REGISTERED NO.D(DN)127/88 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 93] NEW DELHI, MONDAY, DECEMBER 19, 1988/AGRAHAYANA 28, 1910 Separate paging is given to this Part in order that it may be filed as a separate compilation MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 19th December, 1988/Agrahayana 28, 1910 (Saka) The following Act of parliament received the assent of the President on the 16th December, 1988, and is hereby published for general information:— THE BANKING, PUBLIC FINANCIAL INSTITUTIONS AND NEGOTIABLE INSTRUMENTS LAWS (AMENDMENT) ACT 1988 No. 66 OF 1988 [16th December, 1988.]
Aft Act farther to amend the Negotiable Instruments Act, 1881, the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the State Bank of India (Subsidiary Banks) Act, 1959, the Deposit Insurance and Credit Guarantee Corporation Act, 1961, the Industrial Development Bank of India Act 1964, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the Regional Rural Banks Act, 1976, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, the Export-Import Bank of India Act, 1981, the National Bank for Agriculture and Rural Development Act, 1981 and the Industrial Reconstruction Bank of India Act, 1984.
BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows: —
CHAPTER I PRELIMINARY
1. (1) This Act may be called the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988.
( 1 ) Short title and commencement.
i HHE GAZETTE OF INDIA EXTRAORDINARY [P/iRT 11— Amendment of section
80.
Amendment of section
117.
Insertion of new Chapter XVII.
Dishonour of cheque for insufficiency, etc, of fluids in the account.
(2) It shall come into force on siich date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may b/e appointed for different provisions of this Act.
CHAPTER II AMENDMENTS TO THE NEGOTIABLE INSTRUMENTS ACT, 1881
2. In section 80 of the Negotiable Instruments Act, 1881 (hereafter in this Chapter referred to as the Negotiable Instruments Act)t for the words "six per centum1', the words "eighteen per centum" shall be substituted.
3. In section 117 of the Negotiable Instruments Act, in clause (c), for the words "six per centum", the words "eighteen per centum" shall be substituted.
4. In the Negotiable Instruments Act, after Chapter XVI, the following Chapter shall be inserted, namely: — 'CHAPTER XVII OP PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS
138. Where any cheque drawn by a person on an account rWain- _rtained,by him with a banker for payment of any amount of money tp another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an' agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of ihls Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless—
(a) the cheque has been presented to the bank within a period of six months 'frtan the date on which it is drawn Or within the period of its validity, whichever is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a nbticei in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and
(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
26 of 1881.
SEC. 1J THE GAZETTE OF INDIA EXTRAORDINARY 3
Explanation.—For the purposes of this section, "debt or other liability" means a legally enforceable debt or other liability.
139. It shall be presumed, unless the contrary is proved( that the holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in part, of any debt or other liability.
140- It shall not be a defence in a prosecution for an offence under section 133 that the drawer had no reason to believe when he issued the cheque that the chuque may be dishonoured on presentment for the reasons stated in lhat section.
Presumption in favour of holder.
Defence which may not be allowed in any prosecution under section 138.
2 of 1974.
141. (1) If the person committing an offence under section 138 is a company, every person who, at the time the offence 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 offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any person liable to punishment if he proves that the offence was committed without his knowledge, or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect 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 offence and shall be liable to be proceeded against and punished accordingly, I
Explanation.—For the purposes of this section,— (<i) "company'1 means any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
142. Notwithstanding anything contained in the Code of Criminal Procedure, 1973,—
(a) no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;
(b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to section 138;
Offences by companies.
Cognizance of offences.
A THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Amendment of section 17.
Amendment of section 58.
Amendment of section 11.
Amendment of lection 29.
(c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under section 138, .
CHAPTER III AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934 5 In section 17 of the Reserve Bank of India Act, 1934 (hereafter in this Chapter referred to as the Reserve Bank Act), in clause (4B), the proviso shall be omitted.
6. In section 58 of the Reserve Bank Act,-—
(a) in sub-section (1), after the words "the Central Government,", the words "by notification in the Official Gazette," shall be inserted;
(b) in such-section (2), in clause (p), for the words "the scheduled banks", the words and brackets "the banks (including post office savings banks)" shall be substituted.
CHAPTER IV AMENDMENTS TO THE BANKING REGULATION ACT, 1949
7. In section 11 of the Banking Regulation Act, 1949 (hereafter in this Chapter referred to as the Banking Reĵ nlation Act), in sub-section (2), In clause (b), in sub-clause (ii), the word "calendar" shall be omitted.
8. In section 29 of the Banking Regulation Act,—
(a) in sub-section (1) —
(i) in the opening paragraph,— (A) after the words "each calendar year", the words "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," shall be inserted;
(B) for the words "that year", the words "that year or period, as the case may be," shall be substituted;
(C) for the words "that year", the words "that year or the period, as the case may be," shall be substituted;
(ii~) for the proviso, the following proviso shall be .substituted, namely: — "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 the preparation of, or for other matters relating to, the balancesheet or profit and loss account in respect of the concerned year or period, as the case may be.";
(b) after aub-section (3A), the following Explanation shall be inserted, namely: — 'Explanation.—In sub-section (3A), "year" means the year or, as the case may be, the period referred to in sub-section (!)•' 2 of 1934.
10 of 1949.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 23 of 1955,
9. In section 30 of the Banking Regulation Act,—
(a) in sub-section (IB), for the portion beginning with the words "it may direct" and ending with the words "specified in the order", the following shall be substituted, namely: — "it may at any time by order direct that a special audit of the banking company's accounts, for any such transaction/ or class of transactions or for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order either appoint a person duly qualified under any law for the time being in force to be an auditor of eompaniea or direct the auditor of the banking company himself to conduct such special audit";
(b) in sub-section (1C), for the words "the audit of the transaction or class of transactions", the words "the special audit" shall be substituted;
(c) in sub-section (2), the words ", and auditors, if any, appointed by the law establishing, constituting or forming the banking company concerned" shall be inserted at the end.
10. In section 51 of the Banking Regulation Act, for the figures "31", the words, brackets, figures and letters "sub-sections (IB), (1C) and
(2) of section 30, 31" shall be substituted.
11. In the Third Schedule to the Banking Regulation Act, in Form B, in the portion appearing after the heading "FORM OF PROFIT AND LOSS ACCOUNT", the word "December" shall be omitted.
CHAPTER V AMENDMENTS TO THE STATE BANK OF INDIA ACX 1955
12. In section 20 of the State Bank of India Act, 1955 (hereafter in this Chapter referred to as the State Bank Act) ,—
(a) in sub-section (3),—
(i) the words, brackets and figure "and in sub-section (5)" shall be omitted; '
(ii) for the words, figures, brackets and letter "section 19 or nominated under clause (d) of that sub-section" and "four years", the words "that section" and "throe years" shall, respectively, be substituted;
(Hi) the words "or nominated" and "or renomination" shall be omitted; ' (ivy the following proviso shall he Inserted at tho end, namely: — "Provided that no such director shall hold office continuously for a period exceeding six years.";
(b) in sub-section (3A)<—
(i) for the worrfc "A dirpctor", the words, brackets and figure "Subifct to the provisions contained in sub-section (4), a director" shall he substituted;
Amend, ment of section -•0.
Amendment oi section 51.
Amendment of Third Schedule.
Amendment of section 20, 6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Amendment of section
21A.
Amendment of section 39
(ii) after the word and figures "section 19", the words, brackets and letter "oi nominated under clause (d) of that subsection'* shall be inserted;
(iii) for the words "duly appointed" and "for re-appointment", the words "duly appointed or nominated" and "for reappointment or re-nomination, as the case may be" shall, respectively, be substituted;
(iv) thu following proviso shall bs inserted at the end, namely:— ' "Provided that no such director shall hold office continuously for a period exceeding six years.";
(c) for sub-section (4), the following sub-section shall be substituted, namely: — "(4) A director appointed under clause (ca) or clause (cb~) of sub-section (1) of section 19 or nominated under clause (d) or clause (e) or clause (f) of that sub-section shall hold office during the pleasure of the authority appointing or nominating him, as the case may be.";
(d) sub-section (5) shall be omitted.
13. In section 21A of the State Bank Act,—
(a) for sub-section (1), the following sub-section shall be substituted, namely: — "(1) Subject to the provisions contained in this section and in sub-section (2) of section 21, a member of a Local Board—
(a) nominated under chnse (c) of sub-section (1) of . section 21 shall ho]ri office for such term, not exceeding three years, as the Central Government may specify in this behalf and thereafter until his successor has been duly nominated;
(b) elected under clause (d) of sub-section (1) of section 21 shall hold office for three years and thereafter until hig successor has been duly elected, and shall be eligible for re nomination or re-election, as the case may be: '
Provided that no such director shall hold office continuously for a period exceeding six years,";
(b) after sub-section (4), the following sub-section shall be inserted, namely: — "(5) A member of a Local Board nominated under clause
(c) of sub-section (1) of section 21 shall hold office during the pleasure of the Central Government.".
