Power of Committee of State Agriculture and Rural Development Bank to supervise

Agriculture and Rural Development Bank and make regulation.— The Committee of the State Agriculture and Rural Development Bank shall have a general power of supervision over Agriculture and Rural Development Banks and may, with the previous sanction of the State Government, make regulations, not inconsistent with this Act or the rules made there under, for all or any of the following matters, namely :-

1. (a) for the inspection of the account books, and proceedings of Agriculture and Rural Development Banks;
2. (b) for the submission of returns and reports by such banks in respect of their transactions;
3. (c) for the periodical settlement of accounts between such banks and the State Agriculture and Rural Development Bank being accounts relating to the payment of the amounts recovered by such banks on mortgages transferred to the State Agriculture and Rural Development Bank;
4. (d) for the form in which applications to such banks for loans shall be made and for the valuation of properties offered as security for such loans;
5. (e) for the investment of moneys realized from the mortgagors;
6. (f) the conditions of service of employees of such hanks;
7. (g) the program and policy to be followed by such banks for making loans;
8. (h) the types and extent of security to be obtained by such banks for advancing loans;
   • (i) Generally, for the purpose of safeguarding the interest of the parties; furtherance of activities of such banks, and carrying out the purposes of this Chapter. 144-1A. Reorganization, amalgamation or division of Agriculture and Rural Development Banks, in public interest, etc.-

1. (1) Notwithstanding anything in the Act or in any rules, or bye-laws made there under, it shall be lawful for the State Government to provide from time to time, by an order made under and in accordance with the provisions of section 18, for the reorganization of the State Agriculture and Rural Development Banks, either by amalgamating with it all or of any of the Primary Agriculture and Rural Development Banks or otherwise; or for the division of the State Agricultural and Rural Development Bank into a State Agriculture and Rural Development Bank and one or more Primary Agriculture and Rural Development Banks as may be considered necessary; or for the amalgamation or division of all or any of the Primary Agriculture and Rural Development Banks among themselves. Accordingly, for the purposes of this section, in section 18 and in any rules made there under, for the word "Registrar", wherever it occurs, the words "State Government" shall be deemed to be substituted.
2. (2) Where there is no Primary Agriculture and Rural Development Bank in the State or in any part thereof, or Primary Agriculture and Rural Development Banks are merged with the State Agriculture and Rural Development Bank, the State Agriculture and Rural Development Bank may establish and maintain as many branches as may be deemed necessary; and shall function also as a Primary Agriculture and Rural Development Bank through the State or in the area concerned, as the case may be. Any reference of a Primary Agriculture and Rural Development Bank in this Act, or any other law for the time being in force or in any instrument, shall then, as the context may require, be construed as a reference of the State Agriculture and Rural Development Bank or its branches concerned, or be read subject to such modifications as may be necessary due to absence of any Primary Agriculture and Rural Development Bank due to merger of the Primary Agriculture and Rural Development Bank or Banks in the State Agriculture and Rural Development Bank.