NABARD NOW A PUBLIC FINANCIAL INSTITUTION
The Government in the Department of Company Affairs
(DCA) has issued a notification including the National Bank for
Agriculture and Rural Development (NABARD) as a public financial
institution within the meaning of the Government of India Notification
of May 8, 1978 under the Companies Act, 1956, with immediate effect.
This makes the NABARD the 39th Public financial institution in
the country. The notification has been issued under Sub-Section
(2) of Section 4A of the Companies Act, 1956. The inclusion of
NABARD as a public financial institution enables it to mobilize
resources from the capital market as also external commercial
borrowings within the meaning of the Companies Act. This also
makes its functioning commercially competitive and viable. The
NABARD as a public financial institution follows amendment in
the NABARD Act during 2001 to liberate from the bondage of the
Government by granting attendant autonomy to it to mobilize resources
from the market like any other financial institution and be commercially
viable in the emerging competitive market economy.
