The bank, in order to accomplish the stated objectives, performs the following major functions:

• Provide short and medium term wholesale credit or refinance to SFCLs and other similar grassroots level financial intermediaries
• Develop and deliver varieties of financial and non financial products through SFCLs .
• Formulate and implement measures to help SFCLs achieve and maintain high recovery ensuring financial self-sufficiency.
• Introduce uniform accounting polices and Procedures including interest rates, arrears, rescheduling, portfolio quality, audit standards and reporting system to SFCLs .
• Undertake regular inspection and supervision of SFCLs with a view to strengthening them.
• Provide technical support to SFCLs such as training and setting up planning, monitoring and information system.
• Provide non-financial support services to SFCLs for development activities such as literacy, sanitation, enterprise development and others by mobilizing internal as well as external resources.
• Institute measures to encourage and support SFCLs in maximizing women participation in economic and social activities.
• Undertake other activities specified by the concerned Act.