<h4>Introduction to NABARD</h4><p>The <strong>National Bank for Agriculture and Rural Development (NABARD)</strong> is a crucial development financial institution in India.</p><p>It plays a pivotal role in fostering <strong>rural prosperity</strong> by enhancing rural livelihoods and boosting the <strong>rural economy</strong>.</p><h4>Genesis: CRAFICARD Committee</h4><p>The need for robust <strong>institutional credit</strong> in India's vast rural areas led to significant policy initiatives.</p><p>In <strong>1979</strong>, the <strong>Reserve Bank of India (RBI)</strong> established a specialized committee to address this challenge.</p><div class='info-box'><p>This committee was named the <strong>Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD)</strong>.</p></div><h4>Establishment of NABARD</h4><p>The recommendations put forth by the <strong>CRAFICARD</strong> committee were instrumental in the formation of <strong>NABARD</strong>.</p><p><strong>NABARD</strong> was formally established in <strong>1982</strong>, under the provisions of the <strong>National Bank for Agriculture and Rural Development Act, 1981</strong>.</p><div class='info-box'><p>Its creation involved the transfer of key functions from two existing entities:</p><ul><li><strong>Agricultural credit functions</strong> were transferred from the <strong>Reserve Bank of India (RBI)</strong>.</li><li><strong>Refinance functions</strong> were transferred from the <strong>Agricultural Refinance and Development Corporation (ARDC)</strong>.</li></ul></div><h4>Vision and Mandate</h4><p><strong>NABARD</strong> envisions itself as the <strong>“Development Bank of the Nation for Fostering Rural Prosperity.”</strong></p><div class='key-point-box'><p>Its core mandate includes providing and regulating credit, and other facilities for the promotion and development of <strong>agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts</strong>, with a view to promoting integrated rural development and securing prosperity of rural areas.</p></div><div class='exam-tip-box'><p>Understanding <strong>NABARD's genesis</strong> and its foundational <strong>mandate</strong> is crucial for questions on rural finance and institutional development in <strong>UPSC Mains GS-III</strong>.</p></div>