NABARD- Complete Reference

A Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, former member of Planning Commission, Government of India.  The Committee’s interim report, submitted on 28 November 1979. Its recommendation was formation of a unique development financial institution which would address these aspirations and formation of National Bank for Agriculture and Rural Development (NABARD) was approved by the Parliament through Act 61 of 1981.

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.

Set up with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs. 5,000 crore as on 31 March 2016.

Important Points to Remember about NABARD:

  • National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India.
  • NABARD was established on the recommendations of Shivaraman Committee.
  • NABARD was established by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
  • NABARD replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
  • Headquarters of NABARD is situated in Mumbai, Maharashtra,
  • The Present Chairman of NABARD is Harsh Kumar Bhanwala.
  • NABARD completed its 25 years on 12 July 2007 and Completed its 30 year in 12 July, 2012.
  • NABARD announced Rural Innovation award to celebrate it’s 30th foundation day.


Development Bank of the Nation for Fostering Rural Prosperity.


Promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions, innovations, technology and institutional development for securing prosperity.

  1. Genesis

In the year 2010, NABARD launched a repositioning exercise with an objective of finding new business avenues for the bank in the wake of changing economic environment. As a consequence of this exercise, a new department named, viz. Business Initiatives Department (BID) was formed to drive direct credit products of new business opportunities identified during the repositioning exercise.

Core Functions

BID operates following three credit products:

A.  NABARD Infrastructure Development Assistance (NIDA)

NIDA is a line of credit for funding rural infrastructure projects under the following four channels:

  1.  Funding directly to State Government and State-owned Institutions for rural infrastructure development projects
  2.   Funding PPP infrastructure projects in rural areas, developed by:
  • State-owned Institutions
  • Co-operatives
  • Local Bodies
  • Companies
  • Self-Help Group federations
  • Non-Governmental Organizations
  • Community-Owned Organizations
  • Producer Organizations
  • Special Purpose Vehicles (SPV) promoted by above organisations

3. Funding non-PPP, rural infrastructure projects developed by Registered entities like Companies and Co-operatives
4.  Funding NBFC- Infrastructure Finance Companies and Public Financial Institutions/Companies for rural infrastructure development projects Since inception, 51 projects have been sanctioned under NIDA covering various sectors like: 

•    Power transmission
Renewable energy
•    Restoration of power distribution
•    Roads and bridges
•    Warehousing
•    Irrigation
•    Drinking water
•    Sanitation

The major States covered under NIDA are Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Gujarat, Rajasthan, Haryana, Chhattisgarh, Punjab, Goa and Madhya Pradesh.

  1.  Direct Refinance Assistance (DRA) to Co-operative Banks (DRA to Co-operative Banks) 

Core Functions:Implementation of the revival package recommended by Vaidyanathan Committee has enabled District Central Co-operative Banks (DCCBs) to raise financial resources from sources other than State Co-operative Banks (StCBs.) In response, NABARD has designed a short-term multipurpose credit product for financing directly to DCCBs and StCBs.

Broad Achievements:

As on 31st March 2017, cumulative sanction under DRA to Co-operative Banks stood at Rs. 28,741 crores and the cumulative disbursement stood at Rs. 21,904 crores.The major categories funded under direct lending include:

  • rop loans above Rs. 3.00 lakh (above interest subvention limit)
  • Working capital loans for non-farm sector activities
  • Procurement operations through Primary Agricultural Credit Societies (PACS)
  • Financing against pledge of sugar stockThe States covered under DRA are Uttar Pradesh, Gujarat, Karnataka, Rajasthan, Madhya Pradesh, Maharashtra, Odisha, Kerala, Uttarakhand, Himachal Pradesh, Chhattisgarh, Haryana & Bihar.


  1. Credit Facility for Federations (CFF)

Core Functions:

CFF was launched with the objective of providing short-term loans to State Marketing /co-operative federations and corporations involved in procurement and marketing of Agricultural commodities and supply of agricultural inputs like fertilizers, pesticides etc.


Under CFF, credit support is available for working capital loans (less than 18 months) for procurement of agricultural and allied commodities, supply of agricultural inputs, supply chain management, value addition etc.

The major States covered under CFF are Chhattisgarh, Haryana, Odisha, Gujarat, MP, Maharashtra and Karnataka. 


Government sponsored Schemes for NABARD
1. Dairy Entrepreneurship Development Scheme-

The Department of Animal Husbandry, Dairying and Fisheries (DAHD&F), GoI launched a pilot scheme titled “Venture Capital Scheme for Dairy and Poultry” in the year 2005-06.  The main objective of the scheme was to extend assistance for setting up small dairy farms and other components to bring structural changes in the dairy sector.

