New Delhi, Aug 4 (KNN) The National Bank for Agriculture and Rural Development (NABARD) amendment bill was flagged green recently in the Lok Sabha, making way for the exit of the RBI from NABARD. Also under the amendment, certain clauses with reference to the Micro, Small and Medium Enterprises (MSMEs)   development act of 2006 are to introduced.

The bill proposes the exit of the Reserve Bank of India from NABARD; it further expands the authorized capital of the development institution to 30000 crores.

With regard to the MSMEs, the bill replaces the terms ‘small scale industry’ and ‘industry in tiny and decentralized sector’ with the terms Micro, Small and Medium Enterprises as prescribed under the MSME Development Act of 2006.

While earlier NABARD was the agency responsible for providing credit to industries that had investment up to 20 lakhs, with the amendment, NABARD will now be extending credit to enterprises that have investment up to 10 crores in the manufacturing sector.

Also NABARD will act as the crediting agency for enterprises that have investment up to 5 crores operating in the service sector.

The Amendment Bill was tabled in Lok Sabha earlier and was passed by a voice vote. (KNN/ DA)