Subject NOT available

June 29, 1967

June 28, 1968

December 29, 1968

December 29, 1967

Government Companies and Corporarions 8096

(0 '

223-38 (4-142-2)

9221 (+13-9)

299•88 (4-34-2)

Other Government Bodies

(ii)

1833

14-44 (+43-2)

10-08 (+2-9)

State Governments

18 '04

12-87

18-46 (—192)

(+40-2)

22-86 (4-26.7)

1-90

10-74 (—1-6)

(v) Grand Total

114-06

267-24 (4-116 9)

I2VI8 C + 8-o)

343•52 ( + 28-s)

(vi) Total Scheduled Bank Credit

2631'io 2725-20 ( + 3-6)

3069-00 •(-I'l)

3to2-9o ( + 13-9)

(vii) Proportion of Credit to Public Sector to

total Scheduled Bank Credit

8-6

II-2

43

4-5

NOTB : FijiJ'e* in bn;'*-ns inlicifi; .JJI-;*!"!-;; ;'UIT;S 0/;- th; previous period.

62. During the 1968 slack season (May-October), the contraction In money eup- ply was Rs- 130 crores as against Bs. 63 crores in the 1967 alack season. Thla larger contraction was partly on account of a smaller increase In net bank credit to Government and a larger contraction In net bank credit to the private sector during the 1968 slack season as compared with the 1967 slack season. In the 1968-69 busy season (November-April), however, the expansion in money supply was higher—Rs. 606 crores as against Rs. 546 crores in the previous busy season— on account mainly of larger extension of credit to Government.

63. The salient feature of the credit situation during the year as a whole wai a relatively large increase In scheduled commercial banks' deposits and the main- tenance of a fairly high credit-deposit ratio throughout the year. The usual slack season contraction in bank credit in 1968 was of a lower order than in the previous year (Rs. 43 crores aa against Rs. 101 crores in 1967). The growth in deposit* during the season, however, was Rs. 239 crores as against Rs. 194 crores in the 1967 slack season. Of the deposit increase, time deposits accounted for Rs. 227 crores as compared with Rs. 130 crores in the previous slack season and demand deposits R's. 12 crores (Rs. 64 crores In 1967). During the 1968 slack season the banks made larger repayments of borrowings from the Reserve Bank (Rs. 82 crorea as compared with Rs. 36 crores in the previous year). With the smaller credit contraction and the larger repayments to the Reserve Bank, the funds available tor investment In Government securities were lower and investments therefore went up by only Rs. 134 crores as against Rs. 218 crores in the corresponding period of last year. In the result, the investment-deposit ratio was lower at 26.8 per cent at the end of 1968 slack season as against 31.4 per cent at the end of 19&7 alack season.

Table 11—Scheduled Commercial Bank Data

(Rs. crores)

Variations during

end-June 1969 over end-June 1968

Slack S eason 1968

Busy Season 1968-69

Slack Season 1967

Busy S eason 1967-6R

1. Aggregate Deposits

(a) Demand (b) Time . . ..

-t 219-1 + 122-2 +96-9

+ 324'9 + I4V1 + 179-8

+ 193-9 + 63-5 + 130-4

+ 638-9' + 198-0 +44°' 9 ',

+ 238-9 + I2'3 + 226'6

+ 68^7

+ 70-8 2. Borrowings from R.B.I.

•—36-0 - 8 1 -9 + 105-3

+ 4267 3- Bank Credit

+ 435-3 (7<5-8)

—42-9 (73-7)

+ 508-7 (79-4)

—I O I -O (70-2)

4- Investments in Government

—43-2 (23-8)

+ 157-5 (24-6) Securities

—182-3 (24' 9)

+ 218-2 (31-4)

+ 133-9 (26-8)

5. Cash Reserves

+ 73-5 (7-4)

+ 23-5 (6-4)

+ 20-2 (6-3)

—4-2 (5-9)

+ 3O'2 (6'3)

NOTE :—Figures in brackets irdicate percentages to aggregate deposits.

64. The smaller credit contraction during the 1968 slack season was partly accounted for by an increase in food procurement advances and partly by a larger Increase in non-seasonal advances which expanded by Rs. HO-D crorcs as against Rs. 780 crores in the 1967 slack season.

65. As the credit contraction (n the 1968 slack season wis relatively small, the busy season of 1968-69 started with a large credit base. The seasonal expansion (RH. 427 crores), however, was smaller thnn in the 19R7-08 busy season (RE. 509 crores). On-the other hand, the lncr^a^™ in banks' deposits W,TS much larger than In the 1967-68 bury sc-ison (RH. 325 crorfs in 1968-69 ns aeninst H's 219 crores in 1987-68 busy season). Of this, time deposits accounted for Rs. 180 crores (Rs. 97

crores In 1967-68 busy season) and demand deposits Rs. 145 crores (Rs. 122 crores in the 1967-68 busy season), ruling ihe season the credit-deposit ratio went up by 4.3 points from 73.7 per cent at the end of October 1968 to 78 per cent at the end of April 196J as compared to an increase 01 9.2 points in the corresponding period of last year when the ratio had gone up from 70.2 per cent to 79.4 per cent. Reflecting the comfortable resources position of banks during the season, schedul- ed commercial banks' borrowings from the Reserve Bank as well as their disinvest- ment of Government securities were smaller than in the 1967-68 busy season. The Increase In borrowings was only Rs. 71 crores as against Rs. 105 crores in the previous busy season while disinvestments were lower at Rs. 43 crores as against Rs. 182'crores In the previous busy season. The cash raiio also showed an im- provement and stood at 0..3 per cent at the end of the season as compared wuh 5.9 per cent at the end of the previous busy season- The smaller credit expansion during the 1968-69 busy season was accounted for by a much smaller net increase in food procurement advances (R's, 8 crores only as against Rs. 101 crores in the i96/-tits busy season) and a lower expansion in non-seasonal advances (Rs. 44 crores as against Rs. 112 crores). The smaller expansion In food procurement advances during the season was due to reductions in the outstandings for this purpose in January and March 1969. But over the season as a whole the outstanding level of advances for food procurement operations was relatively larger than in the corresponding months of the previous busy season.

66. As a result of the relatively liquid position of the banks, call money rates in the 1968-69 busy season ruled generally lower than Jn 1967-68- In Bombay, there was a temporary hardening of the rates to 5 per cent in March 1969 but thereafter, beginning with the second week of April, the rates declined. In Cal- cutta, where the movements were somewhat erratic, trie peak call money rate of 6 per cent was reached in March 1969 and there was a progressive decline there- after-

67. During the year, in view of the continuing need for assisting industrial recovery, stimulating exports and quickening the pace of agricultural development the policy of selective liberalisation of credit initiated in 1967 was maintained and extended. Increasing attention was also paid during the year to aligning credit policy to the urgent need for stimulating development especially in the rural areas, and backward regions which had not benefited In an adequate measure from the developmental efforts in the past- While the basic policy of accommodation at the Bank rate or at the penal rates (determined on the basis of net liquidity ratio) was continued, the scope of concessional refinance to the priority sectors was ex- panded Refinance at the Bank rate continued to be made available (a) so long as a bank's net liquidity ratio was at or above 30 per cent and (b) In respect of food procurement advances and export credit* (irrespective of net liquidity ratio).

68. The range of advances qualifying for the concessional rate during the year may be briefly set out as follows: packing credit for exports of engineering and metallurgical goods continued, as in the earlier year, to be eligible for concessional refinance. In respect of all other export credit, except for a slight modification, @ increments over the base period in a bank's advances against exports (both pre- shlpment and post-shipment) continued to be eligible for refinance at the conces- sional rqte. As regards advances to the two other priority sectors, upto February 1969 only increments over a base period were eligible for the concessional rate, but from February 1969, the total of a bank's short-term outstanding eligible** advances to these two sectors qualified for such refinance. However, along with this change, the method of calculating the net liquidity rdtio was also simplified. Prior to this

•Prc-shipment export credit in respect of all products other than engineering and metallurgi- cal goods, and post-shipment credit for all exports. For metallurgical and engineering goods, preshipment credit is eligible for refinance at a concessional rate,

@The modification was : whereas prior to October ri968, only the total net increment in advances to all the three priority sectors taken together was eligible for concessional refinance, from October 1968 such increment in respect of each of the three sectors, taken separately became eligible for the concession. Illustratively, if there is an Increase in advances to exports but a decline in those eligible for to agriculture and/or smell industries, the bank could get concessional refinance upto the full amount of the increase in respect of advances to exports.

