Parliament consents to Bill to hike capital of Nabard

NEW DELHI: Parliament on Thursday gave its approval to a Bill that allows the central Government to increase from Rs 5,000 crore to Rs 30,000 crore the limit to which it can increase the capital of NABARD in consultation with the Reserve Bank of India.

The National Bank for Agriculture and Rural Development (Amendment) Bill, 2018, was on Tuesday passed by the Rajya Sabha by a voice vote with an amendment. Amendment was that ”2017”  be substituted by the ”2018” figure .

Minister of State for Corporate Affairs PP Chaudhary in Lok Sabha moved the Amendment made by the Rajya Sabha for approval.

The bill seeks to amend the 1981 National Bank for Agriculture and Rural Development Act which vested NABARD with responsibility to provide and regulate facilities, including credit for agricultural and industrial  development in the rural areas.

Under the 1981 Act, NABARD could have a capital of Rs 100 crore.This capital was increased to  Rs 5,000 crore by the Centre in consultation with the Reserve Bank of India (RBI).

The Bill allows the Centre to increase the capital to Rs 30,000 crore. If required, the capital may be  increased to more than Rs 30,000 crore by the Union Government in consultation with the RBI. (agencies)

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