Nabard to set up micro finance institution

In a bid to cater to the agriculture sector in a better way, National Bank for Agriculture and Rural Development plans to set up a micro finance institution as a joint venture with banks and other partners.

The plan has received positive feelers from Canara Bank, which, along with others, will together hold 49 per cent. The MFI will be set up with a capital of Rs 100 crore (Rs 1 billion).

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MFI will aim at catering to the poorest, especially those in the agri sector. It will compete with the best-known players in the micro finance domain in terms of providing funds at competitive rates.

Nabard is further setting up an agri-management institute in Kolkata, an outfit that is expected to critically add to the city's academic infrastructure.