{"id":31424,"date":"2018-10-27T13:31:43","date_gmt":"2018-10-27T08:01:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31424"},"modified":"2018-10-27T13:31:43","modified_gmt":"2018-10-27T08:01:43","slug":"a-boost-to-rural-entrepreneurship","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-boost-to-rural-entrepreneurship\/","title":{"rendered":"A boost to rural entrepreneurship"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-opinion\/a-boost-to-rural-entrepreneurship\/article22697052.ece\"><b>A boost to rural entrepreneurship<\/b><\/a><\/p>\n<p><strong>Context:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Amendments to the NABARD Act<\/span><\/p>\n<p><strong>Introduction:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The NABARD 1981 Act was enacted to establish a development bank to provide and regulate credit and other facilities in order to promote and develop agriculture, small-scale industries, cottage and village industries, handicrafts, and allied economic activities in rural areas.<\/span><\/li>\n<\/ul>\n<p><strong>Why amendments were made to the NABARD Act?<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amendments support the government\u2019s push to boost the rural and agricultural sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amendments recognise the vital role of micro, small and medium enterprises (MSMEs), as defined under the MSME Development Act of 2006, in rural entrepreneurship and are intended to make financing easier for them.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> With its expanding activities, NABARD needed to be provided with additional equity from time to time to enable it to meet its objectives of promoting rural development and sustainable rural prosperity.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Certain existing commitments of NABARD relating to the long-term irrigation fund and enhanced refinance support to cooperative banks required urgent infusion of equity.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The current authorized capital of NABARD is fully paid-up, there was a need to increase it to enable the Central government to infuse additional equity as and when required.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) holds 0.4% of the paid-up capital of NABARD. The remaining is held by the Central government. This causes conflict in the RBI\u2019s role as banking regulator and shareholder in NABARD.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government said its focus was on the employment potential in rural areas, medium enterprises, and handlooms. It proposed to include these enterprises in the ambit of refinance activities of NABARD.<\/span><\/li>\n<\/ul>\n<p><strong>The NABARD (Amendment) Bill, 2017:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amended Bill provides for empowering the Central government to increase the authorised capital of NABARD from Rs. 5,000 crore to Rs. 30,000 crore in consultation with the RBI.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amendments primarily seek to transfer the RBI\u2019s balance equity of Rs. 20,000 crore in NABARD to the Central government.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A boost to rural entrepreneurship Context: Amendments to the NABARD Act Introduction: The NABARD 1981 Act was enacted to establish a development bank to provide and regulate credit and other facilities in order to promote and develop agriculture, small-scale industries, cottage and village industries, handicrafts, and allied economic activities in rural areas. Why amendments were&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/a-boost-to-rural-entrepreneurship\/\">Continue reading <span class=\"screen-reader-text\">A boost to rural entrepreneurship<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-31424","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":24,"cached_at":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=31424"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31424\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}