Skip to main content

The National Bank for Agriculture and Rural Development Act, 1981

Central

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.

Act number
61 of 1981
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
30 Dec 1981

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

69 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Establishment and incorporation of National Bank for Agriculture and Rural Development.
  4. Section 4Capital.
  5. Section 5Management.
  6. Section 6Board of Directors.
  7. Section 7Term of office of Chairman and other directors, retirement and payment of fees.
  8. Section 8Term of office of Managing Director and whole-time directors, conditions of service, etc.
  9. Section 9Disqualifications.
  10. Section 10Vacation and resignation of office by directors.
  11. Section 11Casual vacancy in the office of Managing Director.
  12. Section 12Meetings of Board.
  13. Section 13Committees of National Bank.
  14. Section 14Advisory Council.
  15. Section 15Member of Board or Committee thereof not to participate in meetings in certain cases.
  16. Section 16Transfer of assets and liabilities of Agricultural Refinance and Development Corporation.
  17. Section 17Dissolution of the Corporation and repeal of Act 10 of 1963.
  18. Section 18Transfer of business from Reserve Bank.
  19. Section 19Borrowings by the National Bank.
  20. Section 20Borrowings in foreign currency.
  21. Section 21Production and marketing credit.
  22. Section 22Conversion loan for production credit.
  23. Section 23Rescheduling of loans to artisans, small-scale industries, etc.
  24. Section 24Investment credit--medium term.
  25. Section 25Other investment credit.
  26. Section 26Purchase and sale of shares.
  27. Section 27Loans to State Governments for share capital contribution.
  28. Section 27ALoans to State Government, undertakings, etc.
  29. Section 28Security for credit.
  30. Section 29Amounts and securities to be held in trust.
  31. Section 30Direct loans.
  32. Section 30ABills rediscounting.
  33. Section 31Commission.
  34. Section 32Issue of guarantees.
  35. Section 33Power to impose conditions for accommodation.
  36. Section 34Power to call for repayment before agreed period.
  37. Section 35National Bank to have access to records.
  38. Section 36Validity of loan or advance not to be questioned.
  39. Section 37National Bank not to grant loans or advances against its own bonds or debentures.
  40. Section 37AProhibited business.
  41. Section 38Other functions of National Bank.
  42. Section 38APromotion of subsidiaries.
  43. Section 38BSecuritisation of debt.
  44. Section 38CExemption from compulsory registration.
  45. Section 39Incidental powers.
  46. Section 40Deposits and investments.
  47. Section 41Credit information.
  48. Section 42National Rural Credit (Long Term Operations) Fund.
  49. Section 43National Rural Credit (Stabilisation) Fund.
  50. Section 44Research and Development Fund.
  51. Section 45Reserve Fund and other Funds.
  52. Section 46Preparation of balance-sheet, etc., of National Bank.
  53. Section 47Disposal of surplus.
  54. Section 48Audit.
  55. Section 49Returns.
  56. Section 50Staff of National Bank.
  57. Section 51Obligation as to fidelity and secrecy.
  58. Section 52Defects in appointment not to invalidate acts, etc.
  59. Section 52AAgreement with National Bank on appointment of directors to prevail.
  60. Section 53Protection of action taken under the Act.
  61. Section 54Indemnity of directors.
  62. Section 55[Omitted].
  63. Section 56Penalties.
  64. Section 57Offences by companies.
  65. Section 58Bankers' Books Evidence Act, 1891, to apply in relation to National Bank.
  66. Section 59Liquidation of National Bank.
  67. Section 60Power of Board to make regulations.
  68. Section 61[Repealed.].
  69. Section 62Power to remove difficulty.