The Banking Regulation Act, 1949

 1. Substituted by Act 95 of 1965, Section 14 and Schedule, for “section 153 of the Indian Companies Act, 1913 (7 of 1913)” w.e.f. 14-1-1957.


2. Substituted by Act 95 of 1956, Section 14 and Schedule, for “section 235 of the said Act” w.e.f. 14-1-1957.


3. Inserted by Act 37 of 1960, Section 7.


4. Substituted by Act 7 of 1961, Section 5, for certain words.


5. Substituted by Act 7 of 1961, Section 5, for certain words.

 


Section 45M. Special provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act

Where any compromise or arrangement sanctioned in respect of a banking company under 1[section 391 of the Companies Act, 1956 (1 of 1956)] is being worked at the commencement of the Banking Companies (Amendment) Act, 1953 (52 of 1953) the High Court may, if it so thinks fit, on the application of such banking company, —


(a) excuse any delay in carrying out any of the provisions of the compromise or arrangement; or


(b) allow the banking company to settle the list of its debtors in accordance with the provisions of section 45D and in such a case, the provisions of the said section shall, as far as may be, apply to the banking company as they apply to a banking company which is being wound up as if the order sanctioning the compromise or arrangement were an order for the winding up of the banking company.


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1. Substituted by Act 95 of 1956, Section 14 and Schedule, for “section 153 of the Indian Companies Act, 1913 (7 of 1913)” w.e.f. 14-5-1957.

 


Section 45N. Appeals

(1) An Appeal shall lie from any order or decision of the High Court in a civil proceeding under this Act when the amount or value of the subject-matter of the claim exceeds five thousand rupees.


(2) The High Court may by rules provide for an appeal against any order made under section 45J and the conditions subject to which any such appeal would lie.


(3) Subject to the provisions of sub-section (1) and sub-section (2 )and notwithstanding anything contained in any other law for the time being in force, every order or decision of the High Court shall be final and binding for all purposes as between the banking company on the one hand, and all persons who are parties thereto and all persons claiming through or under them or any of them, on the other hand.

 


Section 45O. Special period of limitation

(1) Notwithstanding anything to the contrary contained in the Indian Limitation Act, 1908 (9 of 1908) or in any other law for the time being in force, in computing the period of limitation prescribed for a suit or application by a banking company which is being wound up, the period commencing from the date of the presentation of the petition for the winding up of the banking company shall be excluded.


(2) Notwithstanding anything to the contrary contained in the Indian Limitation Act, 1908 (9 of 1908) or1[section 543 of the Companies Act, 1956(1 of 1956)] or in any other law for the time being in force, there shall be no period of limitation for the recovery of arrears of calls from any director of a banking company which is being wound up or for the enforcement by the banking company against any of its directors of any claim based on a contract, express or implied; and in respect of all other claims by the banking company against its directors, the period of limitation shall be twelve years from the date of the accrual of such claims 2[or five years from the date of the first appointment of the liquidator, whichever is longer].


(3) The provisions of this section, Insofar as they relate to banking companies being wound up, shall also apply to a banking company in respect of which a petition for the winding up has been presented before the commencement of the Banking Companies (Amendment) Act, 1953 (52 of 1953).


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1. Substituted by Act 95 of 1956, Section 14 and Schedule, for “section 235 of the Indian Companies Act, 1913 (7 of 1913)” w.e.f. 14-5-1957.


2. Inserted by Act 33 of 1959, Section 32 w.e.f. 1-10-1959.

 


Section 45P. Reserve Bank to tender advice in winding up proceeding

Where in any proceeding for the winding up of a banking company in which any person other than the Reserve Bank has been appointed as the official liquidator and the High Court has directed the official liquidator to obtain the advice of the Reserve Bank on any matter (which it is hereby empowered to do), it shall be lawful for the Reserve Bank to examine the record of any such proceeding and tender such advice on the matter as it may think fit.

 


Section 45Q. Power to Inspect

(1) The Reserve Bank shall, on being directed so to do by the Central Government or by the High Court, cause an Inspection to be made by one or more of its officers of a banking company which is being wound up and its books and accounts.


(2) On such Inspection, the Reserve Bank shall submit its report to the Central Government and the High Court.


(3) If the Central Government, on consideration of the report of the Reserve Bank, is of opinion that there has been a substantial irregularity in the winding up proceedings, it may bring such irregularity to the notice of the High Court for such action as the High Court may think fit.


(4) On receipt of the report of the Reserve Bank under sub-section (2) or on any irregularity being brought to its notice by the Central Government under sub-section (3), the High Court may, if it deems fit, after giving notice to and hearing the Central Government in regard to the report, give such directions as it may consider necessary.

 


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Section 45R. Power to call for returns and information

The Reserve Bank may, at any time by a notice in writing, require the liquidator of a banking company to furnish it, within such time as may be specified in the notice or such further time as the Reserve Bank may allow, any statement or information relating to or connected with the winding up of the banking company; and it shall be the duty of every liquidator to comply with such requirements.


Explanation. —For the purposes of this section and section 45Q, a banking company working under a compromise or arrangement but prohibited from receiving fresh deposits, shall, as far as may be, deemed to be banking company which is being wound up.

 


Section 45S. Chief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up

(1) For the purpose of enabling the official liquidator or the special officer appointed under sub-section (3) of section 37 to take into his custody or under his control, all property, effects and actionable claims to which a banking company 1[***] is or appears to be entitled, the official liquidator or the special officer, as the case may be, may request in writing the 2[Chief Metropolitan Magistrate or the Chief Judicial Magistrate], within whose jurisdiction any property, books of accounts or other documents of such banking company may be situate or be found, to take possession thereof, and the 2[Chief Metropolitan Magistrate or the Chief Judicial Magistrate], as the case may be, shall, on such request being made to him, —


3[(a)take possession of such property, books of accounts or other documents, and


(b) forward them to the official liquidator or the special officer.]


4[(2) Where any such property and effects are in the possession of the 2[Chief Metropolitan Magistrate or the Chief Judicial Magistrate], as the case may be, such Magistrate shall, on request in writing being made to him by the official liquidator or the special officer referred to in sub-section (1), sell such property and effects and forward the net proceeds of the sole to the official liquidator or the special officer:


Provided that such sale shall, as far as practicable, be effected by public auction.


(3) For the purpose of securing compliance with the provisions of sub-section (1), the 2[Chief Metropolitan Magistrate or the Chief Judicial Magistrate] may take or cause to be taken such steps and use of cause to be used such fore as may, in his opinion, be necessary.


(4) No act of the 2[Chief Metropolitan Magistrate or the Chief Judicial Magistrate] done in pursuance of this section shall be called in question in any court or before any authority.]


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1. Certain words omitted by Act 55 of 1963 Section 13 w.e.f. 1-2-1964.


2. Substituted by Act 1 of 1984, Section 36 for certain words w.e.f. 15-2-1984.


3. Substituted by Act 53 of 1963, Section 23 w.e.f. 1-2-1964.


4. Substituted by Act 53 of 1963, Section 23 for sub-section (2) w.e.f. 1-2-1964.

 


Section 45T. Enforcement of orders and decisions of High Court

(1) All orders made in any civil proceeding by a High Court may be enforced in the same manner in which decrees of such court made in any suit pending therein may be enforced.


(2)Notwithstanding anything to the contrary contained in the Code of Civil Procedure, 1908(5 of 1908), a liquidator may apply for the execution of a decree by a court, other than the one which made it on production of a certificate granted under subsection (6) of section 45D and on his certifying to such other court in writing the amount remaining due or relief remaining unenforced under the decree.


(3) Without prejudice to the provisions of sub-section (1) or sub-section (2), any amount found due to the banking company by an order or decision of the High Court, may, with the leave of the High Court, be recovered 1[by the liquidator in the same manner as an arrear of land revenue and for the purpose of such recovery the liquidator may forward to the Collector within whose jurisdiction the property of the person against whom any order or decision of the High Court has been made is situate, a certificate under his signature specifying the amount so due and the person by whom it is payable].


2[(4) On receipt of a certificate under sub-section (3), the Collector shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue:


Provided that without prejudice to any other powers of the Collector, he shall, for the purposes of recovering the said amount, have all the powers which, under the Code of Civil Procedure, 1908 (5 of 1908), a civil court has for the purpose of the recovery of an amount due under a decree.]


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1. Substituted by Act 53 of 1963, Section 24 for “in the same manner as on arrear of land revenue” w.e.f. 1-2-1964.


2. Inserted by Act 53 of 1963, Section 24 w.e.f. 1-2-1964.

 


Section 45U. Power of High Court to make rules

The High Court may make rules consistent with this Act and the rules made under section 52 prescribing—


(a) the manner in which inquiries and proceedings under Part III or Part IIIA may be held;


(b) the offences which may be tried summarily;


(c) the authority to which, and the conditions subject to which, appeals may be preferred and the manner in which such appeals may be filed and heard;


(d) any other matter for which provision has to be made for enabling the High Court to effectively exercise its functions under this Act.

 


Section 45V. References to directors, etc., shall be construed as including references to past directors, etc.

For the removal of doubts it is hereby declared that any reference in this Part to a director, manager, liquidator, officer or auditor of a banking company shall be construed as including a reference to any past or present director, manager, liquidator, officer or auditor of the banking company.

 


Section 45W. Part II not to apply to banking companies being wound up

Nothing contained in Part II shall apply to a banking company which is being wound up.

 


Section 45X. Validation of certain proceedings

Notwithstanding anything contained in section 45B or any other provision of this Part or in section 11 of the Banking Companies (Amendment) Act, 1950 (20 of 1950), no proceeding held, judgment delivered or decree or order made before the commencement of the Banking Companies (Amendment) Act, 1953 (52 of 1953), by any court other than the High Court in respect of any matter over which the High Court has jurisdiction under this Act shall be invalid or be deemed ever to have been invalid merely by reason of the fact that such proceeding, judgment, decree or order was held, delivered or made by a court other man the High Court.]

 


Part III B – Provisions Relating to Certain Operations of Banking Companies

Section 45Y. Power of Central Government to make rules for the preservation of records

The Central Government may, after consultation with the Reserve Bank and by notification in the Official Gazette, make rules specifying the periods for which—


(a) a banking company shall preserve its books, accounts and other documents; and


(b) a banking company shall preserve and keep with itself different instruments paid by it.

 


Section 45Z. Return of paid instruments to customers

(1) Where a banking company is required by its customer to return to him a paid instrument before the expiry of the period specified by rules made under section 45 Y, the banking company shall not return the instrument except after making and keeping in its possession a true copy of all relevant parts of such instrument, such copy being made by a mechanical or other process which in itself ensures the accuracy of the copy.


(2) The banking company shall be entitled to recover from the customer the cost of making such copies of the instrument.


Explanation. —In this section, “customer” includes a Government department and a corporation incorporated by or under any law.