*• Eligible advances are : short-term advances to agriculture and short-term advances to small- scale industries (guaranteed by the Credit Guarantee Organisation). In the case of agriculture, whereas upto October 1968, only crcilt for inputs (chemical fertilizers and pesticides) were eligible, since October 1968, advances for the distribution of these inputs, loans to farmers for Crop-finance, finance for fisheries, dairies, poultry, cold strorage, etc., are also eligible.

change, increments (over the base period) of advances to agriculture and small- scale industries were taken into account along with the Increments in advances against exports for treatment as net liquid assets- Since February 1969 only in- crements In advances against exports are eligible to be treated as liquid assets.

69. A significant procedural change which has facilitated pre-shipment export financing by banks was also introduced in January 1969- Under the new scheme (Pre-Shlpment Credit Scheme), refinance to banks in respect of their packing credit (or pie-shipment advances) for exports are given under the amended Section 17- (3A) of the Reserve Bank of India Act 1934, and not under Section 17(4)(c) as earlier. Banks could now avail of refinance against packing credit by giving declarations of having extended packing credit advances and are not required to produce eligible usance promissory notes of individual parties. This would obviate the incidence of stamp duty and also time consuming procedures.

70. During the year, certain changes were also made in some operational norms mainly with a view to facilitating the flow of credit to agriculture and small-scale sector. Thus, in regard to the norm of 6 per cent (to total deposits) for a bank's term lending, the advances for agricultural development purposes refinanced or reflnanceable by the Agricultural Refinance Corporation and to small-scale indus- tries covered by the Credit Guarantee Scheme were given exemptions. The Reserve Bank also Indicated that in view of the comfortable resources position of the commercial banks on the one hand and the need to give a fillip to new invest- ment In industry- on the other, the Bank would not be averse to larger medium and long term lending, than the 5 per cent norm, by banks whose over-all position permitted this. To facilitate loans to borrowers of small means and bank guarantees on behalf of small scale Industries, exemptions were also granted from the norm relating to unsecured guarantees and advances. Another change In operational norms made during the year was to allow the banks, in view of the improved position of the banking system, to maintain a higher credit-deposit ratio of 80 per cent (as compared to the earlier norm of an average of 75 per cent). If, however, the Reserve Bank felt, on banking considerations that a lower ratio was desirable in respect of any particular bank, the Bank would advise the bank concerned accordingly.

71. On the eve of the current slack season, the Governor in his meeting with the Chairman/Chief Executives of the leading banks, reviewed the credit situation and indicated to the banks that rather than investing in short-dated Treasury bills, which was hitherto the practice, it would be preferable for them to utilise the liquid resources in the current slack season to Invest larger amounts in the longer-dated trustee securities particularly those issued by bodies like Electricity Boards, Indus- trial Finance Corporations, Land Mortgage Banks etc., the 'expansion of whose re- sources would help to revive the demand for several capital goods industries and give added impetus to agricultural output and industrial development. In keeping with the developmental needs of the economy and the objectives of social control over banks, the banks were also advised to use their resources to bring about a wider dispersion of credit both geographically and functionally, paying special atten- tion to the requirements of less developed regions and people of small means, not only in agriculture and small-scale industries, but also in retail trade In rural areas, and in the category of the self-employed as well as those requiring finance for hire-purchase of taxis, trucks, scooters, etc. At the same time, the Governor. Indi- cated that In the light of the generally easy liquid position, banks should be careful to avoid their resources being diverted to support speculative activity and that they should apply restraints on lending to sectors which showed an unhealthy upward trend in prices.

72. As regards selective credit controls, in view of the better balance between supply and demand in respect of certain agricultural commodities in the earlier part of the year, the controls, were relaxed in appropriate cases. In respect of wheat, the relaxations made at the outset of the year were continued. For paddv and rice, relaxations were made in December 1968 and January and March 1969. In the cBse of major oilseeds and oils, selective credit controls were relaxed Initially in June 196& as the supnly position was relatively comfortable. However, with the pros- pects for a shortfall in nroduction during the 1968-69 season, t h? controls were tightened in November 1968. and again further tightened In May 1969- For cotton and kapas, with the improvement in supply position, the controls on advances were relaxed in November 1968. But later, following the unsatisfactory supply position and with tendencies towards abnormal Increases In prices, the controls were again tightened. As regards Jute, following the unusually poor Jute crop of 1968-69. prices

rose sharply and selective controls had to be imposed in order to prevent specula- tive hoarding of jute stocks.

73, During the year, the I.D.B.I. also took several measures aimed at giving a stimulus to long-term investment and exports. Thiee impoiiant changes made by the J.D.B.I, in this respect were: (1) a scheme introduced in .December 1968 under which the I.D.B.I. would enter into participation arrangements with approved commercial banks for providing direct term finance and guarantee facilities to in- dustrial concerns both in the public and private sectors exporting capital and en- gineering goods and services on a deferred credit basis, (ii) the extension, in January 1969 of the facilities under its rediscounting scheme for sale of indigenous machi- nery on deferred, payment basis to public sector undertakings such as autonomous bodies like electricity undertakings, transport corporations and government com- panies; simultaneously the I.D.B.I. also reduced the cost of credit under the Scheme by lowering the margin which banks can charge over the I.D.BI, rate from 2 per cent to 1 per cent; and (iii) the extension in May 1969 of the LD.B.I.'s direct assist- ance to cover also modest expansion schemes of public sector undertakings, subject to certain criteria. To promote the growth of Industries in the relatively under- developed areas, the I.D.BL also decided, just after the close of the year, to assist deserving small and medium projects emanating from such areas on softer terms (e-g. lower interest rates, longer grace and repayment periods etc.).

Balance 0/ Payments

74. The balance of payments position which had shown a modest Improvement in the previous year was substantially better during the year under review. The foreign exchange reserves showed an increase of $118 million in 1968-69 (July- June). This increase was not only larger than that of last year (9 105 million), but it took place after a repurchase of t 128 million from the I.M-F- and a refunding of $ 15 million of the special debt relief deposits from the I-B.R.D. By contrast, in the previous year the reserves had benefited from a net drawing of $ 32 million from the I.M.F. and the receipt of 9 46 million of special deposits from the I.B.R.D. The increase in reserves during 1968-69 would workout to $ 261 million as against an increase of only 9 41 million last year, if the transactions with the I.M-F- and the debt relief transactions with I.B.R.D. In both the years are excluded and allow- ance is made for the depreciation of sterling assets consequent on the devaluation of the pound sterling which aflected the level of reserves In the Prev l o us v.e a r- While this relative improvement is welcome, it must be borne in mind that, besides the expected Increase in the import bill following the growth in industrial produc- tion, there are growing debt service payments to be made and sizeable repayments to the I.M.F. are due in the coming year-

75 The marked improvement in reserves was brought about by a substantial narrowing of the trade deficit. Following an improved domestic supply situation, Imports of foodgrains were scaled down. Imports of Industrial products were also reduced where domestic industries were able to cater increasingly to the require- ments of the economy. The availability of non-project assistance helped to curtail the free foreign exchange outlay on maintenance imports. The spurt in exports reflected larger domestic availabilities, the stimulus derived from the various promotional measures adopted by the Government and the vigorous efforts made bv industrialists and businessmen for gaining access to the markets abroad as well as liberalised export credit facilities. The non-merchandise transactions, comprising mainly the debt service payments, continued to be in dellcit but it would appear that the net outgo on this account was somewhat smaller than last year-

76 Exports during the year 1968-68 (April-Match) totalled, according to the DGCIS data, Z 1813 million. At this level they showed an improvement of 13 per cent over the previous year's level and were also higher by 6 per cent than the previous peak of ? 1715 million reached in 1964-65. The data for April-June 1969 indicate that the uptrend in exports has continued and the level of exports during this quarter was 12 per cunt higher than in the corresponding months of 1968.

