Usha Thorat panel to assist Nabard in restructuring
Besides, the repositioning exercise envisages Nabard’s transition from development finance institution (DFI) to development facilitating and financing institution (DFFI). It also includes setting up of direct financing subsidiary, develop infrastructure delivery as independent business, link various development initiatives to generate business in a credit plus approach, segregate Nabard Consultancy Services (Nabcons) as an indepedent subsidiary and establish an independent micro-finance and financial inclusion unit.
Nabard official told FE “Nabard will invite expression of interest to engage a professional agency to work out implementation plan to reposition the bank. It has already set up a sub-committee chaired by RBI deputy governor Usha Thorat to assist expeditious restructuring or repositioning exercise. The other members include Amitabh Veerma, joint secretary in the finance ministry and Nabard directors Ram Tarneja, Lakshmi Chand.”
On completion of its 25th year, Nabard undertook a self-assessment of its performance vis-à-vis the mandate and the emerging requirements of its operating environment. A view emerged that Nabard had pioneered many initiatives like the (self help group) SHG-Bank Linkage Programme, Natural Resource Management, Kisan Credit Card. "It was also felt that growth of the rural economy comprising agriculture and non-land based SMEs and businesses would continue to be critical, as over 60% of the workforce depends on it.
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