NABARD was set up in the year 1982, with a mission to promote sustainable and equitable agriculture and to foster rural development. It has evolved over the decades as an important institution actively bridging the aspirations of rural India with the ground realities by providing them with financial, institutional, and technical support. This is a blog on how NABARD and the policies it has implemented have helped it become a mainstay in transforming rural India and taking its development to the grassroots, empowering communities toward self-sufficiency and resiliency. 

Why Focus on Rural Development? 

There is a strong need from the sociological, economic, political, and humanitarian dimensions to focus on rural development and prosperity in India. More than 65% of the Indian population dwells in rural areas. If it is given the least priority, then sociologically, the gap between the urban and rural population will become much broader than it has been, leading to social fragmentation and tension.  

Rural India is rich in cultural heritage and human capital, but the poor infrastructure, and a lack of education, and healthcare have often allowed this potential to remain untapped. A commitment to rural development can result in India moving toward creating a society that is more equitable where all citizens, regardless of their geographic location, have access to opportunities and resources which in turn will foster social cohesion and stability. 

Economically, agriculture remains the backbone of India, as the majority of rural populations derive their livelihoods from it. The agricultural sector contributes immensely to the country’s GDP and is further vital for food security. But without proper development, attention to farmer needs, supporting infrastructure and other resources, stagnation will result in the sector, which can turn into economic instability.  

Improvement in agricultural productivity and practice through adopting sustainable methods will lead to rural development—fueling economic growth while ensuring an economy that can be relied on. Moreover, with improved infrastructure and increased rural incomes, new markets for rural goods and services are created, increasing demand and boosting national economic growth. This kind of balanced growth will also ensure that the benefits from economic growth are shared all over the country and not merely concentrated in some urban areas. 

The political advantages of rural development are equally significant for national unity and political stability. Developmental regional disparities can lead to discontent and sometimes insurgency. This will also reduce regional disparities and focus on national integration and political stability. Besides, rural development is in conformity with the principles of inclusive growth, wherein every citizen has a stake in the country’s progress, irrespective of his/her/their location. This inclusiveness is necessary for democratic governance to sustain and for people to repose faith in political institutions. 

The humanitarian argument for focusing on rural development is no less strong. Rural India stands almost as a synonym for higher poverty, limited education and health facilities, and varied issues over the marginalization of vulnerable communities. It is an imbalance that must be redressed by putting special development efforts into action. Better living conditions in rural areas not only reduce poverty but also empower the marginalized communities to have a better life. This is the very basic foundation of bringing in social justice and making every citizen live with dignity. 

Dedicated policies on Indian rural sector development can also help sharpen our country’s international competitiveness. A thriving rural sector can lead to significantly more agricultural exports and reinforce India’s claim to being a leading competitor in the international market. Investment in rural development can increase productivity and quality of produce. The focus on rural development is to emphasize innovation in agriculture and rural industries. By incorporating modern technology, India would be able to increase efficiency and productivity, hence competition on the global stage. 

Furthermore, the fast-track migration into towns and cities due to the lack of opportunities in rural areas, puts a strain on urban infrastructure, thus leading to the overcrowding of cities and proliferation of slums. If rural areas were to be developed and opportunities made available at home, this would reduce migration and, therefore, ensure a more balanced urban-rural demographic. Moreover, rural communities are custodians of India’s cultural heritage, traditional knowledge, and sustainable living practices. In a similar vein, the preservation and integration of these practices into modern models of development ensure that progress does not have to be made at the expense of cultural and environmental degradation. 

How does NABARD Reinforce Rural Development? 

NABARD, the National Bank for Agriculture and Rural Development, has been a cornerstone in the development and transformation of India’s rural sector since its establishment in 1982. As the apex financial institution responsible for promoting sustainable and equitable agriculture and rural development, NABARD has implemented a wide range of schemes and initiatives that have significantly impacted rural communities across the country. These schemes have been designed to address various aspects of rural life, from financial inclusion and agricultural productivity to infrastructure development and skill enhancement. 

Credit Support and Financial Inclusion 

One of NABARD’s core objectives is to enhance financial inclusion in rural areas, and this has been achieved through several impactful schemes. The Self-Help Group (SHG)-Bank Linkage Programme (SHG-BLP), launched by NABARD, is a prime example. This scheme aims to provide financial services to unattended and underserved poor households through the SHG model. The SHG-BLP has become the world’s largest microfinance program, covering almost 16.19 crore households in India. Over 80% of these groups are exclusively women-led, thereby not only improving access to credit but also significantly empowering rural women. The program has enabled women to take loans at reasonable interest rates, start small businesses, and improve their families’ economic conditions, leading to greater financial independence and enhanced social status. 