77. Exports to E.E.C. countries increased by 25 per cent and the U.S. by IS per cent. It is noteworthy that exports to Asia and Oceania went up by 30 per cent Exports to West Asian Countries have also increased and some of these markets have a high potential for India's non-traditional exports. There was also i±n 18 per cent increase in exports to rupee payment areas of Eastern Europe. In con- trast, exports to EFTA countries showed a decline, mainly due to a 12 per cent fall in the exports to the U.K. An encouraging aspect of the new emerging export pattern is that a good part of the improvement in exports was to convertible currency areas. It Is also significant that 60 per cent of the overall increase in exports during 1968-69 over the previous year was accounted for by the increase in exports to Asia and Oceania; 46 per cent of this was accounted for ay ECAFE countries alone.

78. The spurt in exports was largely due to the rapid growth in exports of non- traditional Items like iron and steel, engineering goods, iron ore and chemicals. Together these items accounted for about 50 per cent of the rise in exports during, the 1068-69 fiscal year. Exports of engineering goods doubled to reach $ 92 million; iron and steel rose by 44 per cent to $105 million; and chemicals showed an increase of 51 per cent to 3t 32 million. The earnings from iron ore reached a sizeable level of $ 118 million, shoving an Increase of 18 per cent. It is significant that many of these increases have been registered over large Increases achieved in the previous year- The buoyancy In the exports of these Items Is att:ibutable to the post-devaluation export policy which had laid special emphasis on the develop- ment of non-traditional export items. The import policy measures which have laid greater emphasis on export promotion and reduction of imports have also contri- buted to the new dynamism in non-traditional exports.

79. A number of traditional items also participated in the export growth, mainly as a result of Increases In quantum. During the fiscal year ending March 1969, exports of cashew kernel at $ 81 million showed an increase of 42 per cent, partly as a result of an Improvement of about 14 per cent in the unit value; leather goods showed an increase of 36 per cent; oilcakes 9 per cent; and cotton textiles 11 per cent. Oilcakes and cotton textiles seemed to have emerged from the stagnation rf the immediate post-devamation period.

80- The picture presented by the upsurge in exports of the items noted above was somewhat dimmed by the decline in the exports of tea and jute manufactures, India's major export earners. Export earnings from tea declined by $ 32 million or 13 per cent mainly because of a faU of 12 per cent in unit value- The decline of $ 21 million (7 per cent) in exports of jute manufactures was a continuation of the downtrend that started earlier, the cumulative decline during the past three years being 24 per cent. There was a sharp reduction of 52 per cent in sacking and¹ of 18 per cent in hessian exports. Carpet backing, the element of growth in exports of jute manufacturers, improved substantially by 34 per cent during the year,

81. On the imports side, again according to the DGCIS data for the fiscal year 1968-69, there was a reduction of 7 per oent as compared with 1967-68- The total imports during 1968-69 amounted to ? 2482 million. The main factors whlrh brought about the reduction in imports were the improvement in foodgrafns output and the- rise in domestic industrial production. Imports of foodgrains declined by 30 per cent; iron and steel by 19 per cent: transport equipment by 19 per cent; and elec- trical machinery by 5 per cent- But there were substantial increases in imports of fibres and of certain industrial goods. The import of raw jute was nearly two and a half times that in 1967-68. The other items which recorded relatively large in- creases were, raw cotton (9 per cent), cashewnuts (25 per cent), other chemicals (8 per cent) and non-electrical machinery (10 per cent).

82. It would be of interest to review in this context the broad trends in external trade over the last few years. During the Third Plan, the trade gap ranged bet- ween $ 1007 million in 1960-61 and 1266 million in 1965-66. The gap started declining in 1966-67 and for 1968-69 it was ? 669 million- The declining trend in the trade gap subsequent to 1965-HR is accounted for by an improvement in non- traditional exports and a decline in imports- The table below on India's principal exports shows that there have been important changes in the composition of exports and the rates of growth of the different items.

Table 12: India's Principal Exports, 1960-61,196^-66 and 1968-69 ( U.S. $ million)

Change

1960-61

1968-69

1965-66

Commodities

1968-69 over 1965-66

(Percentage)

1813

Total Exports

7

1349

1693

(A) Main non-traditional exports

93

347

175

21

21

37 26 89 23

92 1 05 1 18 32

36 15

E n g i n e e r i ng g o o dB , I r on a nd s t e el . . . .. i r on o re . . . . .. C h e m i c a ls . . . . ..

+ 9" + 149 + 304 + 33 + 39

1S18

1356

1466

,B) Exports of other goods

— 3

40

81 1 04

58 79

+ 40 -I- 32

72

Main I t : an showing a Rise C i i h ew k e r n e ls . . . .. H i d es , s k i ns a nd l e a t h er P e a r l s, p r e c i o us a nd s e m i - p r e c i o us s t o n es

60 u n w o r k e d / w o r k c ed . . ..

3i 9 41

OilseeJs> a nd o i ls . . . .. T o b a c co u n m a n u f a c t u r ed

neg. 29 3i

-1- 94 + 178 -1- 7

25 44

Main Items showing a Fall

Tea . . . Jute yarn and manufactures

2 60 284

— 13 — 24

2 41 384

2 09 291 284

1 17

1 21

— 12 CoL:on manufactures (excluding yarn, thread and clothing) . . ..

Oilcakes Apices

133 73 49

— 10 — 3i

3° 35

66 34

Source : DGCIS.

83. Although exports rose by only 7 per cent between 1965-66 and 1968-69, this increase was the net result of a 9 per cent decline in the immediate post-devalua- tion year 1966-67 followed by increases of 4 per cent and 13 oer cent respectively in the two subsequent years. More striking than the overall increase in exports has been the improvement in export levels of non-traditional commodities, viz., iron ore, iron and steel, engineering goods and chemicals, which rose from I 175 million in 1965-66 to $ 347 million in 1968-69. Between If 60-61 and 1905-66 these items had grown from $ 93 million to $ 175 million. On the other hand, the major non- traditional items such as jute manufactures, tea and cotton textiles, have shown declines between 1965-66 and 1988-69. In t he case of raw jule and cotton textiles, high r aw material coats and keen external competition have rendered increases in exports difficult.

84. The table below sets out the trends in imports between 1960-61 and 1968-69.

Table 13 '• India's Principal Imports 1960-61,1965-66 and 1968-69 (U.S.ft million)

Change

Commodities

1960-61 I96f-66

196P-69 ic6f-69

over

1965-66 (Percentage)

I. Food (excluding cashewnuts)

495 449

1 20

22 42 1 12

— 30 — 34 + 24 — 58 4- 31 —22 2. 3- 4- 5- 6.

43° 38i 172 16 20 I46 I80 20

712 676 97 53 32 143 22T 82

of which cereal and cereal preparations Raw cotton . . . .. Raw Jute and mesta . . . .. Cashewnuts . . . . .. Mineral oils . . . . .. Chemicals . . . . .. of which : Fertilisers . . ..

375 184

+ 70 + 124

I

3

4

5

6

M u c a i n e ry a nd Iran-sport e q u i p m e nt ,

7 0c

63R

7-

JO34

—33

701

4 28 1 20

493 lod

87 8. 9. 10.

152 2 57 99 336

of w h i ch (d) M a c h i n e ry o t h er t h an electric (0) Electrical machinery ^c) T r a n s p o rt e q u i p m e nt I r on a nd steel . .. N o n - f e r r o us metals . . .. O t h e rs

TOTAL

US 119 394 2482

— 30 — 41 — 42 — 44 — 18 + 25 — 16

2356

206 14s - 316 *959

Source • DGC1S.

