On World Earth Day (April 22nd), the National Bank for Agriculture and Rural Development (NABARD) released its ‘Climate Strategy 2030’ whitepaper, which seeks to meet India’s demand for increased green finance.
Key pillars of the Climate Strategy 2030:
- The plan includes four essential pillars: accelerating green lending across industries, playing a market-making role, internal green transformation, and strategic resource mobilisation.
About NABARD:
- It was founded on July 12, 1982, after the Sivaraman Committee’s suggestion to promote sustainable rural development and agricultural growth in India.
- Aim: To make loans available for the growth and development of agriculture, small-scale enterprises, cottage and village industries, handicrafts, and other rural crafts.
- It is a statutory entity established under the Reserve Bank of India (RBI) Act, 1934, having its headquarters in Mumbai.
- It is governed by a Board of Directors appointed by the GoI:
- Representatives from the RBI;
- Central and state governments;
- Experts from various fields related to Rural Development and Finance.
Functions of NABARD:
- NABARD offers refinancing facilities to banks and financial institutions for agricultural and rural development operations, including as crop loans and rural infrastructure projects.
- Financial Inclusion: It promotes financial inclusion by increasing banking services in rural regions, assisting SHGs, FPOs, and MFIs, and making credit more accessible to rural populations.
- Priority Sector Lending: NABARD plays an important role in routing loans to priority sectors like as agriculture, small-scale enterprises, and rural infrastructure, in accordance with the Reserve Bank of India’s priority sector lending policies.
- Direct Lending: It makes direct loans to institutions for specialised rural development projects including agricultural production, infrastructural development, and agri-processing units.
- Scheme Implementation: The organisation manages government schemes and funding such as the Rural Infrastructure Development Fund (RIDF) and the Watershed Development Fund (WDF), which support rural infrastructure projects and watershed development operations.
- Credit Planning: NABARD works with national and state governments, the RBI, and other stakeholders to develop credit policies and plans for agriculture and rural sectors.
- NABARD fosters agricultural research and development, provides capacity building and training programmes for rural stakeholders, and encourages technology transfer activities.
Source: https://www.manoramayearbook.in/current-affairs/india/2024/04/24/nabard-launches-climate-strategy-2030.html#:~:text=NABARD's%20Climate%20Strategy%202030%20is,Internal%20green%20transformation%20of%20NABARD.