Section 35(6) of the Banking Regulation Act, 1949, empowers NABARD to conduct inspection of State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs). In addition, NABARD has also been conducting periodic inspections of state level cooperative institutions such as State Cooperative Agriculture and Rural Development Banks (SCARDBs), Apex Weavers Societies, Marketing Federations etc., on a voluntary basis.

Objectives of Supervision

• To protect the interest of present and future depositors
• To ensure that the business conducted by these banks is in conformity with the Provisions of the relevant Acts/Rules, regulations/Bye-Laws
• To ensure observance of rules, guidelines, etc., formulated and issued by NABARD/RBI/Government
• To examine the financial soundness of the banks and
• To suggest ways and means for strengthening the institutions so as to enable them to play a more efficient role in purveying rural credit