85. Between 1960-61 and 1965-66 imports increased from $ 2356 million to $ 2959 million i.e. an increase of 26 per cent.; between 1965-66 and 1968-69, im- ports declined by 16 per cent to $ 2,482 million. While there was a general down- ward drift in imports after 1685-66 the sharp increase in fertilizer lmpoits, was in consonance with the determined effort to step up agricultural production. The overall decline in imports was more or less equally divided between agricultural and non-agricultural Imports. While the decline In agricultural imports was by and large related to domestic agricultural output, the decline in non-agricultural imports—33 per cent, in machinery and transport equipment and 44 per cent, in iron and steel—reflects the show-down in the rate of growth of industrial production as well as the growing capacity of the economy to replace imports. In some spheres of industry such as non-ferrous metals, electrical machinery and appliances and iron and steel, production in- creased despite a reduction in imports which possibly indicates that in these sec- tors the dependence on imports has been reduced.

86. Besides merchandise transactions, there was also some improvement In invisibles on private account in regard to certain categories of transactions which are normally influenced by changes in the exchange rate. Inward remittances comprising mainly receipts by way of gifts, donations repatriation of savings from abroad, farmily maintenance etc. which, amounted to $ 86 million in Ifl65. increased to $96 mirion in 1967 and further to $117 million in 1968. Outward remittances on the other hand, consisting mainly of transfer of profits, dividends, savings of foreign nationals, migrants' assets etc. which had increased from $123 million in 1961 to $ 135 million in 1965 declined to $ 106 million in 1967 and came down further to $ 96 million in 1968.

87. To go back, however, to the foreign exchange situation during the year under review, (fiscal 1968-69) the first point to note is that the year opened with a lower quantum of aid in the Pipeline as a result of the drop in authorisations in the previous y,ear. Authorisations during this year were larger by $ 316 million or 33 per cent, mainly as a result of the step-up in aid by the U.S.A. (Increase of $ 118 million) and of assistance totalling $205 million authorised by the I.D.A., France, Sweden and Italy from which no assistance was received in the preceding year. The aid utilised during 1968-69 amounted to $ 1,083 million which was $ 487 million lower than in 1967-68. The fall in imports, particularly of foodgrains, under the P.L. 480 Title I commodity assistance programme, was mainly respon- sible for the fall in aid utilised Over the year, the aid in the pipeline increased bv $188 million to $2,719 million at the end of March 1969.

88. Debt service payments oomririsinK both interest and amortisation pay- ments which mnre than douWprt from $ 191 million in 1961-62 to $ 436 million in 1967-61 increased further to * 4°0 million in 1968-69. Consequently, the net in- flow of foreign aid. which had progressively increased from $ 520 million in 1961-62 to * 1 307 million Tw K65-(5" A l i n ed thereafter to £1.145 mtllion in 1966-67, $ 1,132 million in 1967-68 and further to $ 603 million in 1968-69.

International Monetary Problems

89 The trends in internstioml trade during 1968 and the enrrv Dart of 1969 have been on the whole heartening. The value of world trade during 1968 is estimated to have risen at a record rate of II per cent. While the increase in trade in recent y°ars has been largely on account of trndp in manufactures among the developed countries, in 1968 the developing countries as a group were

also able to share in the benefit of increased world trade to a larger extent than in the previous year. But currency crises threatening the world monetary system during the year have again brought to the lore the problem of resolving the difficulties relating to the existing trade, currency and payments arrangements. During 1968 and the early part of this year, the major currencies that were ad- versely affected were the pound sterling, the U.S. dollar and the French franc* whereas the Deutsche mark continued to remain firm. Despite special arrange- ments such as the Basle Agreement for safeguaring sterling, the fwo-tier system for gold to discourage the flight into gold and arrangements regarding the recycl- ing of speculative flows oi funds from one currency into another, the need still remains for dealing with the basic problems underlying the currency crises.

90. Substantial progress was made during the year with the Scheme for Special Drawing Rights in the I.M.F. which would serve to supplement the existing arrangements for augmenting international liquidity. While the need for an improved balance of payments adjustment process brought about by the pursuit of appropriate policies 'both by the deficit and the surplus countries has to be recognised, it is also important that the measures taken in this regard are not such as to curtail the growth of world trade or create special problems for deve- loping countries in the matter of their needs for trade as well as aid. In the present world context any attempt to Introduce automatic mechanisms for restor- ing balance of payments position as in the classical gold standard arrangement is Out of place. Nor is it practicable to think in terms of an international central bank discharging vis-a-vis the world economy the kind of functions that a nation- al central bank is entrusted with in respect of the domestic economy. The world monetary system has to grow, as in the past, through a process of adaptation and orderly change. Viewed in this light, the scheme of S.D.Rs. as it has emerged is a major step forward with far-reaching potentialities in the direction of a more rationally operated international monetary system. The schemef, it is now expected, will get activated fairly early. Even so, there will, undoubtedly, remain in the field of international monetary management some difficult problems to be attended to.

91. The currency crises and balance of payments stringencies faced by some of the maior countries have already had some adverse effects on the flow of trade and aid. From the point of view of the developing countries the urgent need la m fact not only to avoid any additional restrictions on imports into the richer countries or on the flow of developmental resources from these countries, but to augment the facilities for trade and the inflow of aid. The widening disparities between the developed and the under-developed countries as well as the growing debt servicing problems of a number of developing countries have added an urgency to the need for inereased trade and aid. In this context, it is worth not- ing that the World Bank has appointed in August 1968 a Commission under the Chairmanship of Mr. Lester Pearson, formerly Prime Minister of Canada to study the problems of external assistance and development, and to indicate what needs e y t he d e v e l ⁰Ped and developing countries alike over the next decade j u

and the next generation in Order to take the developing countries on to sustained and self-sustaining growth. The Commission's Heport is expected to become available towards the end of this year.

Assessment and Prospects

r i B e

92. Overall, the industrial recovery that has taken place over the last year, the 1.ln exPorts and the steady strengthening of the agricultural potential through application of the new technology to progressively larger areas and a larger num- ber of crops have placed the economy in a¹ more favourable position for resumption of the process of economic growth which suffered a setback in the last few years The picture, as it emerges from the review above, Is not however, entirely satis- factory, and a better performance iby the economy at a number of points will be needed before a full-scale resumption of orderly growth can be said to be under way.

93. Firstly, the virtual stagnancy of agricultural output at the previous year's level, though understandable against the background of the very large rise m the

* On August 8, 1969, the French franc was devalued by 12.5 per cent. tThe proposed amendmpnt to the Fund's Articles for establishing the SDR Scheme entered into force on Juiv ?P. 1969, forowing Its acceptance bv 69 member countries having 80.89 per cent of total voting power In the IMF.

previous year, highlights the well-recognised fact that the economy is still large- ly dependent on the vagaries of the monsoon. Secondly, the rise of over 10 per cent in the price level in the last six months, despite persistence of unutilised capacity in some of the hea%y and capital goods industries and the relatively low level of public and private investment, indicates how tenuous the balance of the economy remains.

