The National Bank for Agriculture and Rural Development (NABARD) has announced the creation of an Rs. 1,000 crore Credit Guarantee Fund Trust for FPOs (CGFTFPO), a dedicated fund for providing credit guarantees to FPOs. The fund has been launched under the trusteeship of NABSanrakshan Trustee Pvt Ltd, a wholly-owned subsidiary of NABARD.
For this, NABSanrakshan has signed a trust deed with the Ministry of Agriculture and Farmers Welfare. The Trust has been registered at Mumbai. The credit guarantee offered through the trust will enhance the creditworthiness of FPOs besides facilitating cost-effective production and productivity leading to higher net incomes to the farmers who are members of FPOs.
Important takeaways for all competitive exams:
- Chairman of NABARD: G R Chintala;
- NABARD Founded: 12 July 1982;
- NABARD Headquarters: Mumbai.