Arunachal Pradesh Governor KT Parnaik urged NABARD on May 30, 2024, to ensure timely and uninterrupted credit flow to agricultural sector and small-scale industries. This comes amid concerns over rural credit accessibility challenges faced by northeastern states. NABARD, as the apex development financial institution for agriculture, plays crucial role in refinancing regional rural banks and cooperative banks. Governor emphasized need for strengthened institutional mechanisms to support farmers and rural entrepreneurs in Arunachal Pradesh.

NABARD's credit flow mechanism operates through a multi-tiered structure where it refinances Regional Rural Banks (RRBs), State Cooperative Banks, and District Central Cooperative Banks, which then lend to farmers and rural enterprises. The Governor's emphasis reflects ground-level challenges in northeastern states where geographical isolation, limited banking infrastructure, and documentation issues often disrupt credit delivery. NABARD's refinance support covers crop loans, investment credit for agriculture, and funding for rural infrastructure. The institution also implements government schemes like Kisan Credit Card and provides institutional support for Self-Help Groups. In states like Arunachal Pradesh, where 60% population depends on agriculture, uninterrupted credit flow becomes critical for food security and rural livelihoods. NABARD's role extends beyond refinancing to include capacity building of cooperative institutions, promoting financial inclusion, and supporting climate-resilient agriculture. The Governor's intervention highlights the need for NABARD to strengthen its monitoring mechanisms and ensure last-mile connectivity of credit, particularly in remote areas where traditional banking penetration remains low.