To further support the SHG movement, NABARD has implemented Skill Development Programmes for SHGs. These programs provide need-based skill development training to mature SHGs, enhancing their income and employability. As of now, 6.12 lakh SHG members have been trained through 20,822 Micro Enterprise Development Programmes (MEDPs). By leveraging the SHG platform for imparting skills, NABARD has facilitated access to credit, promoted livelihoods, and enabled members to undertake income-generating activities, contributing to the economic upliftment of rural communities. 

NABARD’s Refinance Schemes for Banks have also played a crucial role in boosting bank credit to SHGs, Joint Liability Groups (JLGs), and Micro Finance Institutions (MFIs). By providing refinance to banks, NABARD ensures that these financial institutions have sufficient liquidity to extend loans to rural borrowers. During 2023-24, NABARD extended refinance of ₹10,099.55 crore to banks, with cumulative refinance disbursement for SHG lending standing at ₹1,17,895.32 crore as of March 31, 2024. This infusion of credit has enabled rural enterprises to grow, thereby creating jobs and stimulating economic activity in rural areas. 

In response to the challenges posed by the COVID-19 pandemic, NABARD introduced Special Refinance Schemes for Post-COVID Recovery. These schemes were designed to address the issue of rural migration and boost the agriculture and rural sector in the post-pandemic era. The schemes provided concessional credit to eligible financial institutions for activities such as micro food processing enterprises, water, sanitation, and hygiene (WASH) projects. By supporting these essential activities, NABARD helped stabilize rural economies and provided much-needed relief to communities affected by the pandemic. 

Rural Infrastructure Development 

NABARD’s Rural Infrastructure Development Fund (RIDF) has been instrumental in financing the construction of essential rural infrastructure, including roads, bridges, irrigation systems, and rural electrification. The RIDF was established to bridge the gap in rural infrastructure, which is critical for improving connectivity, access to markets, and the overall quality of life in rural areas. For example, by funding irrigation projects, NABARD has increased the availability of water for agriculture, leading to higher crop yields and improved food security. Similarly, the construction of rural roads under RIDF has enhanced access to markets, allowing farmers to sell their produce at better prices and reducing transportation costs. These infrastructure projects have had a multiplier effect on rural economies, creating jobs, and boosting economic activity. 

In a significant move to strengthen the cooperative credit structure, NABARD has embarked on the Transformation of Primary Agricultural Credit Societies (PACS) into Multi-Service Centres. This initiative, launched in 2020-21, aims to develop PACS into Multi-Service Centres over three years by providing concessional refinance to State Cooperative Banks (StCBs). NABARD has earmarked ₹5,000 crore for this purpose, with the goal of transforming 35,000 PACS into entities capable of offering a range of services beyond credit, such as input supply, marketing, and storage. This transformation is expected to enhance the role of PACS in rural development, making them more responsive to the needs of farmers and rural communities. 

Agricultural Development and Innovation 

NABARD has been at the forefront of promoting sustainable agricultural practices and innovation in farming. Through its Farm Sector Promotion Fund (FSPF), NABARD supports projects that promote sustainable and climate-resilient agriculture, such as organic farming, integrated pest management, and watershed development. These initiatives have helped farmers adopt environmentally friendly practices that improve soil health, conserve water, and increase crop yields. By funding agricultural research and development, NABARD has facilitated the transfer of knowledge and technology to the grassroots level, helping farmers improve their productivity and income. 

Skill Development and Capacity Building 

Recognizing the importance of human capital in rural development, NABARD has implemented various programs focused on skill development and capacity building. The Skill Development and Employment Generation Fund (SDEF), for instance, has provided training to rural youth in a range of skills, from modern farming techniques to entrepreneurship and vocational skills. These training programs have equipped rural individuals with the skills needed to start their businesses, secure better-paying jobs, and contribute to the rural economy. By fostering entrepreneurship, NABARD has helped create a culture of self-reliance in rural communities, reducing dependence on agriculture and promoting the diversification of rural incomes. 

