AU SFB – NABARD Pact: The private sector AU Small Finance Bank (SFB) recently signed a pact with the National Bank for Rural and Development (NABARD).
- The pact was signed on September 29, 2021 in a bid to boost ongoing rural development initiatives in the state of Rajasthan.
- The Memorandum of Understanding (MoU) was signed in the presence of NABARD Chairman and Managing Director of AU Small Finance Bank.
Benefits of the pact:
- The MoU envisages a joint initiative to benefit farmers, Self Help Groups (SHGs), rural artisans, Farmer Producer Organisations (FPOs), agri-entrepreneurs, and agri-start-ups in Rajasthan.
- This collaboration between NABARD and AU Bank will provide institutional credit support to the ongoing development schemes in the State, which will lead to further prosperity in the rural areas.
- It will give a boost to the process of lending in the state, especially in areas related to agriculture and rural development.
About AU Small Finance Bank Limited:
- It is an Indian scheduled commercial bank.
- It was founded in 1996 as vehicle finance company AU Financiers (India) Ltd.
- The bank serves as the low- & middle-income individuals and micro & small businesses that have limited or no access of formal banking and finance channels.
- The Bank offers loans, deposits and payment products and services
- It is headquartered in Jaipur, Rajasthan.
- Mr. Sanjay Agarwal is the MD & CEO of AU Small Finance Bank and is the man behind the success story of the company.
- It refers to the National Bank for Agriculture and Rural Development. NABARD is an apex development finance institution in India.
- It works under the jurisdiction of Ministry of Finance.
- It was founded on 12 July 1982.
- The bank has been entrusted with “matters concerning policy, planning, and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
- It is headquartered in Mumbai, Maharashtra.
- The current Chairman of NABARD is Dr. G.R. Chintala.
- Rajasthan is a state in northern India. It shares a border with the Pakistani provinces of Punjab to the northwest and Sindh to the west, along the Sutlej-Indus river valley.
- It became a State after 1947 when the princely states and chiefships were integrated into India in stages, and the state took the name Rajasthan.
- It assumed its present form on November 1, 1956, when the States Reorganization Act came into force.
- The Capital of Rajasthan is Jaipur.
- The current Chief Minister and Governor of Rajasthan are Ashok Gehlot and Kalraj Mishra respectively.