SectionsParticulars
Chapter IPreliminary
1Short title and commencement
(1) This Act may be called the State Bank of India Act, 1955. (2) It shall come into force on such date2 as the Central Government may, by notification in the ...
2Definitions
In this Act, unless the context otherwise requires,- (a) "appointed day" means the date on which this Act comes into force; (b) "Central Board" means the Centr...
Chapter IIIncorporation And Share Capital Of State Bank
3Establishment of the State Bank
(1) A Bank to be called the State Bank of India shall be constituted to carry on the business of Banking and other business in accordance with the provisions ...
4Authorised capital
Subject to the provisions of this Act, the authorized capital of the State Bank shall be twenty crores of rupees divided into 6[two crores] of fully paid up s...
5Issued capital
(1) The issued capital of the State Bank shall, on the appointed day, be five crores, sixty-two lakhs and fifty thousand rupees divided into five lakhs, sixty...
Chapter IIITransfer Of Undertaking Of The Imperial Bank Of State Bank
6Transfer of assets and liabilities of the Imperial Bank to the State Bank
(1) Subject to the other provisions contained in this Act, on the appointed day,- (a) all shares in the capital of the Imperial Bank shall be transferred to, ...
7Transfer of service of existing officers and employees of the Imperial Bank to the State Bank
(1) Every officer or other employee of the Imperial Bank (excepting the managing director, the deputy managing director and other directors) in the employment...
8Existing provident and other funds of the Imperial Bank
For the persons who immediately before the appointed day are the trustees of the following funds, that is to say,- (a) the Imperial Bank of India Employees Pro...
9Compensation to be given to share-holders of Imperial Bank
(1) Every person who immediately before the appointed day is registered as a holder of shares in the Imperial Bank shall be entitled to compensation in accord...
Chapter IVShares
10Transferability of shares
(1) Save as otherwise provided in sub-section (2), the shares of the State Bank shall be freely transferable. (2) Nothing contained in sub-section (1) shall en...
11Restriction on voting rights
No shareholder, other than the Reserve Bank, shall be entitled to exercise voting rights in respect of any shares held by him in excess of ten per cent, of t...
12Shares to be approved securities
Notwithstanding anything contained in the Acts hereinafter mentioned in this scoring the shares of the State Bank shall be deemed to be included among the sec...
13Register of share-holders
(1) The State Bank shall keep at its Central Office, a register, in one or more books of the shareholders, and shall enter therein the following particulars ...
13ARegister of beneficial owners
The register of beneficial owners maintained by depository under section 11 of the depository Act, 1996 (22 of 1996) shareholders for the purposes of this Ac...
15Trusts not to be entered on the register of share holders
No notice of any trust, express, implied or constructive, shall be entered on the register of shareholders or be receivable by the State Bank.] 17[that nothi...
Chapter VManagement
16Offices, branches and agencies
(1) Unless otherwise provided by the Central Government, by notification in the Official Gazette, the central office of the State Bank shall be at Bombay. (2)...
17Management
(1) The general superintendence and direction of the affairs and business of the State Bank shall be entrusted to the Central Board which may exercise all pow...
18Central Board to be guided by directions of Central Government
(1) In the discharge of its functions 4[including those relating to a subsidiary Bank], the State Bank shall be guided by such directions in matters of policy...
19Composition of the Central Board
19[***] The Central Board shall consist of the following, namely: - (a) a chairman and a vice-chairman to be appointed by the Central Government in consultati...
20Terms of office of chairman, managing director, etc.
(1) 26[The chairman, vice-chairman an each managing director] shall hold office for such term, not exceeding five years, as the Central Government may fix whe...
21Local Boards
(1) There shall be constituted at each place where the State Bank has a local head office, a Local Board which shall consist of the following members, namely...
21ATerm of office of office of members of Local Board
(1) Subject to the provisions contained in this section and in sub-section (2) of section 21, a member of a Local Boar nominated under clause (c) of sub-sect...
21BPowers of Local Board
Save as may otherwise be prescribed and subject to any general or special directions which the Central Board may give from time to time, a Local Board shall i...
21CLocal Committees
(1) A local Committee may be constituted by the Central Board for any area and shall consist of such number of members as may be prescribed. (2) The chairman s...
22Disqualifications for directorship of Central Board or membership of Local Boards or Committees
(1) No person shall be qualified to be a director of the Central Board or a member of a Local Board or of a Local Committee if- (a) he holds the office of dire...
23Vacation of office of directors, etc
If a director of the Central Board or a member of a local Board or a Local Committee- (a) becomes subject to any of the disqualifications mentioned in section...
24Removal from office of directors, etc
(1) The Central Government may, after consulting the Reserve Bank, remove from office 26[the chairman, vice chairman or a managing director.] 28[***] (3) The ...
25Casual vacancies
68[(1) If the chairman vice-chairman or a managing director is rendered incapable of discharging his duties by reason of infirmity or otherwise or is absent o...
26Remuneration of directors
(1) Without prejudice to the provision contained in section 27, 28 and 29, the directors shall be paid such fees and allowances for attending the meeting of t...
27Powers and remuneration of chairman
(1) The chairman shall preside at all meetings of the Central Board and subject to such general or special directions as the Central Board may give, exercise ...
28Powers and remuneration of vice-chairman
(1) The vice-chairman shall preside at the meetings of the Central Board in the absence of the chairman and, subject to the general control of the chairman, e...
29Powers and remuneration of managing director
(1) A managing director- (a) shall be a whole-time officer of the State Bank; and (b) subject to the general control of the chairman and the vice-chairman, sh...
