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REGISTERED NO. D-28

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

NEW DELHI, THURSDAY, MARCH 10, 1949

The Separate paging is given to this Part in order that it may be filed as a separate compliation.

PART IV Acts of the Dominion Legislature assented to by the Governor General

GOVERNMENT OP INDIA

MINISTRY OF LAW

New Delhi, the 10th March, 1049.

The following Act of the Dominion Legislature received the assent of the Governor-General on the 10th March, 1949 and is hereby published for general information: —

ACT NO. X OF 1949. An Act to consolidate and amend the law relating to banking companien. WHEREAS it is expedient to consolidate and amend the law relating to bank- ing companies;

It is hereby enacted us follows: —

PART I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Act may be called the Banking Companies Act, 1949.

(2) It extends to all the Provinces of India, and also to ever;, Acceding State to the extent to which the Dominion Legislature has power to make laws for that State as respects banking.

(3) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint in this behalf.

2. Application of other laws not barred.—The provisions of this Act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of, the Indian Companies Act, 1913 (VII of 1913), and any other law lor the time being in force.

3. Act not to apply to co-operative banks.—Nothing in this Act shall apply to a co-operative bunk registered under the Co-operative Societies Act, 1912 (11 of 1912), or any other law fur the time being in force in any Province of India relating to co-operative societies

4. Power to suspend operation of Act.—(1) The Central Government, if on a representation made by the Reserve Bank in this behalf it is satisfied that it is expedient so to do, may by notification in the official Gazette suspend for such period, not exceeding sixty days, as may be specified-in the notification, the operation of all or any of the provisions of this Act, either generally or in relation to any specified banking company.

(2) In a case of special emergency, the Governor of the Reserve Bank or in his absence a Deputy Governor of the Reserve Bank nominated by him in

(59)

this behalf may, by order in writing, exercise the powers of the Central Govern- ment under sub section (1) so however that the period of suspension shall not exceed thirty days, and where tho Governor or the "Depnt.y Governor, ns the case ma) bo, does so, he uhall report the matter to tho Central Government forthwith, and the orter shall, as soon'as may be, be published in tho Gazette of India.

(8) The Central Government nioy, by notification in the official Gazette, extend from time to time the period of any suspension ordered under sub- section (1) or sub-section (2) for such period, not e\ceeding sixty days at any one timo, as it thinks tit so however that the total period does not exceed one year.

(4) A copy of any notification issued under sub-section (3) shall be laid on thu fcabJe ot the Dominion -Legislature as BOOH as may be after it is issued.' 6. Interpretation.—(2) In this Act, unless there is anything repugnant in the subject or context,—

(a) "approved securities" means securities in which a trustee may invest money under clause (a), clause (b), clause {bb), clause (o) or clause (dj of section 20 of the Indian Trusts Act, 1882 (II of 186U), and such securities of, or fully guaranteed by, Acceding States as the Reserve Bank may be autho- rised to purchase under clause (8) of section 17 of the Reserve .bank of India Act, 1934 (U of 1984);

(b) "banking" means the aocepting, for the purpose of lending or invest- ment, of deposits of money from the public, repayable on demand or other- wise, and withdrawable by cheque, draft, order or otherwise;

(c) "banking company" means any company which transacts the business of banking in any Province of India;

Explanation.—Any company which is engaged in the manufacture of goods of carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufm-turer or trader shall not be deemed to transact the business of banking within the meaning of this clause;

(d) "company" means any company which may bo wound up under the Indian Companies Act, 1913 (Vll of 1913);

(e) "Court" means the Court having jurisdiction uider the Indian Cora-

panies Act, 1913;

(f) "demand liabilities" means liabilities which must be met on demand, and "time liabilities" means liabilities which are not demand liabilities;

(a) "gold" includes gold in the form of coin, whether legal tender or not, or in the form of bullion or ingot, whether refined or not;

\h) "managing agent" means a person, firm or company entitled to the manaeement of the whole affairs of a banking company by virtue of an rgree- rnent with the company or by virtue of the memorandum or ancles of association relating thereto, and under'tho control and direction of the directors except to +L extent if any, otherwise provided for in the agreement, memorandum or articles of' association, and includes any person, firm or company occupying such position by whatever name called;

Explanation— If a person occupying the position of managing agent Callthimself manager or managing director he shall nevertheless bb deemed to be a managing agent for the purposes of this Act;

(i) "private company" has the same meaning as in the Indian Companies

(j) "prescribed" means prescribed by rules made under this Act;

(k) "registrar" has tho same meaning us in the Indian Companies Act, 1913; (I) "Eeserve Bank" means the Eeserve Bank of Jndia; (m) "scheduled buruk" means a bank for the time being included in the •Second Schedule to the Keserve Bank of India Act, 1984; and

(ri) "secured loan or advance" means a loan or advance made on the security of assets the market value of which is not at any time less than the amount of such loan or advance; and "unsecured loan or advance" moans a loan or advance not so secured.

(3) In the application of this Act to Acceding States all references to the Provinces of India shall be construod as including references to the Acceding States to which this Act extends.

PABT II

BUSINESS OF BANKING COMPANIES

6. Forma ol business in which banking companies may engage.—(1) in

addition to the business of banking, a banking company may engage in any one or more of the following forms of business, namely: —

(a) tho borrowing, raising, or taking up of money; the lending or ad- vancing of money either upon or without security; the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hoondees, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates, scrips and other in- struments, and securities whether transferable or negotiable or not; the granting and issuing of letters of credit, traveller's cheques and circular notes; the buying, selling and dealing in bullion and specie; the buying and selling of foreign exchange including foreign bank notes; the acquir- ing, holding, issuing on commission, underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities and investments of all kinds'; the purchasing and selling of bonds, scrips •or other forms of securities on behalf of constituents or others", the ne- gotiating of loans and advances; the receiving of all kinds of bonds, scrips or valuables on deposit or for safe custody or otherwise; the providing of safe deposit vaults; the collecting and transmitting of money and se- curities ;

(6) acting as agents for any Government or local "authority or any •other person or persons; -the carrying on of agency businoss of any descrip- tion including the clearing and forwardiug of goods, giving of receipts and discharges and otherwise aoting as an attorney on behalf of customers, but excluding tho business of a managing agent of a company;

(p) contracting for publio and private loans and negotiating and issuing the same;

((7) the effecting, insuring, guaranteeing, underwriting, participating In managing and carrying out of any issue, public or private, of State, munici- pal or other loans or of shares, stock, debentures, or debenture stock of any company, corporation or association and the lending of money for the purpose of any such issue;

(e) carrying on and transacting every land of guarantee and indem- nity business;

(/) managing, selling and realising any property which may come into •the possession of the company in satisfaction or part satisfaction of any of its claims;

(g) acquiring and holding and generally dealing with any property or - any right, title or interest in any such property whioh may form the security -or part of the security for any loans- or advances or which may be connected with any such security;

(ft) undertaking"and executing trusts;

(t) undertaking the udmini&tration of estates as executor, trustee or otherwise;

(j) establishing and supporting or aiding in the establishment and sup- port ot associations, institutions, funds, trusts and conveniences calcu- lated to benefit employees or ex-employees of the company or the depend- ents or connections of such persons; granting pensions and allowances and making payments towards insurance; subscribing to or guaranteeing moneys lor charitable or benevolent (t>jects or for any exhibition or for uny public, general or useful object;

(/r) the acquisition, construction, maintenance and alteration of any building or works necessary or convenient for the purposes of the com- pany,

(I) selling, improving, managing, developing, exchanging, It asing, mortgaging, disposing of or turning into account or otherwise dealing with all or any part of the property and rights of the company;

(m) acquiring and undertaking the whole or

(n) doing all such other things us are incidental or conducive to the promotion or advancement ot the business of the company;

(o) any other form of business which the Central Government may, by notification in the offioial Gazette, spociEy aa a form of business in which it is lawiul for a banking company to engage.

