|
|
THE BANKING REGULATION ACT, 1949 - CONT'D
Power to publish information
The Reserve Bank or the National Bank, or both, if they consider it in the public interest so to do, may publish any information obtained by them under this Act in such consolidated form as they think fit.
Power of the Reserve Bank to give directions
Where the Reserve Bank is satisfied that
(a) in the 134[public interest]; or 135[(aa) in the interest of banking policy; or]
(b) to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company; or
(c) to secure the proper management of any banking company generally,
it is necessary to issue directions to banking companies generally or to any banking company in particular, it may, from time to time, issue such directions as it deems fit, and the banking companies or the banking company, as the case may be, shall be bound to comply with such directions.
The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any direction issued under sub-section (1), and in so modifying or cancelling any direction may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.
Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank.
- no amendment of any provision relating to the maximum permissible number of directors .
- no appointment or re-appointment or termination of appointment of a chairman.
Further powers and functions of Reserve Banks.
(a) caution or prohibit banking companies or any banking company in particular against entering into any particular transaction or class of transactions, and generally give advice to any banking company;(b) on a request by the companies concerned and subject to the provision of section 149[44A], assist, as intermediary or otherwise, in proposals for the amalgamation of such banking companies;
(c) give assistance to any banking company by means of the grant of a loan or advance to it underclause (3) of sub-section (1) of section 18 of the Reserve Bank of India Act, 1934 (2 of 1934);
- The Reserve Bank shall make an annual report to the Central Government on the trend and progress of banking in the country, with particular reference to its activities under clause (2) of section 17 of the Reserve Bank of India Act, 1934 (2 of 1934), including in such report its suggestions, if any, for the strengthening of banking business throughout the country.
- The Reserve Bank may appoint such staff at such places as it considers necessary for the scrutiny of the returns, statements and information furnished by banking companies under this Act, and generally to ensure the efficient performance of its functions under this Act.
Certain provisions of the Act not to apply to certain banking companies.
- The provisions of section II, sub-section (1) of section 12, and sections 17, 18, 24 and 25 shall not apply to a banking company—
(a) which, whether before or after the commencement of the Banking Companies (Amendment) Act, 1959 (33 of 1959), has been refused a licence under section 22, or prohibited from accepting fresh deposits by a compromise, arrangement or scheme sanctioned by a court or by any order made in any proceeding relating to such compromise, arrangement or scheme, or prohibited from accepting deposits by virtue of any alteration made in its memorandum; or
(b) whose licence has been cancelled under section 22, whether before or after the commencement of the Banking Companies (Amendment) Act, 1959 (33 of 1959).
Where the Reserve Bank is satisfied that any such banking company as is referred to in sub-section (1) has repaid, or has made adequate provision for repaying all deposits accepted by the banking company, either in full or to the maximum extent possible, the Reserve Bank may, by notice published in the Official Gazette, notify that the banking company has ceased to be a banking company within the meaning of this Act, and thereupon all the provisions of this Act applicable to such banking company shall cease to apply to it, except as respects things done or omitted to be done before such notice.]
Control over Management
- 36AA. Power of Reserve Bank to remove managerial and other persons from office.
(a)36AAA. Supersession of Board of directors of a multi-State co-operative bank.
(b)36AAB. Order of winding up of multi-State co-operative bank to be final in certain cases
(c)Reimbursement to Deposit Insurance Corporation by liquidator or transferee bank
- 36AB. Power of Reserve Bank to appoint additional directors,
- 36AC. Part IIA to override other laws.
- 36AD. Punishments for certain activities in relation to banking companies.
Suspension of Business and Winding up of Banking Companies
- High Court defined.
- Suspension of business.
- Winding up by High Court.
- Court liquidator.
- Reserve Bank to be official liquidator.
- Application of Companies Act to liquidators.
Continue ... |