Objectives of the scheme

  • To promote setting up of modern dairy farms for production of clean milk
  • To encourage heifer calf rearing, thereby conserving good breeding stock
  • To bring structural changes in the unorganised sector so that initial processing of milk can be taken up at the village level itself
  • To upgrade the quality and traditional technology to handle milk on a commercial scale
  • To generate self-employment and provide infrastructure mainly for unorganised sector

Who can benefit from this scheme?


  • Farmers, individual entrepreneurs, NGOs, companies, groups of organised and unorganised sectors, etc. Groups of organised sector include Self-help Groups (SHGs), dairy cooperative societies, milk unions, milk federations, etc.
  • An individual will be eligible to avail assistance for all the components under the scheme but only once for each component
  • More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 metres.



  1. Capital Investment Subsidy Scheme for Commercial Production Units for organic/ biological Inputs


The increasing and indiscriminate use of synthetic fertilizers and pesticides and deteriorating soil health and productivity is concerning people all over the world. Growing awareness for safe and healthy food has underlined the importance of organic farming, which is a holistic system based on the basic principle of minimizing the use of external inputs and avoiding the use of synthetic fertilizers and pesticides.

In view of these challenge, there is a need in the country to augment the infrastructure for production of quality organic and biological inputs. Accordingly, under National Project on Organic Farming a Capital Investment Subsidy Scheme for Commercial Production Units for organic/ biological Inputs has been introduced. The scheme is being implemented by the Department of Agriculture & Cooperation through National Centre of Organic Farming (NCOF) in collaboration with NABARD or National Cooperative Development Corporation (NCDC).

The scheme is being implemented since 2004-05. 

Objectives of the SchemeTo promote organic farming in the country by making available organic inputs, such as biofertilisers, biopesticides and fruit & vegetable market waste compost and thereby generate better return for the produce

  • To increase agricultural productivity while maintaining soil health and environmental safety
  • To reduce the total dependence on chemical fertilizers and pesticides by increasing the availability and improving the quality of biofertilisers, biopesticides and composts in the country
  • To convert organic waste into plant-nutrient resources
  • To prevent pollution and environment degradation by proper conversion and utilization of organic waste

Who can benefit from the scheme?


  • Biofertilisers and biopesticides production Units
  • Fruit & vegetable waste compost units
  • Individuals, group of farmers/growers, proprietary, and partnership firms, Co-operatives, fertilizer industry
  • Companies, Corporations
  • Non-Governmental Organizations (NGOs)
  • Agricultural Produce Market Committees (APMCs)
  • Municipalities
  1. Rural Godowns

It is a well-known fact that small farmers of the country do not have the economic strength to retain their farm produce with them till the market prices become favourable. There has been a felt need in the country to provide the farming community with facilities for scientific storage so that wastage and produce deterioration are avoided and enable farmers to meet their credit requirement without being compelled to sell their produce at unfavorable prices.


A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at fair prices and avoid distress sales. Accordingly, Grameen Bhandaran Yojana, a Capital Investment Subsidy Scheme for Construction/Renovation of Rural Godowns was introduced in 2001-2002.

Objectives of the Scheme 

  1. Creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs
  2. Promotion of grading, standardisation and quality control of agricultural produce to improve marketability
  3. Prevention of distress sale immediately after harvest by providing the facility of pledge financing and marketing credit
  4. Strengthening of agricultural marketing infrastructure in the country with the introduction of a national system of warehouse receipts, in respect of agricultural commodities stored in such godowns
  5. Reverse the declining trend of investment in agriculture sector by encouraging private and cooperative sectors to invest in storage infrastructure in the country


Who can benefit from this scheme?


  • Individuals
  • Farmers/Group of farmers/growers
  • Partnership/Proprietary firms
  • Non-Governmental Organisations (NGOs)
  • Self-Help Groups (SHGs)
  • Companies & Corporations
  • Co-operatives
  • Local Bodies other than Municipal Corporations
  • Federations
  • Agricultural Produce Marketing Committees (APMCs)
  • Marketing Boards and Agro Processing Corporations in the entire country

Assistance for renovation of rural godowns will, however, be restricted to godowns constructed by cooperatives only.



