National Bank for Agriculture and Rural Development Act, 1981

27. Loans to State Governments for share capital contributions

The National Bank may make loans and advance 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.