(2) No banking company shall engage in uny form of business other than those referred to in sub-section..!"!).

7. TTse of words "bank", "banker", "banking".—After the expiry of two years from the commencement of this Act, no company, other than a banking company, shall use as part of its name any of the words "bank", "banker" or "banking" and no company shall carry on the business of banking in any Pro- vince of India, unless it uses fis part of its name at least one of such words •

Provided that nothing in this section shall apply to any aisociation of banks formed for the protection of their mutual interests and registered under section 26 of the Indian Companies Act, 1918 (VII of 1918).

8. Prohibition, oi trading.—Notwithstanding anything contained in section 6 or in any contract, no banking company shall directly or indirectly deal in the buying or selling or bartering of goods, except in connection ^ ith the reali- sation of security given to or held by it, or engage in any trade, or buy, sell or barter goods for others otherwise than in connection with bills of exchange received for collection or negotiation or with such of rU business as is referred to in clause (i) of sub-seotion (1) of section 6

Provided that this section shall not apply to any such business as aforesaid which was in the course oi being transacted on the commencement of this Act, to howovei, that the baid business shall be completed before the expiry of one year from such commencement.

Explanation.—For the purposes ot this section, "goods" means every kind of movable property, other than actionable claims, stocks, shares, money, bul- lion and specio, and all instruments referred to in clause (a) of sub-section (2) oi section 0.

9. Disposal ol non-banking assets.—Notwithstanding anything contained in section 6, no banking company fchall hold any immovable property how- s^e^er acquired, except such as is require 1 for its own use, for any period exceeding seven years from the acquisition thereof or from the commencement oi this Act, whichever is later or any extension of such period as in this section provided, and such property shall be disposed of within such pcrio-T or extended period, as the case may be:.

provided thai, the banking company ma), within the period of seven years as aforesaid, deal or trade m auy such property for the purpose of facilitating the disposal thereof:

Provided Imther that the Reserve Bank may in any particular case extend the aforesaid period of seven years by such period not exceeding five yeara where it ia satisfied that such extension would be in the interest*! of th deposi- tors of the. Dunking company.

10. Prohibition of employment of managing agents and resirictjQrja on certain forniB of employment.—(1) No banking company—

(a) shall employ or be managed by a managing agent, or

(b) slialj employ any person—

(i) who is or at any time has been adjudicated insolvent, or has bUE.pended payment or has compounded with his creditors, or who is or has been convicted by a criminal Court of an offence involving moral turpitude; or

(n) whose remuneration or part of whose remuneration takes the form of commission or of a share :n the profits of the company; or

(Hi) whose remuneration is, according to the normal standards prevailing in banking business, on a scale disproportionate to the re- sources of the company; or (o) sh'ill be managed by any person—

(i) who is a director of any other company, not being a subsidiary company of the banking company; or

(u) who is engaged in any other business or vocation; or

(HI) who has a contract with the company for its management for a period exceeding five years at any one time:

Provided that the said period of five years shall, in relation to contracts subsisting on the 1st day of July, 1044, bo computed from that date:

Provided further that any contract with the company for its management may be renewed or extended for a further period not exceeding five years at a time if and so often as the directors so decide.

(2) U any question arises in any particular case whether the remuneration is, according to tho normal standards prevailing in banking business, on a scale •disproportionate to the resources of the company for the purpose of sub-clause (in) of clause (6) of sub-section (1), the decision of the Reserve Bank thereon shall be final for all purposes.

11. Requirement as to minimum paid-up capital and reserves,—(i) Not- withstanding anything contained in section 103 of the Indian Companies Act, 1918 (VT1 ol 1918), no banking company in existence on the commencement of this Act, shall, after the expiry of three yearR from such commencement or of such further period not exceeding one year as the Beserve Bank, having regard to the interests of the depositors of the company, may think fit in any- particular case to allow, carry on business in any Province of India, and no other banking company shall, after the commencement of this Act, commence or carry on nusiness in any Province of India, unless it has paid-up capital and reserves of such aggregate value as i* hereinafter required by this section.

(8) In tl>e rase of a banking company incorporated elsewhere than in a Province of Inoia, the aggregate value oi its paid-up capital and reserves shall not bf l e^ ^hnn fifteen Inkhs of rupees, ami. if it has a place or places of busi- ness m the City of Bombay or Calcutta or both, twenty lakhs of rupees-

Provided that no such banking company shall be deemed to have complied with the provisions of this sub-section, unless it deposits and keeps • deposited with the Beserve Bank an amount not less than the minimum requited by this, sub-section, either in cash or in unencumbered approved securities or partly in cash and partly in such securities.

(3) In the caBe of any banking company to which the provisions of sub- section (2) do uot apply, the aggregate vulve of its paid-up capital and reserves- Bhall not be le-si than—

(i) if it has places of business in more than one Province, five lakhs of rupees, and if any such place or places of business is or are situated in the- City of Bombay or Calcutta or both, ten lakhs of rupees;

(it) if it has all its places of business in one Province none of which, is situuted in the City of Bombay or Calcutta, one lakh of rupees in respect of its principal place of business, plus ten thousand rupees in respect of each of its other places of business situated in the same district in which it has its principal place of business, -plus twenty-five thousand rupees in respect of each plaoe of business situated elsewhere in the Province otherwise- than in the same district:

Provided that no banking company to which this clause applies shall be required to have paid-up capital and reserves exceeding an aggregate • value of five lakhs of rupees:

Provided further that no banking company to which tin's clause- applies and which has only one plaoe of business, shall be required to have paid-up capital and reserves exceediag an aggregate value of fifty thousand rupees;

(Hi) it it has all its places of business in one Province, one or more of which is or are situated in the City of Bombay or Calcutta, five lakhs of rupees, plus twenty-five thousand rupees in respoot of each place of busi- ness situated outside the City of Bombay or Calcutta, as the case may be: Provided that no banking company to whioh this clause applies ehal} be required to have paid-up capital aid reserves exceeding an aggregate- value ol ten lakhs of rupees.

Explanation.—For the purposes of this sub-section, a place of busi- ness situated in a Province other ^han that in which the principal place of business of the banting company is situated shall, if it is not more than twenty-five miles distant from such principal place of business, be deemed to be situated within the snine Province as such principal place of business. \4) Any amount deposited and kept deposited with the Beserve Bank under the proviso to sub-section (2) by any banking company incorporated elsewhere- £haj. ia a Province of India shall, in the event of the company ceasing for any reason to carry on banking business in the Provinces of India, be an asset of the company on which the claims of all the creditors of the company in the- Proviuces of India shall be a first change.