 


Section 45ZA. Nomination for payment of depositors’ money

(1) Where a deposit is held by a banking company to the credit of one or more persons, the depositor or, as the case may be, all the depositors together, may nominate, in the prescribed manner, one person to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned by the banking company.


(2) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made in the prescribed manner purports to confer on any person the right to receive the amount of deposit from the banking company, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.


(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to appoint in the prescribed manner any person to receive the amount of deposit in the event of his death during the minority of the nominee.


(4) Payment by a banking company in accordance with the provisions of this section shall constitute a full discharge to the banking company of its liability in respect of the deposit:


Provided that nothing contained in this sub-section shall affect the right or claim which any person may have against the person to whom any payment is made under this section.

 


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Section 45ZB. Notice of claims of other persons regarding deposits not receivable

No notice of the claim of any person, other than the person or persons in whose name a deposit is held by a banking company, shall be receivable by the banking company, nor shall the banking company be bound by any such notice though even expressly given to it:


Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to such deposit is produced before a banking company, the banking company shall take due note of such decree, order, certificate or other authority.

 


Section 45ZC. Nomination for return of articles kept in safe custody with banking company

(1) Where any person leaves any article in safe custody with a banking company, such person may nominate, in the prescribed manner, on person to whom, in the event of the death of the person leaving the article in safe custody, such article may be returned by the banking company.


(2) Where the nominee is a minor, it shall be lawful for the person making the nomination to appoint in the prescribed manner any person to receive the article deposited in the event of his death during the minority of the nominee.


(3) The banking company shall, before returning any articles under this section to the nominee or the person appointed under sub-section (2), prepare, in such manner as may be directed by the Reserve Bank from time to time, an inventory of the said articles which shall be signed by such nominee or person and shall deliver a copy of the inventory so prepared to such nominee or person.


(4) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such article, where a nomination made in the prescribed manner purports to confer on any person the right to receive the article from the banking company, the nominee shall, on the death of the person leaving the article in safe custody, become entitled to the return of the article to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner:


Provided that nothing contained in this section shall affect the right or claim which any person may have against the person to whom the article is returned in pursuance of this sub-section.

 


Section 45ZD. Notice of claims of other persons regarding articles not receivable

No notice of the claim of any person, other than the person or persons in whose name any article is held by a banking company in safe custody, shall be receivable by the banking company, nor shall the banking company be bound by any such notice even though expressly given to it:


Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to such article is produced before a banking company, the banking company shall take due note of such decree, order, certificate or other authority.

 


Section 45ZE. Release of contents of safety lockers

(1) Where an individual is the sole hirer of a locker from a banking company, whether such locker is located in the safe deposit vault of such banking company or elsewhere, such individual may nominate one person to whom, in the event of the death of such individual, the banking company may give access to the locker and liberty to remove the contents of the locker.


(2) Where any such locker is hired from a banking company by two or more individuals jointly and under the contract of hire, the locker is to be operated under the joint signatures of two or more of such hirers, such hirers may nominate one or more persons to whom, in the event of the death of such joint hirer or hirers, the banking company may give, jointly with the surviving joint hirer or joint hirers, as the case may be, access to the locker and liberty to remove the contents of such locker.


(3) Every nomination under sub-section (1) or sub-section (2) shall be made in the prescribed manner


(4) The banking company shall, before permitting the removal of the contents of any locker by any nominee or jointly by any nominee and survivors as aforesaid, prepare, in such manner as may be directed by the Reserve Bank from time to time, an inventory of the contents of the locker which shall be signed by such nominee or jointly by such nominee and survivors and shall deliver a copy of the inventory so prepared to such nominee or nominee and survivors.


(5) On the removal of the contents of any locker by any nominee or jointly by any nominee and survivors as aforesaid, the liability of the banking company in relation to the contents of the locker shall stand discharged.


(6) No suit, prosecution or other legal proceedings shall lie against a banking company for any damage caused or likely to be caused, for allowing access to any locker, and liberty to remove the contents of such locker, in pursuance of the provisions of subsection (1) or sub-section (2) as the case may be.

 


Section 45ZF. Notice of claims of oilier persons regarding safety lockers not receivable

No notice of the claim of any person, other than hirer or hirers of a locker, shall be receivable by a banking company nor shall the banking company be bound by any such notice even though expressly given to it:


Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to the locker or its contents is produced before the banking company, the banking company shall take due note of such decree, order, certificate or other authority.]

 


Part IV – Miscellaneous

Section 46. Penalties

(1) Whoever in any return, balance-sheet or other document 1[or in any information required or furnished] by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.


(2) If any person fails to produce any book, account or other document or to furnish any statement or information which under sub-section (2) of section 35 it is his duty to produce or furnish, or to answer any question relating to the business of a banking company which is asked by 2[an officer making an inspection or scrutiny under that section.] he shall be punishable with a fine which may extend to 3[two thousand rupees] in respect of each offence, and if he persists in such refusal, to a further fine which may extend to 4[one hundred rupees] for every day during which the offence continues.


(3) If any deposits are received by a banking company in contravention of an order under clause (a)of sub-section (4) of section 35, every director or other officer of the banking company, unless he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent it shall be deemed to be guilty of such contravention and shall be punishable with a fine which may extend to twice the amount of the deposits so received.


5[6[7[(4) If any other provision of this Act is contravened or if any default is made in—


(i) complying with any requirement of this Act or of any order, rule or direction made or condition imposed thereunder, or


(ii) carrying out the terms of, or the obligations under, a scheme sanctioned under sub-section (7) of section 45,


by any person, such person shall be punishable with fine which may extend to 8[fifty thousand rupees or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, and where a contravention or default is a continuing one, with a further fine which may extend to two thousand and five hundred rupees] for every day, during which the contravention or default continues.]


(5) Where a contravention or default has been committed by a company, every person who, at the time the contravention or default was committed, was in charge of, and was responsible to, the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention or default and shall be liable to be proceeded against and punished accordingly:


Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the contravention or default was committed without his knowledge or that he exercised all due diligence to prevent the contravention or default.


(6) Notwithstanding anything contained in sub-section (5), where a contravention or default has been committed by a company, and it is proved that the same was committed with the consent or connivance of, or is attributable to any gross negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that contravention or default and shall be liable to be proceeded against and punished accordingly.


Explanation. —For the purposes of this section, —


(a) “company” means any body corporate and includes a firm or other association of individuals, and


(b) “direction”, in relation to a firm, means a partner in the firm.]


9[***]


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1. Substituted by Act 95 of 1956, Section 9, for “required” w.e.f. 14-1-1957.


2. Substituted by Act 1 of 1984, Section 38, for “an officer making an imspection under that section” w.e.f. 15-2-1984.


3. Substituted by Act 33 of 1959, Section 33, for “five hundred rupees” w.e.f. 1-10-1959.


4. Substituted by Act 33 of 1959, Section 33, for “fifty rupees” w.e.f. 1-10-1959.


5. Sub-sections (4) Substituted by Act 33 of 1959 w.e.f. 1-10-1959.


6. Sub-section (4), (5) and (6) Substituted by Act 55 of 1963, sec 25, for sub-section (4) w.e.f. 1-2-1964.


7. Substituted-section (4) Substituted by Act 1 of 1984, sec .38 w.e.f. 15-2-1984.


8. Substituted by Act20 of 1994, Section 8 w.e.f. 31-1-1994.


9. Original sub-section (5) omitted by Act 33 of 1959, Section 33 w.e.f. 1-10-1959.

 


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Section 46A. Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code

1[Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code.2[Every Chairman who is appointed on a whole-time basis, managing director, director, auditor] liquidator, manager and any other employee of a banking company shall be deemed to be a public servant for the purposes of Chapter IX of the Indian Penal Code (45 of 1860).]


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1. Inserted by Act 95 of 1956, Section10 w.e.f.


2. Substituted by Act 20 of 1994, Section 9 w.e.f. 31-1-1994.

 


Section 47. Cognizance of offences

No court shall take a cognizance of any offence punishable under 1[sub-section (5)of section 36AA or] section 46 except upon complaint in writing made by an officer of 2[the Reserve Bank or, as the case may be, the National Bank] generally or specially authorised in writing in this behalf by 3[the Reserve Bank, or as the case may be, the National Bank] and 4[no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto] shall try any such offence.


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1. Inserted by Act 55 of 1963, Section 26 w.e.f. 1-2-1964.


2. Substituted by Act 61 of 1981, Section 61 and second Schedule, Pt. II, for “the Reserve Bank”


3. Substituted by Act 61 of 1981, Section 61 and second Schedule, Pt. II, for “the Reserve Bank”


4. Substituted by Act 1 of 1984, Section 39, for certain words w.e.f. 15-2-1984.

 


Section 47A. Power of Reserve Bank to impose penalty

1[Power of Reserve Bank to impose penalty. (1)Notwithstanding anything contained in section 46, if a contravention or default of the nature referred to in subsection (3) or sub-section (4) of section 46, as the case may be, is made by a banking company, then, the Reserve Bank may impose on such banking company—


(a) where the contravention is of the nature referred to in sub-section (3) of section 46, a penalty not exceeding twice the amount of the deposits in respect of which such contravention was made;


(b) where the contravention or default is of the nature referred to in sub-section (4) of section 46, a penalty not exceeding 2[five lakh rupees or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, and where such the contravention or default is a continuing one, a further penalty which may extend to twenty-five thousand rupees] for every day, after the first, during which the contravention of default continues.


3[(2) For the purpose of adjudging the penalty under sub-section (1), the Reserve Bank shall serve notice on the banking company requiring it to show cause why the amount specified in the notice should not be imposed and a reasonable opportunity of being heard shall also be given to such banking company.]


(4) No complaint shall be filed against any banking company in any court of law in respect of any contravention or default in respect of which any penalty has been imposed by the Reserve Bank under this section.


(5) Any penalty imposed by the Reserve Bank under this section shall be payable within a period of fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum is served on the banking company and in the event of failure of the banking company to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office of the banking company is situated; or, in the case of a banking company incorporated outside India, where its principal place of business in India is situated:


Provided that no such direction shall be made except on an application made to the court by the Reserve Bank or any officer authorised by that Bank in this behalf.


(6) The court which makes a direction under sub-section (5) shall issue a certificate specifying the sum payable by the banking company and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit.


(7) Where any complaint has been filed against any banking company in any court in respect of the contravention or default of the nature referred to in sub-section (3) or, as the case may be, sub-section (4) of section 46, then, no proceedings for the imposition of any penalty on the banking company shall be taken under this section.]


——————–


1. Inserted by Act 58 of 1968, Section 17 w.e.f. 1-2-1969.


2. Substituted by Act 20 of 1994, Section 10 w.e.f. 31-1-1994.


3. Substituted by Act 20 of 1994, Section 10, for sub-sections (2) and (3) w.e.f. 31-1-1994.

 


Section 48. Application of fines

A court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the rewarding of the person on whose information the fine is recovered.

