Act Number: 21

Act Name: The Regional Rural Banks Act, 1976

Year: 1976

Enactment Date: 1976-02-09

Long Title: 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.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section 5: Authorised capital.
    The authorised capital of each Regional Rural Bank shall be 1 [two thousand crore of rupees, divided into two hundred crore of fully paid-up shares of ten rupees each]:
     Provided that the Central Government may, after consultation with the 2 [National Bank] and the Sponsor Bank, increase or reduce such authorised capital; so, however, that the authorised capital shall not be reduced below 3 [one crore of rupees, and the shares shall be, in all cases, fully paid-up shares of ten rupees each].
Notes:
1 Subs. by Act 14 of 2015, s. 3, for "five crores of rupees divided into five lakhs of fully paid-up shares of one hundred rupees each" (w.e.f. 4-2-2016).
2 Subs. by Act 1 of 1988, s. 5, for "Reserve Bank" (w.e.f. 28-9-1988).
3 Subs. by Act 14 of 2015, s. 3, for "twenty-five lakhs of rupees, and the shares shall be, in all cases, fully paid-up shares of one hundred rupees each" (w.e.f. 4-2-2016).
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