(7) On the commencement of this Ordinance, there shall be constituted such corresponding new banks as are specified in the First Schedule,
(2) The paid-up capital of every corresponding new bank constituted under sub-section (1) shall, until any provision is made in this behalf in any scheme made under section 9, be equal to the paid-up capital of the existing bank in relation to which it is the corresponding new Bank.
(3) The entire capital of each corresponding new bank shall stand vested in. and allotted to, the Central Government.
(4) Every corresponding new bank shall be a body corporate with perpetual succession and a common seal with power, subject to the provisions of this Ordinance, to acquire, hold and dispose of property, and to contract, and may sue and bo sued in its name.
(5) "Every corresponding new Bank shall carry on and transact the business of banking as denned in clause (b) of section 5 of the Banking Regulation Act, 1949. and may engage in one or more forms of business specified in sub-section (1) of section 6 of that Act.
(6) Every corresponding new Bank shall establish a reserve fund 1o which shall be transferred the share premiums and the balance, if any. standing to the credit of the reserve fund of the existing bank in relation to which it is the corresponding new bank, and such further sums, if nnv, ns may be transferred in accordance with the provisions of srrtinti 17 rj <lip B^nkJn" Pfln"1a1Uvn Act. 1949 Uelinitions.
l-.stablis l lU' l l l (Jf corresponding new banks undbuai ness + lirti'Ori f 1 oE 1950.
10 ui 194H, 10 of iy49.
lUofl»4».
10 of 1949.
SEC. 1} VlUC CiAZETTE OF jjSfDIA EXTRAORDINARY l 3 I
4. On the commencement of this Ordinance, the undertaking of every existing bank shall be transferred to, and shall vest in, the corresponding new bank.