($) For the purposes of this section "value" means the real or exchange- able value, and r.ot the nominal value >vhif,b may be shown in the books of th& banking compauy concerned.

(6) If any dispute arises in computing the aggregate value of the paid-up- capital and reserves of any banking compam, a determination thereof by the- Reserve Bank shall be final for the purposes of this" section.

12. Regulation of paid-up capital, subscribed capital and authorised oapi- tal, and voting rights of shareholders.^No banking company shall carry on business in any Province of India, unless it satisfies' the following conditions,. namely:—

(i) thai the subscribed capital of the company is not less than one- half of the authorised capital, and the paid-up capital is not less than on&

hadtf of the subscribed capital and that, if the capital is increased, it com- p ies with the conditions j)resonbod in this clause within such period not exceeding two years as the Reserve Bank may allow;

(n) that the capital of the company consists of ordinary shares only or of ordinary shares and such preference shares as may have been issued prior to the 1st day of July, 1944;

(Hi) that, subject to the provisions contained in clause (jo) hereof, the voting lights of any one shareholder, whether a preference shareholder or an ordinary shareholder, aro strictly proportionate to the contribution made by bim to the paid-up capital of the company;

(iv) that the voting rights of any one shareholder do not exceed five per cent, of the total voting rights ol all the shareholders:

Provided that nothing contained in this section shall apply to any banking company incorporated before the 15th day of January, 1987. *

13. Restriction on commission, brokerage, discount, etc, on sale of shares. —Notwithstanding anything to the contrary contained in sections 105 and 105A Df the Indian Companies Act, 1918 (VII of 1918), no banking company shall pay out directly or indirectly by way of commission, brokerage, discount- or remuneration in any form in respoet of any shares issued by it, any amount exceeding in the aggregate two and one-half per cent, of the paid-up value of the said shares.

14. Prohibition of charge on unpaid capital,—No banking company shall create any charge upon any unpaid capital of the company, and any such* chnrge shall be invalid.

16. Restrictions as to payment of dividend.— No banking company shall pay tuiy dividend on its shares until all its capitalised expenses- (including preliminary expenses, organisation expenses, share-selling commission, broker- age, amounts of losses incurred and any other item of expenditure not repre- sented by tangible assets) have been completely written off.

16. Prohibition of common directors.— No banking oompany incorporated in a Province of India shall have as a director any person who is a director of another banking company.

17. Reserve fund.—Every banking company incorporated in a Province of India shall maintain a reserve fund, and shall, out of the net profits of each jcar and before any dividend is declared, transfer a sum equivalent to not less than twenty per cent, of such protits to the reserve fund until the amount of the said fund is equal to the paid-up capital.

Erplanation.—Yur the purposes of this section, the expression "net profits" shall have the meaning assigned to it in sub-section (3) of section 87C of the Indian Companies Act, 1918 (V1T of 1918).

18. Oash reserve.—Every banking oompany not being a scheduled bank shall maintain by wtry of cask reserve in cash with itself, or in an aocount open- ed with the Reserve Bank, or partly in cash with itself and partly in such account, a sum equivalent to at least two per cent.-of its time liabilities and five per cent, of its demun'l liabilities and shall file with the Reserve Bank before the fifteenth day of every month three copies of a statement of the amount so held on Friday of each week of the preceding month with particulars of its time and demand liabilities on each Friday.

19. Restriction on nature of subsidiary companies.—(1) A banking company shall not form any subsidiary company except a subsidiary company formed for one or more of the following purposes, namely, the undertaking and execu- ting of trusts, the undertaking of the administration of estates as executor,

trueiteo or otherwise, the providing of safe deposit vaults or, with the previous permission in writing of the "Reserve Bank, such other purposes as are incidental to the business of bunkiag.

(8) Suve as provided in sub-section (2), no banking company snail hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cont. of the paid-up share capital of that company or thirty per cent, of its own paid-up share capital and reserves, whichever is less;

Provided that any bunking company which is on the date of the commencement of this Act holding any shares in contravention of the provisions of this sub-section shall not be liable to any penalty therefor if it reports the matter without delay to the Ecservo Bank und if it brings its holding of shares into conformity with the said provisions within such period, not exceeding two years, as the Boaerve Bank may think fit to allow.

(3) Save as provided in sub-section (1) and notwithstanding auything contain- ed in sub-section (2), a banking company shall not, after the expiry of one year from the dote of the Commencement of this Act, hold shares, whether as pledgee, mortgagee or absolute owner, in any company in the management of which any managing director or manager of the banking company is in any manner concerned or interested,

20. Restrictions on loans and advances.—(I) Notwithstanding anything to the contrary contained in section 64A of the Indian Companies Act, 1918 (VII Of 1918), no banking company shall make any loans or advances on the security of its own shares, or grant unsecured loans or advances to any of its directors or to firms or private companies in which it or any of its directors is interested as partner or managing agent or to any individuals, firms or private companies in cases where any of the directors is a guarantor.

(3) Every banking company shall, before the close of the month suocee'ling that to which the return relates, submit bo the Eeservo Bank a return in the prescribed form and manner, showing all unsecured loans and advances granted by it to companies in which it or any of its directors is interested as director or managing agent or guarantor.

(3) If on examination of any return submitted under sub-section. (2) it appears to the Beserve Bank that any loans or advances referred to in that sub-section are being granted to the detriment of the interests of the depositors of the banking company, the Eeserve Bank may, by order in writing, prohibit the banking company from granting any such further loans or advances or im- pose such restrictions on the grant thereof as it thinks fit, and may by like order direct the banking company to secure the repayment of any such loiin or advance within such time as may be specified in the order.

21. Power of Reserve Bank to control advances by banking companies.— (1) Where the Beserve Bank is satisfied that it is necessary or expedient in the public interest so to do, it may determine the policy in relation to advances to be followe'd by banking companies genernlly or by any banking company in particular, and when the policy has been BO determined, nil banking companies or the banking company concerned, as the case may be, shall bo bound to follow the policy as so determined.

(2) Without prejudice to the generality of the power vested in the Reserve Bamk under sub-section (I), the Eeserve Bank nmy flive directions to banking companies, either generally or to any banking company or group of banking oompanie* in particular, as to the • purposes for which advances* may or may

not be made, the margins to be maintained in respect of secured advances and the rates of interest to be charged on advances, and each banking company final] bo bound to comply with any directions as"so given.

22. Licensing ol banking companies.— (2) Save as hereinafter provided, no company shall carry on banking business in any Province of India unless it) holds a licence granted by the Keserve Bank in such behalf.

(2) Every banking company in existence on tlio commencement of this Act, before the expiry of six months from such commencement, and every other company before commencing banking business in any Province of India, shall apply in writing to the Eeserve Bank for a licence under this section:

Provided that in the oase of n banking company in existence on the com- mencement of this Act, nothing in sub-section (2) shall be deemed to prohibit the company from carrying on banking business until it is granted a licence in pursuance of sub-section (3) or is by notice in writing informed by the Reserve Bank that a licence cannot be granted to it:

Provided further that the Reserve Bank shall not give a notice as aforesaid to a banking company in existence on the commencement of this Act before the expiry of the three years referred to.in jub-section (I) of seotion 11 or of such further period as the Eeserve Bank may under that sub-section think fit to allow.