 


Section 49. Special provisions for private banking companies

The exemptions, whether express or implied, in favour of a private company in 1[sections 90, 165, 182, 204 and 255, clauses (a) and (b) of sub-section (1) of section 293 and sections 300, 388A and 416 of the Companies Act, 1956 (1 of 1956)], shall not operate in favour of a private company which is a banking company.


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1. The words and figures “sections. 17, 77, 83B, 86H, 91B and 91D and sub-section (5) of section 144 of the Indian Companies Act, 1913 (7 of 1913)” have successively been amended by Act 95 of 1956, Section 11, Act 33 of 1959, Section 34 and Act 55 of 1963, Section 27 to read as above.

 


Section 49A. Restriction on acceptance of deposits withdrawable by cheque

1[Restriction on acceptance of deposits withdrawable by cheque. No person other than a banking company, the Reserve Bank, the State Bank of India or any other 2[banking institution, firm or other person notified by the Central Government in this behalf on the recommendation of the Reserve Bank] shall accept from the public deposits of money withdrawable by cheque:


Provided that nothing contained in this section shall apply to any savings bank scheme run by the Government.


——————-


1. Inserted by Act 33 of 1959, Section 35 w.e.f. 1-10-1959.


2. Substituted by Act 55 of 1963, Section 28, for certain words w.e.f. 1-2-1964.

 


Section 49B. Change of name by a banking company

Notwithstanding anything contained in section 21 of the Companies Act, 1956 (1 of 1956), the Central Government shall not signify its approval to the change of name of any banking company unless the Reserve Bank certifies in writing that it has no objection to such change.

 


Section 49C. Alteration of memorandum of a banking company

Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), no application for the confirmation of the alteration of the memorandum of a banking company shall be maintainable unless the Reserve Bank certifies that there is no objection to such alteration.]

 


Section 50. Certain claims for compensation barred

No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any of the provisions 1[contained in sections 10, 12A, 16, 35A, 35B, 2[36, 43A and 45] or by reason of the compliance by a banking company with any order or direction given to it under this Act].


———————


1. Substituted by Act 95 of 1956, Section 12, for certain words w.e.f. 14-1-1957.


2. Substituted by act 37 of 1960, Section 8, for “and 36”.

 


Section 51. Application of certain provisions to the State Bank of India and other notified banks

1[Application of certain provisions to the State Bank of India and other notified banks. 2[(1)] Without prejudice to the provisions of the State Bank of India Act, 1955(23 of 1955) or any other enactment, the provisions of sections 10, 13 to 15, 17, 3[19 to 21A, 23 to 28, 29] excluding sub-section (3) 4[sub-section (1B), (1C) and (2) of sections 30, 31,] 34, 35, 35A, 36 [excluding clause(a) of sub-section(1)] 45Y to 45ZF, 46 to 48] 50, 52 and 53 shall also apply; so far as may be, to and in relation to the State Bank of India 5[or any corresponding new bank or a Regional Rural Bank or any subsidiary bank] as they apply to and in relation to banking companies:


6[Provided that—


(a) nothing contained in clause (c) of sub-section (1) of section 10 shall apply to the chairman of the State Bank of India or to a 7[managing director] of any subsidiary bank insofar as the said clause precludes him from being a director of, or holding an office in, any institution approved by the Reserve Bank;


8[(b) nothing contained in sub-clause (iii) of clause (b) of sub-section (!) of section 20 shall apply to any bank referred to in sub-section (1), insofar as the said sub-clause (iii) of clause (b) precludes that bank from entering into any commitment for granting any loan or advance to or on behalf of a company (not being a Government company) in which not less than forty per cent of the paid-up capital is held (whether singly or taken together) by the Central Government or the Reserve Bank or a corporation owned by that bank; and


(c) nothing contained in section 46 or in section 47A shall apply to, —


(i) an officer of the Central Government or the Reserve Bank, nominated or appointed as director of the State Bank of India or any corresponding new bank or a Regional Rural Bank or any subsidiary bank or a banking company; or


(ii) an officer of the State Bank of India or a corresponding new bank or a Regional Rural Bank or a subsidiary bank nominated or appointed as director of any of the said banks (not being the bank of which he is an officer) or of a banking company.;]


9[***]


10[(2) References to a banking company in any rule or direction relating to any provision of this Act referred to in sub-section (1) shall, except where such rule or direction provides otherwise, be construed as referring also to the State Bank of India, a corresponding new bank, a Regional Rural Bank and a subsidiary bank.]


———————


1. Substituted by Act 79 of 1956, Section 43 and ScheduleII, for section 51 w.e.f. 22-10-1956.


2. Section 51 renumbered as sub-section (1) thereof by Act 1 of 1984, Section 40 w.e.f. 15-2-1984.


3. Substituted by Act 1 of 1984, Section 40, for certain words and figures w.e.f. 15-2-1984.


4. Substituted by Act 66 of 16988, Section 10, for “31”w.e.f. 30-12-1988.


5. Substituted by Act 1 of 1984, Section 40, for certain words w.e.f. 15-2-1984.


6. Substituted by Act 38 of 1959, Section 64 and Schedule III, for the proviso w.e.f. 10-9-1959.


7. Substituted by Act 1 of 1984, Section 40, for “general manager w.e.f. 15-2-1984.


8. Clauses (b) and (c) Substituted by Act 1 of 1984, Section 40 w.e.f. 15-2-1984.


9. Explanation omitted by Act 58 of 1968, Section 18 w.e.f. 1-2-1969.


10. Inserted by Act 1 of 1984, Section 40 w.e.f. 15-2-1984.

 


Section 52. Power of Central Government to make rules

(1) The Central Government may, after consultation with the Reserve Bank, make rules to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act and all such rules shall be published in the Official Gazette.


(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for the details to be included in the returns required by (his Act and the manner in which such returns shall be submitted 1[and the form in which the official liquidator may file lists of debtors to the court having jurisdiction under Part III or Part IIIA and the particulars which such lists may contain and any other matter which has to be, or may be, prescribed].


2[***]


1[(4) The Central Government may by rules made under this section annul, alter or add to, all or any of the provisions of the Fourth Schedule.]


3[(5) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]


———————


1. Added by Act 52 of 1953, Section 11.


2. Sub-section (3) omitted by Act 1 of 1984, Section 4 w.e.f. 15-2-1984.


3. Inserted by Act 1 of 1984, Section 41 w.e.f. 15-2-1984.

 


Consult: Top Corporate Lawyers in India


 


Section 53. Power to exempt in certain cases

The Central Government may, on the recommendation of the Reserve Bank, declare, by notification in the Official Gazette, that any or all of the provisions of this Act shall not apply to any banking company 1[or institution] or to any class of banking companies either generally or for such period as may be specified.


———————


1. Inserted by Act 55 of 1963, Section 29 w.e.f. 1-2-1964.

 


Section 54. Protection of action taken under Act

(1) No suit or other legal proceeding shall be lie against the Central Government, the Reserve Bank or any officer for anything which is in good faith done or intended to be done in pursuance of this Act.


(2) Save as otherwise expressly provided by or under this Act, no suit or other legal proceeding shall lie against the Central Government, the Reserve Bank or any officer for any damage caused or likely to be caused by anything in good faith done or intended to be done in pursuance of this Act.

 


Section 55. Amendment of Act 2 of 1934

The Reserve Bank of India Act, 1934 shall be amended in the manner specified in the fourth column of the First Schedule, and the amendments to section 18 thereof as specified in the said Schedule shall be deemed to have had effect on and from the 20th day of September, 1947.

 


Section 55A. Power to remove difficulties

1[Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, as occasion requires, do anything (not inconsistent with the provisions of this Act) which appears to it to be necessary for the purpose of removing the difficulty:


Provided that no such power shall be exercised after the expiry of a period of three years from the commencement of section 20 of the Banking Laws (Amendment) Act, 1968 (58 of 1968).]


——————–


1. Inserted by Act 58 of 1968, Section 20 w.e.f. 1-2-1969.

 


Part V – Application of the Act to Co-Operative Banks

Section 56. Act to apply to co-operative societies subject to modifications

The provisions of this Act, as in force for the time being, shall apply to, or in relation to, cooperative societies as they apply to, or in relation to banking companies subject to the following modifications, namely:—


(a) throughout this Act, unless the context otherwise requires,—


(i) references to a “banking company” or “the company” or “such company” shall be construed as references to a co-operative bank;


(ii) reference to “commencement of this Act” shall be construed as reference to commencement of the Banking Laws(Application to Co-operative Societies) Act, 1965 (23 of 1965);


(b) in section 2, the words and figures “the Companies Act, 1956 (1 of 1956) and” shall be omitted;


(c) in section 5,—


1[(i) after clause (cc), the following clauses shall be inserted, namely:—


(cci) “Co-operative bank” means a state co-operative bank, a central co-operative bank and a primary co- operative bank;


(ccii) “co-operative credit society” means a co-operative society, the primary object of which is to provide financial accommodation to its members and includes a co-operative land mortgage bank;


36(cciia) “co-operative society” means a society registered or deemed to have been registered under any Central Act for the time being in force relating to the multi-State Co-operative Societies, or any other Central or State law relating to Co-operative Societies for the time being in force;’;


(cciii) “director” in relation to a co-operative society, includes a member of any committee or body for the time being vested with the management of the affairs of that society;


37(cciiia) “multi-State co-operative bank” means a multi-State co-operative society which is a primary co-operative bank;


38(cciiib) “multi-State co-operative society” means a multi-State co-operative society registered as such under any Central Act for the time being in force relating to the multi-State co-operative societies but does not include a national co-operative society and a federal co-operative;’;


(cciv) “primary agricultural credit society” means a co-operative society,—


(1) the primary object or principal business of which is to provide financial accommodation to its members for agricultural purposes or for purposes connected with agricultural activities (including the marketing of crops); and


(2) the bye-laws of which do not permit admission of any other co-operative society as member:


Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose;


(ccv) “primary co-operative bank” means a co-operative society, other than a primary agricultural credit society,-


(1) the primary object or principal business of which is the transaction of banking business;


(2) the paid-up share capital and reserves of which are not less than one lakh of rupees; and


(3) the bye-laws of which do not permit admission of any other co-operative society as a member:


Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose;


(ccvi) “primary credit society” means a co-operative society, other than a primary agricultural credit society,—


(1) the primary object or principal business of which is the transaction of banking business;


(2) the paid-up share capital and reserves of which are less than one lakh of rupees; and


(3) the bye-laws of which do not permit admission of any other co-operative society as a member;


Provided that this sub-clause shall not apply to the admission of a co-operative bank as a member by reason of such co-operative bank subscribing to the share capital of such co-operative society out of funds provided by the State Government for the purpose.


