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Abstract
National Bank for Agriculture and Rural Development (NABARD) was established on the recommendations of Shivaraman Committee on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It is an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. NABARD is playing a central role in economic development of the rural India. In India there is an enormous need for real agricultural credit as the financial position of Indian farmers are very poor. From the beginning the main foundation of agricultural credit in India was money investors. NABARD backed by its experience in Rural Infrastructure Development Fund (RIDF) is a position to take a lead in this direction. The potential infrastructure in this segment include minor irrigation, drinking water supply, sanitation, agricultural and joined sector, warehouse and storage, rural connectivity, education, rural health, etc. Funds in this direction can be increased by concentrating on tapping low-cost subsidy sources with appropriate financial instruments, setting-up an suitable delivery model, through triangulation of the State Governments, financial institutions and private sector infrastructure agencies.