Continuation of the scheme

  1. Agricultural and Marketing Infrastructure, Grading and Standardization

The Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) scheme has been formulated to develop marketing infrastructure in the country to cater to the post-harvest requirement of production and marketable surplus of various farm products. An Expert Committee set up by the Ministry of Agriculture has estimated that an investment of Rs. 11,172 crore would be required for infrastructure development in agricultural marketing. A major portion of this investment is expected to come from private sector, for which an appropriate regulatory and policy environment is necessary.

Objectives of the scheme 

  • To provide additional agricultural marketing infrastructure to cope up with the large expected marketable surpluses of agricultural and allied commodities, including dairy, poultry, fishery, livestock and minor forest produce
  • To promote competitive alternative agricultural marketing infrastructure by encouraging private and cooperative sector investments that sustain incentives for quality and enhanced productivity, thereby improving farmers’ income
  • To strengthen existing agricultural marketing infrastructure to enhance efficiency
  • To promote direct marketing so as to increase market efficiency through a reduction in intermediaries and handling channels, thus enhancing farmers’ income
  • To provide infrastructure facilities for grading, standardisation and quality certification of agricultural produce so as to ensure a price to the farmers commensurate with the quality of the produce
  • To promote grading, standardisation and quality certification system for giving a major thrust for promotion of pledge financing and marketing, credit, introduction of negotiable warehousing receipt system and promotion of forward and future markets so as to stabilize market system and increase farmers’ income
  • To promote direct integration of processing units with producers
  • To create general awareness and provide education on agricultural marketing including grading, standardisation and quality certificationNABARD_Everything About NABARD

Who can benefit from this scheme?

  • Individuals
  • Group of farmers/growers/consumers
  • Partnership/Proprietary firms
  • Non-Government Organisations (NGOs)
  • Self Help Groups (SHGs)
  • Companies & Corporations
  • Autonomous Bodies of the Government
  • Cooperatives & Cooperative Marketing Federations
  • Local Bodies
  • Agricultural Produce Market Committees (APMCs) & Marketing Boards in the entire country

Bank-assisted projects of State agencies, including projects refinanced/co-financed by NABARD for strengthening/modernisation of existing marketing infrastructure, would also be eligible for assistance under the scheme.



  1. Agriclinic and Agribusiness Centres Scheme

The scheme aims to promote the establishment of Agri-Clinics and Agri-Business Centres (ACABC) all over the country.

5.A  Agri-Clinics


Agri-Clinics are envisaged to provide expert advice and services to farmers on various aspects to enhance productivity of crops/animals and increase the incomes of farmers. Agri-clinics provide support in the following areas:

  • Soil health
  • Cropping practices
  • Plant protection
  • Crop insurance
  • Post-harvest technology
  • Clinical services for animals, feed and fodder management
  • Prices of various crops in the market, etc.

5B . Agri-Business Centres 

Agri-Business Centres are commercial units of agri-ventures established by trained agriculture professionals. Such ventures may include maintenance and custom hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including post-harvest management and market linkages for income generation and entrepreneurship development.

The scheme covers full financial support for training and handholding, provision of loan and credit-linked back ended composite subsidy.


Objectives of the scheme


  • To supplement efforts of public extension by necessarily providing extension and other services to the farmers on payment basis or free of cost as per business model of agripreneur, local needs and affordability of target group of farmers
  • To support agricultural development
  • To create gainful self-employment opportunities for unemployed agricultural graduates, agricultural diploma holders, intermediate in agriculture and biological science graduates with Post Graduation in agri-related courses.

Who can benefit from the scheme? 


The scheme is open to the following categories of candidates:

  • Graduates in agriculture and allied subjects from State Agriculture Universities (SAUs)/Central Agricultural Universities/Universities recognized by ICAR/UGC. Degree in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India, on recommendation of the State Government
  • Diploma (with at least 50% marks)/Post Graduate Diploma holders in Agriculture and allied subjects from State Agricultural Universities, State Agriculture and Allied Departments and State Department of Technical Education.
  • Diploma in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India on recommendation of the State Government


  • Biological Science Graduates with Post Graduation in Agriculture & allied subjects
  • Degree courses recognised by UGC having more than 60 percent of the course content in Agriculture and allied subjects
  • Diploma/Post Graduate Diploma courses with more than 60 percent of course content in Agriculture and allied subjects, after B.Sc. with Biological Sciences, from recognised colleges and universities.
  • Agriculture related courses at intermediate (i.e. plus two) level, with at least 55% marks.
  1. Solar Schemes

At present, to promote the use of solar energy, two capital linked subsidy schemes of Ministry of New and Renewable Energy (MNRE), GoI, ie. Solar Photovoltaic Water Pumping systems and MNRE Lighting Scheme 2016 are operated through NABARD.