94 There is no doubt that for maintenance of the internal as well as the external balance of the economy a fair degree of price stability is the single, most important prerequisite. To this end. the V)a=ic need is for an increase m agricultural production continuously and at a fairly high rate. The growth rate •of the economy depends vitally upon the performance of this sector. As the new technology spreads, one can look forward to progressive increases in the supplies of food and agricultural raw materials and, consequentially, in the rural demand, both for consumption goods and for capital goods and other inputs for agriculture produced by industry. The developmental impulses in the agricultural sector thus augur well for large-scale as well as small-scale industry. However, the fa"t remains that the break-through in agriculture is still In its early stages. The kind of research effort in the development of new seeds which has been made in respect of wheat, maize and rice has yet to be extended to pulses and non-food crops. Industrial recovery is still not vigorous enough; the rise of 7 per cent in the industrial production index achieved this year is below the growth rates r e- corded before the recession. The problem of unutilized capacity in a number of important industries persists. The economy as a whole is thus far from achiev- ing a rate of investment commensurate with the achievement of the growth targets envisaged in the Fourth Plan,

95. A major source of weakness In the economic situation is the continuance of heavy budgetary deficits as reflected in net bank credit to Government. Net bank credit to the private sector has been less than it was last year. The progress of deposit mobilisation has been satisfactory; it has, in fact, exceeded expectations. Although a significant proportion of the Centre's deficit is traceable to the outlay on food procurement for building up a buffer stock of foodgralns, public savings have not as yet picked up and are far below the levels required to secure an ade- quate scale of investment in the public sector. The deficits of the State Gov- ernments are very large. Public enterprises have yet to yield the surpluses ex- pected of them. The Planning Commission has stressed sufficiently in this con- text the need to realise larger surpluses from the heavy investments already made in public enterprises, including those such as irrigation, electricity and road •transport in the States. It Is also evident that the process of recovery }n the private corporate sector is at present hampered by the slow pick-up in pub^c investment outlays. On this ground, as well as in terms of the requirements of accelerated growth, the need is for more, and not less, investment. Yet, it is quite evident from the price rises that have occurred that public sector outlays cannot be raised safely unless aggregate savings, and public savings in particular, show a distinct improvement.

96, It must be stressed in this context that a containment of budgetary deficits is also essential for effective use of monetary policy for sustaining end strengthening the developmental impulses in agriculture, small-scale industries exports and the related productive sectors of the economy, and for assisting a wider regional diffusion of industrial activity. The new dynamic role envisaged for commercial banks casts on the system increased responsibilities for meeting the large -and varied credit needs of economic and social strata that have so far remained outside the purview of the modern insti- tutional financing structure. Essentially the problem is not one of diverting a part of the community's savings from some sectors to others, but of augmenting the aggregate of those savings. To an extent, this could be achieved by curbs on consumption expenditures, both in the public and private sectors. Cuts in public expenditure are, however, never easy to achieve, and no one would advocate excessive parsimony in expenditure for meeting collective wants, such as educa- tion and medical services which go to build up what has been called human capital. In the main, therefore, the answer lies in greater productively and mere efficient us? of productive factors—both labour as well as equipment Healthy industrial relations are vitally necessary for ensuring this outcome.

97. The striking improvement In the external payments position is, undoubted- ly, a most hopeful aspect of the recent economic trends. There is, no doubt, that the economy has now built up a large export potential and that valuable con- tacts have been built up in foreign markets. Yet, the task of export promotion is

& continuing one and its success depends crucially on the maintenance of com- petufveneSsfiin terms of comparative costs Any resurgence of inflationary pre- ssures and/or of rising unit costs—lor whatever reason-cannot but affect the course of exports adversely. The Fourth Plan envisages a rise of 7 per cent per annum in export earnings. This target has to be achieved mainly through fur- ther substantial Increases in newer exports. A close watch on prices as well as costs is also essential from this vital angle.

II. DEVELOPMET IN INDUSTRIAL FNANCE

Industrial Development Bank of India and other Term-lending Institutions

98 Mention has already been made of the various policy measures IDBI has taken for enlarging the scope and size of Its operations. Tnere was a substantial increase in the aggregate assistance sanctioned by the all-India term-lending lsti- tutions as compared with previous year. However, disbursements were lower as compared with the previous year.

99 The total assistance sanctioned by the Industrial Development Bank of India under all its schemes increased from Rs. 40.3 crores in 1967-68 to Rs. 67.5 crores in 1968-09. Increases were registered in sanctions under each type of assis- tance. A feature of operations was the step-up in IDBI'S assistance to exports both by way of refinance of medium-term export credits and under the new scheme introduced by the Bank in December 1968 for providing direct loans and guarantee facilities to exporters of capital and engineering goods and services on deferred payment basis; refinance assistance sanctioned rose from Rs. 0.3 crore In 1967-68 to Rs. 7.5 crores, while direct loans and guarantees amounted to Rs. 7.1 crores. There was a much wider dispersal of assistance over a larger number of small and medium borrowers than in the preceding year. Thus, the number of machinery manufacturers who benefited from the Bank's rediscounting scheme increased from 54 in 1967-68 to 104 and the number of purchaser users from 237 to 335. Also, sanctions of refinance of industrial loans at a concessional rate of interest granted by State Financial Corporations under the Credit Guarantee Scheme to small-scale industrial concerns increased from Rs. 51 lakhs on 23 appli- cations in 1967-68 to Rs. 2,7 crores on 189 applications. IDBI's total disbursals too •were higher at Rs. 48.7 crores as compared with Rs. 44.7 crores in 1967-68.

100. The operations of other all-India term-lending institutions also showed a rising trend during 1968-69 (April-March). Thus, sanctions of ICICI (rupee and foreign currency loans, underwriting and direct subscriptions) increased consi- derably from Rs. 15.9 crores in 1967-68 to Rs. 37.0 crores in 1968-69. Its disbursals at Rs. 16.2 crores were lower than in 1967-68 (Rs. 20.4 crores). This increase in sanctions was almost entirely under foreign currency loans. Total sanc- tions of IECI (rupee loans and foreign currency loans, underwriting and direct subscriptions) were also higher at Rs. 27.6 crores in 1968^69 as compared with Rs. 20.0 crores in 1967-68. Its disbursals, like ICICI's declined from Rs 23 9 crores in 1967-68 to Rs. 19.5 crores in 1968-69.

101. The loan operations during 1968-69 (April-March) of the State Financial Corporations (including the Madras Industrial Investment Corporation Ltd.) however, remained more or less at the last year's level. Thus, loans sanctioned tav these Corporations during 1968-69 amounted to Rs. 19.3 crores as compared with Rs. 18.8 crores in 1967-68. However, their loan disbursals were higher at Rs. 17.4 crores than Rs. 15.3 crores in 1967-68. Loans outstanding as at the end of March 1969 stood at Rs. 91.9 crores.

102. Following the reduction in the Bank rale in March 1968 and in the light Of the concessional rate of refinance charged by the IDBI for loans to small-scale industries covered under the Credit Guarantee Scheme, the lending rates of 14 SFCs were reduced in respect of loans to small-scale industries. The revised' effective rates of interest of SFCs (barring one) on loans to small-scale industries ranged from 7 to 8 per cent as against 7-l|2 to 9 per cent prevalent earlier.

Financing of Small-Scale Industries

103. The Credit Guarantee Scheme recorded further substantial progress durinn the year under review with respect both to the number of industrial units which received assistance under the scheme and scale of assistance provided, reflecting the intensification of the efforts that arp being made for channelising an increasing proportion of 'bank funds to small-scale industries sector In consonance with the objectives of social control of banks. The Reserve Bank, which is entrusted with

the administration oi¹ the scheme, received 43,045 applications for credit limits aggregating Rs. 254.80 crores during July 1968-June 1969 as against 22,282 appli- cations for credit limits aggregating Rs. 109.10 crores during the year 1967-68. The amount lor which guarantees were actually issued during July, 1968—June 1869 was significantly higher than in the preceding year—Rs. 188,34 crores as against Rb, 109.77 crores. Since the inauguration of the scheme to the end of June 1969, the guarantee obligation arose in respect of 135 advances; the Government's share of the amount in default was Rs. 17.87 lakhs.

104. In order to induce the credit institutions to render more assistance to small-scale industries and with a view to reducing the incidence of guarantee fees which, in many cases, are recovered by the credit institutions from the borrowing parties for payment to the Guarantee Organisation, the rate of guarantee fee was reduced effective October 1, 1968i from one-fourth of one per cent to one-tenth of one per cent per annum. The concession is restricted to those credit institutions which agreed to cover all their eligible advances to small-scale industries sanc- tioned or renewed after October 1. 1B68 under the Guarantee Scheme. It was stated In the last report that the bulk of the applications for guarantee was receiv- ed from the State Bank of India and its subsidiaries. Consequent on the grant of the a'bove concession, most of the other major commercial banks and the State Financial Corporations decided to cover all their eligible advances to small-scale industries under the scheme. As a result, the share of the other major commer- cial banks in the guarantees Issued increased appreciably as indicated below:

From 1-4-1968 to 30-9-1968

From 1-10-1968 to 31-3-1969

No.