14. In section 39 of the State Bank Act—
(a) for the words "in each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify" shall be substituted;
SEC. 1] THE GAZETTE OF UNUIA EXTRAORDINARY 7 (&) the following proviso shall be inserted at the end, namely: — "Provided that with a view to facilitating the transition from one period oi' 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 the closing and balancing of, or for other matteis relating to, the books in respect of the concerned years.".
15. In section 40 of the State Bank Act, in sub-section (1), after the words, figures and letters "the 31st day of December", the words and figures "or the date specified under section 39, as the case may be" shall be inserted.
16- In section 42 of the State Bank Act, in sub-section (2), after the words, figures and letters "the previous 31st day of December", the words and figures "or the date specified under section 39, as the case may be" shall be inserted.
17. In section 50 of the State Bank Act, in sub-section (1), after the words "the Central Government", the words ", by notification tn the Official Gazette," shall be inserted.
Amendment of section 40.
Amendment of section 42.
Amendment of section 60.
38 of 1959.
CHAPTER VI AMENDMENTS TO THE STATE BANK OF INDIA (SUBSIDIARY BANKS) ACT, 1959
18. In section 25 of the State Bank of India (Subsidiary Banks) Act, 1959 (hereafter in this Chapter referred to as the Subsidiary Banks Act), in sub-section (1),—
(a) in clause (c), the following proviso shall be inserted at the end, namely: — "Provided that any nomination of a director made by the State Bank under this clause shall, except in so far as it relates to an officer of that bank, be in consultation with the Central Government.";
(b) in clause (e), the words "in consultation with the State Bank" shall be omitted.
19. In section 26 of the Subsidiary Banks Act,—
(a) in sub-section {!),—
(i) for the portion beginning with the words ", if nominated" and ending with the words "that sub-section,", the following shall be substituted, namely: — "nominated under clause (b) or clause (c) or clause (e) of sub-section (7) of section 25 or appointed under clause (co) or clause (cb) of that sub-section";
(ii) for the word "nominating", the words "nominating or appointing" shall be substituted;
Amendment of section 25.
Amendment of section IS.
Jj THE dAZEJTTEl OF INTJIA EXTRAORDINARY [PART 11- Amendment of section 39 Amendment of section 43.
Amendment of section 44.
Amendment of section 63.
(b) for sub-sections (2) and (2A)I the following sub-sections shall be substituted, namely: — "(2) Subject to the provisions contained in section 25, a director elected under clause (d) of sub-section (1) of that section shall hold office for three years and thereafter until his successor is duly elected, and shall be eligible for re-election:
Provided that no such director shall hold office continuously for a period exceeding six years.
(2A) Subject to the provisions contained in section 25 and in sub-section (1), a director nominated under clause (c) and not being an officer of the State Bank or a director appointed under clause (ca) or clause (cb) or a director, not being an officer of the Central Government, nominated under clause (e) of subsection (1) of section 25, shall hold office for such term not exceeding three years, as the Central Government may specify and thereafter until his successor shall have been duly nominated or appointed, and shall be eligible for re-nomination or reappointment, as the case may be:
Provided that no such director shall hold office continuously for a period exceeding six years.";
(c) sub-section (3) shall be omitted.
20. In section 39 of the Subsidiary Banks Act,—
(a) for the words "in each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "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 itconsiders necessary or expedient for the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.".
21. In section 43 of the Subsidiary Batiks Act, in sub-section (1), in clause fa), after the words, figures and letters "the 31st day of December", the words and figures "or the date notified under section 39, as the case may be," shall be inserted.
2i2. In section 44 of the Subsidiary Banks Act, in sub-section (2) and
(3), after the words, figures and letters "the previous 31st day of December", the words and figures "or the date notified under section 3&, as the case may be" shall be inserted.
23. In section 63 of the Subsidiary Banks Act, in sub-section (1), after the words "the Reserve Bank,", the words "by notification in the Official Gazette," shall be inserted.
SKC. lj THE GAZETTE *JF INDIA UXTKAORDUMARf* 9 47 of 1961.