(3) Before granting any licence under this section, the Reserve Bank may require to be satisfied by an inspection of the books of the company or other- wise that all or any of tho following conditions are fulfilled, namely: —

(a) that the company is in a position to pay its depositors in full as their claims accrue;

(b) that the affairs of the company are not being conducted to the detriment of the interests of its depositors;

(c) in the case of a company incorporated elsewhere than in a Pro- vince of India that the Government or law of the country In which it is in- corporated does not discriminate in any way against banking companies re- gistered in a Province of India, and that thQ company complies with all the provisions of this Act, applicable to banking companies incorporated outside the Provinces of Indin.

(4) The .Eeserve Bank may—

(a) cancel any licence granted under this section where any of the con- ditions set out in sub-section (.7), on the fulfilment of which it required to be satisfied when granting tho iicence, ceases to be fulfilled or if the company ceases to carry on banking business in the Provinces of Ttidia or goes into liquidation;

(b) at any time after grnnting a licence under this section require that any of the said conditions, on the fulfilment of which it did not require to be satisfied when granting the licence, shall be fulfilled to its satisfaction within such time as it may specify, and if the condition is not so fulfilled, cancel the licence.

(6) Any banking company aggrieved by the cancellation of its lloenoe under aub-section (4) may appeal to the Central Government, and the decision of the Central Government on such appeul shall be final.

23. aestrictlons on opening ol new, and transfer ol existing, places ol busi- ness.—No banking company shall open a new place of business or change, otherwise than within tho same city, town or village, the location of an existing place of business without obtaining the prior permission in writing of the R"aerve Bank; and before giving any such permission the Eeserve Bank may require to be satisfied by an inspection under section 85 or otherwise aa to the

financial condition and history of the company, the general character of its management, the adequacy oi its capital structure and earning prospects and that public interest will be gerved by the opening or, as the case may be, change of location, of the place of business:

Provided that nothing in this section shall apply to the opening for a period not exceeding one month of a temporary pluce of business within a city, town or village or tho environs thereof within which the banking company already has a place of business for the purpose of affording banking facilities to the public on the occasion of an exhibition, conference or mela.

Explanation,—-For the purposes of this section "place of business" includes any sub-office, pay-office, sub-pay-oftice and any place of business ut -v\hich de- posits are received, cheques oaBhed or moneys lent. •

24. Maintenance of a percentage of assets.—(1) After the expiry of two years fforn the commencement of this Act, every banking company shall maintain in cash, gold or unencumbered approved securities, valued at a price not exceeding the current market price, an amount which shall not at the close of business on any day be less than twenLy per cent, of the tofcttl of its time and demnn'l liabilities in the Provinces of India.

Explanation.-—For tho purposes of this section liabilities shall not include the paid-up capital or tho reserves or ouy credit balance in the profit and loss account of tho company or the amount of any loan taken from the Reserve Bank. (2) In computing the amount for the purposes of sub-section (1), the deposit required under tho proviso to sub-section {%) of section 11 to be made with the Reserve Bank by a bunking company incorporated elsewhere than in a Province of India und any balance maintained by u banking company with the Re-serve Bank or its agent or both, including in the case of a scheduled bank the baltTnco required under sub-section (1) of section 42 of the Reserve Bank of In'lia Act, 1934 (II of 1034), to be so nminta nod, shall bo deemed to be cash maintained.

(3) For the purpose of ensuring compliance with the provisions of this section, every banking company shall, not later than fifteen days after the end of the month to which it relates, furniBh to the Reserve Bank in the prescribed form and manner a monthly return showing i articulars of its assets maintained in accordance with this section, and its time and demand liabilities at the close of business on each Friday during the month, or if any Friday is a public holiday under the Negotiable Instruments Act, 1881 (XVI of 1881;, nt the close of business on the preceding working day.

2B. AflS€tfl In the Provinces ol India,—-(1) The assets in the Provinces of India of every banking company at the close of the last working day of every quarter shall not be less than seventy-five per cent, of its demand and time liabilities therein,

(2) Every banking company shall, within one month from the end of every quarter, submit to the Reserve Bank a return in the prescribed form and manner of the assets and liabilities referred to in sub-section (1) as at the close of the last working day of the previous quarter.

(3) For the purposes of this section,—•

(a) "(resets" shall be deemed to include such promissory notes, bills of exchange and securities ns the Reserve Bunk is, under the Reserve Bank of India Act, 1034 (II of 1904) empowered to purchase, discount or make advances against, and export bills drawn in, and import bills drawn on, and payable in India and expressed in such currencies as the Reserve Bank mav from time to time approve in this behalf;

(b) "quarter" means the period of three months ending on the last day of March, June, September or December.

28. Return of unclaimed deposits.—Every banking company Bhall, within thirty days after the close of each calendar year, submit a return in the pres- cribed form and manner to the Eesorve Bank aa nt the end of such calendar year of all accounts in the Provinces of India which have not been operated upon for ten years, giving particulars of the deposits standing to the credit of each such account:

Provided that in the caao of money deposited for a fixed period the said term of ten years shall be reckoned from the date of the expiry of such fixed period.

27. Monthly returns and power to call for other returns and information.— (7) Every banking company shall before the .close of the month succeeding that to which it relates submit to the Ilesprvo Bank a return in the prescribed form and manner showing its assets and liabilities in the Provinces of India ae at the close of business on the last Friday of every month or if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (XVI of 1881), at the close of business on the preceding working day

(8) The Reserve Bank may at any time, by notice in writing, require a bank- ing company to furnish it within the time specified therein or such further time os the Eeserve Bank may allow, with statements and information relating to the business of such banking oompany, and without prejudice to the generality of the foregoing power, may call for information every hnlf year regarding the elnssification of advnnces and investments of banking companies in respect of industry, commerce and agriculture.

28. Power to publish Information.—The Eeserve Bank, if it considers it m the public interest s'o to do, may publish any infornvitkvj obtained by it under section 27 in such consolidated form as it thinks fit.

29. Accounts and balance-sheet.—(1) At the expiration of each calendar year every banking company incorporated in a Province of India, in respect of all business transacted by it, and every banking oompany incorporated outside the Provinces of India, in respect of all business transacted through its bran- ches in the Provinces of India, shall prepare with reference to that year a balance-sheet and profit and loss account as on tho last working dav of the year in the Forms set out in the Third Schedule or as near thereto aa circumstances admit:

Provided that in "the oase of a banking company incorporated outside the Provinces of India, the profit and loss account may be prepared as on a date not earlier than two months before the last working day of the yoar.

(2) The balance-sheet and profit and loss account shall be signed—

(a) in the case of a banking company incor£orated in a Province of India, by the manager or the principal officer of the company and where there are more than three direotors of the company, by "at least three of those directors, or where there are not more than three directois, by all the directors, and

(b) in the case of a banking company- incorporated outside- the Pro- vinces of India by the manager or ngent of (he principal office of the company in the Provinces of India.

