Sections Particulars
Chapter I Preliminary
Preliminary
PRELIMINARY...
1 Short 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...
2 Definitions
.- 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 II Transfer Of The Undertakings Of Existing Banks
3 Establishment 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...
4 Undertaking 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....
5 General 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 III Payment Of Compensation
6 Payment 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 IV Management Of Corresponding New Banks
7 Head 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 ...
8 Corresponding 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 ...
9 Power 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 V Miscellaneous
10 Closure 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...
11 Corresponding 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...
12 Removal 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...
13 Obligations 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...
14 Custodian 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)....
15 Certain 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...
16 Indemnity
(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...
17 References 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 ...
18 Dissolution
.-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...
19 Power 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...
20 Amendment 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...
21 Repeal 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...
Schedule The 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...
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