REGIONAL RURAL DEVELOPMENT BANKS ACT

Arrangement of Sections

1. Short title.

PART I

ESTABLISHMENT OF REGIONAL RURAL DEVELOPMENT BANKS

2. Incorporation Order for establishment of a Regional Rural Development Bank.

3. Principal place of business, branches and agencies of the Bank.

4. Objects of the Bank.

5. Transaction of business of the Bank.

6. Powers of the Bank.

PART II

MANAGEMENT OF THE BANK

7. Management.

8. Constitution of the Board.

9. Disqualifications for being appointed or exceed or continuing as a member.

10. Chairman of the Board.

11. Remuneration of Directors.

12. Director to disclose interest in contract proposed to be made by the Bank.

13. Meetings of the Board, quorum and regulation of procedure.

14. Acts of the Board not to be invalid by reason of any vacancy.

15. Delegation of powers and duties of the Board.

16. Seal of the Bank.

17. General body of the Bank.

18. Training of banking and technical personnel.

PART III

FINANCE

19. Capital of the Bank.

20. Contributions to the capital of the Bank.

21. Grant from the Central Bank.

22. Temporary borrowings from the Central Bank.

23. Borrowings from the Government.

24. Borrowings from the foreign Governments.

25. General Reserve Fund.

26. Special Reserve Fund.

27. Staff Development Fund.

28. Special Resources Fund.

29. Reserve requirements.

30. Exemption of Bank from income tax.

31. Security on which loans may be granted by the Bank.

PART IV

STAFF

32. Chairman to be the Chief Executive Officer of the Bank.

33. Staff of the Bank.

PART V

RECOVERY OF LOANS

34. Applicability of the State Mortgage and Investment Bank Law No, 13 of 1975.

PART VI

AUDIT AND ACCOUNTS

35. Financial year of the Bank.

36. Audit.

37. Dissolution of the Bank.

PART VII

GENERAL

38. Application of the provisions of the National Savings Bank Act, No. 30 of 1971.

39. Certain written laws not to apply to the Bank.

40. Application of the provisions of the Companies Act, No. 17 of 1982.

41. The Bank deemed to be an approved credit agency.

42. Exempt from stamp duty.

43. Opening of Accounts.

44. Indemnity of directors.

45. Declaration of secrecy.

46. Board to give directions.

47. Provision for conflict with other written law.

48. Rules.

49. Interpretation.

15 of 1985.

AN ACT to enable the Monetary Board of the Central Bank to establish Regional Rural Development Banks with a view to developing the rural economy by providing, for the development of agriculture, cottage and small-scale industry, fishing industry, commerce and other development activities in rural areas; and for matters connected therewith or incidental thereto.

[Date of Commencement: 10th April, 1985]

1. Short title.

This Act may be cited as the Regional Rural Development Banks Act.

PART I

ESTABLISHMENT OF REGIONAL RURAL DEVELOPMENT BANKS

2. Incorporation Order for establishment of a Regional Rural Development Bank.

(1) Where the Monetary Board of the Central Bank (hereinafter referred to as "the Monetary Board”) considers it necessary that one or more than one Regional Rural Developments Bank (hereinafter referred to as ”the Bank”) be established for the purpose of developing the rural economy by providing for the development of agriculture, cottage and small-scale industry, fishing industry, commerce and other development activities in rural areas, the Monetary Board may by Order (hereinafter referred to as the "Incorporation Order”) published in the Gazette—

(a) declare that the Bank be established for the purpose of developing the rural economy by providing for the development of agriculture, cottage and small-scale
industry, fishing industry, commerce and other development activities in rural areas;

(b) assign a corporate name to the Bank;

(c) state the area within which the Bank shall operate;

(d) state the principal place of business of the Bank;

(e) fix a date on which the Bank shall commence business; and

(f) state the names of the persons appointed under section 8
as the first members of the Board of Directors of the Bank.

(2) Every Bank shall, by the name assigned to it by the Incorporation Order be a body corporate and shall have perpetual succession and a common seal, and may sue and be sued in such name.