Explanation. —If any dispute arises as to the primary object or principal business of any co-operative society referred to in clauses (cciv), (ccv) and (ccvi), a determination thereof by the Reserve Bank shall be final;


(ccvii) “central co-operative bank”, “39[***]”, “primary rural credit society” and “state co-operative bank” shall have the meaning respectively assigned to them in the National Bank for Agriculture and Rural Development Act, 1981;]


2[(ii) clauses (ff), (h) and (nb) shall be omitted;]


(d) for section 5A, the following section shall be substituted, namely:—


“5A. Act to override bye-laws, etc.—(1) The provisions of 3[this Act] shall have effect, notwithstanding anything to the contrary contained in the bye-laws of a co-operative society, or in any agreement executed by it, or in any resolution passed by it in general meeting, or by its Board of Directors or other body entrusted with the management of its affairs, whether the same be registered, executed or passed; as the case may be before or after the commencement of the Banking Laws (Application to Co-operative Societies Act, 1965 (23 of 1965).


(2) Any provision contained in the bye-laws, agreement or resolution aforesaid shall, to the extent to which it is repugnant to the provisions of 2[this Act,] become or be void, as the case may be.”;


(e) in section 6, in sub-section (1),—


(i) in clause (b), the words, “but excluding the business of a managing agent or secretary and treasurer of company” shall be omitted;


(ii) in clause (d), after the word “company”, the words “co-operative society” shall be inserted;


(iii) in clause (m), after the word “company”, the words “or co-operative society” shall be inserted;


4[(f) for section 7, the following section shall be substituted, namely: —


“7. Use of words “bank”, “banker” or “banking”. —(1)No co-operative society other than a co-operative bank shall use as part of its name or in connection with its business any of the words “bank”, “banker” or “banking”, and no co-operative society shall carry on the business of banking in India unless it uses as part of its name at least of such words.


(2) Nothing in this section apply to—


(a) a primary credit society, or


(b) a co-operative society formed for the protection of the mutual interest of co-operative banks or co-operative land mortgage banks, or


(c) any co-operative society, not being a primary credit society, formed by the employees of—


(i) a banking company or the State Bank of India or a corresponding new bank or a subsidiary bank of such banking company, State Bank of India or a corresponding new bank, or


(ii) a co-operative bank or a primary credit society or a co-operative land mortgage bank, insofar as the word “bank”, “banker” or “banking” appears as part of the name of the employer bank, or as the case may be, of the bank whose subsidiary the employer bank is.”];


5[(fi) in section 8, for the proviso, the following proviso shall be substituted, namely:


“Provided that this section shall not apply—


(a) to any such business as aforesaid which was in the course of being transacted on the commencement of clause (iii) of section 42 of the Banking Laws (Amendment) Act, 1983, so, however, that the said business shall be completed before the expiry of one year from such commencement; or


(b) to any business as is specified in pursuance of clause (o) of sub-section (1) of section 6;”;


(fii) in section 9, for the second proviso, the following provisos shall be substituted, namely:—


“Provided further that in the case of a primary credit society which becomes a primary co-operative bank after the commencement of clause (iii) of section 42 of the Banking Laws (Amendment) Act, 1983, the period of seven years shall commence from the day it so becomes a primary co-operative bank:


Provided also that the Reserve Bank may, in any particular case, extend the aforesaid period of seven years by such period as it may consider necessary where it is satisfied that such extension would be in the interests of the depositors of the co-operative bank.”];


(g) 6[sections 10, 10A, 7[10B, 10BB, 10C], and 10D] shall be omitted;


(h) for section 11, the following section shall be substituted, namely:—


“11. Requirement as to minimum paid-up capital and reserves. — (1) Notwithstanding any law relating to co-operative societies for the time being in force, no co-operative bank shall commence or carry on the business of banking in India unless the aggregate value of its paid-up capital and reserves is not less than one lakh of rupees:


Provided that nothing in this sub-section shall apply to—


(a) any such bank which is carrying on such business at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), for a period of three years from such commencement; or


(b) to a primary credit society which becomes a primary co-operative bank after such commencement, for a period of two years from the date it so becomes a primary co-operative bank or for such further period not exceeding one year, the Reserve Bank, having regard to the interests of the depositors of the primary co-operative bank, may think fit in any particular case to allow.


(2) For the purpose of this section, “value” means the real or exchangeable value and not the nominal value which may be shown in the books of the co-operative bank concerned.


(3) If any dispute arises in computing the aggregate value of the paid-up capital and reserves of any co-operative bank, a determination thereof by the Reserve Bank shall be final for the purposes of this section;]


(i) sections 12, !2A, 13 and 15 to 17 shall be omitted;


6[(j)) For section 18, the following section shall be substituted, namely: —


18. Cash reserve. —(1) Every co-operative bank, not being a State cooperative bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (hereinafter referred to as a “scheduled State Co-operative Bank”), shall maintain in India by way of cash reserve with itself or by way of balance in a current account with the Reserve Bank or the State co-operative bank of the State concerned or by way of net balance in current accounts, or, in the case of a primary co-operative bank, with the central cooperative bank of the district concerned, or in one or more of the aforesaid ways, a sum equivalent to at least three per cent of the total of its demand and time liabilities in India, as on the last Friday of the second preceding fortnight and shall submit to the Reserve Bank before the fifteenth day of every month a return showing the amount so held on alternate Fridays during a month with particulars of its demand and time liabilities in India on such Fridays or if any such Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881) at the close of business on the preceding working day.


Explanation. —In this section and in section 24—


(a) “liabilities in India” shall not include—


(i) the paid-up capital or the reserves or any credit balance in the profit and loss account of the co-operative bank;


(ii) any advance taken from a State Government, the Reserve Bank, the Development Bank, the Exim Bank, 7[the Reconstruction Bank,] 8[the National Housing Bank] the National Bank 9[the Small Industries Bank] or from the National Co-operative Development Corporation established under section 3 of the National Co-operative Development Corporation Act, 1962 (26 of 1962), by the bank;


(iii) in the case of a State or Central co-operative bank, also any deposit of money with it representing the reserves fund or any part thereof maintained with it by any other co-operative society within its area of operation, and in the case a Central co-operative bank, also an advance taken by it from the State co-operative bank of the State concerned;


(iv) in the case of a primary co-operative bank, also any advance taken by it from the State co-operative bank of the State concerned or the Central cooperative bank of the district concerned;


(v) in the case of any co-operative bank, which has granted an advance against any balance maintained with it, such balance to the extent of the amount outstanding in respect of such advance; and


(vi) in the case of any co-operative bank, the amount of any advance or other credit arrangement drawn and availed of against approved securities;


(b) “fortnight” shall mean the period from Saturday to the second following Friday, both days inclusive;


(c) “net balance in current accounts” shall, in relation to a co-operative bank, mean the excess, if any, of the aggregate of the credit balances in current account maintained by that co-operative bank with the State Bank of India or a subsidiary bank or a corresponding new bank, over the aggregate of the credit balances in current accounts held by the said banks with such co-operative bank;


(d) for the purpose of computation of liabilities, the aggregate of the liabilities of a co-operative bank to the State Bank of India, a subsidiary bank, a corresponding new bank, a Regional Rural bank, a banking company or any other financial institution notified by the Central Government in this behalf shall be reduced by the aggregate of the liabilities of all such banks and institutions to the cooperative bank;


(e) any cash with a co-operative bank or any balance held by a co-operative bank with another bank, shall not, to the extent such cash or such balances represents the balance in, or investment of, Agricultural Credit Stabilisation Fund of such co-operative bank, be deemed to be cash maintained in India.


(2) The Reserve Bank may, for the purposes of this section and section 24, specify from time to time, with reference to any transaction or class of transactions, that such transaction or transactions shall be regarded as liability in India of a co-operative bank, and, if any question arises to whether any transaction or class of transactions shall be regarded for the purposes of this section and section24, as liability in India of a co-operative bank, the decision of the Reserve Bank thereon, shall be final.”];


(k) for section 19, the following section shall be substituted, namely:—


“19. Restriction on holding shares in other co-operative societies. —No co-operative bank shall hold shares in any other co-operative society except to such extent and subject to such conditions as the Reserve Bank may specify in that behalf:


Provided that nothing contained in this section shall apply to—


(i) shares acquired through funds provided by the State Government for that purpose;


(ii) in the case of a Central co-operative bank, the holding of shares in the State co-operative bank to which it is affiliated;


(iii) in the case of a primary co-operative bank, the holding of shares in the Central co-perative bank to which it is affiliated or in the State cooperative bank of the State in which it is registered:


Provided further that where any shares are held by a co-operative bank in contravention of this section at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), the co-operative bank shall without delay report the matter to the Reserve Bank and shall, notwithstanding anything contained in this section, be entitled to hold the shares for such period and on such conditions as the Reserve Bank may specify”


10[(1) for section 20 of the principal Act, the following section shall be substituted, namely:


“20. Restrictions on loans and advances. — (1) No co-operative bank shall—


(a) make any loans or advances on the security of its own shares; or


(b) grant unsecured loans or advances—


(i) to any of its directors; or


(ii) to firms or private companies in which any of its directors is interested as partner of managing agent or guarantor or to individuals in cases where any of its directors is a guarantor; or


(iii) to any company in which the chairman of the Board of directors of the co-operative bank (where the appointment of a chairman is for a fixed term) is interested as its managing agent, or where there is no managing agent, as its chairman or managing director:


Provided that nothing in clause (b) shall apply to the grant of unsecured loans or advances—


(a) made by a co-operative bank—


(i) against bills for supplies or services made or rendered to government or bills of exchange arising out of bona fide commercial or trade transactions, or


(ii) in respect whereof trust-receipts are furnished to the co-operative bank;


(b) made by a primary co-operative bank to any of its directors or to any other person within such limits and on such terms and conditions as may be approved by the Reserve Bank in this behalf.


(2) Every co-operative bank shall, before the close of the month succeeding that to which the return relates, submit to the Reserve Bank a return in the prescribed form and manner showing all unsecured loans and advances granted by it to companies in cases [other than those in which the co-operative bank is prohibited under sub-section (1) to make unsecured loans and advances] in which any of its directors is interested as director or managing agent or guarantor.