(3) Notwithstanding that the balance-sheet of a banking company is under BUb-section (1) required to be prepared in a form other than the form marked P in the Third Schedule to the Indian Companies Act, 1918 (VII of 1913), the requirements o£ that Act relating to the balance-sheet and profit and loss aocount of a company shall, in so far as they are not inconsistent with this Act, apply to the balance-sheet or profit and loss account, as the ease may be, of a banking company.

(4) The Central Government, after giving not less than three montha notice of ita 'intention so to do by a notification in the official Gazette, may from time to time by a like notification amend the Forms set out in the Third Schedule.

80. Audit,—(1) The balance-sheet and pi'ofit and loss account prepared in oocordance with section 29 shall be audited—

(a) in the oase of a banking company incorporated in a Province of India, by a person duly qualified uuder any law for the time being in force to be an auditor of companies;

(b) in the case of a banking company incorporated outside the Pro- vinces of India, either by such an auditor as aforesaid, or by a person duly qualified to be an auditor under tho law of the country in which the com- pany is incorporated.

(2) Vhe Auditor shall have the powers of, exercise the functions vested in, and dischargo the duties and be subject to the liabilities and penalties imposed on, auditors of oompanics by section 145 of the Indian Companies Act, 1918 {VII of 1913).

(3) In addition to the matters which under the aforesaid Act the auditor is required to state in his report, he shall, in the caie Of a banking company incorporated in a Province of India, state in his report,—

(a) whether or not the information and explanations required by him

have been found to be satisfactory;

(fr) whether or not tho transactions, of the company which have come to his notice have been within the powers of the company;

(c) whether or not the returns received from branch offices of tha

company have been found adequate for the purposes of his audit;

(d) whether the profit and loss account Rhows a true balance of profit and loss for the period covered by such account;

(e) tiny other matter which he considers should be brought to tho notice of the shareholders of the ccn.pany.

31. Submission of returns.—The accounts and balance-sheet referred to in •efltion 29 together ^vith the auditor's report shall be published in the pres- cribed manner, and three copies thereof BIIUII be furnished as returns to the- Reserve Bank within three months from the end of the period to which they Tefer:

Provided that the lleserve Bank may in any case extend the said period of three months for the furnishing of such returns by a further period not exceeding three months.

32. Copies of balance-sheets and accounts to be sent to registrar.—(2) Where a banking company in any year furnishes its balance-sheet and accounts in accordance with the provisions of section !11 it may, or when it is a private company, shall, at the same time send to the registrar three copies of such 'balance-sheet and accounts and of the auditor's report, and where such copies are so sent, it shall not be necessary for the company, to file copies of the balance-sheet and accounts with the registrar as required by eub-secbion (1) of section K-)4 of the Indian Companies Act, 1913 (VII of 19131, and such copies so sent shall be chargeable with the same fees and shall be dealt wiih in all respects as if they were filed in accordance with that section.

(3) When in pursuance of sub-section (5) of section '27 the Reserve Bank requires any additional 'statement or information in connection with tho balance-sheet and accounts furnished under section 81, the banking company "-shall, when supplying such statement or information, send a copy thereof to the registrar.

"> 33. Display of audited balance-sheet by companies incorporated outside the Provinces of India.—Every banking company incorporated outeido the Provinces ol India shall, not later than the first Monday in August of any year in which it carries on business, display in a conspiouous place in its princi- pal office and in every branch office in the Provinces of India a oopy of its lasi audited balance-sheet and profit and loss account prepared under section 29, and shall keep the copy so displayed until replaced by a copy of the subsequent balance-sheet and profit and loss account so prepared, and every such banking company shall display in like manner copies of its complete apdited balance- sheet and profit and loss aooount relating to its banking business as soon as they are available, and shall keep the copies so displayed until copies of such subsequent accounts are available.

34. Accounting provisions of tWB Act not retrospective.—Nothing in this Aot shall apply to the preparation of accounts by a banking oompany and the audit and submission thereof in respeot of any accounting year which has ex- pired prior to the commencement of thin Act, and notwithstanding the other provisions of this Aot, such accounts shall be prepared, audited and submitted in accordance with the Ian in force immediately before the commencement of this Act.

3fi, Inspection.— (1) Notwithstanding anything to the contrary contained In section 198 of the Indian Companies Act, 1918 (Yll of 1913), the Besorve Bank at any time may, and on beiDg directed so to do by the Central Gov- ernment shall, cause an "inspection to be made by one or more of its officers ol any banking company and its books and accounts; and the Beserve Bank shall supply to the banking oompany a copy of its report on such inspection.

(2) It shall be the duty of erery direotor or other officer of the banking com- pany to produce to any officer making an inspection under sub-section (7) all such books, accounts and .other documents in his oustody or power and to fur- msh him with any statements and information relating to the affairs of the banking company as the said officer may require of him within such time as the said officer may specify.

(.9) Any person making an inspection under sub-section (7) may examine on oath any director or other officer of the banking company in relation to its business, and may administer an oath accordingly.

(4) The Beserve Bank shall, If it has been directed by the Central Govern ment to cause an inspection to be made, and may, in any other case, report to the Central Government on any inspection made under this section, and the Central Government, if it is of opinion after considering the report that the affairs of the banking company arc being conducted to the detriment of the interests of its depositors, may, after givmg such opportunity to the bankino company to make a representation in connection with the report as in the opimon of the Central Government, seems reasonable, by order in writing—

(a) prohibit the banking company from receiving fresh deposits; (h) direct the Beserve Bank to apply under section 88 for the windinc

6 up of the banking company: ,

Provided that the Central Government may defer, for such period as it may think fit, the passing of an order under this sub-section, or cancel or modify any such order, upon such terms and conditions as it mny think tit to impose

•'

• (5) The Central Government may, after giving reasonable notice to the banking company, publish the report submitted by. the Eeserye Bank or such portion thereof as may appear necessary.

36. Further powers and functions of Reserve Bank.—(2) The Reserve B a n* may—

(a) caution or prohibit banking companies generally or tiny banking company in particular against entering into any particular transaction or class of transactions, and generally give advice to any banking company; (b) on a request by the companies concerned and subject to the pro- visions of section 45, assist, as intermediary or otherwise, in proposals for the amalgamation of such banking companies; ^

(c) give assistance to any banking company by means of the grant of " loan or advance to it under clause (3) of sub-section (2) of Rcction 18 of the Reserve Bank of India Act, 1934 (II of 1934) ;

(d) during the course, or after the completion, of any inspection of a banking company under section 35, by order in writing, require the company—

(i) to call a meeting of its directors for the purpose of considering any matter arising in the course of or out of such inspection or of meeting an officer of the Beservo Bank to discuss any such matter;

(ii) to make, within such timo, as may be specified in the order, such changes in its management as the Bederve Bank may consider necessary in consequence of the state of affairs disclosed during or By the inspection.

(2) The Reserve Bank shall make an annual report to the Central Govern- ment on the trend and progress of banking in the country, with particular reference to its activities under clause (2) of section 17 of the Beserve Bank ot India Act, 1934, including in such report its suggestions, if any, for the streng- thening of banking business throughout the country.

(3) The Reserve Bank may appoint such staff at such places as ifc consi- ders necessary for the sorutiny of the returns, statements and information furnished by 'banking companies under this Act, and generally to ensure the efficient performance of its functions under this Act.

