The Nabard Employees Association will organize a demonstration in front of the headquarters today

All-India Nabard Employees Association (AINBEA) will hold a protest outside the head office of Nabard (National Bank for Agriculture and Rural Development) at Bandra-Kurla complex in Mumbai this afternoon to support nationwide strike in banks and public sector companies.

Rana Mitra, general secretary of AINBEA, said it was clear that the 12 demands raised by the striking unions encompass the burning issues of the common man. Nabard also faced serious challenges in his mandated functions such as protecting the interests of small, marginal and landless workers, the traditional model of linkage between self-help groups and banks, the focus on development and strengthening cooperative and rural banks, he added.

Low cost search stream hit

The flow of low-cost funds from the Center and the RBI to Nabard has dried up. Today, only 10.7% (₹70,443 crore) of its total balance sheet size of ₹6,57,798 crore as of March 31, 2021 constitutes its equity. The rest is made up of borrowed resources resulting in a significant outflow of interest. This is already indicative of its functioning as a development finance institution with wider ramifications.

Weaker RBI ties

Nabard’s umbilical ties to the RBI are also weakening by the day, diluting the core mandate for which he was created in 1982.

“We need to understand that a bloated balance sheet may not only be enough to protect our institutional character at the top until we do some serious soul-searching and join the fight to protect Nabard’s core mandate,” said Mitra.

The dilution of this basic mandate has a deeper connection to the workings of neoliberal economic policy and the trend towards privatization of national assets, which means a whole series of political changes away from the principles of the economic regime of well-being. be, he added.

Published on

March 29, 2022

Andrew B. Reiter