30Executive and other committees of the Central Board
The Central Board may constitute such and so many committees, including an executive committee, of itself as it deems fit to exercise such powers and perform ...
31Meetings of the Central Board
(1) The Central Board shall meet at such time and place and shall observe such rules of procedure in regard to the transaction of business at its meetings as ...
31AMeetings of the Local Boards
(1) A local Board shall meet at such time and place and shall observe such rules procedure in regard to the transaction of business at its meetings as may be...
Chapter VIBusiness Of The Bank
32State Bank to act as agent of the Reserve Bank
(1) The State Bank shall, if so required by the Reserve Bank act as a agent of the Reserve Bank at all places in India where it has a branch 82[or where there...
33Other business which the State Bank may transact
Subject to the other provisions contained in this Act, the State Bank may carry on and transact the business of Banking as defined in clause (b) of section 5...
34Business which the State Bank may not transact
(1) Save as otherwise provided in 86[this Act], the State Bank shall not own or acquire any 87[***] immovable property except for the purpose of providing bui...
35State Bank may acquire the business of other Banks
(1) The State Bank may, with the sanction of the Central Government, and shall, if so directed by the Central Government in consultation with the Reserve Bank...
35AArrangement with the State Bank on appointment of directors to prevail
(1) Where any arrangement entered into by the State Bank with a company provides for the appointment by the State Bank of one or more directors of such compa...
Chapter VIIFunds, Account And Audit
36Integration and Development Fund
(1) The State Bank shall maintain a special fund to be known as the Integration and Development Fund into which shall be paid- (a) the dividends payable to the...
37Reserve Fund
The State Bank shall establish a Reserve Fund which shall consist of- (a) the amount held in the Reserve Fund of the Imperial Bank transferred to the State Ba...
38Disposal of profits
(1) After making provision for bad and doubtful debts, depreciation in assets, equalization of dividends, contribution to staff and superannuation funds and f...
39Book to be balanced each year
The Central Board shall cause the books of the State Bank to be closed, and balanced 96[as] on the 31st day of December 97[or such other date in each year as ...
40Returns
(1) The State Bank shall furnish to the Central Government and to the Reserve Bank 99[within three months from 100[or the date specified under section 39, as ...
41Audit
(1) The affairs of the State Bank shall be 105[audited by two or more auditors] duly qualified to act as auditors of companies under 106[section 226 of the Co...
42Balance sheet, etc., of State Bank may be discussed at general meeting
(1) A general meeting 111[in this Act] referred to as an annual general meeting) shall be held 112[in each year] at such time and at such place where there is...
Chapter VIIIMiscellaneous
43State Bank may appoint officers and other employees
117[(1)] The State Bank may appoint such number of officers, advisers and employees as it consider necessary or desirable for the efficient performance of its...
43ABonus
(1) No officer, adviser, adviser or other employee other than an employee within the meaning of clause (13) of section 2 of the Payment of Bonus Act, 1965 of...
44Obligation as to fidelity and secrecy
(1) The State Bank shall observe, except as otherwise required by law, the practices and usages customary among Bankers, and, in particular, it shall divulge ...
45Bar to liquidation of State Bank
No provision of law relating to the winding up of companies shall apply to the State Bank, and the State Bank shall not be placed in liquidation save by order...
46Indemnity of directors and members of Local Boards and Local Committees, etc
(1) Every director and every member of a local Board or a local Committee shall be indemnified by the State Bank against all losses and expenses incurred by h...
47Defects in appointment or constitution not to invalidate acts or proceedings
(1) No act or proceeding of the Central Board or of a Local Board or a Local Committee shall be questioned on the ground merely of the existence of any vacanc...
48Power to remove difficulties
Rep. by the State Bank of India (Amendment) Act, 1964 (35 of 1964), s. 15 (w.e.f. 1-2-1964)....
49Power of Central Government to make rules
1.     The Central Government, in consultation with the Reserve Bank, may, by notification in the Official Gazette, 1*[make rules to provide for all matters ...
50Power of Central Board to make regulations
(1) The Central Board may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, 125, [by notification in the Off...
51Requirements of foreign law to be complied with in certain cases
If, according to the laws of any country outside India, the provisions of this Act by themselves are not effective to transfer to and vest in the State Ban...
52Amendment of Act 2 of 1934 [Repealed by the Repealing and Amending Act, 1960]
53Amendment of Act 10 of 1949 [Repealed by the Repealing and Amending Act, 1960]
54Amendment of Act 47 of 1920 [Repealed the Repealing and Amending Act, 1960]
55No proceeding to lie in India against Imperial Bank after appointed day
On and from the appointed day, no person shall make any claim or demand or take any proceeding in India against the Imperial Bank or a director, officer or ot...
56References to the Imperial Bank of Bengal, etc., in other laws
On and from the appointed day, any reference to the Imperial Bank or to the Bank of Bengal, the Bank of Madras or the Bank of Bombay in any law (other than th...
57Dissolution of Imperial Bank, etc
(1) On such day as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Imperial Bank shall stand dissolved, and t...
The First ScheduleCompensation For The Transfer Of Shares Of The Imperial Bank To The Reserve Bank
1. In this Schedule "shareholder" means any person who immediately before the appointed day is registered as the holder of a share in the Imperial Bank. 2. A...
The SecondDeclaration Of Fidelity And Secrecy
I…………………………………………….do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as D...
The Third Schedule[Repealed By The Repealing And Amending Act, 1960]
The Fourth[Repealed By The Repealing And Amending Act, 1960]
The Fifth Schedule[Repealed By The Repealing And Amending Act, 1960]
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!