38. Other functions of National Bank.—The National Bank— (i) shall co-ordinate its operations and the operations of various institutions engaged in the field of rural credit and maintain expert staff to study all problems relating to agriculture and rural development and be available for consultation to the Central Government, the Reserve Bank, the State Governments and the other institutions engaged in the field of rural development; (ii) may act as the agent for the Central Government or a State Government or the Reserve Bank in the transaction of any business in respect of loans and advances granted or to be granted, or bonds or debentures purchased or subscribed for, or to be purchased or subscribed for; (iii) may provide facilities for training, for dissemination of information and the promotion of research including the undertaking of studies, researches, techno-economic and other surveys in the field of rural banking, agriculture and rural development and it may for the said purposes 52[make loans or advances or grants] including grants by way of provision for fellowships and chairs to any institution. 1. Ins. by Act 55 of 2000, s. 22 (w.e.f. 1-2-2001). 2. Subs. by Act 7 of 2018, s. 11, for “in section 617 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 15-3-2018). 3. Subs. by s. 11, ibid., for “in clause (41) of section 2 of the Companies Act, 1956 (1 of 1956)” (w.e.f. 15-3-2018). 4. Subs. by Act 55 of 2000, s. 23, for “make grants” (w.e.f. 1-2-2001). 20 1 [(iv) may provide technical, legal, financial, marketing and administrative assistance to any person engaged in agriculture and rural development activities; (v) may provide consultancy services in the field of agriculture and rural development and other related matters in or outside India, on such terms and against such remuneration, as may be agreed upon; (vi) may perform the functions entrusted to or required of the National Bank by any other law for the time being in force; and (vii) do any other kind of business or undertake any other kind of activity which the Central Government or the Reserve Bank may authorise.] 2 [38A. Promotion of subsidiaries.—The National Bank may, in consultation with the Reserve Bank, promote, form or manage or associate itself in promotion, formation or management of companies, subsidiaries, affiliates, societies, trusts or such other association of persons, as it may deem fit, for the purpose of carrying out its functions under this Act. 38B. Securitisation of debt.—Notwithstanding anything contained in this Act, the National Bank may— (a) create one or more trusts and transfer loans and advances granted by it, with or without the securities, to such trusts, for consideration; (b) set aside loans or advances held by the National Bank and issue and sell securities based upon such loans or advances so set aside in the form of debt obligations, trust certificates of beneficial interest or other instruments, by whatever name called, and act as a trustee for the holders of such securities. 38C. Exemption from compulsory registration.—Notwithstanding anything contained in subsection (1) of section 17 of the Registration Act, 1908 (16 of 1908)— (a) any instrument in the form of debt obligations or trust certificate of beneficial interest or any other instrument, by whatsoever name called, issued by the National Bank or the trust created by it to securitise the loans granted by it and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property; or (b) any transfer of such instruments referred to in clause (a), shall not require compulsory registration.] 39. Incidental powers.—The National Bank may also do all such things as may be necessary or incidental to or consequential upon the exercise of its powers, discharge of its functions and the performance of its duties, under this Act, or under any other law for the time being in force. 3 [40. Deposits and investments.—(1) The National Bank may invest its funds in promissory notes, stocks or securities of the Central Government or keep the moneys deposited with the Reserve Bank or with any agency of the Reserve Bank or with a State co-operative bank or a scheduled bank. (2) Notwithstanding anything contained in sub-section (1) or section 30A, the National Bank may, for beneficial investment of its surplus funds, rediscount bills of exchange or promissory notes arising out of bona fide trade and commercial transactions and also lend repayable at call or short notice to a scheduled bank or any financial institution approved by the Reserve Bank, or invest in certificates of deposit and other instruments or schemes as may be approved by the Board.] 41. Credit information.—The National Bank may, for the purpose of the efficient discharge of its functions under this Act, collect from or furnish to the Central Government, the Reserve Bank or any banking company or such other financial institution as may be notified by the Central Government in this behalf, credit information or other information. 1. Ins. by Act 55 of 2000, s. 23 (w.e.f. 1-2-2001). 2. Ins. by s. 24, ibid. (w.e.f. 1-2-2001). 3. Subs. by s. 25, ibid., for section 40 (w.e.f. 1-2-2001). 21 Explanation.—For the purposes of this section, the expressions “banking company” and “credit information” shall have the same meanings as in section 45A of the Reserve Bank of India Act, 1934 (2 of 1934).