18 Of 1984.
C H A T T Y VH AMENDMENTS TO THE DiiF-osn INSURANCE AND Cft*mx GUARANTEE CoHTOflAiiON ACT, 19bi Zi. In section 6 o± the Deposit insurance and Credit Guarantee Corporation Act, lybi (nereaUer xn ihis Cnapter referred 10 a3 cue uepos=it Insurance Corporation Ace;, in sub-section (2),— (a; in clause (i), alter ihe word, Diac&ets add i t tn;r xluu^e (.c)", the woras, bracKets and i eae r s "oi clause id) or clause (e)' shall De inserted;
(b) for clause (ti), the following clause shall be substituted, namely: — "(ii) subject to the provisions contained m ciause (i) , a director nominated under clause (d) or ciause (e) oi sub-section {1), shall hold olnce for such period, not exceeding tnree years, as may be specilied by the Central Government in this behalf and thereafter until his successor assumes office, and shall be eligible for re-nomination:
Provided that no such director shall hold ottice continuously for a period exceeding six years;".
25. In section 28 of the Deposit Insurance Corporation Act, in subsection (2),—
(a) for the words ", each year", the words "or such pther date in each year as the Central Government may, by notilicaiion in the Official Gazettej specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "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 considers1 necessary or expedient for the balancing and closing of, or lor other matters relating to, the books or accounts in respect of the concerned years.".
26, In section 50 of the Deposit Insurance Corporation Act, in sub-section
(1), after the words "the Reserve Bank,", the words "by notification in the Official Gazette," shall be inserted.
CHAPTER VIII AMENDMENTS TO THE INDUSTRIAL DEVELOPMENT BANK OF INDIA ACT, 1964
27. In section 6 of the Industrial Development Bank of India Act, 1964 (hereafter in this Chapter referred to as the Development Bank Act)) for sub-section (4A), the following sub-section shall be substiiuted, namely: — "(4A) Subject to the provisions of sub-section (4),—
(a) every director nominated under sub-clause (li) or subclause (iu) of clause (c) of sub-section (2) and not being an official of Government or not being an official or whole-time Amendment of section 6.
Amendment of section 28.
Amendment of section 50.
Amendment of section fl.
io THE GAZETTE OF INDIA EXTRAORDINARY [PART H— Amendment of s e c t i o n IK.
Amendment of sectton 21.
Amendment of section 3.
Amend' ment of section 9.
director of the Reserve Bank or a financial institution or the State Bank or a nationalised bank or a State Financial Corporation; and
(b) every director nominated under sub-clause (.Hi) or BUbclause (v) of clause (c) of sub-section (I), shall hold office for such term, not exceeding three years, as the Central Government may specify in this behalf and thereafter until his successor assumes office, and shall be eligible for re-nomination:
Provided that no such director shall hold office continuously for a period exceeding six years.".
28. In section 18 of the Development Bank Act, in sub-section (2), the following proviso shall be inserted at the end, namely: — "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 <. .insiders necessary or expedient for the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.".
29. In section 21 of the Development Bank Act, in sub-section (2), the following proviso shall be inserted at the end, namely: — "Provided that with a view to facilitating the transition from one period of accounting to another period ot accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessaxy or expedient Cor the closing and balancing of, ur for other matters relating to, the books or accounts in respect of the concerned years.".
CHAPTER IX AMENDMENTS TO THE BANKING COMPANIES (AcuuiyraoN AND TRANSFER OF UNDERTAKINGS) ACT, 1970
30. Tn section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (hereafter in this Chapter referred to as the Bank Nationalisation Act), in sub-section (2A), in the proviso, for the words "rupees one hundred crores", the words "rupees five hundred crores" shall be substituted.
31. In section 9 of the Bank Nationalisation Act,—
(a) in sub-section (2),—
(i) in clause da), for the words "rupees one hundred crores", the words "rupees five hundred crores1' shall be substituted;
(H) in clause (c), for the words "corresponding new bank to any other banking institution", the words "corresponding newbank to any other corresponding new bank or banking institution" shall be substituted;
5 of 1970 9»c. 1J THE GAZETTE OF INDIA EXTRAORDINARY 40 of 1980, 21 of 1976
(b) in sub-section (5), the Explanation shall be numbered as
Explanation J, and after Explanation I as so numbered, the following Explanation shall be inserted, namely: — '•Explanation II.—For the purposes of this section, the expression "corresponding new bank'' shall include a corresponding new bank within the meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.',
32. In section 10 of the Bank Nationalisation Act, in sub-section ( 1 ) -
(a) for the words "of each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "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 the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.".