(3) If, on examination of any return submitted under sub-section (2), it appears to the Reserve Bank that any loans or advances referred to in that subsection are being granted to the detriment of the interests of the depositors of the co-operative bank, the Reserve Bank may, by order in writing prohibit the co-operative bank from granting any such further loans or advances or impose such restrictions on the grant thereof as it thinks fit, and may by like order direct the co-operative bank to secure the re-payment of such loans or advance within such time as may be specified in the order”;


11[(m) in section 20A, in sub-section (1). —


(i) the words and figures “Notwithstanding anything to the contrary contained in section 293 of the Companies Act, 1956 (1 of 1956),” shall be omitted;


(ii) in clause (a), for the words “any of its directors”, the words “any of its past or present directors” shall be substituted;]


(n) in section 21, in sub-section (2), in clauses (c) and (d), for the words “any one company, firm, association of persons or individuals”, the words “any one party” shall be substituted;


(o) in section 22,—


(i) for sub-sections(1) and (2) the following sub-sections shall be substituted, namely:—


“(1) Save as hereinafter provided, no co-operative society shall carry on banking business in India unless—


(a) it is a primary credit society, or


(b) it is a co-operative bank and holds a licence issued in that behalf by the Reserve Bank, to such conditions, if any, as the Reserve Bank may deem fit to impose:


Provided that nothing in this sub-section shall apply to a co-operative society, not being a primary credit society or a co-operative bank carrying on banking business at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), for a period of one year from such commencement.


12[(2) Every co-operative society carrying on business as a co-operative bank at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965) shall before the expiry of three months from the commencement, every co-operative bank which comes into existence as a result of the division of any other co-operative society carrying on business as a co-operative bank, or the amalgamation of two or more co-operative societies carrying on banking business shall, before the expiry of three months from its so coming into existence, every primary credit society which becomes a primary co-operative bank after such commencement shall before the expiry of three months from the date on which it so becomes a primary co-operative bank and every co-operative society other than a primary credit society shall before commencing banking Business in India, apply in writing to the Reserve Bank for a licence under this section:


Provided that nothing in clause (b) of sub-section (1) shall be deemed to prohibit—


(i) a co-operative society carrying on business as a co-operative bank at the commencement of the Banking Law (Application to Co-operative Societies) Act, 1965 (23 of 1965); or


(ii) a co-operative bank which has come into existence as a result of the division of any other co-operative society carrying on business as a cooperative bank, or the amalgamation of two or more co-operative societies carrying on banking business at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965) or at any time thereafter; or


(iii) a primary credit society which becomes a primary Co-operative bank after such commencement,


from carrying on banking business until it is granted a licence in pursuance of this section or is, by a notice in writing notified by the Reserve Bank that the licence cannot be granted to it.]”


13[(ii) sub-section (3A) shall be omitted;


(iii) in sub-section (4) in clause (iii)the words, brackets, figures and letter “and sub-section (3A)” shall be omitted;]


22A Validation of licences granted by Reserve Bank to multi-State co-operative societies.– Notwithstanding anything contained in any law or, judgment delivered or decree or order of any court made,–


(a) no licence, granted to a multi-


14[(p) in section 23, —


(i) for sub-section (1), the following sub-section shall be substituted, namely:—]


“(1) Without obtaining the prior permission of the Reserve Bank, no co-operative bank shall open a new place of business or change otherwise than within the same city, town or village, the location of an existing place of business:


Provided that nothing in this sub-section shall apply to—


(a) the opening for a period not exceeding one month of temporary place of business within a city, town or village or the environs thereof within which the co-operative bank already has a place of business, for the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any like occasion;


(b) the 15[opening or changing the location of branches] by a Central cooperative bank within the area of its operation”;


16(ii) after sub-section (4), the following sub-section shall be inserted, namely:—


“(4A) Any co-operative bank other than a primary co-operative bank requiring the permission of the Reserve Bank under this section shall forward its application to the Reserve Bank through the National Bank which shall give its comments on the merits of the application and sent it to the Reserve Bank:


Provided that the co-operative bank shall also send an advance copy of the application directly to the Reserve Bank.”];


17[(q) in section 24, —


(i) in sub-section (1) the words “After the expiry of two years from the commencement of this Act” shall be omitted;


(ii) for sub-section (2) and (2A), the following sub-sections shall be substituted, namely:—


“(2) In computing the amount for the purposes of sub-section (1),—


(a) any balances maintained in India by a co-operative bank in current account with the Reserve Bank or by way of net balance in current accounts, and in the case of a scheduled State Co-operative Bank, also the balance required under section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), to be so maintained,


(b) any balances maintained by a Central co-operative bank with the State co-operative bank of the State concerned, and


(c) any balances maintained by a primary co-operative bank with Central co-operative bank of the district concerned or with the State cooperative bank of the State concerned,


shall be deemed to be cash maintained in India.


(2A)(a) Notwithstanding anything contained in sub-section (1) or in sub-section (2), after the expiry of two years from the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965(23 of 1965), or of such further period not exceeding one year as the Reserve Bank, having regard to the interests of the co-operative bank concerned, may think fit in any particular case to allow: —


(i) a scheduled State co-operative bank, in addition to the average daily balance which it is or may be, required to maintain under section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), and


(ii) every other co-operative bank, in addition to the cash reserve which is required to maintain under section 18,


shall maintain in India, in cash, or in gold valued at a price not exceeding the current market price or in unencumbered approved securities valued at a price determined in accordance with such one or more of, or combination of, the following methods of valuation namely, valuation with reference to cost price, market price, book value or face value, as may be specified by the Reserve Bank from time to time, an amount which shall not, at the close of business on any day, be less than twenty-five per cent or such other percentage not exceeding four per cent as the Reserve Bank may, from time to time, by notification in the Official Gazette, specify, of the total of its demand and time liabilities in India, as on the last Friday of the second preceding fortnight.


(b) In computing the amount for the purpose of clause (a), the following shall be deemed to be cash maintained in India, namely: —


(i) any balance maintained by scheduled State co-operative bank with the Reserve Bank in excess of the balance required to be maintained by it under section 42 of the Reserve Bank of India Act, 1934 (2 of 1934);


(ii) any cash or balances maintained in India by a co-operative bank, other than a scheduled State co-operative bank, with itself or with the State co-operative bank of the State concerned, or in current account with the Reserve Bank or by way of net balance in current accounts and, in the case of a primary co-operative bank, also any balances maintained with the Central co-operative bank of he district concerned, in excess of the aggregate of the cash or balances required to be maintained under section 18;


(iii) any net balance in current accounts.


Explanation. —For the purposes of this sub-section—


(a) approved securities or a portion thereof, representing investment of monies of Agricultural Credit Stabilisation Fund of a co-perative bank shall not be deemed to be unencumber approved securities;


(b) in case a co-operative bank has taken an advance against any balance maintained with the State co-operative bank of the State concerned or with the Central co-operative bank of the district concerned, such balance to the extent to which it has been drawn against or availed of shall not be deemed to be cash maintained in India.


(c) for the purpose of clause (a), the market price of an approved security shall be the price as on the date of the issue of the notification or as on any earlier or later date as may be notified from time to time by the Reserve Bank in respect of any class or classes of securities;”


(iii) in sub-section (3) for the proviso, the following proviso shall be substituted, namely:—


“Provided that every co-operative bank, other than a primary cooperative bank, shall also furnish within the said period, a copy of the said return to the National Bank.”;


(iv) in sub-section (6), in clause (a), for the words “fourteen days”, the words “the thirty days” shall be substituted;]


18[(qq) after section 24, the following section shall be inserted, namely: —


“24A. Power to exempt. —Without prejudice to the provisions of section 53, the Reserve Bank may, by notification in the Official Gazette, declare that, for such period and subject to such conditions as may be specified in such notification the whole or any part of the provisions of section 18 or section 24, as may be specified therein, shall not apply to any co-operative bank or class of co-operative banks, with reference to all or any of the offices of such co-operative bank or banks, or with reference to the whole or any part of the assets and liabilities of such co-operative bank or banks.”]


(r) section 25 shall be omitted;


19[(ri) in the second proviso to section 26, for the expression “regional rural Bank” the expression “co-operative bank, other than a primary co-operative bank” shall be substituted;


(rii) in section 27, for sub-section (3)the following sub-section shall be substituted, namely:—


“(3) Every co-operative bank, other than a primary co-operative bank, shall submit a copy of the return which it submits to the Reserve Banks, under sub-section (1) also to the National Bank and the powers exercisable by the Reserve Bank under sub-section (2) may also be exercised by the National Bank in relation to co-operative banks, other than primary co-operative banks.]


(s) for sections 29 and 30, the following section shall be substituted namely:—


“29. Accounts and Balance Sheet. —(1) At the expiration of each year ending with the 30th days of June, 20[or at the expiration of a period of twelve months ending with such date as the Central Government may, by notification in the Official Gazette, specify in this behalf] every co-operative bank, in respect of all business transacted by it, shall prepare with reference to that year 20[or the period] a balance sheet and profit and loss account as on the last working day of the year 20[or the period] in the Forms set out in the Third Schedule as near there to as circumstances admit:


20[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for me preparation of, or for other matters relating to, the balance-sheet or profit and loss account in respect of the concerned year or period, as the case may be].


(2) The balance-sheet and profit and loss account shall be signed by the manager or the principal officer of the bank and where there are more than three directors of the bank, by at least three of those directors, or where there are not more than three directors, by all the directors.


(3) The Central Government, after giving not less than there months’ notice of its intention so to do by a notification in the Official Gazette, may from time to time by a like notification amend the Forms set out in the Third Schedule.”


21[(t) in section 31, —


(i) for the words “within three months” and “of three months’, the words “within six months” and “of six months” shall, respectively, be substituted;


(ii) for the second proviso, the following proviso shall be substituted, namely:


“Provided further that a co-operative bank, other than a primary cooperative bank, shall furnish such returns also to the National Bank.”;]


(u) sections 32 to 34 shall be omitted;


(v) in section 34A, sub-section (3) shall be omitted;


(w) in section 35,—


(i) in sub-section (1),—


(a) for the words and figures “section 235 of the Companies Act, 1956(1 of 1956)”, the words “any law relating to co-operative societies for the time being in force” shall be substituted;


22[(b) the following proviso shall be inserted at the end, namely: —


“Provided that the Reserve Bank may, if it considers it necessary or expedient so to do, cause an inspection to be made of a primary co-operative bank under this sub-section by one or more officers of a State co-operative bank in the State in which such primary cooperative bank is registered.”];


(ii) in sub-section (4), clause (b) shall be omitted.


23[(iii) after sub-section (4), the following sub-section shall be inserted, namely:—


“(4A) Without prejudice to the provisions of sub-section (4), the Reserve Bank may, if it considers it necessary or expedient so to do supply a copy of the report on any inspection or scrutiny to the State co-operative bank and the Registrar of co-operative societies of the State in which the bank which has been inspected or whose affairs have been scrutinised is registered.”];


24[(iv) in sub-section (6), for the expressions “regional rural banks’ and “regional rural bank”, wherever they occur, the expressions “co-operative banks other than primary cooperative bank” shall, respectively, be substituted.]


