Description : Reserve Bank of India (RBI) established in 1935 interalia, with a mandate to set up a special Agricultural Credit Department (ACD) with expert staff.

ACD(RBI) interalia, initiated different measures to develop a healthy rural credit structure and provided guidance to State Governments and Cooperative Credit Structure.

Agricultural Refinance Corporation (ARC) was established in 1963 to support investment credit needs for agricultural development.

Consequent to undertaking of development and promotional functions, ARC was renamed as Agricultural Refinance and Development Corporation (ARDC) in 1972.

RBI, at the instance of Government of India (GOI) appointed a Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) in 1979.

The CRAFICARD reviewed the need of integrating short-term, medium-term and long-term agriculture credit structure.

The CRAFICARD recommended the establishment of National Bank for Agriculture and Rural Development (NABARD).

National Bank for Agriculture and Rural Development Act, 1981 was passed by the Indian Parliament and NABARD was established on 12 July 1982 with an initial capital of Rs. 100 crore. The capital is enhanced to Rs.2000 crore subscribed by Govt. of India and Reserve Bank of India.