  1. Capital Subsidy Scheme for promoting Solar Photovoltaic Water Pumping systems for Irrigation and other purposes

MNRE,GoI has launched a new scheme to support 30000 solar pumping units per year with revised parameters which is effective from 3 November 2014. Main objective of the scheme is to replace diesel pumpsets with solar pumpsets as also to reduce dependence on grid power.  The solar pumpsets are environment-friendly and offer tremendous benefits to farmers.  They involve very low operating cost and provide uninterrupted power supply to farmers enabling increase in agriculture production and income. Subsidy under the scheme is available only for solar systems that are procured from empanelled manufacturers/entrepreneurs by MNRE, GoI for solar water pumping programme.


Who can benefit from the scheme


Individuals, group of individuals, SHGs, JLGs, NGOs, Farmers’ Clubs, Farmers Producer Organisation, Farmers Producer Company. Private/Public Limited Companies/Corporates are not eligible.


  1. MNRE Lighting Scheme 2016

Capital Subsidy Scheme for Installation of Solar Photovoltaic Lighting Systems

MNRE,GoI has launched the MNRE Lighting Scheme -2016 to support LED based systems  w. e. f. 29.2.2016 . Loan sanctioned from 29 February 2016 and upto 31 March 2017 can be considered eligible for subsidy under the scheme. Under the scheme, subsidy support will be available only for 6 models of LED based lighting systems and 6 models of Solar Home Systems (Solar Power Packs-DC/AC models).Subsidy under the scheme is available only for solar systems that are procured from empanelled manufacturers/entrepreneurs by  MNRE,GoI .


Who can benefit from the scheme


Individuals, group of individuals, SHGs, JLGs, NGOs, Trusts, Farmers’ Clubs, Registered Farmers Producer Organisations. Private/Public Limited Companies/Corporates will not be eligible.

  1. Agricultural Marketing Infrastructure

It is common knowledge that there is a need to promote agriculture marketing infrastructure projects for reducing the involvement of intermediates and minimizing post-harvest losses. A robust agriculture marketing infrastructure will ensure better remuneration to farmers and supply of better quality products to consumers and processing industries. During the XII plan period, the estimated investment for marketing infrastructure and value chain development was Rs. 56,000 crores.


To address this need, the Department of Agriculture and Cooperation (DAC), Govt. of India has introduced the Agricultural Marketing Infrastructure (AMI) Scheme by merging the earlier Grameen Bhandaran Yojana (GBY) and the Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS).   


Objectives of the scheme


  • To develop a robust agricultural marketing infrastructure for effective management of marketing surplus in agriculture, horticulture and allied sectors of dairy, poultry, fishery, livestock, and minor forest produce
  • To promote innovative and latest technologies in agricultural marketing infrastructure
  • To promote competitive alternative agricultural marketing infrastructure by encouraging investments from private and cooperative sectors
  • To promote direct marketing to increase market efficiency with the aim of enhancing farmers’ income through reduction in intermediaries and handling channels
  • To promote creation of scientific storage capacity for storing farm produce, processed farm produce, and agricultural inputs, etc. to reduce post-harvest and handling losses
  • To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce
  • To promote Integrated Value Chains (confined up to primary processing stage only) to enable vertical integration of farmers with primary processors
  • To create general awareness and provide training on various aspects of agriculture marketing, including grading, standardization and quality certification
  • Who can benefit from this scheme? 
  • Individuals, Groups of farmers/growers
  • Registered Farmer Producer Organisations (FPOs)
  • Partnership/Proprietary firms, Companies, Corporations
  • Self-Help Groups (SHGs)
  • Non-Governmental Organizations (NGOs)
  • Cooperatives & Cooperative Marketing Federations
  • Autonomous bodies of the Government
  • Local bodies (excluding Municipal Corporations for storage infrastructure projects), Panchayats

State agencies including State Government departments and autonomous organization/State-owned organizations

  1. National Livestock Mission

National Livestock Mission is an initiative of the Ministry of Agriculture and Farmers Welfare. The mission, which commenced from 2014-15, has been designed with the objective of sustainable development of the livestock sector.


NABARD is the subsidy channelizing agency under Entrepreneurship Development & Employment Generation (EDEG) component of National Livestock Mission. This includes:

  • Poultry Venture Capital Fund (PVCF)
  • Integrated Development of Small Ruminants and Rabbit (IDSRR)
  • Pig Development (PD)
  • Salvaging and Rearing of Male Buffalo Calves (SRMBC)


Who can benefit from the scheme?


