The third and final part of this three-part series does a deep-dive into NABARD and some important milestones in its development, and suggests a way forward..—.NABARD and climate action in the light of global trend of banking .NABARD is the national implementing entity (NIE) for the adaptation fund under the United Nations Framework Convention on Climate Change (UNFCCC), National Adaptation Fund for Climate Change, and the Direct Access Entity for Green Climate Fund under the UNFCCC..In these multiple roles as the nodal agency, NABARD supports projects on augmenting groundwater, ensuring food security, providing economically viable solar models, coastal management, climate resilient agriculture, forest and ecosystems, livestock management, increasing green cover through integrated farming practices. .As on March 31, 2023, there are 40 climate change projects at different stages of completion with a total financial assistance of ₹1,852.6 crore, total amount being released in 2023 by NABARD is ₹121.7 crore, with the cumulative release to the executing entity (EE) being ₹1,051.0 crore..“NABARD is the national implementing entity (NIE) for the adaptation fund under the United Nations Framework Convention on Climate Change (UNFCCC), National Adaptation Fund for Climate Change, and the Direct Access Entity for Green Climate Fund under the UNFCCC..NABARD projects such as Watershed Development Programme and Springshed Development Programme have important economic, social, behavioural outcomes at the ground level in recharging groundwater tables, restoration and rehabilitation of degraded soils, reducing drinking water scarcity and to promote off-season farming for sustainable livelihood to the rural community..This is especially noteworthy, when viewed in the background of the global model of transnational banks' financing behind fossil fuel production. As of 2022, the world's 60 biggest banks poured over US $5.5 trillion over seven years into the fossil fuel industry, driving climate chaos and causing deadly local community impacts..Also read: Why Are Landless, Marginal and Small Farmers the Backbone of the Delhi Protest?.From 2016 (Paris Agreement) to 2022, among the top 12, known as the 'Dirty Dozen' in this respect are: JP Morgan Chase financing to the tune of US $434.1 billion, leading the pack of fossil fuel finance, followed by CITI at US $332.9 billion and Wells Fargo at US $316.7 billion, thus occupying the top three positions among this 'Dirty Dozen'..This laid bare the deep interconnection between the global model of finance capital today and the financing behind the climate crisis..Extant challenges faced by NABARD.As the principal development financial institution (DFI) in the field of the agriculture, NABARD has many a laurel to its feather such as pioneering self-help group (SHG)–bank linkage programme in India, service area approach, turning the health of the short-term cooperatives through implementation of the Vaidyanathan Committee recommendations, farmers' producer organisations (FPOs) and so on..NABARD development interventions have ushered in significant changes in the field of agriculture and rural development in the country. However, NABARD itself is beset with problems such as concessional finance from the RBI and government of India, as the institution's generation of long-term resources is facing serious headwinds, as the RBI has almost stopped financing for NABARD's national rural credit funds since the beginning of 1990s..The RBI surplus is now diverted to the Indian government to balance its fiscal deficit, an outcome directly borne out of the compulsion of following the neo-liberal path..Today, out of NABARD's total balance sheet size of ₹8.01 lakh crore in end-March, 2023, ₹82,868 crore (10.3 percent) is only NABARD's own fund, i.e. capital, reserves and national rural credit funds; the rest is borrowed resources, entailing significant outgo of interest..So, today, there are many challenges before NABARD. If NABARD is to survive, it can do so by sticking to its basic mandate for which this unique institution was created in 1982..“We must understand that this great institution was not mandated to serve the interest of private corporate agriculture; NABARD is meant for its development mandate with strong focus on upliftment of landless, small and marginal farmers of the country..We must understand that this great institution was not mandated to serve the interest of private corporate agriculture; NABARD is meant for its development mandate with strong focus on upliftment of landless, small and marginal farmers of the country. .Also read: Will Decriminalisation of Section 56(1) of NABARD Act help business grow or create hurdles?.In the latest financial result of NABARD as on March 31, 2023, a noteworthy feature is NABARD's dwindling refinance support behind investment credit in respect of agriculture and allied activities (from ₹39,249 crore as in FY 2022 to ₹27,793 crore in FY 2023, a drop of 29.2 percent)..It also falls behind SHGs (from ₹28,812 crore in FY 2022 to ₹22,278 crore in FY 2023, a drop of 22.7 percent), whereas, for the non-farm sector it shows a scaling up from ₹41,816 crore in FY 2022 to ₹54,400 crore in FY 2023, an increase of 30.1 percent. This imbalance needs to be corrected..Role of All India NABARD Employees Association (AINBEA).AINBEA has always been steadfast in fighting for the public sector character of banks (which is under serious threat now), strengthening of cooperative sectors in the country with special emphasis to meet the needs of the small and marginal farmers, public sector character of NABARD, and a strong and emphatic rejection of the neo-liberal economic path..AINBEA has been quite vociferous in demanding to restore the national rural credit (NRC) funds from the RBI to NABARD, as mandated under Section 42 and Section 43 of NABARD Act, 1981..With the RBI net income being pegged at ₹2.35 lakh crore (US $28.4 billion) in the FY 2023, a back of the envelope calculation would signify a total transfer of at least ₹18,800 crore to ₹21,150 crore from the RBI to NABARD, taking an average of 8–9 percent of the RBI income transferred to NABARD behind National Rural Credit (NRC) funds till it was stopped in FY 1992..Also read: Trade unions: Meeting challenges from caste and religious bigotry in a neo-liberal era.This may significantly address the dropping of long-term investment credit behind agriculture as witnessed in recent times and may aid the most needed issue of capital formation in agriculture to a great extent..Unfortunately, this is replaced with the RBI surplus transfer to the Indian government to the tune of ₹87,416 crore in FY 2023 to balance its fiscal deficit. In AINBEA's recent nationwide agitation for immediate settlement of wage demand too, it remained steadfast with this basic demand to strengthen the development mandate of NABARD..“AINBEA has been quite vociferous in demanding to restore the national rural credit (NRC) funds from the RBI to NABARD, as mandated under Section 42 and Section 43 of NABARD Act, 1981..With this clear understanding, AINBEA has been active in the trade union movement almost since its inception, and it will continue to stick to it in future..Epilogue.On the whole it appears that the entire of gamut of cooperative credit structure, its current templates as state-level, member-driven, democratic, vibrant instruments of banking and finance, controlled by the People (Member), of the People (Member), and for the People (Member) is now faced with serious headwinds from the policy changes recently brought about by the Union government..While some of the proposed changes look promising in appearance, it can show its real colours when implemented at the ground. This cannot be seen in isolation of the overall political economy of the country..It calls out for a serious analysis, introspection and response of the democratic movement of the country, especially trade unions and the kisan movement, which have had historical roots in the cooperative movement in every country, including in India..Read part 1 here..Read part 2 here.
