National Bank for Agriculture and Rural Development Act, 1981

[30th December, 1981]

Contents
Sections	Particulars
Chapter I	Preliminary
1	Short title, extent and commencement
2	Definitions
Chapter II	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
Chapter III	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
Chapter IV	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
Chapter V	Borrowings by the National Bank
19	Borrowings by the National Bank
20	Borrowings in foreign currency
Chapter VI	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 contributions
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
Chapter VII	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
Chapter VIII	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
Chapter IX	Staff
50	Staff of National Bank
Chapter X	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	Exemption from income-tax, etc.
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	Amended of certain enactments
62	Power to remove difficulty
Schedules	First Schedule
	Second Schedule

An Act to establish a bank to be known as the National Bank for Agriculture and Rural Development for providing credit for the promotion 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. BE it enacted by Parliament in the Thirty-second Year of the Republic of India as follows:-