law: National Bank for Agriculture and Rural Development Act, 1981 
  40. Deposits and
  
  investments.- 
  
  1.     
  
    The
  
  National Bank may invest its funds in promissory notes, stocks or securities of
  
  the Central Government or keep the moneys deposited with the Reserve Bank or
  
  with any agency of the Reserve Bank or with a State co-operative bank or a
  
  scheduled bank.
  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.