Why is it in the news?
- Recently, the National Bank for Agriculture and Rural Development (NABARD) has listed its ‘Social Bonds’ on the Bombay Stock Exchange (BSE) and raised ₹1,040 crore.
- The funds generated from the Social Bonds will be utilized to refinance the Jal Jeevan Mission, a Union government project focused on providing drinking water in Telangana.
About Social bonds
- Social bonds are atype of financial instrument or investment vehicle issued by governments, companies, or organizations to raise capital for projects or initiatives with a specific social or environmental purpose.
- These bonds are typically designed to fund projects that have a positive impact on society or address social and environmental challenges.
NABARD (National Bank for Agriculture and Rural Development)
- NABARD is a development bank with a primary focus on the rural sector of India.
- It serves as the apex banking institution responsible for providing finance for agriculture and rural development.
- NABARD plays a pivotal role in the development of small industries, cottage industries, and various rural projects aimed at rural upliftment.
- NABARD is a statutory body established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981, passed by the Indian Parliament.