PART III

Su8PKN9ION OF BUSINESS AND WINDING UP OF BANKING COMPANIKS

87. Suspension ot business.—(1) The Court may on the application of a banking company which is temporarily unable to meet its obligations make an order (a copy of which it shall cause to be forwarded to the Beserve Bank) staying the commencement or continuanoe of all fictions and proceedings against the company for a fixed period of time on such terms amd conditions as 10 shall think fit and proper, and may from time to time extend the period so how- ever that the total period of moratorium shall not exceed six months.

(#) No such application shall be maintainable unless it is accompanied by a report of the Beserve Bank indicating that in the opinion of the Reserve Bank the banking company wil] be able to pay its debts if the application is granted:

Provided that the Court may, for sufficient, reasons, grant relief under this section even if the application is not accompanied by such report, and where such relief is granted, the Court shall call for a report from the Reserve Bank on the affairs of the banking company, on receipt of which it may either rescind any order • already passed or pass such further orders there- on as may be just and proper in the circumstances.

88. Winding up by Oaurt.—-{1) Without prejudice to the provisions contain- ed in section 162 or section 271 of the Indian Companies Act, 1918 (VII of 1918), and without prejudice to -its powers under sectibn 87, the Court shall order the winding up of a banking company if it is unable to pay its debte und the Court shall also order the winding up of a banking, oompany if tEe Reserve Bank applies in this behalf to the Court.

(S) The Beserve Bank may make an application under this section only if it is directed so to do by order under clause (6) of sub-section (4) of section 85 or if the banking company has f(riled to comply withm duo time with the demand contained in a notice under sub-section (5) of seotion 46.

(yi Without prejudice to Lhe provisions contained in section 163 of the Indian Companies Act, "191a (VII of 1918), a banking company shall be deemed to be unable to pay its debts if it has refused to meet any lawful demand for payment made at any of its -offices or branches within two working days, if such demand is made at a plane where the,re is an office, branch or agency of the Eesorve Hank, or within five working days, if such demand is made elsewhere, and if tho Eeserve Bank certifies in writing that the banking company is unable to pay its debts.

(4) A copy of every application by the Eeserve Bank under sub-section (1) shall be sent by the Eeserve Bank to the registrar.

39. Reserve Bank to be official liquidator.—Notwithstanding anything contained in section 175 of the Indian Companies Act, 1918 (VII of 1918), where in any proceeding for the winding up by the Court of a banking company, an application is made by the Eoserve Bank in this behalf, the Eeserve Bank shall be appointed as the official liquidator of the banking company in such proceeding.

40. Btay Of proceedings.—Notwithstanding anything to the contrary oon- tained in section 178 of the Indian Companies Act, 1913 (VII of 1918), the Court shall not make any order staying the proceedings in relation to the wind- ing up of • banking company, unless the Court is satisfied that an arrange- ment has been made whereby the oompany can pay its depositors in full as • their claims accrue.

41. Report of liquidator.—Notwithstanding anything t" the contrary con- tained in section 177B of the Indian Companies Act, 1918 (VII of 1918), where a winding up ' order is made in respect of a banking company, the official liquidator shall submit a preliminary report to the Court within two months from the date of the order giving the information required by that section so far as it is available to him^to enable the Court to order the payment of a preliminary dividend if sufficient assets aw* available.

42. Power to dispense with meetings of crBditors, etc.^Notwithstanding anything to the contrary contained in section*. 178A and 183 of the Indian Companies Act, 1018 (VII of 1013), the Court may, in the proceedings for winding up a banking company, dispense with any meetings of creditors or oontributories or with the appointment of n committee of inspection if it considers that no object will be secured thereby sufficient to justify the delay and expense,

'

43. Booked depositors' credits, to be deemed proved.—Notwithstanding T I i l ^⁶ contrary contained in section 191 of the Indian Oompaniea Act, 1U18 (VII of 1913), the Court shall presume that the amounts shown In the books of a banking company as standing to the credit of depositors are proved without requiring further proof from the depositors concerned . unless the offiewl liquidator shows that there is reason for doubting any particular

44. Eaatrlctlon on voluntary winding up—Notwithstanding anything to the contrary contained in section 203 of the Indian Companies Act, 1913 (VII of 1VJH) no banking company which holds a licence granted under section 22 may b* voluntarily wound up unless the Eeserve Bank certifies in writing that the company 1S able to pay in full all its debts to its creditors as they accrue, and witnout prejudice to the provisions contained in eections 218 and 220 of that Act. the Court shall, on the application of the Eenerv, Bnnk, order the windinc mi of the company by the Court if at any rtngfl during the voluntary winding "p proceedings the oompany is not able to meet such debfo as they acorue

45. Eeatrlction on amalgamation, etc—^Notwithstanding anything contained ia any law for the time being in force,—

(a) no Court shall sanction a compromise cr arrangement between a-

49. Special provisions lor private banking companies.—The exemptions, whether express or implied, in favour of a private company in sections 17, 77, 89B, 86H, 91B, and 91D, and sub-seotion (6) of section 144 of the Indian Com- panies Act, 1913 (VII of 1913), shall not operate in favour of a private company whioh is a banking company.

50. Certain claims for compensation barred.—No person shall have any right, whether in contract or oflierwise, to any compensation for any loss incurred by reason of the operation of any of the provisions contained in sections 10 and 16 or by reason of the compliance by a banting company with any order given to it under sub-clause (it) of clause (d) of sub-section (1) of section 86.

51. Application of certain provisions to the Imperial Bank of India.—With- out prejudice to the provisions of the Imperial Bant of India Act, 1920 (XLVII of 1920), the provisions of sections 10, 18 to 17, 19 to 21, 23 to 81, 84 to 48, 50 and 52 shall also apply, so far as may be, to and in relation to the Imperial Bank of India as they apply to and in relation to other banking oompanies.

02. Power of Central Government to make rules.—(1) The Central Govern- ment may, after consultation with the Eeserve Bank, make rules to provide for all matters for whioh provision is neoessary or expedient for the purpose of giving effect to the provisions of this Act and all such rules shall be published ir the official Gazette.

(8) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for the details to be included in the returns re- quired by this Act and the manner in whioh such returns Bhall be submitted.

(3) All rules made under this seotion shall be subject to the oondition of previous publication, and the date to be specified under clause (S) of section 2ft of the General Glauses Act, 1897 (X of 1897), shall not be lose than six months from the date on which the draft of the proposed rules was published: . .

Provided that in respect of the first occasion on which rules are made under this seption, the provisions of this sub-section shall not apply.

63. Power to exempt In certain cages.—The Centeal Government may, on the recommendation of the Eeserve Bant, declare, by notification in tho official Gazette, that any or all of the provisions of this Act shall not apply to any banting company or to any class of banking (.-oinpunies either genorally or for suoh period as may be specified.

54. Protection of action taken under Act.—(1) No suit or other legal pro- ceeding shall lie against the Central Government, the Eeserve Bank or any officer for anything which is in good faith done or intended to be don6 in pursuance of this Act.

(3) Save as otherwise expressly provided by or under this Act, no suit or other legnl proceeding shall, lie against the Central Government, the Eesewe Brmk or any officer for any damage caused or likely to be caused by anything in good faith done or intended to be done in pursuance of this Act.

