Abstract

Indian economy is agricultural rural economy. Without the development of the rural economy, the objectives of economic planning cannot be achieved. Hence, banks and other financial institutions are considered to be a vital role for the development of the rural economy in India. NABARD are playing a pivotal role in the economic development of the rural India. National Bank for Agriculture and Rural Development (NABARD) was established under an Act of the Indian Parliament, viz. NABARD Act 1981, and came into existence on 12th July 1982. NABARD is set up by the Government of India as a apex financial institution with the mandate of facilitating credit flow for promotion and development of agriculture and integrated rural development. The institution plays a developmental role in strengthening the rural financial institutions. The agency extends refinance support for the development of rural economy to SCARDBs, STCBs, RRBs, commercial banks, and other financial institutions approved by RBI. This paper aimed at assessing the refinance operations of NABARD in Himachal Pradesh. Keywords: NABARD, Refinance, Rural Credit