The government today approved enhancing the authorised capital of the National Bank for Agriculture and Rural Development (NABARD) to Rs 20,000 crore from Rs 5,000 crore, and expanding its scope of operations.
The proposal for enhancing the capital base has been approved by the government, Information and Broadcasting Minister Manish Tewari said.
The increase in authorised capital will help the the financial institution to expand operations and broaden its activities. The government has also approved merging the posts of the chairman and the managing director of NABARD.
Following the changes, which be carried out through an amendment to the NABARD Act, 1981, the institution will be able to introduce the 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, will be able to undertake short-term lending operations.
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