65. Amendment of Act EC of 1934.—The Eeservo B a nt of India Act, 1934 (II of 1934) shall be amended in the manner specified in the fourth column of the First Schedule, and the amendments to seotion .18 thereof os specified in the said Schedule shall be deemed to have had effect on and from the 20th day of September, 1947.

56, Repeals.—(1) The enactments mentioned in the third' column of the Second Schedule shall be repealed to the extent specified in the fourth column thereof.

(3) Notwithstanding the repeal by this Act of any Ordinance mentioned In the Second Schedule, anything done or any fiction taken, in the exercise of any power conferred by any Ordinance so repealed, shall for all purposes be deemed to have been done or taken in the exeroise of powers conferred by this 'Aot as if this Act had been in force on the day such thing was done or such action Wd? taken.

THE FIKST SCHEDULE

{Sue motion fifl)

AMENDMENTS

Short title

* Amendments

No.

Year

3

1

2

4

1934

(1) In seotion 17, to clause (ISA), the n The Reterve Bank of India Act, 1934.

following shall bo added, namely:—

" and under the' Backing Companies

|f Act. 1949".

•",

(B) (a) Seotion 18 aha.ll be renumbered aa nub-Motion (1) of that section and in sub- aeotlon£(i), as so renumbered,—

(i) in clause (3), after the words " of that eeotion ", the following word* shall be added, namely:—

" or, when the loan or advance it made to a banking company, as defined in the Banking Companies Act, 1949, againtt ouch other form of fleourity aa the Bank may consider auffloient";

(W) for the words " uijder this section ", wherever they Scour, the words " under this sub-section " shall be substituted;

(6) .After sub-seotion (1) as ao renum- bered, the following sub-section shall bo inaerted, namely:—

" (2) Where a banking oompany to which a loan or advanoe has been made under the provisions of olause (3) of sub-section (1) Is wound up,

'any sums due to the Bank in res- pect of euoh loan or advanoe, shall, subjeot only to the olaims. If any, of any other banking oompany In respeot of any prior loan or ad- vance made by suoh banking oom- pany against any soourity, be a first charge on the assets of thn banking company."

(.3) In eootlon 42, for sub-section (fl) the following eub-eeotion shall be substituted, namely:—•

" (fl) The Bunk shall, save as herein, after provided, by notification in the Gazette of India,— (a) direot the inolusion in the Second Schedule of any bank not already So included which carries on the business of banking in any # Provinoe of India and whioh— (i) has a paid-up capital and reserves of on aggregate value of not less than five lakhs of rupees, and

Amendmenta

Year

No.

Short title

4

1

2

3

(it) aatisfles the Batik that

it" affairs are not being

oondueted in a manner

detrimental to the interests

of its depositors, and $

(Hi) is a company as defined in

clause (2) of section 2 of

the IndianJOompanies Aot,

1918 (VII oT 1913) or a cor-

poration or a oompany in-

nni-pnraWr W rp nndflr §ny

h u L j o r ce in any pWoS

mHHao ih" Provinces of

Jjadlai ^**f" ,

(6) dlreot the eidvffllon from that Sohttdnle of any soheduled bank,— W $€ aggregate valu* et

Wliu"" ^paid-up oapitnl and reaerves ^eooia""..it any- W^e Uwp than flveTaEEs'af

(u) wnrt^A, in the opinion of the Bank after making an

of the iJanKng CompaptM

Aot, 1040, oonduotin" ffe

afiaiis to the detomrfrt'"f

the interest* of it* dopod-

tora, oi* '•- •

(tit) whloligoes into liquidation

carry oh banking bualneajj •'

J"UP4 tb&t ihe Bank may,

on applluutifoQ^f 'ti^^^vh^

^iRJy^fc °°noerned and

au Dj^v wj StiGii oonditionfl

if any, aa it may tnNbvME*'

d a te t"W lmUffag of a"

gdUrocufl^ under BULMd^oojka

Tw^jflpb-olaufle (^*) of

olauae'^ra) for such period

as the Bank conitiden"

reasonable to give the

soheduled bank an opjx*-

tunity of increasing

aggregate value ofpm pala-

up capital and reserves

to not lesa than five lakha

of rupees or, as the oaae

may be, of removing the

defoota in the oonduot of

its affairs (

(o) alter the deacription in that

Sohedule whenever any sche-

duled bank changes its name.

Explanation.—In this aub-seotion the

axpreesion " value" meana the real or

exchangeable v"alue and not the nominal

value whioh may be shown in the books of

the bank concerned ; and if any disputo

arises in computing the aggregate value

of the paid-up oapital and reserves of a

bank, a determination thereof by the Bank

shall b" final for the purposes of this sub-

Motion."

THE SECOND SCHEDULE

(See eeotion SB)

Rurally

Short-tttlo

Year

No.

Extent of repeal

2

8

1

4

The Indian Companies

1913

The whole of Part XA.

vn

Act, 1013.

xxvu The Banking Oompaoiea (Restriction of ' BtStF

IV

The wholo.

The Banking CompaniM

(Inapeotion) Ordl-

nuioe^ 104d.

X XV

The whole.

'ha Banking Companiea '(Control) Ordinance, 1048.

THE THIBD SCHEDULE (Se" seotlon 29) FORM A

FoBM Or BALANOB-BHKBT

CAPITAL AND LIABILITIES PROPERTY AND ASSETS

Ri. A. p. Re. A. p. Re- A- P. R I. A. *.

CASH:

CAPITA! (a)—

Authorised Capital

Shares of R" oaoh

In hand and with Reserve

Bank (including foreign

ourrenoy notea)

Issued Capital Shores

ofRi eaoh . .

Balancea with other Banks

(showing whether on de-

posit or ourrent aooount):

(i) in the Provinces of

Subscribed Capital

India.

Shared of Ra eooh .

(ii) outside the Provinces of

4*, — —

India — -

MONHT AT CALL AND SHOBT

NOTIOffl

Amount called up at R s . . .. par share . . ..

BILLS DISCOUNTED ANT> PTTE-

Le*s calls unpaid

OHASBD. (0)

(Other than Treasury Bills

Add forfeited shares .

R M X B TS wvnrD (6) .

DnPoarts Aim OTHMB A O-

of the Central and Pro-

vinqial Governments)

(i) payable in any Pro-

vinoe of India.

ootnrrs t . . ..

(ii) payable odtaide the

Provinoea of India.

iNvasTMUN-re (stating mode

of valuation, e.g., oost

or market value). (/)

Fixed Deposits . .

Savings Bank Deposits .

Current Accounts and Oontin-

ganoy (unadjusted) ao-

oounta.

(•) Ssouritlea of the Cent-

ral and Provinoial Gov-

ernments and Trustee se-

ourltiea, including Treasury.

Bllli of the Central and

Provinoial Governments.

BORROWINGS TROM OTHBTB

BANKS, AOIUSTTS, m o .:

(i) in the Provinoos of India

[it) outside the Provinoen of

India.

(U) Shares (olassifying into

preference, ordinary, de-

ferred and other olaBaea

of shares and Bbowing

separately shares fiilly

paid up and partly paid

op)

Partloulars:

(i) Seourod (stating the na-

(Hi) Debentures or Bonds,

(iv) Other investments (to

ture of BOourity) .

be olaaaiQed under pro-

per heads). .

