The National Bank for Agriculture and Rural Development (NABARD) on August 14, 2026, issued operational guidelines for providing Long-Term Refinance to Scheduled Commercial Banks, including Public Sector Banks, Private Sector Banks and Foreign Banks, for extending credit support to eligible activities in the agriculture and rural development sector. Refinance applications may be forwarded to NABARD’s Department of Refinance, Head Office, for consideration.
The refinance is intended to support capital formation in agriculture and allied sectors, JLGs and SHGs, off-farm activities including MSMEs, rural housing and commercial vehicles, climate adaptation and mitigation projects, green assets and credit-linked capital subsidy schemes of the Government of India. Refinance is available through Pre-Sanction and Automatic Refinance Facility (ARF). Under ARF, banks can appraise and finance eligible projects themselves and subsequently claim refinance from NABARD after disbursement, without a prior NABARD sanction.
For the current financial year, eligibility requires compliance with a minimum CRAR of 11.50%, net NPAs not exceeding 6%, and profitability requirements, including net profit in the immediately preceding financial year and profit in at least three of the preceding four years. Eligibility and risk assessment are based on the latest audited financial statements, with sanctions/drawals after July 1 permitted only where the immediately preceding financial year’s audit has been completed. Any subsequent changes in financial parameters may be considered on the basis of duly certified financials.
[Circular No. 186/DOR-50/2026]
