Rural Infrastructure Development Fund (RIDF)

• Set up by Govt of India in 1995-96 for financing ongoing rural infrastructure projects.
• Fund maintained by NABARD.
• Domestic commercial banks contribute to the Fund to the extent of their shortfall in stipulated priority sector lending to agriculture.
• The main objective of the Fund is to provide loans to state Government's and state owned corporations to enable them to complete ongoing rural infrastructure projects.

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National Bank for Agriculture and Rural Development (NABARD)

• Recommended by committee under the chairmanship of Shri B.Sivaraman, former member of planning commission.
• The Parliament through its ACT of 1981, approved the setting up of NABARD.
• Established in the year 1982.
• NABARD was established primarily for providing institutional credit for agriculture and rural development.
• NABARD is a Refinance Institution.
• Chairman(as on April 2014): Dr. Harsh Kumar Bhanwala.

  

Roles and Functions of NABARD. 

1. Credit Functions

Providing credit and refinancing facility to RRB's and Co-Operative Bank's.

2. Development and Promotional Functions

3. Supervisory Functions

Undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Bank's under the provisions of Banking Regulation Act, 1949.

4. Role in Training

The Bank provides training facilities for the Rural Financial Institutions (RIF) and agencies involved in rural development through BIRD, Bankers Institute of Rural Development.

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