16. Transfer of assets and liabilities of Agricultural Refinance and Development Corporation.—
(1) On such date as the Central Government, in consultation with the Reserve Bank may, by notification,
appoint, the entire undertaking of the Agricultural Refinance and Development Corporation (hereafter in
this Chapter referred to as the “Corporation”) including all business, property, assets and liabilities, rights,
interests, privileges and obligations of whatever nature, shall stand transferred to and vest in the National
Bank.
(2) As compensation for the transfer of the undertaking of the Corporation to the National Bank under
sub-section (1), the National Bank shall within six months from the date appointed under that sub-section
(hereafter in this section referred to as the appointed date) pay to the shareholders of the Corporation a
sum equal to the total paid-up capital of the Corporation as on the date immediately preceding the
appointed date.
(3) The amount of compensation payable under sub-section (2) to the shareholders of the Corporation
shall be apportioned among the shareholders in proportion to their contributions to the paid-up capital of
the Corporation as on the date immediately preceding the appointed date.
Explanation.—For the purposes of this sub-section, “shareholders of the Corporation” means
shareholders of the Corporation whose names appear on the register of shareholders maintained under
1. Subs. by 55 of 2000, s. 9, for “The Board shall” (w.e.f. 1-2-2001).
2. Subs. by Act 7 of 2018, s. 7, for “small-scale industries” (w.e.f. 15-3-2018).
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section 8 of the Agricultural Refinance and Development Corporation Act, 1963 (10 of 1963), on the date
immediately preceding the appointed date.
(4) The National Bank shall also pay to the shareholders of the Corporation referred to in
sub-section (2) an amount calculated at the rate at which the shares of the Corporation were guaranteed as
to the payment of minimum divided under section 6 of the Agricultural Refinance and Development
Corporation Act, 1963 (10 of 1963), for the period, if any, that has expired in the accounting year of the
Corporation before the appointed date and this amount the National Bank shall distribute to the
shareholders of the Corporation referred to in sub-section (2) in proportion to the shares held by such
shareholders on the date immediately preceding the appointed date and at the rate at which such shares
were guaranteed as to the payment of minimum dividend.
(5) All contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and
other instruments of whatever nature subsisting or having effect immediately before the appointed date
and to which the Corporation is a party, or which are in favour of the Corporation, shall be of as full force
and effect against or in favour of the National Bank, as the case may be, and may be enforced or acted
upon as fully and effectually as if instead of the Corporation the National Bank had been a party thereto,
or as if they had been in favour of the National Bank.
(6) If, immediately before the appointed date, any suit, appeal or other legal proceeding of whatever
nature, is pending, by or against the Corporation, the same shall not abate, be discontinued or be in any
way prejudicially affected by reason of the transfer to the National Bank of the undertaking of the
Corporation, or of anything contained in this Act, but the suit, appeal or other proceeding may be
continued, prosecuted and enforced, by or against the National Bank.
17. Dissolution of the Corporation and repeal of Act 10 of 1963.—On the date appointed under
sub-section (1) of section 16,—
(a) the Corporation shall stand dissolved; and
(b) the Agricultural Refinance and Development Corporation Act, 1963, shall stand repealed.
18. Transfer of business from Reserve Bank.—(1) On such date as the Central Government may, in
consultation with the Reserve Bank, by notification, appoint, the assets and liabilities with the Reserve
Bank relating to—
(a) the National Agricultural Credit (Long Term Operations) Fund established and maintained
under section 46A of the Reserve Bank of India Act, 1934 (2 of 1934); and
(b) the National Agricultural Credit (Stabilisation) Fund established and maintained under section
46B of the Reserve Bank of India Act, 1934 (2 of 1934),
shall stand transferred to the National Bank and form part of the National Rural Credit (Long Term
Operations) Fund referred to in section 42 and the National Rural Credit (Stabilisation) Fund referred to
in section 43, respectively.
(2) With effect from such date as the Central Government may, in consultation with the Reserve
Bank, by notification, appoint, the loans and advances which the Reserve Bank has granted to State cooperative banks and regional rural banks under section 17 [except sub-clause (a) of clause (4)] of the
Reserve Bank of India Act, 1934 (2 of 1934), and which the Reserve Bank may specify by a general or
special order, shall, as far as may be, become and be deemed to be loans and advances granted by the
National Bank under section 21, and the National Bank shall repay to the Reserve Bank, the amount of
such loans and advances on such terms and conditions as the Central Government may specify, in
consultation with the Reserve Bank.
(3) All rights, liabilities, interests, privileges and obligations of whatever nature (including the rights
and obligations arising by way of purchase, sale and rediscount of any bills of exchange and promissory
notes) of the Reserve Bank in relation to any asset or liability referred to in sub-section (1) or any loan or
advance referred to in sub-section (2) shall stand transferred to and vest in the National Bank on the date
on which such asset or liability stands transferred to the National Bank under sub-section (1) or, as the
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case may be, such loan or advance becomes under sub-section (2) a loan or advance granted by the
National Bank.
(4) All contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and
other instruments of whatever nature relating to any asset or liability referred to in sub-section (1) and
subsisting or having effect immediately before the date appointed under that sub-section or relating to any
loan or advance referred to in sub-section (2) and subsisting or having effect immediately before the date
appointed under that sub-section shall be of as full force and effect against, or in favour of, the National
Bank, as the case may be, and may be enforced or acted upon as fully and effectually as if instead of the
Reserve Bank, the National Bank had been a party thereto, or as if they had been in favour of the National
Bank.
(5) If, immediately before the date appointed under sub-section (1) or sub-section (2), as the case may
be, any suit, appeal or other legal proceedings of whatever nature relating to any asset or liability referred
to in sub-section (1) or any loan or advance referred to in sub-section (2) is pending, by or against the
Reserve Bank, the same shall not abate, be discontinued, or be in any way prejudicially affected by reason
of the transfer to the National Bank of such asset or liability under sub-section (1), or as the case may be,
such loan or advance becoming under sub-section (2) a loan or advance granted by the National Bank, or
of anything contained in this Act, but the suit, appeal or other proceedings may be continued, prosecuted
and enforced, by or against the National Bank.