Natural Resource Management and Environmental Sustainability 

NABARD has been a strong advocate for natural resource management, recognizing that sustainable development in rural areas depends on the careful management of natural resources. The Watershed Development Program is one of NABARD’s flagship initiatives in this area. By promoting watershed management, NABARD has helped rejuvenate degraded lands, improve water availability, and enhance agricultural productivity in drought-prone areas. Similarly, NABARD’s Tribal Development Fund (TDF) focuses on the sustainable development of tribal communities by promoting agroforestry, horticulture, and other sustainable practices that improve livelihoods while conserving the environment. These programs have had a significant impact on the ecological and economic resilience of rural communities, particularly in environmentally fragile regions. 

Support for Rural Enterprises and Microfinance 

In addition to agricultural development, NABARD has supported the growth of rural enterprises and microfinance institutions. By providing refinance support to rural banks and microfinance institutions, NABARD has facilitated the growth of small and medium enterprises (SMEs) in rural areas. These enterprises provide essential services, create jobs, and contribute to the overall economic development of rural communities. NABARD’s efforts in promoting rural entrepreneurship have been further strengthened by its support for the Rural Innovation Fund (RIF), which finances innovative projects that have the potential to improve rural livelihoods. By encouraging innovation and entrepreneurship, NABARD has helped diversify rural economies, making them less dependent on agriculture and more resilient to economic shocks. 

Post-Harvest Management and Market Access 

NABARD has also focused on improving post-harvest management and enhancing market access for farmers. Through initiatives like the Warehouse Infrastructure Fund (WIF), NABARD has supported the construction of warehouses and cold storage facilities, helping farmers reduce post-harvest losses and store their produce until they can get better prices in the market. Furthermore, NABARD’s support for Farmer Producer Organizations (FPOs) has empowered farmers to collectively market their produce, negotiate better prices, and access bulk inputs at lower costs. These initiatives have improved the bargaining power of small farmers and enhanced their income, contributing to the overall prosperity of rural communities. 

Career in NABARD  

A career in NABARD is of high repute since it offers one the unique opportunity to be a part of rural development and agricultural prosperity in the country. With NABARD you get the opportunity to work at the primary institution for shaping the rural economy of India and, therefore, placing yourself at the threshold of impactful initiatives changing many lives across rural communities. With the NABARD Grade A exam and NABARD Grade B exam drawing close, ixamBee is excited to help aspiring NABARD candidates prepare for the upcoming NABARD selection exam. ixamBee offers a vast array of NABARD preparation resources like our NABARD Grade A Phase 1 and 2 course, online test series for NABARD exams, NABARD Grade B mock test series, and NABARD previous year papers.  

Conclusion  

The policies and programs of NABARD have had a cumulative transforming effect on rural communities in terms of financial support, building infrastructure, sustainable agriculture practices, and empowering rural people through skill development and entrepreneurship, all of which have changed the quality of life in rural India. Innumerable farmers have benefited through improved access to credit, better infrastructure, and farming practices. Women in rural areas have been empowered through microfinance and self-help groups; it has enhanced gender equality and economic independence. With India continuing to change at various levels, the role of NABARD can only become more important in making this rural sector more equitable and prosperous. 

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On April 24, Panchayati Raj Day is celebrated in India every year. This day is commemorated by the Ministry of Panchayati Raj annually. It was earmarked by then-Prime Minister Manmohan Singh in 2010. This day was picked for commemoration because, on April 24, 1993, the Constitution (73rd Amendment) Act, 1992 came into effect. This Act granted constitutional status to Panchayati Raj institutions.

In this article, let us learn all about National Panchayati Raj Day with its history, significance and how the day is celebrated in India.

Panchyati Raj Day Overview

What is Panchayati Raj?

The Panchayati Raj System/Institution (PRI) is a system of rural local self-government in India. This system was established by the 73rd Constitutional Amendment to promote democracy and socio-political participation at the grass-root level. The Panchayat derives its powers from Article 246 of the Indian Constitution.

National Panchayati Raj Day Theme 2023

The theme for National Panchayati Raj Day 2023 is ‘Sustainable Panchayat: Building Healthy, Water Sufficient, Clean & Green Villages’. This theme highlights the importance of promoting sustainable development in rural areas by ensuring the availability of clean water, promoting good health practices, and creating a clean and green environment.

It also emphasizes the role of Panchayati Raj institutions in achieving these goals by empowering them to take the lead in local-level planning and implementation. By promoting sustainable practices and initiatives at the grassroots level, the theme aims to create healthy, water-sufficient, clean, and green villages that are capable of meeting the needs of their residents while preserving their natural resources for future generations.

National Panchayati Raj Day History

This day was marked by then Prime Minister Shri Manmohan Singh to acknowledge and highlight the contribution of the PRIs towards the management of rural affairs in India.