CHAPTER X AMENDMENTS TO THE REGIONAL RITUAL BANKS ACT, 1976
33. In section 19 of the Regional Rural Banks Act, 1976 (hereafter in this Chapter referred to as the Rural Batiks Act), in sub-section (1),—
(i) for the words "of each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify" shall be substituted;
(ii) the following proviso shall be inserted at the end, namely: — "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 the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.".
34. In section 30 of the Rural Banks Act, in sub-section (1), after •the words ''the Central Government,", the words "by notification in the Official Gazette." shall b° inserted.
Amend' ment of faction 10, Amendment of section 19.
Amendment of section
30.
11 40 *f 19>0.
CHAPTER XI AMENDMENTS TO THE BANKING COMFANIFS (ACQUISITION AND TRANSFER OP UNDEBTAKTNCS) ACT, 1980
35. In section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (hereafter in this Chapter referred to as the Bank Nationalisation Act), in sub-section (2A), in the proviso, for the Ajjwmdsisnt at iectkm 3 12 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT n- - Amendment of section 9.
Amendment of section 10.
Amendment of section 19.
words "rupees one hundred crores-", the words "rupees five hundred crores" shall be substituted.
38. In section 9 o£ the Bank Nationalisation Act,—
(a) in sub-section (2),—
(i) in clause (a), for the words "rupees one hundred crores" the words "rupees five hundred crores" shall be substituted;
(ii) in clause (c), for the words "corresponding new bank to an^ otaer banking institution', th,- words "corresponding new bank to any other corresponding new bank or banking institution" shall be substituted;
(b) in sub-section (5), the Explanation shall be numbered as
Explanation I, mil after Explanation I as so numbered, the following
Explanation, shall be inserte.'1.,, namely: — 'Explanation II.—For the purposes of this section, the expression "corresponding new bank" shall include a corresponding new bank within 1he meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.'.
37. In section 10 of the Bank Nationalisation Act, in sub-section (I),—•
(a) for the words "of each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify1' shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-FPction, the Central Government may, by order publ;:;bed in the Official Gazette, make such provisions as it considers neressiTv' c••• -^vuedient for the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.".
38. T" sf"tinn 19 of tlJe Bank TShtiuJnllsatfon Act, in subsection (1), after the words "the Central Government,", the words "by notification in the Official Gs'.ett >," shall be inserted.
5 of 1970 Amendment of section 6.
CHAPTER XIT AMENDMENTS TO THE EXPORT-IMPORT BANK OF INDIA ACT, 1981
39. In section 6 of the Export-Import Bank of India Act, 1981 (hereafter in this chapter referred to as the Exim Bank Act),—
(a) for sub-section (6), the following sub-section shall be substituted, namely: — " (fi) Subject to the provisions contained in sub-section (7), any di^ectoi nominated under clause (b) or clause (jc) -or clause (d) or clause (e) of sub-section (1) and not being an official of Government or not beinp a whole-time director or official of the Reserve Bank or the Development Bank or the 28 of 1981.
Sue. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13 61 of 1981.
said Export Credit and Guarantee Corporation Limited or a scheduled bank, shall hold office for such term, not exceeding three years, as the Central Government or, as the case may be, the authority nominating him, may specify in this behalf and thereafter until his successor enters upon his office, and shall be eligible for re-nomination:
Provided that no such director shall hold office continuously for a period exceeding six years.1';
(b) in sub-section (7), the word "other" shall be omitted.
40. In section 19 of the Exim Bank Act, in sub-section (2),—
(a) for the words "each year", the words "or such other date in each year as the Central Government may, b|y notification in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely:— "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 the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.".
41. In section 22 of the Exim Bank Act, in sub-section (2),—
(a) for the words "each year", the words "or such other data in each year as the Central Government may, biy notification in the Official Gazette, specify'1 shall be substituted;
(b) the following proviso shall be Inserted at the end, namely: — "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 the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.".
42. In section 39 of the Exim Bank Act, in sub-section (1), after the words "the Central Government,", the words "by notification In the Official Gazette/' shall be inserted.
