When was the NABARD established?
- (a)15 August 1947
- (b)1 April 1951
- (c)12 July 1982
- (d)26 January 1950
Correct — C, 12 July 1982. NABARD (National Bank for Agriculture and Rural Development) was set up on 12 July 1982 under the NABARD Act, 1981, acting on the recommendation of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD). It took over the agricultural refinance role of the erstwhile Agricultural Refinance and Development Corporation (ARDC) and the agricultural credit functions of the Reserve Bank of India, becoming the apex development bank for agriculture and rural development.
- (a)15 August 1947 — Wrong — this is India's Independence Day, unrelated to NABARD's founding.
- (b)1 April 1951 — Wrong — not linked to NABARD; NABARD was established three decades later, in 1982.
- (d)26 January 1950 — Wrong — this is the date the Constitution came into force (Republic Day), unrelated to NABARD's founding.
NABARD is India's apex development bank for agriculture, rural development and allied sectors. It was established on 12 July 1982 under the NABARD Act, 1981, following the CRAFICARD committee's recommendation, absorbing the RBI's agricultural credit functions and the ARDC's refinancing role.
Exams often test the establishment years of India's major financial/development institutions in sequence — IFCI (1948), ICICI (1955), IDBI (1964), Regional Rural Banks (1975), NABARD (1982), SIDBI (1990) — as either direct-date or chronological-ordering questions.
- NABARD was established on 12 July 1982 under the NABARD Act, 1981
- Set up on the recommendation of the CRAFICARD Committee, chaired by B. Sivaraman
- Took over RBI's agricultural credit functions and the ARDC's refinancing role
- NABARD's headquarters is in Mumbai
- Confusing NABARD's founding year (1982) with SIDBI's (1990) or IDBI's (1964)
- Assuming NABARD dates to Independence (1947) or the Constitution's commencement (1950)
MPPSC/UPSC frequently ask exact establishment years/dates or ask you to sequence financial institutions chronologically — memorise the IFCI→ICICI→IDBI→RRB→NABARD→SIDBI chain.
Consider the following financial institutions of India: 1. Industrial Finance Corporation of India (IFCI) 2. Industrial Credit and Investment Corporation of India (ICICI) 3. Industrial Development Bank of India (IDBI) 4. National Bank for Agriculture and Rural Development (NABARD). The correct chronological sequence of the establishment of these institutions is
- (a) 1, 2, 3, 4
- (b) 2, 3, 4, 1
- (c) 3, 4, 1, 2
- (d) 4, 1, 2, 3
Answer(a) 1, 2, 3, 4 — IFCI (1948) → ICICI (1955) → IDBI (1964) → NABARD (1982).
UPSC 2002 tests NABARD's 1982 founding within a chronology of India's development financial institutions — the same fact this question asks directly.
- practice — not a real PYQ
NABARD was established on the recommendation of which committee?
- (a)Narasimham Committee
- (b)CRAFICARD Committee
- (c)Rangarajan Committee
- (d)Malhotra Committee
Answer(b) CRAFICARD Committee — chaired by B. Sivaraman.
- practice — not a real PYQ
Arrange the following in chronological order of establishment: 1. NABARD 2. SIDBI 3. IDBI 4. Regional Rural Banks
- (a)4, 3, 1, 2
- (b)3, 4, 1, 2
- (c)1, 3, 4, 2
- (d)4, 1, 3, 2
Answer(b) 3, 4, 1, 2 — IDBI (1964) → Regional Rural Banks (1975) → NABARD (1982) → SIDBI (1990).