National Bank for Agriculture and Rural development (NABARD), Rural Infrastructure Development Fund (RIDF)

 

National Bank for Agriculture and Rural development (NABARD):

• NABARD is the apex financing agency refinancing the institutions which looks after the development of the cottage industry, small industry and village industry, and other rural industries. 
• At present, NABARD is completely owned by GOI. 

Functions of NABARD are :

• It serves as an apex financing agency refinancing the institutions providing investment and production credit for promoting the various developmental activities in rural areas.
• NABARD partakes in development of institutions which help the rural economy.
• It regulates the institutions which provide financial help to the rural economy.
• It provides training facilities to the institutions working in the field of rural upliftment.
• It takes measures towards institution building of financing agencies in rural area.
• It monitors and evaluates projects refinanced by it.
• NABARD's refinance is available to state co-operative agriculture and rural development banks (SCARDBs), state co-operative banks (SCBs), regional rural banks (RRBs), commercial banks (CBs) and RBI approved financial institutions.

Rural Infrastructure Development Fund (RIDF):

• The main objective of the Fund is to provide loans to State Governments and State-owned corporations to enable them to complete ongoing rural infrastructure projects.
• The RIDF was set up by the Government in 1995-96 for financing ongoing rural Infrastructure projects. 
• The Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD). 
• Domestic commercial banks contribute to the Fund to the extent of their shortfall in stipulated priority sector lending to agriculture. 

 At present, there are 39 eligible activities under RIDF as approved by GoI classified under three broad categories i.e.

·         Agriculture and related sector

·         Social sector 

·         Rural connectivity.

The eligible institutions under RIDF are: 

1- State Governments / Union Territories,

2- State Owned Corporations 

3-State Govt. Sponsored / Supported Organizations 

4- Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs.