Regional Rural Banks Act : Establishment and incorporation of Regional Rural Banks. Indian Bare Acts :

Regional Rural Banks Act,1976

Act No : 21

Section : Establishment and incorporation of Regional Rural Banks.

3. Establishment and incorporation of Regional Rural Banks.- (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 during the first five years of its functioning, as may be mutually agreed upon between the Sponsor Bank and the Regional Rural Bank: Provided that the Central Government may, either on its own motion or on the recommendation of the National Bank, extend the said period of five years by such further period, not exceeding five years at a time, subject to such conditions as it may deem fit to impose."] ---------------------------------------------------------------------- 1. Subs. by Act 1 of 1988, s. 3, for sub-section (3) (w.e.f. 28-9-1988). 265