(U) Umwoutod . . .

(") Gold.

LOANS, ADVANOBS, GASH

BILLS FATABLB

BILLS FOR OOLLBOTIOU BB-

ING BILLS BBOHTVABLB A8

par contra 1

OBBDITS AWD OVHBDBAYTB

(other than bad and

doubtful debts for which

provision has been made

to the satisfaction of the

auditors). . . .

(i) pnyable in any Provinoo

(i) in the Provinoea of India.

(U) outside tho Province* of

(it) payable outslda the Pro- vwoea of India. . .

India.

FORM A—eontd.

CAPITAL AND LIABILITIES PROPERTY AND2AS8ET8

Rs. A. P. Rs. A, p. Rn. A, p. Rs. A. r.

Particulars :

OTHHB LIABILITIES (TO Bffl

SpHOrfflBD). (0)

ACCEPTANCES, HNDOBBB. MENTS AND OTHBB OBLI- GATIONS p#r contra.

PBOITT AND LOSS t

Lets appropriation thereof (f) Dsbta oonsi dared good in respoot of which the bank is fully secured

Hi) Debts considered good for whioh the bank holds no other Boourity than tho debtors' personal security , • .

(tn) Debts considered good, secured by the personal liabilities of one or more parties in addition to the personal seourity of the debtors

(iu) Debts considered doubt- ful or bad, not provided for .

(v) Debts due by directors or officers of the bank or any of them oither severally or jointly with any other persons .

(vi) Debta due by oompan- iee or firms in which the directors of the bank are interested as directors, partners or managing agents or, in the case of private companies, as members

(uti) Maximum total amount of loan*, Includ- ing temporary advances made at any time dur- ing the year to diraotorg or managers or offloere of the oompany.

(viU) Mhiimum total amount of loons, includ- ing temporary advances granted during the year to the companies or flrme in whioh the director* of the bonk are interested as directors, partners or managing agents or, in the oase of private com- panies, as members

(te) Dua from banks.

BrtLS FOB COLLECTION BEtNO BILLS BHOBIVABLH A3 per contrm

(i) payable in any Provlnoe of Indiu

(") payable outside the Provmoes of India .

AOOHPTANOBS, BNDOBBH. HUNTS AND OTHBB OBLI- QAIIONII per contra.

THE GAZETTE OF INDIA EXTRAORDINARY, MARCH 10, 1949 81

FORM A—oonoW.

CAPITAL AND LIABILITIES

Ba. A., p. Bfl. A. p.

PROPERTY AND ASSETS Rs. A. p. Ra. A. p ,

pBBMIgBS LB89 DHPBSIOIA-

T1ON (?) .

FuBNITETBH AI*D TIX*T7BEB LESS DBriutaiATtON (g)

OTHHB ASSTOB, wcixjviNa B I L V HB ( to be specified) (ft) . . ..

N o N - B A N i a ua Asanra AC-

QUIRED IN BATIBTAOTION or CLAIMS (stating mode of valuation) (I)

PBOITT AND LOSS •

TOTAL

TOTAL

NOTES

(a) Capitals—

(") The various clauses of oapital, if any, should be distinguished. (U) Shares issued as fully paid-up pursuant to any contract without payments being reoeived In oaah should bo etated separately.

[Hi) Where circumstances permit, issued and subscribed oapital and amount called up may be shown as one item, e.g., Issued and Subscribed Capital Shares of BB paid up. k-

(iv) In the oase of banking companies incorporated outside the Provinoes of India, the amount of deposit kept with the Reserve Bank of India under sub-aeation (2) of aeotkm 11 of the Banking Companies Aot, 1919, should be shown undor this head; the amount, however, should not be extended to the outer oolumn.

(6) The reserve fund maintained under aeotion 17 oF the said Aot should be shovn se- parately.

(c) Under tbi" heading are to be inoluded suoh items aa the following, to be shown under separate headings suitably deaorlbod i pension or iiwuranoe funds, unclaimed dividends, advance payments and unexpired diaoounta, liabilities to Subsidiary companies and any other liabili- ties.

(d) These should be classified under the following categories :—•

ft) Claims against the banking company not acknowledged as debts.

- \ii) Money for ,whioh the bank is contingently liable showing separately the amount of any guarantee given by the banking company on behalf of directors or officers.

(Hi) Arrears of cumulative preference dividends. Uv) Liability on Bills of Exohange re-discounted. (v) Liability on aooount of outstonduig Forward Exchange Contracts.

(e) Partioulws as under " Loans, Advanoes, Caah Credits and Overdrafts " are to bs shown under this heading.

(J) Where the valuo of the investmenta shown in the outer oolumn of the balance-sheet 1* higher than the murkob valuo, the mjirkob value shall be Hhown neparatoly in braoketo.

(g) Bank premisog wholly or partly occupied for the purpoaes of business should be shown against " Premisoa less depreciation." In tho caao of fixed capital expenditure, the original coat, and additions thereto and deductions therefrom during the year should be stated, aa ulao the total depreciation written off. Where suing have been written off on a reduction of capital or revaluation of assets, every balance-sheet aftsr tho first bolnnoe-Hheet Bubsequont to the re- duotion or revaluation should show the reduced figures with the date and amount of tho reduc- tion made. Furniture, fixtures and other assets which have been completely written off need not be shown in the balance-sheet.

(ft) Under this heading may be included suoh items m the following, which must be Bhown under headings suitably deooribed: preliminary, formation and organisation expense!!, de- velopment expenditure, commission- and brokerage on shares, interest aocrued on investments but not collected, inveatments in shares of subsidiary companies and any other assets.

(i) Valus shown shall in no case exceed market value.

References to the Provinces of India shall be construed as including references to tho Acceding States to which the Bonking Oompanies Aot, 1910, for the time being extenda.

FOBM B

FORM OT PBOMT AUD LOSS Acaorrme

Profit and Lota Account for the year ended

Deottnber

EXPENDITURE

INCOME (LESS PROVISION MADE DURING THE TEAB FOR BAD AND

DOUBTFUL DEBTS)

Interest and Discount. Commission, Exohange and Broker- Interest paid on deposits. Salaries and Allawanoes (showing separately aalaritw and allowances to managing direotor or manager.) \ .

age. Bents.

Directors' Fees and allowances. Local Committee members' feea and

Transfer from contingencies account.

aJlowanoea

Provident Fund.

Profit made on male of Investments,

gold and silver, land, premises and other assets.

Profits made on revaluation of in- vestments, gold and silver, land. premises and other assets.

Bent, Taxes, Insurance, Lighting, etc. .. Law Charges. Postage, Telegrams and Stamps. .. Auditors' Fees. Depreciation on Bank's Property. Repairs to Bank'* Property. .. '. Stationery, Printing, Advertisement,

etc.

Income from non-banking assets, and profit from sale of or dealing with suoh assets.

LOBS from sale of or dealing with non-

banking aaseta. Other Expenditure. Balanoe of Profit.

. ..

Other reoeipts. Loss (if any).

Total

Total

K. V. K. BUND ARAM,

Secy, to t,hn Govl. of India,,