18. Business which a Regional Rural Bank may transact.—
(1) Every Regional Rural Bank shall
carry on and transact the business of banking as defined in clause
(b) of section 5 of the Banking
Regulation Act, 1949 (10 of 1949), and may engage in one or more forms of business specified in
sub-section
(1) of section 6 of that Act.
(2) Without prejudice to the generality of the provisions of sub-section
(1), every Regional Rural
Bank may, in particular, undertake the following types of business, namely:—
(a) the granting of loans and advances, particularly to small and marginal farmers and agricultural
labourers, whether individually or in groups, and to co-operative societies, including agricultural
marketing societies, agricultural processing societies, co-operative farming societies, primary
agricultural credit societies or farmers’ service societies, for agricultural purposes or agricultural
operations or for other purposes connected therewith;
(b) the granting of loans and advances, particularly to artisans, small entrepreneurs and persons of
small means engaged in trade, commerce or industry or other productive activities, within the notified
area in relation to the Regional Rural Bank.
CHAPTER V
ACCOUNTS AND AUDIT
