Parliament passes bill to increase NABARD’s authorised capital to Rs 30,000 crore
A bill to increase authorised capital of national bank for agriculture and rural development (NABARD) by six time to Rs […]
Sarabjit Kaur January 3, 2018
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A bill to increase authorised capital of national bank for agriculture and rural development (NABARD) by six time to Rs 30,000 crore and enable exit of RBI was passed by Parliament after the government assured that there is no plan to have private holding in it. The National Bank for Agriculture and Rural Development (Amendment) Bill 2017, was passed on Tuesday by voice vote in the Rajya Sabha. The bill was passed by the Lok Sabha in August 2017. In his reply on the bill in the Rajya Sabha, minister of state for finance Shiv Pratap Shukla said, “Some members asked about private holding in Nabard. There is no proposal to have private holding in the NABARD”. On apprehensions about RBI’s role as regulator of NABARD after passage of this bill, the minister said, “RBI is the regulator for the NABARD and it would continue to be so.” The minister told the house that the bill was supported by almost of all members of the House from all parties, including Rajeev Shukla (Congress), Ananda Bhaskar Rapolu (Congress), Anil Desai (Shiv Sena) and Vikas Mahatme (BJP). All of these members urged the government that the poor farmers at the bottom should be able to reap benefits of the finance aid provided by the NABARD. At present, the authorised capital of NABARD is Rs 5,000 crore and there is a proposal to increase it to Rs 30,000 crore. If there is a need to increase this authorised capital above Rs 30,000 crore, then after discussions with RBI it can be increased up to Rs 50,000 crore, Shukla said.