3. Establishment and incorporation of National Bank for Agriculture and Rural
Development.—(1) With effect from such date as the Central Government may, by notification in the
Official Gazette, appoint, there shall be established for the purposes of this Act, a bank to be known as the
National Bank for Agriculture and Rural Development.
(2) The Bank shall be a body corporate with the name aforesaid having 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 by that name sue and be sued.
(3) The head office of the National Bank shall be at 2
[Mumbai] or at such other place as the Central
Government may, by notification, specify.
(4) The National Bank may establish offices, branches or agencies at any place in India, and with the
previous approval of the Central Government and in consultation with the Reserve Bank, at any place
outside India.
4. Capital.—(1) The capital of the National Bank shall be one hundred crores of rupees:
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[Provided that the Central Government may, by notification, increase the said capital up to thirty
thousand crore rupees:
Provided further that the Central Government may, in consultation with the Reserve Bank and by
notification, further increase the said capital to such amount as it may deem necessary from time to time].
1. Clause (t) omitted by Act 7 of 2018, s. 3 (w.e.f. 15-3-2018).
2. Subs. by s. 4, ibid., for “Bombay” (w.e.f. 15-3-2018).
3. The proviso subs. by s. 5, ibid. (w.e.f. 15-3-2018).
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[(2) The capital of the National Bank which has been subscribed to by the Reserve Bank valued at
twenty crore rupees as on the date immediately preceding the commencement of the National Bank for
Agriculture and Rural Development (Amendment) Act, 2018 shall, on such commencement, stand
transferred to, and vested in, the Central Government:
Provided that the National Bank may issue capital to such institutions and persons in such manner as
may be notified by the Central Government:
Provided further that the shareholding of the Central Government shall not at any time be less than
fifty-one per cent. of the total subscribed capital.
(3) The Central Government shall give to the Reserve Bank an amount equal to the face value of the
subscribed capital, valued at twenty crores of rupees, referred to in sub-section (2), in cash, for transfer to,
and vesting in the Central Government of the capital of the National Bank which has been so subscribed
to by the said Bank.]