LawgistThe National Bank for Agriculture and Rural Development Act
27Loans to State Governments for share capital contribution
The National Bank may make loans and advances to State Governments, repayable on the expiry of fixed periods not exceeding twenty years from the date of making such loans and advances, from the National Rural Credit (Long Term Operations) Fund established under section 42 for enabling them to subscribe directly or indirectly to the share capital of a co-operative credit society.
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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
