Section 31 of The National Bank for Agriculture and Rural Development Act, 1981
The National Bank may receive, for the rendering of any of the services mentioned in this Chapter or Chapter VII, such commission or other consideration as may be agreed upon.
Summary
- The National Bank is allowed to earn money for the services it provides.
- It can charge a commission or accept other agreed-upon forms of payment (consideration).
- This rule applies specifically to services listed in Chapter VI (Credit Functions) and Chapter VII (Other Functions) of the Act.
- The amount of the fee is based on an agreement, not a fixed legal rate.
Practical examples
FAQ
1. Does the National Bank provide its services for free?
It does not have to. It has the right to receive a commission or other consideration for its credit and other functions.
2. Who decides how much the commission will be?
The amount is "as may be agreed upon," meaning the National Bank and the party receiving the service negotiate and agree on the fee.
3. Can the bank charge a commission for absolutely anything it does?
This specific section allows fees for services mentioned in Chapter VI (Credit Functions) and Chapter VII (Other Functions).
Test yourself
Q1.Under Section 31 of The National Bank for Agriculture and Rural Development Act, 1981, what may the National Bank receive in exchange for rendering its services?
Q2.Under Section 31 of The National Bank for Agriculture and Rural Development Act, 1981, the commission received is explicitly linked to services mentioned in which parts of the Act?
Q3.Under Section 31 of The National Bank for Agriculture and Rural Development Act, 1981, how is the exact amount of the commission or consideration determined?
Q4.Under Section 31 of The National Bank for Agriculture and Rural Development Act, 1981, is the National Bank legally required to charge a commission for every single service?