Significance of National Panchayati Raj Day

This day brings forth the importance of the local self-government and their assistance to Central/State governments in maintaining proper affairs in rural India. On this day, the actions, roles and responsibilities of the PRIs are highlighted as well through the National Panchayat Awards. Further, this day also encourages Panchayat bodies to constantly improve and increase their participation for the smooth functioning of all matters in rural India.

National Panchayat Awards

The Ministry of Panchayati Raj has been stimulating the best-performing Panchayats through awards and recognition since 2011. For this, National Panchayat Awards have been issued to create awareness and share knowledge about the achievements of Panchayats in India and beyond. This will encourage the Panchayat Institutions to build a strong nation and set a unique example for other countries.

The National Panchayat Awards are delegated under the following categories;

1. Deen Dayal Upadhyay Panchayat Sashaktikaran Puraskar
2. Nanaji Deshmukh Rashtriya Gaurav Gram Sabha Puraskar
3. Gram Panchayat Development Plan Award
4. Child-friendly Gram Panchayat Award. 
5. e-Panchayat Puraskar

Also See: Evolution of the Panchayati Raj System in India

SVAMITVA

The Prime Minister of India launched The Survey of Villages and Mapping with Improvised Technology in Village Areas (SVAMITVA) scheme on April 24, 2020, on National Panchayati Raj Day. The project launched in 2020 was a pilot project. On April 24, 2021, the full-scale project was launched pan-India.

This scheme aims to dispense property validation solutions or the ‘record of rights’ to household owners in rural areas and seeks to issue property cards. The Scheme was granted an outlay of Rs 566.23 crores to be used over five years (2020-2025).  The aim of the scheme is to transform rural India. 

The Prime Minister will be handing over SVAMITVA Property Cards to select beneficiaries, marking the distribution of 1.25 crore property cards under the SVAMITVA Scheme across the country. Additionally, the Prime Minister will be launching the Azadi Ka Amrit Mahotsav (AKAM) Campaign with the theme “Inclusive Development” or “Samaaveshi Vikas”. This campaign aims to generate 1.50 crore “Records of Rights” or Property Cards under the SVAMITVA Scheme by August 2023.

As part of the campaign, a dedicated website and mobile app on “Azadi Ka Amrit Mahotsav – SAMAAVESHI VIKAS” will also be launched by the Prime Minister. The SVAMITVA – Meri Sampatti, Mera Haq campaign under the Azadi Ka Amrit Mahotsav – Samaaveshi Vikas – Inclusive Development theme aims to celebrate people’s participation in saturation of people-centric schemes, and will cover five ministries/departments including MoRD, MoPR, MoA&FW, MoH&FW, and MoFAH&D.

The national launch of these nine campaigns under the “Inclusive Development” theme of Azadi ka Amrit Mahotsav named “विकास की ओर साझे क़दम” is aimed at promoting and celebrating people’s participation in saturation of people-centric schemes, and empowering rural communities across the country.

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NABARD Grade A Phase 2 Exam 2022

Yesterday, Oct 29, 2022, the National Bank for Agriculture and Rural Development (NABARD) successfully completed the Grade A Phase 2 exam 2022 in two shifts. The NABARD Grade A Mains Exam was held for those candidates who qualified for the Preliminary stage. Now, that the exam is over, it is always a good idea to analyze the same in detail. This practice has many benefits, such as:

• Understanding the type of questions asked in the NABARD Mains exam.
• Identifying the topics from which more no. of questions are asked.
• Gauging the level of difficulty of the NABARD Phase 2 exam.
• Understanding how you can prepare for the upcoming NABARD 2023 exam.

NABARD 2022 Phase 2 Exam Analysis

Let us now begin our NABARD Grade A Mains 2022 exam analysis. We will break down the analysis over the two papers, i.e., Paper 1 and Paper 2. Further, we will also break down the papers topic-wise so that we can make a detailed analysis of the NABARD Phase 2 exam from all aspects.

NABARD Phase 2 Exam Analysis Paper 1- English

Essay Writing

The essay-writing question was for 40 marks. Candidates were asked to write an essay of 300 words from the 4 essay topic choices that we have provided for you below. As you can see, all the topics are quite relevant to today’s time. Hence these questions combine aspects of agriculture current affairs along with your static agriculture syllabus.

