Section 35 of The National Bank for Agriculture and Rural Development Act, 1981
1[(1) The National Bank shall have free access to all such records of a borrower seeking to avail of any credit or other facilities from the National Bank under this Act and also to all such records of any person seeking to avail of any credit or other facilities from such borrower, perusal whereof may appear to the National Bank to be necessary in connection with the providing of finance or other assistance to such borrower or the refinancing of any loan or advance made to such person by the borrower.]
- (2)The National Bank may require any institution or person referred to in sub-section (1) to furnish to it copies of any of the records referred to in that sub-section and the institution or the person, as the case may be, shall be bound to comply with such requisition.
Summary
- The National Bank has the right to freely look at all records of any borrower who is asking it for credit or other services.
- The National Bank can also check the records of a borrower's own customers, if those customers are getting loans that the National Bank is ultimately funding or refinancing.
- The National Bank can demand physical or digital copies of these records, and the borrower or customer is legally required to provide them.
Practical examples
FAQ
1. Can the National Bank check the records of a farmer who borrows from a local bank?
Yes, if the local bank is using the National Bank's funds to finance or refinance that farmer's loan, the National Bank can access the farmer's records.
2. Does a borrower have the right to refuse to provide copies of their records?
No, the law states that any institution or person asked for copies of their records by the National Bank is bound to comply with the request.
3. Is there a fee the National Bank must pay to get these copies?
The law does not mention any fee, it simply states the National Bank has free access and the power to require copies.
Test yourself
Q1.Under Section 35 of The National Bank for Agriculture and Rural Development Act, 1981, what obligation does a borrowing institution have if the National Bank asks for copies of its records?
Q2.Under Section 35 of The National Bank for Agriculture and Rural Development Act, 1981, whose records can the National Bank examine when refinancing a loan?
Q3.Under Section 35 of The National Bank for Agriculture and Rural Development Act, 1981, what level of access does the National Bank have to a borrower's records?
Q4.Under Section 35 of The National Bank for Agriculture and Rural Development Act, 1981, when can the National Bank look at the records of a person seeking credit from a borrowing institution?