Why in News?
Parliament recently passed the NABARD (Amendment ) Bill.
FACTS FOR PRELIMS
The National Bank for Agriculture and Rural Development Bill 1981 provides for the establishment of the National Bank for Agriculture and Rural Development (NABARD). It is responsible for providing and regulating facilities like credit for agricultural and industrial development in the rural areas.
i) INCREASE IN CAPITAL –The Bill allows the central government to increase the capital from 5000 crores to Rs 30,000 crore. The capital may be increased to more than Rs 30,000 crore by the central government in consultation with the RBI, if necessary.
ii) TRANSFER OF RBI SHARE TO THE GOVERNMENT –Under the 1981 Act, the central government and the RBI together must hold at least 51% of the share capital of NABARD. The Bill transfers the share capital held by the RBI and valued at Rs 20 crore to the central government.
iii)ADDS MSME-The Bill replaces the terms ‘small-scale industry’ and ‘industry in the tiny and decentralised sector’ with the terms ‘microenterprise’, ‘small enterprise’ and ‘medium enterprise’ as defined in the MSME Development Act, 2006
iv) CONSISTENCY WITH COMPANIES ACT, 2013-The Bill substitutes references to provisions of the Companies Act, 1956 under the NABARD Act, 1981, with references to the Companies Act, 2013. These include provisions that deal with: (i) definition of a government company, and (ii) qualifications of auditors.
Source-The Economic Times.