Explanation: NABARD, the National Bank for Agriculture and Rural Development, is a financial institution in India that plays a crucial role in the development of rural areas. It was established in 1982 to provide and facilitate credit for the promotion and development of agriculture, rural industry, cottage and village industries, small-scale industries, and other intermediate financial institutions. NABARD operates under the guidance of the Reserve Bank of India (RBI) and the Government of India.
One of the key schemes under NABARD is the Rural Infrastructure Development Fund (RIDF). The RIDF was introduced in 1995 to provide financial assistance for rural infrastructure projects. These projects include the construction and maintenance of rural roads, bridges, water supply systems, and other essential infrastructure that supports rural development and improves the quality of life in rural areas.
The RIDF operates through a loan mechanism where NABARD provides loans to state governments for the implementation of rural infrastructure projects. These loans are typically interest-free and have a long repayment period, making them attractive for state governments to undertake rural development initiatives.
In the context of the question, NABARD has sanctioned an Rs. 85 crore RIDF loan to the Goa government. This loan is intended to support rural infrastructure projects in Goa, thereby contributing to the overall development of the state's rural areas. The RIDF loan is a significant financial assistance that helps the Goa government to implement essential rural infrastructure projects, which are critical for the socio-economic development of rural communities.
It is important to distinguish NABARD from other financial institutions such as SEBI (Securities and Exchange Board of India), SIDBI (Small Industries Development Bank of India), and MANREGA (Mahatma Gandhi National Rural Employment Guarantee Act). SEBI is the regulatory body for the securities market, SIDBI focuses on financing small and medium enterprises, and MANREGA is a social security measure that guarantees employment. None of these institutions provide loans for rural infrastructure development to state governments, making NABARD the correct answer in this context.
Understanding the role of NABARD and its schemes like the RIDF is crucial for comprehending the mechanisms through which rural development is supported in India. This knowledge is particularly relevant for students preparing for competitive examinations such as the UPSC Civil Services, State PSC Exams, Banking Exams, and SSC Exams, where questions related to financial institutions and rural development are frequently asked.