Chapter IV — General Provisions

Section 46A: Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 46A requires RBI to contribute annually such sums as it considers necessary and feasible to the National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund maintained by NABARD under the NABARD Act.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 46A in 2 minutes

Legal effectSection 46A requires RBI to contribute annually such sums as it considers necessary and feasible to the National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund maintained by NABARD under the NABARD Act.

Operative ruleThe provision links RBI's statutory resources to rural-credit funds but leaves the annual amount to RBI's statutory assessment of necessity and feasibility.

Connected lawRead the RBI Act provision with the NABARD Act provisions establishing/maintaining the two funds.

File evidenceFor institutional reporting, trace the contribution decision, amount and destination fund rather than treating it as a general rural-credit subsidy.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Scope

Operative limb

The provision links RBI's statutory resources to rural-credit funds but leaves the annual amount to RBI's statutory assessment of necessity and feasibility.

Legal boundary

Read the RBI Act provision with the NABARD Act provisions establishing/maintaining the two funds.

Worked practical example

Facts. A request for a direct loan to an individual farmer cannot be based on Section 46A; the section concerns RBI contributions to NABARD's statutory funds.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 46A and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Read the RBI Act provision with the NABARD Act provisions establishing/maintaining the two funds.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 46A has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 46A?

Contribution to National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund: Section 46A requires RBI to contribute annually such sums as it considers necessary and feasible to the National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund maintained by NABARD under the NABARD Act.

Which statutory limb should be checked first?

Scope - Section 46A requires RBI to contribute annually such sums as it considers necessary and feasible to the National Rural Credit (Long Term Operations) Fund and National Rural Credit (Stabilisation) Fund maintained by NABARD under the NABARD Act.

What is the next legal boundary?

Operative limb - The provision links RBI's statutory resources to rural-credit funds but leaves the annual amount to RBI's statutory assessment of necessity and feasibility.

What record should support the conclusion?

Section 46A file evidence: For institutional reporting, trace the contribution decision, amount and destination fund rather than treating it as a general rural-credit subsidy.

Primary sources

Source control for Section 46A: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.