The RBI has divested its stake amounting to Rs 1430 crore (Rupees one thousand four hundred and thirty crore) in National Bank for Agriculture and Rural Development (NABARD) on October 13, 2010. With this divestment, the Reserve Bank’s holding in NABARD has come down to one per cent in NABARD. The Government of India currently holds 99 % of the stake.
The Reserve Bank held 72.5 per cent of equity in NABARD amounting to Rs 1450 crore. The remaining shareholding of Rs 550 crore was with the Government of India. The Union Cabinet in May 2008 approved the Reserve Bank’s proposal to transfer its share holding in NABARD to the Government of India.
Accordingly, the Government of India issued a notification on September 16, 2010 prescribing the proportion of subscription/ownership of Government of India and Reserve Bank in NABARD as 99 per cent and 1 per cent respectively.
The transfer of 71.5 per cent shareholding of the Reserve Bank amounting to Rs 1430 crore was effected on October 13, 2010. Now the Reserve Bank holds one per cent of shareholding in NABARD and the Government of India 99 per cent.