25[(v)] the Explanation shall be omitted;


(x) in section 35A, in sub-section (1), in clause (c), for the words “any banking company”, the words “the banking business of any co-operative bank” shall be substituted;


(y) section 35B shall be omitted;

 


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26[(z) in section 36, in sub-section (1), —


(a) clause (b) shall be omitted;


(b) for clause (d), the following clause shall be substituted, namely:—


(d) at any time, if it is satisfied that for the reorganisation or expansion of co-operative credit on sound lines it is necessary so to do by an order in writing and on such terms and conditions as may be specified therein,—


(i) depute one or more of its officers to watch the proceedings at any meeting of the Board of directors of the co-operative bank or of any other body constituted by it and require the co-operative bank to give an opportunity to the officer so deputed to be heard at such meetings and to offer such advice on such matters as the officer may consider necessary or proper for the reorganisation and expansion of co-operative credit on sound lines, and also require such officer to send a report of such proceedings to the Reserve Bank;


(ii) appoint one or more of its officers to observe the manner in which the affairs of the co-operative bank or its offices or branches are being conducted and make a report thereon;”];


(za) in section 36A,—


(i) for sub-section (1), the following sub-section shall be substituted, namely:—


“(1) The provisions of section 11, section 18 and section 24 shall not apply to a co-operative bank which has been refused a licence under section 22 of whose licence has been cancelled under that section or which is or has been prohibited or precluded from accepting deposits by virtue of any order made under this Act or of any alteration made in its bye-laws.”;


(ii) after sub-section (2), the following sub-section shall be inserted, namely:—


“(3) Subject to the provisions of sub-sections (1) and (2), a co- operative society carrying on business as a primary co-operative bank at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), or a co-operative society which becomes a primary co-operative bank after such commencement shall, notwithstanding that it does not at any time thereafter satisfy the requirements of the definition of primary co-operative bank 27[in clause (ccv) of section 5], continue to be a primary co-operative bank within the meaning of this Act, and may, with the approval of the Reserve Bank and subject to such terms and conditions as the Reserve Bank may specify in that behalf, continue to carry on the business of banking.”;


28[(zaa)in section 35AD, sub-section (3) shall be omitted;”]


(zb)


40[Part II A except sections 36AAA, 36AAB and 36AAC], 29[Part IIC], Part III, except sub-sections (1), (2) and (3) of section 45,and Part IIIA except section 45W shall be omitted;


30[(zc) in section 46, —


(i) in sub-section (4) the word “or” occurring at the end of clause (i) and clause (ii) shall be omitted;


(ii) in clause (a) of the Explanation, after the words “includes a”, the words “co- operative society” shall be inserted;]


(zd) in section 47, the words brackets, figures and letters “sub-section (5) of section 36AA or” shall be omitted;


(ze) section 49 shall be omitted;


(zf) in section 49A, for the proviso, the following proviso shall be substituted, namely:—


“Provided that nothing contained in this section shall apply to—


(a) a primary credit society—


(b) any other co-operative society accepting such deposits at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), for a period of one year from the date of such commencement; and


(c) any savings bank scheme run by the Government”;


(zg) sections 49B and 49C shall be omitted;


(zh) in section 50, the figures and letters “10,12A, 16”, “35B”, and “43A” shall be omitted;


(zi) section 51 shall be omitted;


(zj) in section 52,—


(i) in sub-section (2) the words, figures and letter “and the form in which official liquidator may file lists of debtors to the court jurisdiction under Part III or Part IIIA and the particulars which such lists may contain” shall be omitted;


(ii) sub-section (4) shall be omitted;


31[(zji) in section 54, after the expression “Reserve Bank”, wherever it occurs, the expression “or the National Bank” shall be inserted;]


(zk) For section 65 and the First Schedule, the following section shall be substituted, namely:—


“55, Act 18 of 1891 and Act 46 of 1949 to apply in relation to co-operative banks.—(1) The Bankers’ Books Evidence Act, 1891 shall apply in relation to a co-operative bank as it applies in relation to a bank as defined in section 2 of that Act.


(2) The Banking Companies (Legal Practitioners’ Clients’ Accounts) Act, 1949 shall apply in relation to a co-operative bank as it applies in relation to a banking company as defined in section 2 of that Act.”;


(zl) for the third Schedule and the Fourth Schedule, the following Schedule shall be substituted, namely:—

 


Schedules

The First Schedule

(See section 55)


AMENDMENTS


Year


No.


Short title


Amendments


1


2


3


4


1934


2


The reserve Bank

of India Act, 1934


(1) In section 17, to clause (15A), thefollowing shall be added, namely :—”and under the Banking Companies Act, 1949.”

(2) (a) Section 18 shall be renumbered as sub-

section (1) of that section and in

sub-section (1) as so renumbered,—

(i) in clause (3) after the words “of that

section”, the following worlds shall

be added, namely:

“or when the loan or advance, is made to banking company as defined in the Banking Companies Act, 1949, against such other form of security as the Bank may consider sufficient”;(ii) for the worlds “under thissection” wherever the occur, the

 


 


words “under this sub-section”


 


shall be substituted;


 


(b) after sub-section (1) as so


 


renumbered, the following sub-


 


section shall be inserted,


 


namely:—


 


“(2) Where a banking company to


  which a loan or advance has been made under the provisions of clause (3) of sub-section (1) is wound up, any sums due to the Bank in respect of such loan or advance, shall subject only to the claims, if any, of any other banking company in respect of any prior loan or advance made by such banking company against any security, be a first charge on the assets of the banking company.”(3) In section 42, for sub-section (6) the following sub-section shall be substituted, namely:—“(6) The bank shall, save as hereinafter provided, by notification in the Gazette of India,—(a) direct the inclusion in the Second Schedule of any bank not already so included which carries on the business of banking in any Province of India and which—(i) has a paid-up capital and reserves of an aggregate value of not less than five lakhs of rupees, and(ii) satisfies the Bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors; and

 


 


(iii) is a company as defined in clause (2) of section 2 of the Indian Companies Act, 1913 (7 of 1913) or a corporation or a company incorporated by or under any law in force in any place outside the Provinces of India;


 


(b) direct the exclusion from that Schedule of any scheduled bank—


 


(i) the


  aggregate value of whose paid-up capital and reserves becomes at any time less than five lakhs of rupees, or(ii) which is, in the opinion of the Bank after making an inspection under section 35 of the Banking Companies Act, 1949, conducting its affairs to the detriment of the interests of its depositors, or(iii) which goes into liquidation or otherwise ceases to carry on banking business:Provided that the Bank may, on application of the scheduled bank concerned and subject to such conditions, if any, as it may impose, defer the making of a direction under sub-clause (i) or sub-clauses (ii) of clause (b) for such period as the bank considers reasonable to give the scheduled bank and opportunity of increasing the aggregate value of its paid-up capital and reserves to not less than five lakhs of rupees or, as the case may be, of removing the defects in the conduct of its affairs;(c) alter the description is that Schedule whenever any scheduled bank changes its name.Explanation—In this sub-section the expre-ssion ‘value’ means the real or exchangeable value and not the nominal value which may be shown in the books of the bank concerned; and if any dispute arises in computing the aggregate value of the paid up capital and reserves of a bank, a determination thereof by the Bank shall be final for the purposes of this sub-section.

 The Second Schedule

Repeals.—[Rep. by Repealing and Amending Act, 1957 (36 of 1957), Section 52 and Schedule 1]

 


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The Third Schedule

(see section 29)


FORM A


Form of Balance-sheet


CAPITAL AND LIABILITIES

PROPERTY AND ASSETS


Rs. P. Rs. P.


 


Rs. P. Rs. P.


1. CAPITAL:

(i) AuthorisedCapital…..shares of Rs…..each

…..shares of Rs….. each

…………………

(ii) Subscribed Capital

…..shares of Rs….. each

…..shares of Rs….. each____________(iii) Amount called upOn…..shares of Rs….. each

 


 


less class unpaid


 


On….. shares of Rs…..


 


each less calls unpaid


 


of (iii) above, held by


 


(a) Individuals


 


(b) Co-operative institutions


 


(c) State Government


 


1. CASH:In hand and with Reserve Bank31[National Bank] State Bank ofIndia, State Co-operative Bankand Central Co-operative Bank 

 


2. BALANCES WITH OTHER


 


BANKS:


 


(i) Current deposits


 


(ii) Savings bank deposits


 


(iii) Fixed deposits


 


 


3. MONEY AT CALL AND


 


SHORT NOTICE:


 


 


4. Investments:


 


(i) In Central and State


 


Government securities


 


(at book value)


___________


__________


Face value Rs.

Market value Rs.(ii) Other Trustee securities(iii) Shares in co-operativeinstitutions otherthan in item (5) below 

 


 


(iv) other investments


 


(to be specified)


 


 


 


 


 


 


2. RESERVE FUND AND

OTHER RESERVES(i) Statutory Reserve(ii) Agricultural (Creditstabilization fund)

 


 


(iii) Building Fund


 


(iv) Dividend Equalization Fund


 


(v) Special Bad Debts Reserve


 


(vi) Bad and Doubtful Debts


 


Reserve


 


(vii) Investment and Depreciation


 


Reserve


 


5. INVESTMENT OUT OF

THE PRINCIPAL SUB-SIDIARY STATEPARTNERSHIP FUNDSIn shares of: 

 


 


(i) Central Co-operative Banks


 


(ii) Primary agricultural


 


credit societies


 


(iii) Other societies


 


 


 


6. ADVANCES :


(viii) Other Funds and Reserves

(to be specified) (i) Short-term loans, cash

credits, overdrafts andbills discountedOf which secured against:(a) Government and other

3. PRINCIPAL/SUBSIDIARY

STATE PARTNERSHIPFUND ACCOUNT:For share capital of:(i) Central co-operative banks(ii) Primary agricultural creditsocieties

 


 


(iii) other societies


 


 


 


 


approved securities

(b) Other tangible securities @Of the advances, amount duefrom individualsOf the advances, amount overdueConsidered bad and doubtfulof recovery

 


 


(ii) Medium-term loans


 


Of which secured against:


4. DEPOSITS AND OTHER

ACCOUNTS:(i) Fixed deposits*(a) Individuals**(b) Central co-operative banks(c) Other societies(ii) Savings Bank Deposits

 


 


(a) Individuals**


 


(b) Central co-operative


 


banks


 


(a) Government and other

approved securities(b) Other tangible securities @Of the advances, amountdue from individualsOf the advances, amount overdueconsidered bad and doubtful

 


 


of recovery


 


(ii) Long-term loans


 


Of which secured against


(c) Other societies

(iii) Current deposits(a) individuals**(b) Central co-operativebank(c) Other societies(iv) Money at call and short notice____________

 


 


 


(a) Government and otherapproved securities(b) Other tangible securities @

5. BORROWINGS:

(i) From the Reserve Bank ofIndia 32[the National Bank]State/Central co-operative Bank:(a) Short-term loans,cash, credits and overdrafts(A) Government and other

 


 


approved secu rities


 


(B) Other tangible securities @


 


