NABARD (Amendment) Bill, 2017 passed by - Lok Sabha

The Lok Sabha passed the National Bank for Agriculture and Rural Development
(Amendment) Bill, 2017 by voice vote on 3rd August 2017.
NABARD Bill enables exit of The Reserve Bank of India (RBI) from the National Bank
for Agriculture and Rural Development (NABARD) and increase authorised capital of
the development institution six times to Rs 30000 crore.
The Bill also seeks to amend some of the clauses in the light of reference of the Micro,
Small and Medium Enterprises (MSMEs) Development Act 2006 in the proposed
legislation.
Important highlights of the Bill
Capital Increase of NABARD:
NABARD may have a capital of Rs 100 crore under the 1981 Act.
This capital can be further increased to Rs 5 thousand crore by the Union Government
in consultation with the RBI.
The Bill has allowed the Union Government to increase this capital to Rs 30000 crore.
The capital can be increased to more than Rs 30 thousand crore by the Union
Government in consultation with the RBI, if important.
Transfer of the RBIs share to the Union Government: The Union Government and the
RBI together must hold at least 51% of the share capital of NABARD Under the 1981 Act.
The Union Government alone must hold at least 51% of the share capital of NABARD
provided by the Bill.
The Bill transfers the share capital held by the RBI and valued to Rs 20 crore to the
Union Government. The Union Government will be given an equal amount to the RBI.