(1) A Regional Rural Bank shall have its head office at such place in the notified area as the Central Government may, after consultation with the Reserve Bank and the Sponsor Bank, specify by notificatioii in the Official Gazette.
(2) A Regional Rural Bank may, if it is of opinion that it is necessary so to do, establish its branches or agencies at any place in the notified area.
Offices and agencies
5. The authorised capital of each Regional Rural Bank shall be one crore of rupees, divided into one lakh of fully paid-up shares of one hundred rupees each:
Provided that the Central Government may, after consultation wi^h the Reserve Bank and the Sponsor Bank, increase or reduce such auth )- rised capital; so, however, that the authorised capital shall not be reduced below twenty-five lakhs of rupees, and the shares shall be, in all cases, fully paid-up shares of one hundred rupees each.
Authorised, capital.
0. (1) The issued capital of each Regional Rural Bank shall be twenty-five lakhs of rupees.
(2) Of the capital issued by a Regional Rural Bank under subsection (1), fifty per cent, shall be subscribed by the Central Government; fifteen per cent, by the concerned State Government and thirtyfive per cent, by the Sponsor Bank.
(3) The Board may, after consultation with the Reserve Bank and the Sponsor Bank and with the prior approval of the Central Government, from time to time, increase the issued capital of the Regional Rural Bank; and, where additional capital is issued, such capital shall also be subscribed in the same proportion as is specified in sub-section
(2).
Issued capital.
(S^O THE GAZETTE OF INDIA EXTRAORDINARY [t*ARt It— 7, Notwithstanding anything contained in the Acts hereinafter mentioned in this section, the shares of a Regional Rural Bank shall be deemed to be included among the securities enumerated in section 20 of the Indian Trusts Act, 1882, and: shall also be deemed to be approved securities for the purposes of the Banking Regulation Act, 1949.
2 of 1882.
10 of 1949.
Shares to b e approved securities.
CHAPTER III MANAGEMENT