I would add one more to the list that it has passed on to NABARD a part. Even for the Cooperative sector, it should resume the supervisory and regulatory responsibility because of the proven failure of NABARD to handle it. Secondly, at the time when such function was entrusted NABARD was owned partly by RBI whereas now it is fully owned by the State Government. Both structurally and functionally, the regulatory function of financial entities should rest with the RBI.
- Yerram Raju
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NABARD cannot claim to have done full justice to the economy by developing the Agriculture and Rural Sector. This institution could have done wonders to give a boost to the economy by developing agriculture which was once the backbone of the economy.In fact, the contribution of agriculture has steadily declined over a period and NABARD cannot say with conviction that after its coming into being, agriculture and rural segment have seen any concrete development. It may have provided refinance facilities and the numbers would have shown a steep increase,but the objective with which it has been established has not been fulfilled. It could have easily made each and every state to develop agriculture intensively by improving irrigation, mechanisation, productivity through some healthy and constructive competitive practices and showing improved contribution to GDP in terms of agricultural production and enhanced rural sector employment and production.When this institution has failed in its core function, how can it regulate and supervise MFIs which is emerging as a very sensitive segment of the complex Financial System. The author Dr Yerram Raju has put forth well his argument.
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