RBI is divesting stake from NABARD to the tune of 1430 crore that will reduce her shareholding to a straight low of 1%. Theses shares are taken by Government of India.The motive behind such a transfer is stated to be sticking to her role as a regulator rather than as an executioner of the various institutes. Government will be now entrusted with the greater responsibilities of managing the funds of NABARD. Government had come to limelight in the recent times due to her various action likes raising a vast amount of resources from the public resulting in a hige debt to GDP ratio. In this case government has to make sure that NABARD does not suffer from mismanagement. As many rural people have their stake with NABARD that if run properly can result in the drastic reductions in the poverty and other associated problems.