Since the inception of NABARD, the
Funds and Accounts Department (FAD) had been undertaking the management and
accounting of resources of the bank. Subsequently, the department was divided
into two independent departments, namely Finance Department and Accounts
Department. The objective behind the segregation was to cater to the enhanced
and specialised needs of funds management and accounting.
2. Core Functions of the Department
The finance department carries out three main functions:
A. Resource mobilisation
B. Fund Remittance
C. Treasury operations
A. Resource Mobilisation
The Department mobilises resources
to meet bank’s fund requirements through a mix of instruments of various types
and tenures, viz.
- Certificate of Deposits
- Commercial Papers
- Term Deposits
- Corporate Borrowings
- Term Money Borrowings
- Rural Infrastructure Development Fund (RIDF) deposits
- Short Term Cooperative Rural Credit (STCRC) deposits
- Short Term Regional Rural Bank (STRRB) deposits
- Long Term Rural Credit Fund (LTRCF) deposits, etc.
In the Bonds category, four types of
bonds have been issued to retail investors, viz. capital gains bonds, NABARD
rural bonds, Bhavishya Nirman Bonds and Tax-Free bonds.
Bonds, Certificate of Deposits and
Commercial Papers are issued after obtaining ratings from an approved credit
rating agency, viz. CRISIL, ICRA, India Ratings or CARE. Bhavishya Nirman
Bonds, which are zero coupon bonds with a tenure of 10 years, and tax-free
bonds were rated by at least two credit rating agencies. NABARD’s issuances
received AAA (the highest) or equivalent ratings from these agencies.
bonds issued to institutional investors are listed on the National Stock
Exchange (NSE), while Bhavishya Nirman Bonds and Tax Free Bonds are listed on
the Bombay Stock Exchange (BSE). The servicing of retail instruments (viz.
Capital Gains Bonds, NABARD Rural Bonds and Bhavishya Nirman Bonds) is done by
UTI Infrastructure Technology and Services Ltd., which acts as our Registrar
and Transfer Agent. The Corporate Bonds are serviced by Datamatics Financial
Services Ltd. IDBI Trusteeship Services Ltd is the trustee for Corporate Bonds
and Bhavishya Nirman Bonds. For tax-free bonds issued in 2015-16, Axis Trustee
Services Ltd acts as Debenture Trustee and Link Intime serves as the Registrar.
NABARD’s Compliance Officer is Shri
T S Sivasankaran. He can be reached via e-mail at firstname.lastname@example.org
in case of any grievance / query regarding Bonds by our Bond investors. Queries
on retail Bonds issued by NABARD can also be forwarded to email@example.com.
B. Fund Remittance
The Department remits funds for
loaning operations and other purposes to NABARD Regional Offices and client
institutions (Commercial Banks, Regional Rural Banks, State Cooperative
Agriculture and Rural Development Banks, State Cooperative Banks and District
Central Cooperative Banks), State Governments and other eligible agencies
directly or through NABARD Regional Offices.
C. Treasury Operations
The Department carries out treasury
operations with a view to ensure availability of adequate liquid resources for
business operations and administrative functions of the bank. The Treasury Cell
also invests the bank’s temporary surpluses and other funds in various
instruments in accordance with the provisions of the NABARD Act, the Reserve
Bank of India guidelines and directions given by the Board of Directors and the
3. Broad Achievements of the Department at a National Level
- NABARD has been entrusted by GoI to handle phased resource mobilisation for the prestigious Long Term Irrigation Fund (LTIF), starting from FY 2016-17.
- As a new initiative, NABARD treasury became active in SDL based CROMS platform.
- Redemptions for the 10 year zero coupon bond issued by NABARD, i.e., Bhavishya Nirman Bonds started series wise from 01 March 2017.