Eligible financial institutions:


  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks
  • Other institutions eligible for refinance from NABARD 
  1. GSS- Complaints received from Public

Time and again, we receive complaints from public and other concerned agencies that subsidy released under various schemes of Government of India, routed through NABARD, is not used by the beneficiaries for the purpose it is intended.To ensure that credit and subsidy are not misused by beneficiaries, NABARD sends timely communication to commercial banks, Scheduled (Primary) banks, Urban Cooperative banks, Regional Rural Banks (RRBs), State Agricultural Development Finance Companies (ADFCs), State Cooperative Banks (SCBs), and State Cooperative Agriculture and Rural Development Banks (SCARDBs).


  1. Sugar Package

Scheme for Extending Financial Assistance to Sugar Undertakings – SEFASU 2014

The loan will be sanctioned to the sugar mills, which have been functional during 2013-14 sugar season and loan would be to the extent of last three sugar seasons’ excise duty, cess and surcharge on sugar (including notional equivalence for exports or availed Cenvat ).  The loan is to be sanctioned for a period of 5 years including 2 years moratorium period. GoI provides interest subvention up to maximum of 12 % or actual rate whichever is lower. Loans sanctioned by 30 June 2014 and disbursed by 30 September 2014 by the lending banks would be eligible for interest subvention facility.  State Bank of India (SBI)  is appointed as “Nodal Bank” for interacting with Department of Food and Public Distribution and managing the subsidy funded for onward reimbursement to respective banks. NABARD would coordinate on behalf of Cooperative Banks and Regional Rural Banks (RRBs) and would submit claims to SBI for reimbursement.


Scheme of Soft Loan to sugar mills to facilitate payment of cane dues of the sugar season 2014-15

GoI notified a scheme on 23 June 2015  for extending soft loan to sugar mills for payment of cane price arrears of sugar season 2014-15 relating to the Fair and Remunerative Price (FRP) of sugarcane fixed by the Central Government to the sugarcane farmers. The loan will be sanctioned to the sugar mills which have been functional during 2013-14 and 2014-15 sugar season and the quantum of loan would be equivalent to 11% of their reported production of white sugar in sugar season 2013-14 as certified by Central Excise authorities concerned. There will be moratorium of one year on repayment of the loan. Loans sanctioned and disbursed by 30th September 2015 by lending banks, pursuant to Gazette notification, would be eligible for interest subvention facility. Interest subvention upto 10% simple interest or the actual rate charged by the banks , whichever is lower, shall be provided to the sugar mills for a maximum period of one year by GoI. Interest subvention will be released on quarterly basis through the nodal bank, State Bank of India. The operational guidelines in respect of the scheme have been issued  by NABARD and forwarded to Rural Cooperative Banks and Regional Rural Banks as NABARD would  coordinate on behalf of them.

  1. Interest Subvention SchemeThe Honorable Finance Minister in his budget speech (para 49) for 2006-07 announced that the Government had decided to ensure that farmers receive short term credit at 7%, with an upper limit of Rs. 3.00 lakh on the principal amount. The policy came into force with effect from Kharif 2006-07. The amount of subvention was to be calculated on the amount of crop loan from the date of disbursement up to the date of repayment.

In pursuance of this announcement, the Government of India provided interest subvention of 2 % to Public Sector Banks, Regional Rural Banks (RRBs) and Cooperative Banks in respect of short term production credit up to Rs. 3.00 lakh provided to farmers out of their own resources, provided that they make available short term credit @ 7% p.a. at ground level.


The scheme, introduced in 2006-07, has continued in the following years with certain modifications and changes in rate of subvention.

Incentive to farmers on prompt repayments   

Since the year 2009-10, Government of India introduced additional incentive for farmers who promptly repay the loans on or before the due date or the date fixed by the bank, subject to a maximum period of one year.

Relief to farmers:   

To provide relief to farmers affected by natural calamities, Interest Subvention of 2% has been made available to banks for the first year on restructured amount of crop loans.

Interest Subvention to Small and Marginal Farmers against Negotiable Warehouse Receipts  


In order to discourage distress sale of produce by farmers and to encourage them to store their produce in warehouses against warehouse receipts, Government of India (GoI) had introduced a scheme in 2011-12 for extending concessional loans to the farmers against negotiable warehouse receipts. Post-harvest loans against Negotiable Warehouse Receipts (NWR) provided by banks to Small and marginal farmers (SF/MF) having Kisan Credit Cards, would be eligible for interest subvention, for a period of up to six months on the same rate as available to crop loan.


