New Delhi: The government on Thursday approved enhancing the authorised capital of the National Bank for Agriculture and Rural Development to Rs 20,000 crore, from Rs 5,000 crore and expanding its scope of operations.
The proposal for enhancing the capital base of NABARD to Rs 20,000 crore has been approved by the Cabinet, Information and Broadcasting Minister Manish Tewari said.
The increase in authorised capital in aimed at helping the financial institution expand operations and broaden its activities.
The government also approved the merging the posts of the Chairman and the Managing Director in NABARD.
Following the changes, which would be carried out through amendment to the NABRAD Act, 1981, the institution will be able to introduce new credit products, forge new linkages and develop new clients.
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.
First Published: Thursday, February 07, 2013, 13:35