Section 40(2) in The National Bank For Agriculture And Rural Development (Amendment) Act ,2000
(2)Notwithstanding anything contained in sub- section (1) or section 30A, the National Bank may, for beneficial investment of its surplus funds, rediscount bills of exchange or promissory notes arising out of bonafide trade and commercial transactions and also lend repayable at call or short notice to a scheduled bank or any financial institution approved by the Reserve Bank, or invest in certificates of deposit and other instruments or schemes as may be approved by the Board.
