Section 10 in The M.P. Shakari Krishi Aur Gramin Vikas Bank Adhiniyam 1999
10. Credit Stabilization Fund.
(1)The State Development Bank shall constitute a Credit Stabilization Fund for the purpose of-(i)enabling it to discharge its obligations in the event of postponement of repayment of loans or of instalments of loans; or(ii)meeting the obligations of Sinking Fund arising as a consequence of total or partial failure of crops on account of drought or any other natural calamity; or(iii)enabling it to discharge its obligations in the event of default by a member due to loss caused by a natural calamity in products of Rural and Cottage Industries as described by the National Bank.(iv)any other purpose as determined by the Registrar.(2)The State Development Bank and the District Development Banks shall contribute to the Fund at such rates and maintain and utilise it in such manner as may be determined by the Registrar.(3)The State Development Bank may receive contributions to the Fund made from time to time from any person or the Central Government and the State Government.
