A bill to enable exit of Reserve Bank of India (RBI) from Nabard and increase authorized capital of the development institution six times to Rs 30,000 crore was passed by the Lok Sabha.
Important Points About the Bill-
- Increase in capital of NABARD: At present the authorized capital of Nabard is Rs 5,000 crore and there is a proposal to increase it to Rs 30,000 crore.
- Transfer of the RBI’s share to the Union Government: At present in Nabard, the Centre has a share of 99.6% and the RBI has the remaining share.
- The Bill substitutes references to provisions of the Companies Act, 1956 under the NABARD Act, 1981, with references to the Companies Act, 2013.
- The Bill replaces the terms ‘small-scale industry’ and ‘industry in the tiny and decentralized sector’ with the terms ‘micro enterprise’, ‘small enterprise’ and ‘medium enterprise’ as defined in the MSME Development Act, 2006.
Important Takeaways from Above News-
- NABARD was established in 1982.
- The Headquarter of NABARD is in Mumbai.
- Harsh Kumar Bhanwala is the Chairman of NABARD.
Source- The Hindu