The National Bank for Agriculture and Rural Development Act, 1981

The National Bank for Agriculture and Rural Development Act, 1981, is an Act of the Parliament of India that established a development bank to provide credit and other facilities for the promotion and development of agriculture, micro-enterprises, small enterprises, medium enterprises, cottage and village industries, handicrafts, and other rural crafts and activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas.

The Act establishes the National Bank for Agriculture and Rural Development (NABARD) as a body corporate with perpetual succession and a common seal. The NABARD's head office is located at Mumbai, and it has the power to establish offices, branches, or agencies at any place in India or outside India.

The NABARD's capital is initially set at one hundred crores of rupees, but it can be increased by the Central Government with the approval of the Reserve Bank. The bank's management is overseen by a Board of Directors, which consists of nine directors appointed by the Central Government and the Reserve Bank. The Managing Director is also appointed by the Central Government.

The Act provides for various functions of the NABARD, including providing credit facilities to farmers, small and micro-enterprises, and other rural businesses. It also establishes the National Rural Credit (Long Term Operations) Fund, the National Rural Credit (Stabilisation) Fund, and the Research and Development Fund, among others.

The Act also provides for the regulation of the NABARD's operations, including its borrowing powers, credit functions, and management structure. The NABARD is required to follow business principles with due regard to public interest and to act independently in the exercise of its powers and discharge of its duties.

Overall, the National Bank for Agriculture and Rural Development Act, 1981, aims to promote rural development and self-employment through credit and other facilities, and to contribute to the overall development of India's agricultural sector.