Which bank is limited to the needs of agriculture and rural finance ?

The National Bank for Agriculture and Rural Development (NABARD) is the apex development financial institution in India specifically mandated to address the needs of agriculture and rural finance [1]. Established in 1982 under the NABARD Act 1981, it took over the agricultural credit functions of the Reserve Bank of India (RBI) and the Agricultural Refinance and Development Corporation [5]. NABARD provides credit for the promotion of agriculture, small-scale industries, cottage and village industries, and other allied economic activities in rural areas [1]. While it does not extend direct credit to individuals, it acts as a coordinator and supervisor for rural credit institutions like Regional Rural Banks (RRBs) and Rural Cooperative Banks, providing them with indirect financial assistance through refinance [4]. In contrast, SBI is a commercial bank, IFC is an international body, and RBI is the central regulatory authority [3].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 12. NABARD: > p. 83
2. [2] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 9: Agriculture > Rajasthan, Punjab, Madhya Pradesh, Gujarat, Bihar, Andhra Pradesh, and Haryana. > p. 41
3. [5] https://en.wikipedia.org/wiki/National_Bank_for_Agriculture_and_Rural_Development
4. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > ROLE OF NABARD > p. 321
5. [4] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 4. Co-operative Banks: > p. 82