No.

Amount

Amount Percentage of guarantees issued to total guarantees

69

80

S.B.I, and Subsidiaries

65

55

Other major commercial banks

17

30

34

105. Mention was made in the last year's report of the extension Of the scheme to include advances to automobile servicing and repairing workshops. The scope of the scheme was further extended this year to some more categories of servi- cing and repairing workshops as also advances granted for the purpose of setting up cold storages. However, advances which might be used for trading in Items which may be preserved in cold storage units are excluded from thp purview of the scheme. A "Working Group has bten set up by the Bank to suggest further simplification and/or modification of the scheme with a view to expediting the issue of guarantees' under the scheme. The work of the Group is in progress.

109. The Trust announced a dividend of 7.1 per cent (71 paise per unit) to the uni, holders for the year ended June 3i>, 1BU9 as compared to 7 per cent paid during the previous thive ycait,. It may (be mentioned here that dividend irom. units upto Rs. 1,000 received by an individual unit holder is free of income tax.

110. To promote savings particularly among the small and medium income groups, the Unit Trust of India introduced a new 'Voluntary Savings Plan' effec- tive July 1, 1969, which provides for contributions by a saver tor investments in units at convenient intervals and in amounts small enough to suit the low income group.

111. Sales promotion in the mofussll continued 10 receive the attention of the Trust; the number of "approved agents' for canvassing units among the investing public and of approved stock brokers increased during the year to 1,700 and 280 respectively, as against 1,181 and 266 in the previous year. Besides the Trust's offices, all branches of leading banks which contributed to the initial capital of the Trust and more than 15,000 post offices throughout the country continued to act as the Trust's agents for sale of units.

112. Total investments of the Trust as on May 31, 1969 aggregated Rs. 65.07 crores comprising ordinary shares of corporate enterprise of Rs. 23.79 crores (36.6 per cent), preference shares of Rs. 8.78 crores (13.5 per cent), debentures of Rs. 26,38 crores (40.5 per cent) and of Government securities and bonds of finan- cial corporations and electricity boards of Rs. 2.73" crores (4.2 per cent). The balance of Rs. 3.40 crores represented advance deposits for debentures and Dre- ference shares which the Trust had agreed to underwrited, application money for purchase of shares, Treasury bills and advance call deposits.

III. DEVELOPMENT IN COMMERCIAL BANKNG

113. Pursuant to the Deputy Prime Minister's statement on social control over commerical banking made in the Lok Sabha in December 1967 a Banking Com- mission was appointed on January 29, 1969. Under the terms of reference the Commission, inter alia, is required to: (i) enquire into the existing structure of the commercial banking system having particular regard to size, dispersion and area of operation and to make recommendations for improving the structure, (ii) make recommendations for extending the geographical and functional coverage of the commercial banking system, (lii) examine the cost and capital structure and review the adequacy of available surplus and reserves, having regard to the deve- lopmental needs of the banking system and make recommendations in the light of the findings. The Commission is also required to make recommendations with regard to the building up of a professional cadre of bank personnel, co-ordinated development of commerical and co-operative banks and the role of non-banking financial intermediaries including the indigenous banking agencies in the emerging banking structure.

114. On the whole, the banking system in the country including smaller banks continued to gain in strength and the occasions for them to merge, voluntarily or to be amalgamated compulsorily by the Reserve Bank were fewer during the year than in the past. One bank was amalgamated under Section 45 of the Banking Regulation Act, 1969 and two banks transferred their liabilities and assets to- other banks during the year. Three banks went Into voluntary liquidation after obtaining certificates tinder Section 44(1) of the Banking Regulation Act, 1949 while one bank went inter Court liquidation. Certificates under Section 44(1) of the Banking Regulation Act, 1949, were issued to five banks to enable them to go into voluntary liquidation. Inspection of 12 banks (in Court liquidation) which have not made satisfactory progress in their liquidation proceedings, were carried out under Section 45Q of the Banking Regulation Act, 1949 and their inspection reports were forwarded to the Central Government and the concerned High Courts for such action as might be considered necessary by them.

115. The primary objective of annual inspections of all banks is to assess their financial position and methods of operation. The defects observed in their work- ing are conveyed to the banks through the inspection reports so that they may take suitable corrective steps in time. Fiftytwo scheduled banks and 12 non-scheduled banks were inspected during the year under review. All the above inspections were carried out under Section 35 of the Banking Regulation Act, 1949. Eleven banks were inspected under Section 45Q for judging whether there are any subs- tantial irregularities in their winding up proceedings. In addition, a scrutiny of the affairs of two banks was carried out for the purpose of the issue of a certifl~ cate under Section 49B in case of one bank and 44(1) in the case of the other.

116. During the period under review comments/representations/abservatlons on inspection reports were received from 59 banks including 15 banks carried over from {he previous year. After examining these, directions were issued in 28 cases while 3 banks were asked to submit periodical progress reports. Specific instruc- tions were issued in 15 cases. No action was considered necessary in the case of 4 banks. The remaining 9 cases were under consideration.

117. In cases where the findings of the inspection called for stricter control over the affairs of the concerned banks, suitable directions were issued to them. In the case of lanks which are already working under directions issued following their earlier inspections, the directions were continued with suitable modifications de- fending upon the circumstances of each case. With a view to reducing the time lag between the completion of the inspection reports and taking final action there- on, 3 banks were asked to take certain specific steps and to submit monthly/ quarterly progress reports while forwarding copies of inspection reports. There were 48 banks working under directions as at the end of June 1968. Directions given to 4 banki, were withdrawn during the year in view of the improvement noticed in their working. Withdrawal of directions to 3 more banks is under < consideration. Two banks, which were working under directions transferred their liabilities and assets to other banks. Further, during the year, directions were issued to one more bank for the first time bringing the total number of banks working under directions as on June 30, 1969 to 43 (27 scheduled and 16 non- scheduled). In 33 cases observers have been deputed to attend the Board/ ^Committee meetings of the banks. Besides the banks working under directions, there are at present 25 othe.r banks which, are submitting monthly/quarterly pro- gress reports. Similarly, as at the end of June 1968j there were 44 banks under • observation either formal or informal (41 of these banks were also working under directions). During the year observation arrangement was withdrawn in the case -of one bank as its methods of operation, as revealed by the last inspection, had shown satisfactory improvement. Three other banks also have shown substantial improvement in their working and it is proposed, to withdraw the arrangement for observation in their case. Further, one more bank was brought under observation during the year bringing the total number of banks under observation to 42 as at ,the end of June 1969.

118. The financial position and methods of operation of these banks are review- ed by the Bank from time to time after their periodical inspections. Most of the banks have generally been responsive to instructions in the matter of rectification of defects. Some structural defects, however, by their very nature do not permit early rectification, for example, Inadequate reserve, low earning capacity, concen- tration of advances and heavy load of stagnant advances including suit-field and • decreed debts. Certain other defects relating to organisational aspects, like lack of adequatp supervision and control by the Head Office over branches, lapse,* in the inspection and follow-up system, inadequacy of the personnel at the Head Office for processing the loan proposals and guiding the offices in the matter of grant and control of advances take time for rectification, as the bank concerned has to train up its staff in such matters. Inspections of these banks have revealed that banks in general have shown improvement in resrject of such structural de- fects ailso, but considerable progress has still to be achieved in this regard In order to ensure that these banks do not slacken their efforts, close surveillance over them is continued. It is expected that in the course of the next few years these banks also would reach a stage, when it would be possible for the Bank to relax the existing control over their methods of operation through directions and "observation of their affairs."

Banking Legislation

119. The Bank Laws (Amendment) Act, 1968 came into force with effect from Feburary 1, "1969, Mention was made of the main provision of the Amending Act in last year's report. The progress made in implementation of the main orovi- sions of the amended Banking Regulation Act during the year is reviewed in the following paragraphs.