(b) Medium term loans


 


Of which secured against


 


(A) Government and other


 


approved securities


 


(B) Other tangible Securities @


 


 


Of the advances, amount

due from individualsOf the advances, amountover dueConsidered bad and doubtfulof recovery____________ 

 


 


 


 


7. INTEREST RECEIVABLE


 


Of which overdue


 


Considered bad and doubtful


 


of recovery


(c) Long-term loansOf which securedagainst:(A) Government and otherapproved securities(B) Other tangible securities @

 


 


(ii) From the State Bank


 


of India


 


(a) Short-term loans, cash-


 


credits and over drafts


 


Of which secured against:


 


(A) Government and other


 


approved securities


 


(B) Other tangible securities @


 


(b) Medium term- loans


 


Of which secured against:


 


(A) Government and other


 


approved securities:


 


(B) Other tangible securities @


 


(c) Long-term loans:


 


Of which secured against:


 


(A) Government and other


 


approved securities


 


(B) Other tangible securities @


 


 


 


8. BILLS RECEIVABLEBEING BILLS FORCOLLECTIONAs per contra _____________ 

 


 


 


 


9. BRANCH ADJUST-


 


MENT ___________


 


10. PREMISES LESS _____________


 


DEPRECIATION


 


 


 


 


 


 


11. FURNITURE AND


 


FIXTURES LESS


 


DEPRECIATION _____________


 


12. OTHER ASSETS


 


(to be specified)


 


 


 


13. NON-BANKING ASSETS


 


ACQUIRED IN SATIS-


 


FACTION OF CLAIMS


 


(standing mode of


 


valuation) _____________


 


(iii) From the State Government(a) Short-term loansOf which secured against:(A) Government and otherapproved securities(B) Other tangible securities @

 


 


(d) Medium term loans


 


Of which secured against:


 


(A) Government and other approved


 


securities


 


(B) Other tangible securities @


 


(c) Long-term loans


 


Of which secured against:


 


(A) Government and other


 


approved securities


 


(B) Other tangible securities @


 


(iv) Loans from other sources


 


(source and security to


 


be specified rule)


 


 


 


14. PROFIT AND LOSS

6. BILL FOR COLLECTIONBEING BILLSRECEIVABLEAs per contra ____________7. BRANCH ADJUSTMENTS ____________8. OVERDUE INTEREST

RESERVE

 


 


____________


 


9. INTEREST PAYABLE


 


____________


 


10. OTHER LIABILITIES


 


(i) Bills payable

(ii) Unclaimed dividends

(iii) Suspense

(iv) Sundries


 


11. PROFIT AND LOSS


 


Profit as per last


 


balance-sheet


 


Less appropriations


 


Add profit for the year brought from


 


the Profit and Loss Account


 


 


 


 


____________


 


Total


 


 


_________________


 


 


 


 


 


 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


___________

Total ___________


 


 


CONTINGENT LIABILITIES

(i) Outstanding liabilities for

guarantees issued(ii) Others

___________Total ___________ ____________

Total ____________

 


 


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FORM B


Form of Profit and Loss Account


Profit and Loss Account for the year ended—


EXPENDITURE INCOME

Rs. P. Rs. P. Rs. P. Rs. P.

1. Interest on deposits, borrowings, etc.

2. Salaries and allowances and provident fund


 


 


3. Directors and local committee members’ fees


 


and allowances


 


 


4. Rent, taxes, insurance, lighting, etc.


 


 


5. Law charges


 


 


6. Postage, telegrams and telephonic charges


 


 


7. Auditor’s fees


 


 


8. Depreciation on and repairs in property


 


 


1. Interest and discount


 


2. Commission, exchange and brokerage


 


3. Subsidies and donations


 


 


 


 


 


4. Income from non-banking assets and profit from


 


 


sale of or dealing with such assets


 


 


 


 


 


 


 


 


 


5. Other receipts


 


6. Loss (if any)9. Stationery, printing and advertisement, etc.


 


 


 


 


10. Loss from sale of or dealing with non-banking


 


assets


 


 


 


11. Other expenditure


 


 


 


 


12. Balance of profit ___________


 


Total ___________


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


____________

Total ____________


The Third Schedule A


(See section 29)

33[Form A


Form of Balance Sheet


Balance Sheet of________________(here enter name of the Banking Company)

Balance Sheet as on 31st March______________(Year)

(000’somitted)

Capital and Liabilities Schedule As on 31-3-….

current year) As on 31-3-….

(previous year)

Capital

Reserves and surplusDeposits

 


Borrowings


 


Other liabilities and provisions1

23


 


4


 


5


 


__________ __________

Total __________ __________ASSETS

Cash and Balances with ReserveBank of India


 


Balances with Banks and money at


 


call and short notice


 


Investments


 


Advances


 


Fixed Assets


 


Other Assets


 


 


Total


 


Contingent liabilities 12 Bill for collection


 


6


 


 


7


 


8


 


9


 


10


 


11


 


__________ ___________


 


__________ ___________


SCHEDULE I


Capital


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. For Nationalised Banks

Capital (Fully owned by CentralGovernment)

 


 


II. For Banks incorporated outside India


 


Capital


 


 


 


(i) (The amount brought in by banks


 


by way of Start-up capital as prescribed


 


by RBI should be shown under this head)


 


 


 


(ii) Amount of deposit kept with the RBI


Under section 11(2) of the Banking


Regulation Act, 1949.


 


__________ __________


 


Total ____________ ___________


 


III. For other BanksAuthorised Capital (Shares of Rs…..


 


each)


 


Issued Capital (Shares of Rs….. each)


 


Subscribed Capital (Shares of Rs….. each)


 


Called-up Capital (Shares of Rs….. each)


 


Less : Calls unpaid


 


Add : Forfeited shares


Schedule 3A – I.


SCHEDULE I


Capital


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. For Nationalised Banks

Capital (Fully owned by CentralGovernment)

 


 


 


II. For Banks incorporated outside India


 


Capital


 


 


 


(i) (The amount brought in by banks


 


by way of Start-up capital as prescribed


 


by RBI should be shown under this head)


 


 


 


(ii) Amount of deposit kept with the RBI


Under section 11(2) of the Banking


Regulation Act, 1949.


 


__________ __________


 


Total ____________ ___________


 


III. For other BanksAuthorised Capital (Shares of Rs…..


 


each)


 


Issued Capital (Shares of Rs….. each)


 


Subscribed Capital (Shares of Rs….. each)


 


Called-up Capital (Shares of Rs….. each)


 


Less : Calls unpaid


 


Add : Forfeited shares


Schedule 3A – II.


SCHEDULE 2


Reserves and Surplus


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Statutory ReservesOpening Balance

 


Additions during the year


 


Deductions during the year


 


 


 


II. Capital Reserves


 


Opening Balance


 


Additions during the year


 


Deductions during the year


 


 


 


III. Share premium


 


Opening Balance


 


Additions during the year


 


Deductions during the year


 


 


 


 


IV. Revenue and other Reserves


 


Opening Balance


 


Additions during the year


 


Deductions during the year


 


V. Balance of Profit and Loss Account

__________ __________


 


Total (I, II, III, IV and V) __________ __________


 


Schedule 3A – III.


SCHEDULE 3


Deposits


  As on 31-3….

(current year) As on 31-3….

(previous year)

A.I. Demand Deposits(i) From Banks

 


(ii) From others


 


 


II. Savings Bank Deposits


 


 


III. Term Deposits


 


(i) From Banks


 


(ii) From others


 


___________ ___________


 


Total (I, II, III) ___________ ___________


 


 


 


B. (i) Deposits of branches in India


 


(ii) Deposits of branches outside India


 


___________ ___________


 


Total ___________ ___________


 


Schedule 3A – IV.


SCHEDULE 4


Borrowings


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Borrowing in India(i) Reserve Bank of India

 


(ii) Other Banks


 


(iii) Other institutions and agencies


 


 


 


II. Borrowings outside India


 


 


 


___________ ___________


 


Total: (I and II) ___________ ___________


 


 


 


Secured borrowings included in 1 and


 


II above—Rs.


Schedule 3A – IX.


SCHEDULE 9


Advances


  As on 31-3….

(current year) As on 31-3….

(previous year)

A. (i) Bills purchased and discounted(ii) Cash credits, overdrafts and loans

 


repayable on demand


 


(iii) Term loans


 


___________ ___________


 


Total: ___________ ___________


 


 


B. (i) Secured by tangible assets


 


(ii) Covered by Bank/Government


 


Guarantees


 


(iii) Unsecured


 


Total: ___________ ___________


 


C.I. Advances in India


(i) Priority sectors


 


(ii) Public sector


 


(iii) Banks


 


(iv) Others


 


Total: ___________ ___________


 


 


II. Advances Outside India


 


(i) Due from banks


 


(ii) Due from others


 


(a) Bills purchased and discounted


 


(b) Syndicated loans


 


 


 


(c) Others


 


Total: ___________ ___________

___________ ___________


 


Grand Total; (C.I. & C.II) ___________ ___________


 


Schedule 3A – V.


SCHEDULE 5


Other Liabilities and Provisions


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Bills payable

II. Inter-office adjustments (net)


 


 


III. Interests accrued


 


 


 


IV. Others (Including provisions)


 


 


___________ ___________


 


Total: ___________ ___________


 


Schedule 3A – VI.


SCHEDULE 6


Cash and Balances with Reserve Bank of India


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Cash in hand(Including foreign currency notes)

 


 


 


II. Balance with Reserve Bank of India


 


(i) in Current Account


 


(ii) in other Accounts


 


 


 


___________ ___________


 


Total: ___________ ___________


(I and II)


Schedule 3A – VII.


SCHEDULE 7


Balances with banks and Money at Call and short Notice


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. In India(i) Balances with banks

 


(a) In Current Accounts


 


(b) In Other Deposit Accounts


 


 


 


(ii) Money at call and short notice


 


(a) With banks


 


(b) With other institutions


 


 


___________ ___________


 


Total: ___________ ___________


(I and II)


 


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II. Outside India


 


(i) in Current Accounts


 


(ii) in Other Deposit Accounts


 


(iii) Money at call and short notice


 


 


 


___________ ___________

Total: ___________ ___________


(I, II and III)


 


___________ ___________

Grant Total: ___________ ___________

(I and II)


Schedule 3A – VIII.


SCHEDULE 8


Investments


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Investments in India in

(i) Government Securities


 


 


(ii) Other approved securities


 


 


(iii) Shares


 


 


(iv) Debentures and Bonds


 


 


(v) Subsidiaries and/or joint ventures


 


 


(vi) Others (to be specified)


 


 


 


_____________ _____________


 


Total: _____________ _____________


 


 


 


II. Investments outside India in


 


 


(i) Government securities (Including local

authorities)


 


(ii) Subsidiaries and/or joint ventures abroad


 


(iii) Other investments (to be specified)


 


 


___________ ___________


 


Total: ___________ ___________


 


Grand Total (I and II)


 


Schedule 3A – X.