3. Principal place of business, branches and agencies of the Bank.

(1) The principal place of business of the Bank shall be as specified in the Incorporation Order.

(2) The Bank may where the Board of Directors considers it necessary so to do, establish its branches and agencies at any place within the area specified in the Incorporation Order.

4. Objects of the Bank.

The objects of the Bank shall be to promote agricultural, industrial, fisheries, commercial and other development activities within the area specified in the Incorporation Order.

5. Transaction of business of the Bank.

The Bank may carry on and transact banking business other than any foreign exchange operations.

6. Powers of the Bank.

Subject to the provisions of this Act, in carrying out its objects the Bank may exercise all or any of the following powers

(a) to grant short-term, medium-term and long-term loans and other accommodation particularly to farmers and agricultural labourers, whether individually or in groups, and to co-operative societies and marketing and processing societies for agricultural operations or other purposes relating to agriculture;

(b) to grant short-term, medium-term and long-term loans and other accommodation to artisans and such other persons individually or in groups, who are engaged in cottage industries, fishing industry, commercial activity or other types of development activities which are of a small-scale in the opinion of the Board of Directors;

(c) to open, maintain and manage current, deposit, savings and other accounts;

(d) to discount, buy, sell and deal in bills of exchange, promissory note, drafts, shares, debentures, certificate, scrip and other instruments and securities;

(e) to negotiate loans and advances, to receive money, securities and valuables on deposit, or for safe custody;

(f) to collect and transmit money and securities;

(g) to manage property both movable and immovable and transact all kinds of agency business commonly transacted by bankers;

(h) to borrow or raise money in such manner as the Bank shall think fit, and to secure the prompt re-payment of any money borrowed, raised or owing by mortgage, charge or lien upon the whole or any part of the property or assets of the Bank whether present or future, including its uncalled capital and, also by a similar mortgage, charge or lien to secure and guarantee the performance by the Bank of any obligation or liability it may undertake;

(i) to lend and advance money on securities and property and give credit to such persons, firms or companies on such terms as it may deem expedient either with or without security;

(j) to assist and promote the marketing and processing of agricultural produce and industrial products;

(k) to assist and promote the marketing of fish and the processing of fish products;

(l) to carry on the business of a pawn broker subject to such conditions as may be determined by the Monetary Board;

(m) to acquire or purchase any movable or immovable property or agricultural, industrial, fisheries, commercial or other enterprise and to manage or arrange for the management of such property or enterprise, and to sell or otherwise dispose of such property or enterprise;

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NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


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LAW COMMISSION (AMENDMENT) ACT, NO. 19 OF 2016


VALUE ADDED TAX (AMENDMENT) ACT, NO. 20 OF 2016


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NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


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VALUE ADDED TAX (AMENDMENT) ACT, NO. 20 OF 2016


PORTS AND AIRPORTS DEVELOPMENT LEVY (AMENDMENT) ACT, NO. 21 OF 2016


NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


LAW COMMISSION (AMENDMENT) ACT, NO. 19 OF 2016


VALUE ADDED TAX (AMENDMENT) ACT, NO. 20 OF 2016


PORTS AND AIRPORTS DEVELOPMENT LEVY (AMENDMENT) ACT, NO. 21 OF 2016


NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


LAW COMMISSION (AMENDMENT) ACT, NO. 19 OF 2016


VALUE ADDED TAX (AMENDMENT) ACT, NO. 20 OF 2016


PORTS AND AIRPORTS DEVELOPMENT LEVY (AMENDMENT) ACT, NO. 21 OF 2016


NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


IMMIGRANTS AND EMIGRANTS (AMENDMENT) ACT, No. 7 OF 2015


LAW COMMISSION (AMENDMENT) ACT, NO. 19 OF 2016


VALUE ADDED TAX (AMENDMENT) ACT, NO. 20 OF 2016


PORTS AND AIRPORTS DEVELOPMENT LEVY (AMENDMENT) ACT, NO. 21 OF 2016


NATION BUILDING TAX (AMENDMENT) ACT, NO. 22 OF 2016


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