[7] The importance of institutional credit in boosting rural economy has been clear to the Government of India right from its early stages of planning.

The Committee’s interim report, submitted on 28 November 1979, outlined the need for a new organisational device for providing undivided attention, forceful direction and pointed focus to credit related issues linked with rural development.

These organisations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimising the agricultural process.

Under this MoU, both organizations will work to improve the lives and livelihoods of smallholder farmers by sharing open-source data for product development, transfer of technology and supporting the framing of agrarian policies.

It co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with the Government of India, state governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation.

The main objective of the NABKISAN is to provide credit for promotion, expansion and commercialization of enterprises in agriculture, allied and rural non-farm activities.

[26] The objective of NABSAMRUDDHI is to provide credit facilities to legal entities for promotion, expansion, commercialization and modernization in non-farm activities including microfinance, MSME, housing, education, transport, etc.

In March 2024, it launched the first phase of a nationwide funding awareness campaign, 'Climate Ready WASH', for women joint liability group (JLG) borrowers of microfinance institutions, to take forward the common mandate of sustainable rural development.

In 2021, it has entered into an Memorandum of Understanding (MoU) with Dalmia Bharat Foundation to develop a unique skill mapping programme for unemployed youths in all the North Eastern states of Assam, Sikkim, Arunachal Pradesh, Nagaland, Mizoram, Manipur, Meghalaya and Tripura.

The fund focus on investments in early to mid-stage start-ups in agriculture, agtech, agri-biotech, food, agri/rural fintech and rural businesses.

It aims to carry out credit guarantee and related activities towards sustainable and equitable agriculture and rural development.

[citation needed] Through assistance of the Swiss Agency for Development and Cooperation, NABARD set up the Rural Innovation Fund.

51,283 crore have been sanctioned for 2,44,651 projects covering irrigation, rural roads and bridges, health and education, soil conservation, water schemes etc.

[32] The assistance is extended to individuals, NGOs, cooperatives, Self Help Groups, and Panchayati Raj Institutions who have the expertise and willingness to implement innovative ideas for improving the quality of life in rural areas.

Under this facility financial support for natural resource management activities can be provided as a loan at reasonable rate of interest.