1. Climate Change & Impact on Biodiversity  wildlife
2. Youth are leaving the agriculture sector after attaining Higher Education 
3. Agriculture Transportation- Roadways   & Railways
4. Manufacturing Sector

Letter-Writing

As per the NABARD Grade A Exam Pattern 2022 letter-writing question was for 30 marks. Candidates were asked to write a letter on one of the following themes for 150 marks. If you go over the topics provided below you will be able to understand the kind of letter-writing topics that are usually tested in this examination.

1. Damaged Furniture Replacement letter manager of retailer
2. Congratulations letter to the Manager – Senior Manager promotion. 
3. Letter for the (RWA) society president- Residential – disaster preparation review

Precis-Writing

Candidates were asked to write a precis paragraph of 150 words for 30 marks. The topic of the passage provided was “Battery making & Pollution- EV Criticise- Long term life- EV is future“.

Also see: NABARD Grade A Mains Previous Years’ Papers

NABARD 2022 Phase 2 Exam Analysis-Paper 2

According to the NABARD Grade A Phase 2 exam pattern, the paper is divided into objective and descriptive parts. We will first analyze the NABARD Grade A Phase 2 objective section and then move on to the descriptive paper.

Objective Paper

The NABARD ARD + ESI objective paper comprises questions for 2 marks and 1 mark each. The questions carrying 2 marks each are listed for you below.

1. The Process of parturition (Act of giving birth) in the pig is called ___________.
2. The Gestation period in swine is ___________.
3. The Parturition process in swine generally takes place during ___________.
4. When was e-NAM launched?
5. The e-NAM platform is made interoperable with ___________ platform of the Government of Karnataka.
6. Which one of the following is not a correct aim and objective of e-NAM? (5 options provided).
7. How many cities are covered under the NAMASTE scheme?
8. The Scheme has been approved with an outlay of Rs. 360 crores from 2022-23 to  ___________.
9. What is the Financial Assistance provided to the farmer under the PKVY scheme?
10. What is a sub-scheme of PKVY for the promotion of traditional agriculture knowledge?

1 Mark Questions

1. What is the scientific name of the strawberry?
2. A scientific process of converting organic matter into compost by earthworms is called ___________.
3. Which type of soil has an equal proportion of sand, silt and clay along with organic matter?
4. Under the PDS system food grains via ration shops are provided at a highly subsidized rate. The price for rice is ___________.
5. A machine that is used to separate seeds from impurities, inert material and adulterants are ___________.
6. Which subsidiary of NABARD working with NBFCs is responsible for financing Farmers and cooperations?
7. ___________ organization conditionalities were followed in executing the 1991 LPG Reforms in India.
8. ___________ is a strategy that promotes links between various interventions across thematic areas to enhance coverage throughout the lifecycle to improve child survival in India.

Descriptive Paper

In the NABARD Phase 2 descriptive paper, candidates are given 6 questions of which they are required to answer four. Among these 6, 2 questions will be answered for 15 marks and 2 for 10 marks each. The questions for the 15 marks asked in the exam are provided below.

1. What is the PMMSY? Describe its Aims & Objectives.
2. What is PDS? What are the lacunae in this scheme?
3. Inclusive Growth: Why is social investment needed for inclusive growth?

The 10-mark questions asked in the NABARD Phase 2 ARD+ESI descriptive paper are listed for you below.

1. What is Social Forestry, and how it is beneficial for the agricultural economy? (Income Augmentation)
2. Indian Economy Post globalization, Discuss.
3. Components of NRLM: Explain.

If you want to know the answers to the questions asked in the exam and make a deeper analysis of how you should approach the objective and descriptive papers, please watch Kailash sir’s exam analysis below.

NABARD Grade A Phase 2 Level of Difficulty

Below is the overall sectional exam analysis mentioned that shows the NABARD Grade A Mains 2022 level of difficulty.

Learnings from NABARD 2022 Mains Exam

After having made the NABARD Grade A Phase 2 exam analysis for Paper 1 and Paper 2, let us look at the key takeaways from our review.

• Always refer to the NABARD Grade A Phase 2 previous year question papers before you begin your exam preparation.
• It is always a good idea to engage in NABARD Grade A syllabus-oriented preparation. Stick to the syllabus provided and study accordingly.
• As for descriptive answers, always stay within the word limit. Take some time when you read the question to form the answer in your mind and then begin writing after that.
• Divide your syllabus between the static and dynamic sections and study them in tandem. As you can see from the essay topics, you will be required to bring your knowledge of both static agriculture and dynamic agriculture when you write the exam.
• Learn terminologies from the syllabus properly.
• The type of questions asked in the objective paper was quite similar to those asked in NABARD Grade A Prelims exam.
• Please go over all the government agriculture and development schemes. These are certainly tested in every exam in both the objective and descriptive sections.

