Parliament permits NABARD (Amendment) Bill, 2017,CURRENT AFFAIR
Parliament permits NABARD (Amendment) Bill, 2017
Parliament has approved the National Bank for Agriculture and Rural Growth (Amendment) Bill, 2017 with the support of Rajya Sabha. Lok Sabha previously had approved the bill in August 2017. The Bill seeks to amend National Bank for Agriculture and Rural Growth (NABARD) Act, 1981 The Act founds NABARD for providing and regulating services like credit for agricultural and industrial expansion in the rural areas……..
Bill permits Union Government to rise capital of NABARD from Rs. 5000 crore to Rs 30,000 crore. Further, it allows Combination Government to increase the capital additional than Rs 30,000 crore in discussion with the Reserve Bank of India (RBI), if necessary….
The Bill offers that Union Government alone necessity hold at least 51% capital part of NABARD. Further, it transmissions share capital detained by RBI valued at Rs. 20 crore to Union Government. Currently RBI holds 0.4% of paid-up capital of NABARD and outstanding 99.6% is detained by Union government and this capital of NABARD and remaining 99.6% is seized by Union government and this reasons conflict in RBI’s role as banking controller and shareholder in NABARD
The Bill replaces terms ‘limited industry’ and ‘industry in tiny and dispersed sector’ with terms ‘micro enterprise’, ‘small enterprise’ and ‘‘medium enterprise’ as defined in MSME Growth Act, 2006. Further, it permits NABARD to provide financial help to banks if they provide loan to the MSMEs. The Bill alternates references to provisions of the Businesses Act, 1956 with references to the Companies Act, 2013. It includes necessities dealing with definition of a government company and experiences of auditors
National Bank For Agriculture & Rural Development (NABARD) is set up as an top Growth Bank by the Government of India with a order for facilitating credit current for promotion and growth of agriculture, cottage and village trades.
NABARD was recognized on the references of B.Sivaraman Group, (by Act 61, 1981 of Parliament) on 12 July 1982 to device the National Bank for Agriculture and Rural Development Act 1981. It swapped the Agricultural Credit Department (ACD) and Rural Preparation and Credit Cell (RPCC) of and Agricultural Refinance and Development Company (ARDC). It is one of the premier activities providing evolving credit in rural areas. NABARD is India’s particular bank for Agriculture and Rural Growth in India.