SF/MF, who have not availed crop loans through banking system, would not be eligible. No additional subvention towards prompt repayment, as is available for crop loans, is envisaged under the scheme.

Interest subvention to NABARD

s per the scheme, interest subvention would be available to NABARD for providing concessional refinance to RRBs and Cooperative Banks. NABARD is subvented to the extent of difference between weighted average cost of funds mobilised and refinance rate. Additionally, administrative cost of 20 basis points is also provided by GoI.


  1. Credit Linked Capital Subsidy Scheme

The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Up-gradation of Micro & Small Enterprises was launched by the Government of India in October 2000. The scheme aims at acilitating technology up-gradation of SSI units in the specified products/ sub-sectors by way of induction of well-established and improved technologies approved under the scheme for which capital subsidy is extended by GoI. NABARD is designated as one of the nodal agencies for channelizing subsidy under the scheme through Cooperative Banks and RRBs; and Commercial Banks.



  1. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)

The Ministry of Rural Development (MoRD), Government of India launched the National Rural Livelihood Mission (NRLM) by restructuring Swarnajayanti Gram Swarojgar Yojana (SGSY) with effect from 01st April 2013 (RBI Circular No. RBI/2012-13/559 dated 27 June 2013).


NRLM was renamed as DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) w.e.f. March 29, 2016 and is the flagship program of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services and livelihoods services.


NABARD is implementing the Interest Subvention Scheme for Women SHGs under DAY-NRLM for RRBs and Cooperative Banks in Category-I (250) districts.


  1. Weavers Package

National Handloom Development Programme (NHDP) to be implemented during the XII Plan has been formulated as a centrally-sponsored plan scheme approved by the Planning commission merging, with or without modifications

  • Revival, Reform and Restructuring (RRR) package 
  • Institutional Credit component of Integrated Handlooms Development Scheme (IHDS) as Concessional Credit, and
  • Comprehensive Handlooms Development Scheme (CHDS).  

CHDS, a component of NHDP, has been formulated by merging three plan schemes i.e.Integrated Handlooms Development Scheme


Marketing & Export Promotion Scheme

Diversified Handlooms Development Scheme implemented during 11th Plan

Out of the above schemes, the following two schemes are being implemented by NABARD.

a)    Revival, Reform and Restructuring (RRR) package

b)    Comprehensive Handlooms Development Scheme (CHDS)

(a) Revival, Reform and Restructuring Package for Handloom Sector . 

The RRR package was aimed at covering all viable and potentially viable apex and primary weaver cooperative societies (PWCs). The quantum of assistance for weaver societies and individual weaver was based on audits and recommendation of state implementation, monitoring and review committee. The objectives of the financial package were:

a)    Loan waiver and recapitalization of handloom weavers’ cooperative societies

b)    Waiver of loans to individual weavers

c)    Strengthening of weaver cooperative societies

d)    Three percent interest subsidy for fresh loans to be changed to Six percent subsidy for fresh loans

e)    Credit guarantee for fresh loans (administered by SIDBI)

f)    Training for the functionaries and

g)    Loss assessment exercise


As per the guidelines of RRR package, all viable and potentially viable Apex and Primary weaver societies (as per the package norms) were to be covered under the package. The quantum of assistance to be made available to each weaver society is linked to special audit on the basis of the audited Financial Statements (Balance sheet & P/L Account).

(b) Under Concessional Credit component NABARD administers following two sub-components   

  • Interest subsidy: To provide subsidized loan to handloom sector at the interest rate of 6% for a period of three years, the quantum of interest subsidy to be borne by the Government of India is for three years and limited to the difference between the actual rate of interest as applicable and charged by the Banks and 6% to be borne by the borrower. However, the GoI interest subvention is capped at 7%.
  • Margin money assistance to a maximum of Rs. 10,000 per weaver is provided, which enables the handloom weavers, their Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) to leverage this amount for borrowing loans from the banks. However, weavers’ cooperative societies, weavers’ producer companies, etc. are not be eligible for the margin money assistance. In case, the requirement of margin money for the loan required by the weaver is more, then the beneficiary or State Government or Implementing Agency or in any combination thereof will be required to contribute additional amount of margin money.

Note- Tenure of- Twelfth Five Year Plan 2012-17


To find PDF of this page click here- NABARD_Everything About NABARD