New Delhi: With an aim to expand the role of Nabard in rural economy, the government Monday introduced a Bill in the Lok Sabha to raise its authorised capital four times to Rs 20,000 crore.
The National Bank for Agriculture and Rural Development (Amendment) Bill 2013, also makes provisions for change of ownership of remaining one percent equity of the RBI in Nabard to the Government of India.
Besides, expanding scope of its lending operation, the Bill seeks "to empower the Central government to increase the capital of the National Bank for Agriculture and Rural Development (Nabard) from Rs 5,000 crore to Rs 20,000 crore," the statement of objects and reasons said.
The Bill also proposes merging the posts of the Chairman and the Managing Director in Nabard.
It also provides "for establishing and maintaining a fund to be known as the National Rural Credit fund by the bank for providing financial assistance by way of loans and advances."
Once the changes are made in the Act, Nabard, which is the apex rural and farm development finance body and whose role is to promote credit growth in these areas, would be able to undertake short term lending operations.
The Bill proposes to enlarge the meaning of cooperative society to include multi-state cooperative societies registered under any Central law or any other Central or State law relating to cooperative societies.
This is likely to benefit a larger segment of the financially excluded farmers in the country.
First Published: Monday, May 6, 2013, 23:19