120. Even before the Amending Act had come into force, several of the bigger banks had reconstituted their Boards of Directors and/or appointed whole-time 'Chairmen. So far, in terms of Section I0A of the Banking Regulation Act, 1949 twenty-four banks having deposits in excess of Rs. 10 crores and 5 banks: out of *42 banks having deposits of less than Rs. 10 crores have reconstituted their Boards of Directors. The matter is belnff pursued with the remaining banks. All the 13

foreign banks functioning in India have also constituted Advisory Boards com- prising Indian nationals (except the chief executives of these banks). As it was Jolt that several ol the smaller banking companies would not be in a position to comply with the provisions of Section 3 of the Amending Act wiihin the time stipulated, the Government of India in exercise of the powers conferred by Section 53'01 the Banking Regulation Act, 1949, exempted banking companies having deposits oi less than Rs. 16 crores, as on the date of the notification (February 1, 1909) from the requirement regarding the reconstitution of the Boards of Directors (Section 10A of the Banking Regulation Act) and banks having deposits of less than Rs. 25 crores, as on the date of the notification, from the requirement relat- ing to the appointment of whole-time Chairmen (Section 10B of the Banking Regulation Act), till February 1, 1970.

121. In terms of Section 10B of the Banking Regulation Act, 1949, all the 15- Indian banks with deposits of over Rs. 25 crores had appointed whole-time Chair- men, prior to February 1, 19f!9, the date on which the new Section came into, force. As mentioned earlier the banks with deposits of less than Rs, 25 crores, have (been allowed "time upto January 31, 1970 to appoint their whole-time Chair- men. Eight banks in this category have since appointed whole-time Chairmen. Proposals for appointment of whole-time Chairmen in respect of 12 other banks have been approved in principle. The remaining banks have been advised to submit their proposals ey.peditiously.

122. In view of the representations received, the Bank in exercise of the powers conferred by clause (a) of the Explanation under Sub-section (4) of Sec- tion 20 (regulating loans by banks to members of the board of directors etc), of the Banking Regulation Act, 1949, issued a 'General Order' on February 1, 1969 specifying that for the purpose of the aforesaid Section 'loans or advances' shall not include (i) loans or advances against Government securities, life insurance policies or fixed deposits and (ii) loans or advances to the Agricultural Finance- Corporation Ltd.

Branch Expansion Programme

123. During the period July, 196& to June 1C69, the number of offices opened by the Indian commercial banks in the private sector under the second Two-Year Programme which ended on July 31, 1967, rose from 569 to 617 (including 220 at hitherto unbanked centres). The banks concerned could not open the offices earlier due mainly to difficulties in securing suitable accommodation. Under the- third programme covering the period August 1967 to December 1970, 1,349 licen- ces were issued to the Indian commercial Ibanks in the private sector, upto the end of June 1969, for opening new offices, including 711 at unbanked centres. Against these licences, the banks have opened 843 offices, including 448 at un- banked centres, Under the current expansion programme, banks are expected, to open a relatively large number of offices in rural and the ^emi-urban centres.

124. The branch licensing policv wns reviewed by the Central Board of Direc- tors of the Bank in November, 19ori; with a view to intensifying the availability ol banking services,, the population criterion, was relaxed to one bank oSlce per 5,000 population (as against 10.000 hitherto), in case of centres with population upto 5 lakhs, Subsequently, in pursuance of the National Credit Council's recom- mendations, the policy was further liberalised in April 1969¹, in terms of which, With the exception of metropolitan centres (i.e. those with population of a mil- lion and over) and port towns, banks are no longer required to seek the Reserve Bank's prior clearance for the opening of an office but have onlv to intimate to- the Bank, the names, of the centres proposed to be taken UD. This information is circulated periodically to all banks so as to avoid unintended multiplication of bank offices. As regards the opening of branches at unbanked centres and in underdeveloped States, licences aro" issued on the basis of the aonlicant hank's actual performance. The liberalised nolicv as an experiment would continue till the end of 1970. the object beinc to speed up branch excansion by the Indian commercial banks. As a part of this liberalised programme, a list of 100 towns with a population of 10,000 and over but devoid of commercial banking facilities has been circulated to the Indian commercial (banks which have been asked to cover all the towns by the end of 1970. A second list of 1S7 towns in under- developed States with a population of less than 10,000 has been circulated recently among the commercial banks.

125. With a view to identifying centres with banking potential in the semi- urban and rural areas for the purpose of opening commercial bank offices, thr. Bank has undertaken, in association with some of the Indian commercial banks,

surveys of certain selected districts in different States. The districts which have shown relatively more progress in agriculture [including the 52 districts covered by the Intensive Agricultural Area Programme (,IAAP)] and|or have imporcant centres of small-scale industries but are deficient in banking facilities are pur- posively selected. So far, the surveys of 44 districts in 15 States have Ibeen com- .pleted and 171) unbanked and 2B underbanked centres have been selected ±or establishment of commercial bank offices. The surveys of 7 districts in 3 States were in progress as at the end of June, 1969. Licences have been issued for open- ing branches at 79> centres (66 at unbanked centres); of these, 24 offices (2*0 at unbanked centres) have been opened. Action to allot the remaining centres is 4n progress.

126. Under the modified procedure, the mobile banks are free to move any- where within their area of operation as defined in terms of a radius of specified kilometres from the base office. At present. 12 mobile, offices are operated by 5 Indian commercial banks. In order to enable banks to economically serve a -cluster of villages, whicn may have a low business potential, the Bank has com- mended to the Indian commercial banks the scheme of "Satellite Offices" which envisages the establishment of offices at fixed premises in the surrounding vil- lages, to be operated from a regular 'branch office at a central village. With a wiew to encouraging banks to open "Satellite Offices", sn incentive is provided to such banks by treating a certain proportion of these offices as offices at unbank- •ed centres,

127. During the period July 1, 1968 to June 30, 1969, the State Bank of India opened two more branches under its second expansion programme, thus bringing the total number of branches to 147 against 165 centres approved for that pro- gramme. Under the third expansion programme (covering the period January 1, 1964 to December 31, 1968) in terms of which the State Bank of India was required •to open 319 branches at treasury|su'b-treasury centres, it had opened 33 branches •during the period July 1, 1968 to June 30, 1969. The total number of branches so far opened under this programme stands at 265. Due to the non-availability of premises in many cases, the State Bank of India represented for extension of one year i.e. upto December 31, 1969 for completion of its second and third expan- sion programme. This has been granted.

128. During July 1, 1MB to June 30 1969, the subsidiary banks have opened •63 branches (including two 'one-man' offices) under their second five-year expan- sion programme ending June 1970. Thus, during the above period, the State Bank of India and its subsidiaries opened 98 'branches under their expansion pro- grammes. The total number of offices (including those opened outside the expan- sion programmes) of the State Bank of India and its subsidiaries as at the end >of June 1969 stood at 2,462 as against 21,295 at the end of June, 3968.

129. Five more clearing houses were established during the period July 1968 to June 1969 bringing the total number of clearing houses in India to 99 of which "9 are managed by the Reserve Bank of India, 72 by the State Bank of India -.and 18 by the subsidiaries of the State Bank of India.

^Regulation of Business of Non-Banking Institutions Relatina to Acceptance at

Deposits

130. Mention was made in the last year's report of the modifications, announc- ed on August 23, 1967, in the directives issued in October 1666 relating to accept- ance of deposits toy non-banking companies. These modifications had mainly aimed at removing hardships to industrial undertakings, in complying within the 'specified time limit with the provisions of the directives issued in October 1966 particularly those relating to adjustment of deposits in excess of 25 per cent of" Iheir paid-up capital and free reserved. During the year under review the diffi- culties experienced by the cotton textile mills which were required to adjust their excess deposits by December 31, 1968, but were not in a position to do so were examined and the Bank issued a notification on March 6, 1969, in terms of which cotton mill companies were granted an extension of time until December '31, 1969;' for adjustment of the deposits in excess of the prescribed ceiling These companies will not, however, be able to receive or renew additional deposits if they have already reached the limit of 25 per cent of naid-up capital and free' reserves.

