Government is all set to take up RBI's stake worth Rs 1,450 crore in NABARD thereby increasing its stake in the bank to 99%, said a top official of the bank.

RBI holds 72.5% stake in National Bank of Agriculture and Rural Development (Nabard). The rest is currently held by the Government.

"The Government might have a 99 per cent shareholding in NABARD. The RBI will still hold one per cent in the bank," the bank's Managing Director K G Karmakar said.

"It won't affect the functioning. It will be business as usual. The present 15 member Board will have 12 officials from the Government and the rest from the apex bank," he said.

It was suggested by the Narasimham Committee that government should take RBI;s stakes in SBI, NABARD and NHB in order to differentiate the banking regulator's roles.

In the year 2007, Centre took RBI's stake in SBI.