Section 42
National Rural Credit (Long Term Operations) Fund.
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.
(1) The National Bank shall establish
and maintain a Fund to be known as the National Rural Credit (Long Term Operations) Fund.
(2) The Fund shall (in addition to assets and liabilities transferred under section 18) include,--
(a) such sums of money as the Central Government and the State Governments may contribute from time to time;
(b) such sums of money as the Reserve Bank may contribute every year; and
(c) such further sums of money as the Board may contribute every year.
(3) The amount in the said Fund shall be applied by the National Bank only to provide financial assistance by way of loans and advances under section 23, section 24, sub-section (1) of section 25 or section 27 or for the purposes of section 26.
(2) The Fund shall (in addition to assets and liabilities transferred under section 18) include,--
(a) such sums of money as the Central Government and the State Governments may contribute from time to time;
(b) such sums of money as the Reserve Bank may contribute every year; and
(c) such further sums of money as the Board may contribute every year.
(3) The amount in the said Fund shall be applied by the National Bank only to provide financial assistance by way of loans and advances under section 23, section 24, sub-section (1) of section 25 or section 27 or for the purposes of section 26.