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LAWGIST

The National Bank for Agriculture and Rural Development Act

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
List of Chapters & Sections

  1. PRELIMINARY

  2. 1
     Short title, extent and commencement
  3. 2
     Definitions

  • ESTABLISHMENT OF THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT AND CAPITAL THEREOF

  • 3
     Establishment and incorporation of National Bank for Agriculture and Rural Development
  • 4
     Capital

  • MANAGEMENT OF THE NATIONAL BANK

  • 5
     Management
  • 6
     Board of Directors
  • 7
     Term of office of Chairman and other directors, retirement and payment of fees
  • 8
     Term of office of Managing Director and whole-time directors, conditions of service, etc
  • 9
     Disqualifications
  • 10
     Vacation and resignation of office by directors
  • 11
     Casual vacancy in the office of Managing Director
  • 12
     Meetings of Board
  • 13
     Committees of National Bank
  • 14
     Advisory Council
  • 15
     Member of Board or Committee thereof not to participate in meetings in certain cases

  • TRANSFER OF BUSINESS TO THE NATIONAL BANK

  • 16
     Transfer of assets and liabilities of Agricultural Refinance and Development Corporation
  • 17
     Dissolution of the Corporation and repeal of Act 10 of 1963
  • 18
     Transfer of business from Reserve Bank

  • BORROWINGS BY THE NATIONAL BANK

  • 19
     Borrowings by the National Bank
  • 20
     Borrowings in foreign currency

  • CREDIT FUNCTIONS OF THE NATIONAL BANK

  • 21
     Production and marketing credit
  • 22
     Conversion loan for production credit
  • 23
     Rescheduling of loans to artisans, small-scale industries, etc
  • 24
     Investment credit--medium term
  • 25
     Other investment credit
  • 26
     Purchase and sale of shares
  • 27
     Loans to State Governments for share capital contribution
  • 27A
     Loans to State Government, undertakings, etc
  • 28
     Security for credit
  • 29
     Amounts and securities to be held in trust
  • 30
     Direct loans
  • 30A
     Bills rediscounting
  • 31
     Commission
  • 32
     Issue of guarantees
  • 33
     Power to impose conditions for accommodation
  • 34
     Power to call for repayment before agreed period
  • 35
     National Bank to have access to records
  • 36
     Validity of loan or advance not to be questioned
  • 37
     National Bank not to grant loans or advances against its own bonds or debentures
  • 37A
     Prohibited business

  • OTHER FUNCTIONS OF THE NATIONAL BANK

  • 38
     Other functions of National Bank
  • 38A
     Promotion of subsidiaries
  • 38B
     Securitisation of debt
  • 38C
     Exemption from compulsory registration
  • 39
     Incidental powers
  • 40
     Deposits and investments
  • 41
     Credit information

  • FUNDS, ACCOUNTS AND AUDIT

  • 42
     National Rural Credit (Long Term Operations) Fund
  • 43
     National Rural Credit (Stabilisation) Fund
  • 44
     Research and Development Fund
  • 45
     Reserve Fund and other Funds
  • 46
     Preparation of balance-sheet, etc., of National Bank
  • 47
     Disposal of surplus
  • 48
     Audit
  • 49
     Returns

  • STAFF

  • 50
     Staff of National Bank

  • MISCELLANEOUS

  • 51
     Obligation as to fidelity and secrecy
  • 52
     Defects in appointment not to invalidate acts, etc
  • 52A
     Agreement with National Bank on appointment of directors to prevail
  • 53
     Protection of action taken under the Act
  • 54
     Indemnity of directors
  • 55
     [Omitted]
  • 56
     Penalties
  • 57
     Offences by companies
  • 58
     Bankers' Books Evidence Act, 1891, to apply in relation to National Bank
  • 59
     Liquidation of National Bank
  • 60
     Power of Board to make regulations
  • 61
     [Repealed.]
  • 62
     Power to remove difficulty