SectionsParticulars
Chapter IPreliminary
Preliminary
PRELIMINARY...
1Short title and commencement
(1) This Act may be called the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.(2) The Provisions of this Act (except section 21, which...
2Definitions
.- In this Act, unless the context otherwise requires,------(a) "appointed day" means the 14th day of February, 1970 (3 of 1970), being the day on which the Ba...
Chapter IITransfer Of The Undertakings Of Existing Banks
3Establishment of corresponding new banks and business thereof
(1) On the commencement of this Act, there shall be constituted such corresponding new banks as are specified in the First Schedule. (2) The Paid-up capital of...
4Undertaking of existing banks to vest in corresponding new banks
.-On the commencement of this Act, the undertaking of every existing bank shall be transferred to, and shall vest in, the corresponding new bank....
5General effect of vesting
(1) The undertaking of each existing bank shall be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and imm...
Chapter IIIPayment Of Compensation
6Payment of compensation
(1) Every existing bank shall be given by the Central Government such compensation in respect of the transfer, under section 4, to the corresponding new bank...
Chapter IVManagement Of Corresponding New Banks
7Head office and management
(1) The Head Office of each corresponding new bank shall be at such place as the Central Government may, by notification in the Official Gazette, specify in ...
8Corresponding new banks to be guided by the directions of the Central Government
Every corresponding new bank shall, in the discharge of its functions, be guided by such directions in regard to matters of policy involving public interest ...
9Power of Central Government to make scheme
.- (1) The Central Government may, after consultation with the Reserve Bank, make a scheme for carrying out the provisions of this Act.(2) In particular, and w...
Chapter VMiscellaneous
10Closure of accounts and disposal of profits
.- (1) Every corresponding new bank shall cause its books to be closed and balanced on the 31st day of December of each year and shall appoint, with the prev...
11Corresponding new bank deemed to be an Indian company
For the purposes of the Income-tax Act, 1961 (43 of 1961), every corresponding new bank shall be deemed to be an Indian company and a company in which the pub...
12Removal of Chairman from office
(1) Every person holding office, immediately before the commencement of this Act, as Chairman of an existing bank shall, if he becomes Custodian of the corre...
13Obligations as to fidelity and secrecy
.-(1) Every corresponding now bank shall observe, except as otherwise required by law, the practices and usages customary among bankers, and in particular, it...
14Custodian to be public servant
.- Every Custodian of a corresponding new bank shall be deemed to be a public servant for the purposes of Chapter IX of the Indian Penal Code (45 of 1860)....
15Certain defects not to invalidate acts or proceedings
(1) All acts done by the Custodian, acting in good faith, shall, notwithstanding any defect in his appointment or in the procedure, be valid.(2) No act or pro...
16Indemnity
(1) Every Custodian of a corresponding new bank and every officer of the Central Government or of the Reserve Bank and every officer or other employee of a co...
17References to existing banks on and from the commencement of this Act
Any reference to any existing bank in any law, other than this Act, or in any contract or other instrument shall, in so far as it relates to the undertaking ...
18Dissolution
.-No provision of law relating to winding up of corporations shall apply to a corresponding new bank and no corresponding new bank shall be placed in liquidat...
19Power to make regulations
(1) The Board of Directors of a corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government...
20Amendment of certain enactments
(1) In the Banking Regulation Act, 1949 (10 of 1949), (a) in section 34A, in sub-section (3), for the words "and any subsidiary bank", the words, figure...
21Repeal and savings
(1) The Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970 (3 of 1970), is hereby repealed.(2) Notwithstanding such repeal and notwi...
ScheduleThe First Schedule
(See Section 2, 3 and 4)Existing bank Corresponding new Bank Column I Column 2 The   Central Bank of India Limited . . Central Bank of India. The   Bank of ...
The Second schedule
(See section 6)Name of the existing BankAmount of compensation(in lakhs of rupees)The Central Bank of India1750The Bank of India1470The Punjab Na...
The Third Schedule
[See sub-sections (2) and (3) of section 13] DECLARATION OF FIDELITY AND SECRECYI, ____________ do hereby declare that I will faithfully, truly and to th...
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!