With reference to National Bank for Agricultural and Rural Development NABARD consider the following...........

Indian Economy (Easy) Money and banking

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With reference to National Bank for Agricultural and Rural Development (NABARD), consider the following statements:

1. It was created through an executive order.

2. It provides funds to State governments for undertaking developmental and promotional activities in rural areas.

3. It is under the supervision of RBI.

Which of the statements given above are correct?

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

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Explanation:

Only statements 2&3 are correct.

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982. Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.10,580 crore as on 31 March 2018. Consequent to the revision in the composition of share capital between Government of India and RBI, NABARD today is fully owned by Government of India. NABARD is entrusted with the responsibility for conduct of statutory inspections of State Cooperative Banks, District Central Cooperative Banks and Regional Rural Banks under the Banking Regulation Act, 1949/(AACS). The regulatory powers continue to be vested with the Reserve Bank of India.

Hence option 2nd is correct.