SCHEDULE 10


Fixed Assets


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. PremisesAt cost as on 31st March of the preceding year

 


Additions during the year


 


Deductions during the year


 


Depreciation to date


 


 


 


II. Other Fixed Assets (including furniture and

fixtures)


 


At cost as on 31st March of the preceding year


 


Additions during the year


 


Deductions during the year


 


Depreciation to date


 


 


 


___________ ___________

Total: (I and II) ___________ ___________


 


Schedule 3A – XI.


SCHEDULE 11


Other Assets


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Inter-office adjustment (net)

 


II. Interest accrued


 


 


 


III. Tax paid in advance/tax deducted at source


 


 


 


IV. Stationery and stamps


 


 


 


V. Non-banking assets acquired

in satisfaction of claims


 


 


 


VI. Others*

_____________ _____________


 


Total: ___________ ___________


 


Schedule 3A – XII.


SCHEDULE 12


Contingent Liabilities


  As on 31-3….

(current year) As on 31-3….

(previous year)

I. Claims against the bank not acknowledged

as debts

II. Liability for partly paid investments


 


 


III. Liability on account of outstanding forward exchange contracts


 


 


IV. Guarantees given on behalf of constituents


 


 


(a) In India


 


(b) Outside India


 


 


V. Acceptances, endorsements and other obligations


 


 


VI. Other items for which the bank is contingently liable


 


 


___________ ___________


 


Total: ___________ ___________


 


 


FORM ‘B’

Form of Profit and Loss Account for the year ended 31st March (year)


  Schedule

No. Year ended 31-3 …..

(current year) Year ended 31-3 …..

(previous year)

I. IncomeInterest earned 13

Other Income 14


 


Consult: Top Corporate Lawyers in India


 


___________ ___________


 


Total: ___________ ___________


 


 


 


II. Expenditure


 


Interest expended 15


 


Operating expenses 16 Provisions and contingencies


 


 


___________ ___________

Total: ___________ ___________


 


 


 


III. Profit/Loss


 


Net Profit/Loss (-) for the year


 


Profit/Loss (-) brought forward

___________ ___________


 


 


Total: ___________ ___________


 


 


 


IV. Appropriations


 


Transfer to statutory reserves


 


Transfer to other reserves


 


Transfer to Government/proposed dividend


 


Balance carried over to balance sheet


 


 


___________ ___________


 


Total: ___________ ___________


 


Schedule 3A – XIII.


SCHEDULE 13


Interest Earned


  Year ended on

31-3 ……..

(current year) Year ended on

31-3 ……….

(previous year)

I. Interest/discount on advance/bills

II. Income on investments


 


 


III. Interest on balances with Reserve Bank

of India and other inter-bank funds


 


 


IV. Others


 


 


___________ ___________


 


Total: ___________ __________


Schedule 3A – XIV.


SCHEDULE 14


Other Income


  Year ended on

31-3 ……..

(current year) Year ended on

31-3 ……….

(previous year)

I. Commission, exchange and brokerageII. Profit on sale of investments

 


Less : Loss on sale of investments


 


III. Profit on revaluation of investments


 


Less : Loss on revaluation of investments


 


IV. Profit on sale of land, buildings and other assets


 


Less : Loss on sale of land, buildings and other assets


 


V. Profit on exchange transactions


 


Less : Loss on exchange transactions


 


VI. Income earned by way of dividends etc.


 


from subsidiaries/companies and/or joint


 


ventures abroad/in India


 


VII. Miscellaneous Income


 


___________ ___________


 


Total: ___________ ___________


Schedule 3A – XV.


SCHEDULE 15


Interest Expended


  Year ended on

31-3 ……..

(current year) Year ended on

31-3 ……….

(previous year)

I. Interest on deposits

II. Interest on Reserve Bank of India/


 


Inter-back borrowings


 


 


III. Others


 


 


___________ ___________


 


Total: ___________ ___________


 


Schedule 3A – XVI.


SCHEDULE 16


Operating Expenses


  Year ended on

31-3 ……..

(current year) Year ended on

31-3 ……….

(previous year)

I. Payments to and provisions for employees

II. Rent, taxes and lighting


 


 


III. Printing and stationery


 


 


IV. Advertisement and publicity


 


 


V. Depreciation on Bank’s property


 


 


VI. Director’s fees, allowances and expenses


 


 


VII. Auditors’ fees and expenses (Including branch auditors)


 


 


VIII. Law charges


 


 


IX. Postages. Telegrams, Telephones, etc.


 


 


X. Repairs and maintenance


 


 


XI. Insurance


 


 


XII. Other expenditure


 


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___________ ___________


 


Total: ___________ ___________


The Fourth Schedule

1[THE FOURTH SCHEDULE


[See section 45D(2)]


List of Debtors


1. The official liquidator shall from time to time submit list of debtors to the High Court, each list being verified by an affidavit.


2. Every such list shall contain the following particulars:


(a) names and addresses of the debtors;


(b) amount of debt due to the banking company by each debtor;


(c) rate of interest, if any, and the date up to which such interest has been calculated in the case of each debtor;


(d) description of papers, writings, and documents, if any, relating to each debt;


(e) relief or reliefs claimed against each debtor.


3. (a) In every such list, the official liquidator shall distinguish between the debts for which the banking company holds and security other than a personal security and the debts for which no security or only a personal security is given;


(b) In the case of secured debts, particulars of the securities claimed by the ban king company, and whenever possible their estimated value, and the names and addresses of person or persons, if any, having an interest in the securities or the right of redemption therein;


(c) In case the debt is guaranteed by any person or persons, the name and address of the guarantor or guarantors with particulars as to the extent to which the debt is guaranteed and description of documents, papers or writings in support of such guarantee.


4. If the debtor is adjudged insolvent either before or after he has been included in any such list, but before such list is settled, the name and address of the assignee or the receiver of his estate, as the case may be, should be stated in, or added to, the list.


5. If the original debtor dies either before or after he has been included in any such list, but before such list is settled, there shall be substituted in his place the names and addresses of his legal representatives as far as the official liquidator is able to ascertain.]


——————–


1. Inserted by Act 58 of 1968, Section 22 w.e.f. 1-2-1969.

 


The Fifth Schedule

1[THE FIFTH SCHEDULE

(See section 36AG)


Principles of Compensation


1. The compensation to be given under section 36AG shall be an amount equal to the value of the assets of the acquired bank as on the day immediately before the appointed day, computed in accordance with the provisions of Part I of this Schedule less the total amount of liabilities thereof computed in accordance with the provisions of Part II of this Schedule.


Part I-Assets


For the purposes of this Part “assets” means the total of the following: —


(a) the amount of cash in hand and with the Reserve Bank and the State Bank of India (including foreign currency notes which shall be converted at the market rate of exchange);


(b) the amount of balances with any bank, whether on deposit or current account, and money at call and short notice, balance held outside India being converted at the market rate of exchange:


Provided that any balance which are not realisable in full shall be deemed to be debts and valued accordingly; —


(c) the market value, as on the day immediately before the appointed day, of any securities, shares debentures, bonds and other investments, held by the bank concerned.


Explanation.—For the purposes of this clause,—


(i) securities of the Central and State Governments [other than the securities specified in sub-clauses (ii) and (iii) of this Explanation] maturing for redemption, within five years from the appointed day shall be valued at the face value or the market value, whichever is higher;


(ii) securities of the Central Government, such as Post Office Certificates and Treasury Savings Deposit Certificates and any other securities or certificates issued or to be issued under the Small Savings Scheme of the Central Government, shall be valued at their face value or the encashable value of the market value, as on the day immediately before the appointed day, whichever is higher;


(iii) where the market value of any Government security such as the zamindari abolition bonds or other similar security in respect of which the principal is payable in instalment, is not ascertain able or is, for any reason, not considered as reflecting the fair value thereof or as otherwise appropriate, the security shall be valued at such an amount as is considered reasonable having ‘ regard to the instalments of principal and interest remaining to be paid, the period during which such instalments are payable, the yield of any security, issued by the Government to which the security pertains and having the same or approximately the same maturity, and other relevant factors;


(iv) where the market value of any security, share, debenture, bond or other investment is not considered reasonable by reason of its having been affected by abnormal factors, the investment may be valued on the basis of its average market value over any reasonable period;


(v) where the market value of any security, share, debenture, bond or other investment is not ascertainable, only such value, if any, shall be taken into account as is considered reasonable having regard to the financial position of the issuing concern, the dividend paid by it during the preceding five years and other relevant factors;


(d) the amount of advances (including loans, cash, credits, overdrafts, bills purchased and discounted), and other debts, whether secured or unsecured, to the extent to which they are reasonably considered recoverable, having regard to the value of the security, if any, the operations on the account, the reported worth and respectability of the borrower, the prospects of realisation and other relevant considerations;


(e) the value of any land or buildings;


(f) the total amount of premia paid, in respect of all leasehold properties, reduced in the case of each such premium by an amount which bears to such premium the same proportion as the expired term of the lease in respect of which such premium shall have been paid bears to the total term of the lease;


(g) the written down value as per books, or the realisable value, as may be considered reasonable, of all furniture, fixture and fittings;


(h) the market or realisable value, as may be a appropriate, of the other assets appearing on the books of the bank, no value being allowed for capitalised expenses, such as share selling commission, organisational expenses and brokerage, losses incurred and similar other items.


Part II—Liabilities


For the purpose of the Part “liabilities” means the total amount of all outside liabilities existing on the appointed day, and all contingent liabilities which the Central Government or the transferee bank may reasonably be expected to be required to be out of its own resources on or after the appointed day and where the acquired bank is a banking company incorporated outside India, includes the liabilities of the offices and branches in India of the acquired bank to its offices and branches outside India.


2. If the acquired bank is not incorporated in India, the assets or, as the case may be, the liabilities of the bank shall be, for the purposes of Part 1 and Part 11, and subject to the other provisions therein, the assets and liabilities of the offices of the bank situated in India.


COMPENSATION PAYABLE TO SHAREHOLDERS


3. Every shareholder of the acquired bank to whom the compensation is payable, shall be given such amount as compensation, as bears to the total compensation, calculated in accordance with the provisions of paragraph 1, the same proportion as the amount of paid-up capital of the shares held by the shareholder bears to the total-up capital of the acquired bank.


CERTAIN DIVIDENDS NOT TO BE TAKEN INTO ACCOUNT


4. No separate compensation shall be payable for any profits or any dividends in respect of any period immediately preceding the appointed day, for which, in the ordinary course, profits would have been transferred or dividend declared after the appointed day.]


——————–


1. Inserted by Act 58 of 1968, Section 22 w.e.f. 1-2-1969.

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