The National Bank for Agriculture and Rural Development Act `1981

An Act to establish a development bank to be known as the National Bank for Agriculture and Rural Development for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas and for matters connected therewith or incidental thereto.
1981
  • MANAGEMENT OF THE NATIONAL BANK

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     Management
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     Board of Directors
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     Term of office of Chairman and other directors, retirement and payment of fees
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     Term of office of Managing Director and whole-time directors, conditions of service, etc
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     Disqualifications
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     Vacation and resignation of office by directors
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     Casual vacancy in the office of Managing Director
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     Meetings of Board
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     Committees of National Bank
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     Advisory Council
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     Member of Board or Committee thereof not to participate in meetings in certain cases
  • TRANSFER OF BUSINESS TO THE NATIONAL BANK

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     Transfer of assets and liabilities of Agricultural Refinance and Development Corporation
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     Dissolution of the Corporation and repeal of Act 10 of 1963
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     Transfer of business from Reserve Bank
  • BORROWINGS BY THE NATIONAL BANK

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     Borrowings by the National Bank
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     Borrowings in foreign currency
  • CREDIT FUNCTIONS OF THE NATIONAL BANK

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     Production and marketing credit
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     Conversion loan for production credit
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     Rescheduling of loans to artisans, small-scale industries, etc
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     Investment credit--medium term
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     Other investment credit
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     Purchase and sale of shares
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     Loans to State Governments for share capital contribution
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     Loans to State Government, undertakings, etc
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     Security for credit
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     Amounts and securities to be held in trust
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     Direct loans
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     Bills rediscounting
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     Commission
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     Issue of guarantees
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     Power to impose conditions for accommodation
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     Power to call for repayment before agreed period
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     National Bank to have access to records
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     Validity of loan or advance not to be questioned
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     National Bank not to grant loans or advances against its own bonds or debentures
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     Prohibited business
  • OTHER FUNCTIONS OF THE NATIONAL BANK

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     Other functions of National Bank
  • 38A
     Promotion of subsidiaries
  • 38B
     Securitisation of debt
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     Exemption from compulsory registration
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     Incidental powers
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     Deposits and investments
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     Credit information
  • FUNDS, ACCOUNTS AND AUDIT

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     National Rural Credit (Long Term Operations) Fund
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     National Rural Credit (Stabilisation) Fund
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     Research and Development Fund
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     Reserve Fund and other Funds
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     Preparation of balance-sheet, etc., of National Bank
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     Disposal of surplus
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     Audit
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     Returns
  • STAFF

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     Staff of National Bank
  • MISCELLANEOUS

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     Obligation as to fidelity and secrecy
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     Defects in appointment not to invalidate acts, etc
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     Agreement with National Bank on appointment of directors to prevail
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     Protection of action taken under the Act
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     Indemnity of directors
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     [Omitted]
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     Penalties
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     Offences by companies
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     Bankers' Books Evidence Act, 1891, to apply in relation to National Bank
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     Liquidation of National Bank
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     Power of Board to make regulations
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     [Repealed.]
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     Power to remove difficulty