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“The state shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.”

However, the system has evolved through the years depending on the needs of the people and for efficient administration. In this article, we will examine the evolution of the Panchayati Raj System in India by touching upon the important milestones that led to the formation of the system as we understand it today. This is an important topic for General Awareness that is tested in exams like SSC CHSL, NABARD Grade B, IBPS RRB PO, IBPS RRB SO, RBI Grade B and such. This is also an important topic for the Rural Development Syllabus for the NABARD Grade A exam. 

Balwantrai Mehta Committee, 1957

The Balwantrai Mehta Committee was established in 1957 to investigate the issues of democratic decentralization in post-independence India. The Committee was required to record and review the Community Development Programme (CDP). The Committee also made substantial suggestions for the Program. It highlighted how and why the community development program had been unsuccessful in the past because it failed to arouse local interest and participation from people. The report instated how there could be no development of rural areas without popular participation. The proposals of the Balwantrai Mehta Committee were officially adopted on April 1, 1958. The committee laid down the following fundamental principles:

1. There should be a three-tier structure of local self-government. The administrative bodies from the lowest to the highest level should be affiliated with each other. 
2. There should be a bona fide transfer of power and authority to these bodies to allow them to fulfill their responsibility.
3. Adequate resources should be transferred to these bodies to enable them to discharge their responsibilities.
4. All welfare and developmental schemes and programs at all three levels should be channelled through these bodies.
5. The three-tier system should facilitate further devolution and disposal of power and responsibility in the future. 
6. The committee foresaw the three-tier system of Panchayats- the Zilla Parishad, Panchayat Samiti and Gram Panchayat- and advocated the increased participation of people in community work such as promotion of agriculture and animal husbandry. The committee also advanced the causes of uplifting the weaker sections of society and women’s education and overall advancement through the Panchayats.

Ashok Mehta Committee, 1977

Two decades after the Balwantrai Mehta Committee, the Janata government of the time appointed a new committee in December 1977. This Committee was appointed under the chairmanship of Shri Ashok Mehta to study the Panchayati Raj Institution and thus came to be known as Ashok Mehta Committee. It submitted its survey report next year in August of 1978. They made 132 recommendations to revive and bolster the shrinking Panchayati Raj System in the country. Its main recommendations were:

1. A two-tier Panchayati system, wherein the Zila Parishad would function at the district level. 
2. The Mandal Panchayat would fall under the Zila Parishad comprising a group of villages. These villages would have a population of between 15 and 20 thousand people each.
3. Reservation of seats for the weaker sections of the local society. 
4. There would be 2 seats reserved for women. 
5. The Zila Parishad would be an executive body that would oversee programmes and planning at the district level.
6. Adequate funds should be made available for the Panchayat. 

L.M. Singhvi Committee, 1986

The Rajiv Gandhi government created the L.M. Singhvi Committee in 1986 to examine the problems faced by Panchayati Raj Institutions. The Gram Sabha became the lowest-strata administrative body in a decentralized democratic structure. The Panchayati Raj Institutions were viewed as institutions of self-governance that would expedite the participation of the people in the process of planning and development. Its recommendations  were as follows: 

1. Constitutional re-organization and recognition of the Local- self-government.
2. This should be coupled with the protection and preservation of the Local self-government by introducing a new chapter in the Constitution
3. Non-involvement of political parties in Panchayat elections.
4. Village Panchayats should receive increased financial resources. 
5. There should be Constitutional provisions to conduct timely, free and fair elections to the Panchayati Raj bodies.
6. The establishment of Nyaya Panchayats for a group of villages.

73rd Constitutional Amendment Act, 1992

All the efforts finally culminated in the adoption of the 73rd Amendment Act, 1992 that added a new part to the Constitution. The new part or part IX consisted of 16 Articles and the Eleventh Schedule. According to the Act, the three-tier system functions as follows:

• Zila Parishad at the District Level
• Panchayat Samiti at the Block Level
• Gram Sabha at the Village Level 

A Panchayat is elected for a term of 5 years unless dissolved earlier. The 73rd Amendment Act lays down the powers and functions of the Panchayati Raj System as entrusted to it by the State Legislatures. This Act laid down the foundation of the Panchayati Raj System as we know it today. 

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