SectionsParticulars
Preamble
An Act to provide for the incorporation, regulation and winding up of Regional Rural Banks with a view to developing the rural economy by providing, for the p...
Chapter IPreliminary
1Short title, extent and commencement
1.     This Act may be called the Regional Rural Banks Act, 1976.2.     It extends to the whole of India.3.     It shall be deemed to have come into force...
2Definitions
In this Act, unless the context otherwise requires,--a.     "Board", in relation to a Regional Rural Bank, means the Board of directors of that Regional Rur...
Chapter IIIncorporation and Capital of Regional Rural Banks
3Establishment and incorporation of Regional Rural Banks
1.     The Central Government may, if requested so to do by a Sponsor Bank, by notification in the Official Gazette, establish in a State or Union territory,...
4Offices and agencies
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...
5Authorised capital
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:Prov...
6Issued capital
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 sub-...
7Shares to be approved securities
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...
Chapter IIIManagement
8Management
1.     Subject to the provisions of this Act, the general superintendence, direction and management of the affairs and business of a Regional Rural Bank shal...
9Board of directors
9. Board of directors.- 1.     The Board of directors shall consist of the Chairman appointed under sub-section (1) of section 11, and the following other me...
10Term of office of director
A director (other than the Chairman) shall hold office for such period not exceeding two years, from the date when he assumes office, as the authority nominat...
11Chairman
1.     The Central Government shall appoint an individual to be the Chairman of a Regional Rural Bank and specify the period, not exceeding five years, for w...
12Disqualifications
A person shall be disqualified for being appointed or, as the case may be, nominated as, and for being, a director, if he-a.     Is, or, at any time has bee...
13Vacation of the seat of directors
1.     If a director-a.     Becomes subject to any disqualification specified in section 12, orb.    Is absent without leave of the Board for more than th...
14Meetings of Board
1.     The Board of directors of a Regional Rural Bank shall meet at such time and place and shall observe such rules of procedure in regard to the transacti...
15Committees of Board
The Board may constitute such committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons...
16Fees and allowances of directors and members of committees
1.     Every director and every member of a committee (other than the Chairman) shall be paid such fees and allowances as may be determined by the Central Go...
17Staff of Regional Rural Banks
1.     A Regional Rural Bank may appoint such number of officers and other employees as it may consider necessary or desirable for the efficient performance ...
Chapter IVBusiness of a Regional Rural Bank
18Business which a Regional Rural Bank may transact
1.     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, 194...
19Closure of accounts
1.     Every Regional Rural Bank shall cause it books to be closed and balanced as on the 31st day of December of each year and shall appoint with the approv...
Chapter VAccounts and Audit
20Annual report to be furnished the shareholders
Every Regional Rural Bank shall, within sixty days from the date of closure of its accounting year, send to each of its shareholders a report as to its workin...
21Disposal of profits
After making provisions for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and all other matters for which pr...
22Regional Rural Bank to be deemed to be a co-operative society for purpose of the Income-tax Act, 1961
For the purpose of the Income-tax Act, 1961(43 of 1961), or any other enactment for the time being in force relating to any tax on income, profits or gains, a...
23Interest-tax not payable
Notwithstanding anything contained in the Interest-tax Act, 1974 (45 of 1974), no Regional Rural Bank shall be liable to pay any tax under that Act....
Chapter VAmalgamation of Regional Rural Banks
23AAmalgamation of Regional Rural Banks
23A. Amalgamation of Regional Rural Banks.- 1.     Notwithstanding anything contained in this Act, if the Central Government, after consultation with the Na...
23BNotification under section 23A to be sufficient notice to concerned parties
23B. Notification under section 23A to be sufficient notice to concerned parties.- 1.     A notification issued under sub-section (1) of section 23A, shall c...
23CCessation of business of transferor Regional Rural Banks
23C. Cessation of business of transferor Regional Rural Banks.- On and from the date on which the amalgamation takes effect under section 23A, the transferor ...
23DLiquidation of Regional Rural Banks
23D. Liquidation of Regional Rural Banks.- Where a notification is issued for the amalgamation of Regional Rural Banks under sub-section (1) of section 23A, ...
Chapter VIMiscellaneous
24Power of Central Government to give directions
1.     A Regional Rural Bank shall, in the discharge of its functions, be guided by such directions in regard to matters of policy involving public interest ...
24AInspection, audit and scrutiny by the Sponsor Bank
...
25Obligations as to fidelity and secrecy
1.     A Regional Rural Bank shall observe, except as otherwise required by law, the practices and usages customary among bankers and, in particular, it shal...
26Bar to liquidation of Regional Rural Bank
No provision of law relating to the winding up of companies shall apply to a Regional Rural Bank and a Regional Rural Bank shall not be placed in liquidation ...
27Defects in appointment or constitution not to invalidate acts or proceedings
1.     No Act of a Chairman, acting in good faith, shall be invalid merely by reason of any defect in his appointment or in the procedure.2.     No act or ...
28Indemnity of directors, etc
1.     A director or a member of a committee of a Regional Rural Bank shall not be responsible for any loss or expense caused to such bank by insufficiency o...
29Power to make rules
1.     The Central Government may, after consultation with the Reserve Bank and the Sponsor Bank, by notification in the Official Gazette, make rules for car...
30Power to make regulations
The Board of directors of a Regional Rural Bank may, after consultation with the Sponsor Bank and the Regional Rural Bank, and with the previous sanction of t...
31Removal of difficulties
If any difficulty arises in giving effect to the provisions of this Act, the Central Government may make such order, not inconsistent with the provisions of t...
32Act to Override the provisions of other laws
The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force or in any contrac...
33Amendment of certain enactments
1.     In the Reserve Bank of India Act, 1934,--a.     In section 2,--                      i.        After clause(civ), the following clause shall be i...
34Repeal and saving
1.     The Regional Rural Banks Ordinance, 1975, is hereby repealed.2.     Notwithstanding such repeal anything done or any action taken under the Ordinance...
The ScheduleSchedule
Schedule
I............................., do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties require...
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