CHAPTER XIII AMENDMENTS TO THE NATBONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT ACT, 1981 43, In section 5 of the National Bank for Agriculture and Rural Development Act, 1981 (hereafter in this Chapter referred to as the National Bank Act), in sub-section (3), the following proviso shall be inserted at the end, namely: — "Provided that during the period of any casual vacancy of the nature referred to in section 11 in the office of the Managing Director, the Chairman may also exercise the powers and discharge the functions of the Managing Director until the person appointed by Amendment of section 19.
Amendment of ••ctton23.
Amendment of section
39.
Amendment of section
5.
14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II-- Amendment of section
6.
Amendment <?f lection 7.
Amendment of section 46.
Amendment of section 10.
the Central Government under section 11 to act as Managing Director enters upin his ufncc".
44. In section 6 of the National Bank Act, in sub-section (2), the following proviso shall be inserted ai the end namely: — "Provided that no such consultation shall be necessary in the case of directors app^'^'ed un 1er clause (e) of sub-section (I)."'.
45. In section 7 of +he National Bank Act,—
(a) for sub-section (2), the following sub-section shall be substituted, namely: — "(2) Subject to the provisions contained in sub-section (5), a director appointed unrW clause (b) or clause (c) of subsection (1) of section 6, shall hold office for such term, not exceedL-n3 1h". o years, sa ibn C'.^tial Government may specify in this behalf and thereafter until his successor enters upon his office, and shall be eligible for reappointment:
Provided that no such director shall hold office continuously for a period exceeding six years.'';
(b) in sub-section (3); the words, brackets and figure "or anyother director referred to in sub-section (2)'' shall be omitted;
(c) after sub-suction (4), the following sub-section shall be inserted, namely:— "(5) The directors appointed under clauses (b) to (f) of sub-section O) r»f section 6 shall hold office during the pleasure of the Central Government.".
46. In section 46 of the National Bank Act, in sub-section (2) ,— (&) for the words ", each year", the words "or such other date in each year as the Central Government may, by notification in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "Provided that with a view to facilitating the transition from one period of atvonntJno; In another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make r-uch provisions as it considers necessary or expedient for the balancing and closing of; or foi- other matters relating to, the books or accounts in respect of the concerned years.".
CHAPTER XIV AMENDMENTS TO THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
47. In section 10 of the Industrial Reconstruction Bank of India Act, 1984 (hereafter in this Chapter referred to as the Industrial Reconstruction Bank Act), after sub-section (2), the following sub-section shall be inserted, namely:— "(31 Subie^t to the provisions of sub-section (2), a director nominated under clause (c) or clause (d) of sub-section (I) and 62 of 1984.
Sac. lj THE GAZETTE OF INDIA EXTRAORDINARY 13 not being an official of Government or not being an official or wholetime director of the Development Bank or a public financial institution or the State .bank or a nationalised bank or a State Financial Corporation, shall hold office lor suui teim, mn exceeding three years, as the authority nominating him may specify in this behalf and thereafter until his successor enters upon his office, and shall be eligible for re-nomination:
Provided that MO such director shall hold office continuously for & period exceeding six years-''.
48. In section 29 of the Industrial Reconstruction liank Act, in subsection (2),—
(a) for the words "each year", the words L'or such other date in each year as the Central Gow. uuieni may, uy MouikaLion in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "Provided thai with a view Jco factli'jLiag the transition from one period of accounting to another period of accounting under this sub-section, ciiu Central L-;, "a.'whneju may, by order published in the Official Gazette, make such provisions as it considers necessary o.t expeuient for J-e clo-jn^ and balancing of, or for other matter;, relating to, the LOOKS or accounts m respect of the concerned years.".
49- In section 32 of the Industrial Reconstruction Bank Act, in subsection (2),—
(a) for the words "each year", the words "or such other date in each year as the Central Government may. by notilication in the Official Gazette, specify" shall be substituted;
(b) the following proviso shall be inserted at the end, namely: — "Provided that with a view to facilitating the transition from one period ot 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 the closing and balancing of, or for other matters relating to, the books or accounts in respect of the concerned years.".
50. In section 69 of the Industrial Reconstruction Bank Act, in subjection (?), after the words "the Central Government", the words "by notification in the Official Gazette," shall be inserted.
Amendment of section 29.
Amendment of section 32.
Amendment of section
00.
S. RAMAIAH, Secy, to flic Govt, of India.
PRINTED BY T[)F. MANAfflLJK (iOVFRNMEMT OV TNJjlA PHEHS, MINTO HOAD, NEW DELHI AND PUBLISHED BV THE CONTROLLER OF PUBLICATIONS. DEIiHI 1988