Section 3
Establishment and incorporation of Regional Rural Banks.
The Regional Rural Banks Act, 1976
About this Act
An Act to provide for the incorporation, regulation and winding up of Regional Rural Banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto.
(1) The Central Government may,
if requested so to do by a Sponsor Bank, by notification in the Official Gazette, establish in a State or
Union territory, one or more Regional Rural Banks with such name as may be specified in the notification
and may, by the said or subsequent notification, specify the local limits within which each Regional Rural
Bank shall operate.
(2) Every Regional Rural Bank shall be a body corporate with perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract and may sue and be sued in its name.
1 [(3) It shall be the duty of the Sponsor Bank to aid and assist the Regional Rural Bank, sponsored by it, by--
(a) subscribing to the share capital of such Regional Rural Bank;
(b) training personnel of such Regional Rural Bank; and
(c) providing such managerial and financial assistance to such Regional Rural Bank 2 ***, as may be mutually agreed upon between the Sponsor Bank and the Regional Rural Bank:
3 * * * * *]
(2) Every Regional Rural Bank shall be a body corporate with perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract and may sue and be sued in its name.
1 [(3) It shall be the duty of the Sponsor Bank to aid and assist the Regional Rural Bank, sponsored by it, by--
(a) subscribing to the share capital of such Regional Rural Bank;
(b) training personnel of such Regional Rural Bank; and
(c) providing such managerial and financial assistance to such Regional Rural Bank 2 ***, as may be mutually agreed upon between the Sponsor Bank and the Regional Rural Bank:
3 * * * * *]
Notes
1. Subs. by Act 1 of 1988, s. 3, for sub-section (3) (w.e.f. 28-9-1988).
2. The words "during the first five years of its functioning" omitted by Act 14 of 2015, s. 2 (w.e.f. 4-2-2016).
3. The proviso omitted by s. 2, ibid. (w.e.f. 4-2-12016).
2. The words "during the first five years of its functioning" omitted by Act 14 of 2015, s. 2 (w.e.f. 4-2-2016).
3. The proviso omitted by s. 2, ibid. (w.e.f. 4-2-12016).