(7) Every Regional Rural Bank shall carry on and transact the business of banking as defined in clause (b) of section 5 of the Banking Regulation Act, 194f), and may engage in one or more forms of business specified in sub-section (1) of section 6 of that Act.
(2) Without prejudice to the generality of the provisions of sub-section
(1), every Regional Rural Bank may, in particular, undertake the following typos of business, namely:—
(a) the granting of loans and advances, particularly to small and marginal farmers and agricultural labourers, whether individually or in groups( and to co-operative societies, including agricultural marketing societies, agricultural processing societies, co-operative farming societies, primary agricultural credit societies or farmers' service societies, for agricultural purposes or agricultural operations or for other purposes connected therewith;
(b) the granting of loans and advances, particularly to artisans, small entrepreneurs and persons of small means engaged in trade, commerce or industry or other productive activities, within the1 notified area in relation to the Regional Rural Bank.
Business which a Regional Rural Bank maytransact.
10 of 1949,
CHAPTER V ACCOUNT AND AUDIT 11). (I) Every Regional Rural Bank shall cause its books to be closed and balanced ar< on the 31st day of December of each year and shall appoint with the approval of the Central Government auditors for the audit of its accounts.
(2) Every auditor of a Regional Rural Bank shall be a person who is qualified to act as an auditor of a company under section 226 of the Companies Act, 1956, and shall receive such remuneration as the Regional Rural Bank may fbr with the approval of the Central Government.
(3) Every auditor shall be supplied with a copy of the annual balancesheet and profit and loss account of the Regional Rural Bank, and a list of all books kept bv the Regional Rural Bank, and it shall be the duty of Closure of accounts.
1 of 1956.
654 T H E GAZETTE OF INDIA EXTRAORDINARY [PART l i - the auditor to examine the balance-sheet and vouchers relating thereto, and, in the performance of his duties, the auditor—
(a) shall have, at all reasonable times, access to the books, accounts and other documents of the Regional Rural Bank;
(b) may, at the expense of the Regional Rural Bank, employ accountants or other persons to assist him in investigating such accounts; and
(c) may, in relation to such accounts, examine the Chairman or any officer or employee of the Regional Rural Bank.
(4) Every auditor of a Regional Rural Bank shall make a report to that bank upon the annual balance-sheet and accounts and in every such report shall state,—
(a) whether, In his opinion, the balance-sheet is a full and fair balance-sheet containing all necessary particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the Regional Rural Bank, and, in case he had called for any explanation or information, whether it has been given and whether it is satisfactory;
(b) whether or not, the transactions of the Regional Rural Bank, which have to his notice, have been within the powers of that bank;
(c) whether or not, the returns received from the offices and branches of the Regional Rural Bank have been found adequate for the purpose of his audit;
(d) whether the profit and loss account shows a true balance of profit or loss for the pci.ocl covered by such accounts; and
(e) any other matter which he considers should be brought to the notice of the Regional Rural Bank.
20, Every Regional Rural Bank shall, within s'xty days from the date of closure of its accounting y._ar, send to each of its shareholders a report as to its working and activities during the accounting year immediately preceding together with a copy of its balance-sheet, profit and loss account and the auditor's report in relation to the accounts of the said accounting year.
Annual report to be furnished to the shareholders.
21. After making provisions for bad and doubtful debis, depreciation in assets, contributions to staff and superannuation funds and all. other matters for which provision is, under law, necessary or which are usually provided for by banking companies, a Regional Rural Bank may, out of its net profits, declare a dividend.
Disposal of profits.
ZZ. For the purpose of the Income-tax Act, 1961, or any other enactment for the time beinrr i n force relating to any trx on income, profits or gains, a Regional Rural Bank shall be deemed to be a co-operative society, 43 of 1961Regional Rural Bank to be deemed to be a cooperative society for purpose of the Incometax Act, 196;.
SEC. 1] THE GAZETTE OF INDIA EXTHAORDINARY 655
23. Notwithstanding anything contained in the Interest-tax Act, 1974, no Regional Rural Bank shall be liable to pay and tax under that Act.
Interestlax not payable.
45 ol 1B74
CHAPTER VI MISCELLANEOUS