rural financial bodies. Key credit instruments include the Kisan Credit Card (KCC) scheme, Priority Sector Lending (PSL) quotas mandated by the Reserve Bank of India, and the Self Help Group (SHG)-Bank Linkage Programme. These mechanisms expand formal credit access to small and marginal farmers while supporting rural enterprise.
Key Concepts & Examination Highlights
- NABARD was established on July 12, 1982, under the National Bank for Agriculture and Rural Development Act, 1981, based on the recommendations of the B. Sivaraman Committee.
- The Kisan Credit Card (KCC) scheme was introduced in August 1998 by NABARD on the recommendations of the R.V. Gupta Committee to provide timely and short-term credit to farmers.
- Regional Rural Banks (RRBs) were established under the RRB Act of 1976 following the Narasimham Committee recommendations, with Prathama Bank in Moradabad being the first RRB (1975).
- The SHG-Bank Linkage Programme, launched by NABARD in 1992, has evolved into the world's largest microfinance project, heavily empowering rural women.
Curriculum & Reference Sources: National Bank for Agriculture and Rural Development (NABARD), Reserve Bank of India (RBI), and Ministry of Rural Development.