Question

NABARD was established on the recommendations of :

• A. B. Shivaraman Committee
• B. Gupta and Kapoor Committee
• C. Rai and Bansal Committee
• D. Ramasubramanian Committee

Hint:

NABARD was set up on 12 July 1982 with an initial capital of Rs. 100 crore, replacing the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the RBI.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The National Bank for Agriculture and Rural Development (NABARD) is the apex development financial institution in India, tasked with policy, planning, and operational operations in the field of credit for agriculture and other economic activities in rural areas.

Step 2: Detailed Explanation:
In 1979, the Reserve Bank of India (RBI) constituted the "Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development" (CRAFICARD) under the chairmanship of Shri B. Shivaraman (former member of the Planning Commission).
The committee submitted its report outlining the need for an integrated, focused apex institution to address rural credit issues.
On these recommendations, the Parliament passed the National Bank for Agriculture and Rural Development Act, 1981.
Consequently, NABARD was established on July 12, 1982, transferring the agricultural credit functions of the RBI and the refinancing functions of the Agricultural Refinance and Development Corporation (ARDC).

Step 3: Final Answer:
NABARD was established on the recommendations of the B. Shivaraman Committee (CRAFICARD).