Section 27
Loans to State Governments for share capital contribution.
The National Bank for Agriculture and Rural Development Act, 1981
About this Act
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.
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.