Regional Rural Banks Act, 1976

Act No. 21 of 1976 In force from 26-09-1975 Ministry of Finance 37 sections

An Act to provide for the incorporation, regulation and winding up of Regional Rural Banks with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto.

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Chapter I: Preliminary

• 1 Short title, extent and commencement
• 2 Definitions

Chapter II: Incorporation and Capital of Regional Rural Banks

• 3 Establishment and incorporation of Regional Rural Banks 7 judgments
• 4 Offices and agencies
• 5 Authorised capital
• 6 Issued capital
• 7 Shares to be approved securities

Chapter III: Management

• 8 Management
• 9 Board of directors
• 10 Term of office of director
• 11 Chairman
• 12 Disqualifications
• 13 Vacation of the seat of directors
• 14 Meetings of Board
• 15 Committees of Board
• 16 Fees and allowances of directors and members of committees
• 17 Staff of Regional Rural Banks 3 judgments

Chapter IV: Business of A Regional Rural Bank

• 18 Business which a Regional Rural Bank may transact

Chapter V: Accounts and Audit

• 19 Closure of accounts
• 20 Annual report to be furnished to the shareholders
• 21 Disposal of profits
• 22 Regional Rural Bank to be deemed to be a co-operative society for purpose of the Income-tax Act, 1961
• 23 Interest-tax not payable

Chapter VA: Amalgamation of Regional Rural Banks

• 23A Amalgamation of Regional Rural Banks
• 23B Notification under section 23A to be sufficient notice to concerned parties
• 23C Cessation of business of transferor Regional Rural Banks
• 23D Liquidation of Regional Rural Banks

Chapter VI: Miscellaneous

• 24 Power of Central Government to give directions 1 judgment
• 24A Inspection, audit and scrutiny by the Sponsor Bank
• 25 Obligations as to fidelity and secrecy
• 26 Bar to liquidation of Regional Rural Bank
• 27 Defects in appointment or constitution not to invalidate acts or proceedings
• 28 Indemnity of directors, etc
• 29 Power to make rules 3 judgments
• 30 Power to make regulations
• 31 Removal of difficulties
• 32 Act to override the provisions of other laws

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.