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THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT ACT, 1981

ACT NO. 61 OF 1981 · Enacted [30th December, 1981.] · 69 sections

PRELIMINARY

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

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

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

MANAGEMENT OF THE NATIONAL BANK

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

TRANSFER OF BUSINESS TO THE NATIONAL BANK

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

BORROWINGS BY THE NATIONAL BANK

Section 19.Borrowings by the National Bank.
Section 20.Borrowings in foreign currency.

CREDIT FUNCTIONS OF THE NATIONAL BANK

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

OTHER FUNCTIONS OF THE NATIONAL BANK

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

FUNDS, ACCOUNTS AND AUDIT

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

STAFF

Section 50.Staff of National Bank.

MISCELLANEOUS

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