Deposit Insurance Corporation

131. The .Deposit Insurance Corporation (Amendment) Bill, 1967, which seeks to provide for the extension of the scheme of insurance so as to cover deposits in

eligible co-operative banks was passed toy Parliament and received the President 3 assent in December 1968. The Act seeks to extend the scheme oi deposit insur- ance to State and central cooperative banks and larger primary non-agricultural credit societies, that is, urban cooperative banks with paid-up capital and reserves of Rs. 1 lakh and more in those States and Union Territories which amend their cooperative laws so as to provide, inter alia, that any action which may lead to the Corporation's liability being attracted by reconstruction, amalgamation or winding up of a bank, will not be taken without prior consultation with and con- sent of the Reserve Bank of India. The Act also envisages an increase in the authorised capital of the Corporation from Rs. 1 crore to Rs. 5 crores and in the number of directors from 5 to 8. The Amendment Act will toe brought into force, in stages, as and when the State Governments amend their laws relating to co- operative societies on the lines provided for in the Act.

132. The number of insured banks declined to 87 at the end of June 1969 from 90 at the end of June 1968 as a result of transfer of deposit liabilities and equivalent assets of two banks to other insured banks and amalgamation of one bank with another bank under Section 45 of the Banking Regulation Act, 1949. No new bank was registered during the year. Since its inception in 1962 to the end of June 1969, the Corporation had to meet claims aggregating Rs. 5G.85 lakhs in respect of 11 de-registered banks. It has received reimbursement of the claims from the banks to the extent of Rs, 35.72 lakhs of which those received during the year amounted to Rs. 0.70 lakh.

133. As a result of the increase in the limit of insurance cover from Rs. 1,500 to Rs. 5,000 in respect of the amount due to any one depositor effective January 1, 1968, the percentage of insured deposits to total assessable deposits increased from 26.2 In September 1967 to 50,4 in September 1968. The percentage of fully protected accounts to the total number of deposit accounts also increased from 76.4 to 90.9 during the same period.

IV. DEVELOPMENTS IN CO-OPERATIVE BANKING

134. The Bank continued to make efforts to ensure thatf the co-operative credit structure in each State is established on the accepted pattern so as to make it financially sound and economically viable. The need for early completion of the work of reorganization was constantly emphasised in the communications and dis- cussions with the State Governments, institutions, etc. and close follow-up action was initiated. The crop loan system had been adopted in all the States but the progress was uneven. The Bank recommended certain modifications in the sys- tem in view of the practical difficulties and local conditions, to ensure smooth and adequate flow of credit for agricultural production.

135. In the sphere of banking legislation bearing on the co-operative sector, two laws viz., the Banking Laws (Amendment) Act, 1968 and the Deposit Insur- ance Corporation (Amendment) Act, 1968, were passed during the year. The Banking Laws (Amendment) Act, 1968, seeks to remove some of the lacunae which were revealed in the working of the Banking Regulation Act, 1949 (as applicable to co-operative societies), In terms of the Section 21 of the Banking Laws (Amendment) Act, 1968 which amended, among others, Section 24(2A), 20 and 35 of the Banking Regulation Act, 1949 (as applicable to co-operative societies), co-operative banks are now required to maintain in addition to cash reserves a: minimum of 25 per cent of demand and time liabilities in India as liquid assests. The Reserve Bank has been empowered to allow primary co- operative banks to make unsecured loans or advances not only to any of their directors but also to any other person. The Reserve Bank is also authorised to supply a copy of its report on inspection of a co-operative 'bank to the State co- operative bank or the Registrar of Co-operative Societies of the State without obtaining the prior consent of the concerned co-operative bank. The amendment to the Deposit Insurance Corporation Act 1968, seeks to extend the benefit of deposit insurance scheme to co-operative banks.

136. The All-India Rural Credit Review Committee, a reference to which was made in last year's report, made certain interim recommendations in February 1969. The recommendations related to (i) the establishment of small farmers' development agency, (ii) the setting up of a Rural Electrification Corporation and (in) the role of the Agricultural Refinance Corporation.

137. The Working Group on Industrial Financing through Co-operative Banks set up under the Chairmanship of Shri P. N. Damry, Deputy Grovernor, also submitted in August 1968 the first part o* its Report. The recommendations of the Group related to (a) reorganization of the existing industrial co-operative societies with a view to making them vialble units; (b) application of the criteria for reorganization of the existing societies to ensure their success before registra- tion; (c) the organization of co-operative banks in a way that will enable them to play an effective role in developing and financing industrial societies; (d) strengthening of the capital structure of industrial societies and financing the block and working capital requirements of such societies; and (e) the role which the Reserve Bank snould play with reference to above recommendations. The recommendations of the Group were generally approved by the Reserve Bank's Standing Advisory Committee on Rural and Co-operative Credit and by the Bank: and action to implement the accepted recommendations has been initiated. How- ever, the recommendation to amend section 46(A) of the Reserve Bank of India Act to enable the Bank (i) to contribute to rurijl debentures of processing socie- ties and (ii) to give loans to State Governments for subscribing to the share capital of industrial co-operative sicieties was not accepted.

138. The recommendations of the Fertilizer Credit Committee were, as men- tioned in the last year's report exmined and action in regard to implementation was taken during¹ the year. Thus, the terms and conditions for the loans sanctioned to State Governments out of the Bank's Long-term Operations Fund for share capital contribution to primary agricultural credit societies were liberalized. In- nursuance of another recommendation, the Bank made selective relaxations and sanctioned higher credit limits for seasonal agricultural operations and marketing of crops in respect of central co-operative banks in special programme areas- such as the High-Yielding Varieties Programme. The Committee's recommendations for doing away with the existing ceiling of Rs. 5 cr-ores for each State for the credit limits to State co-operative banks for financing the distribution of chemical fertilizers and for recognizing the second signature of apex marketing socities for refinance facilities to co-operative ibanks under Section 17(2) (a) and 17(4) (c) of the Reserve Bank of India Act have been accepted. However, the recom- mendation of the Committee for relaxing the condition of non-overdue cover (for the short-term credit limits sanctioned by the Bank) in special programme areas was not accepted as it was felt that co-operative banks should not have free acce-j to credit irrespective of their record of recoveries. Thp Bank agreed to the recommendation of the Committee to continue the existing liberal scheme of credit facilities to commercial banks for fertilizer distribution amd also the operation of the Bill Market Scheme to facilitate easy access to commercial banks in respect of bills arising from fertilizer trade.

J u ne 30, 1969 stood at Rs. 183.09 crores as compared with Rs. 137.17 crores as on J u ne 30, 1968. The total special short-term credit limits sanctioned to two State co-operative banks for financing the marketing of cotton and kapas during 1968-69 were Rs. 8.35 crores as against Rs. 10.25 crores during 1967-68; the drawals were Rs. 7.20 crores, repayments Rs. 7.50 crores and the outstandings as on June 30, 1969 were Rs. 0.90 crore. The corresponding figures for 1967-68 were Rs. 10.54 .crores, Rs. 9.34 crores and Rs. 1.20 crores, respectively. In addition to accommoda- tion for financing seasonal agricultural operations and marketing of crops, the Bank provided snort-term finance amounting to Rs. 23.05 crores as against Rs. 14.55 crores in l?67-68 at the Bank rate to State co-operative banks for general banking purposes,

142. The Bank sanctioned short-term credit limits for financing the stocking and •distribution of chemical fertilizers at the Bank rate against Government guarantee under Section 17(4)(c) of the Reserve Bank of India Act. During the calendar .year 1968, the limits sanctioned, drawals and outstandings at the end of the year Tvere Rs. 27.50 crores, Rs. 39.77 crores and Rs. 15.42 crores, respectively; the corresponding figures for 1969 upto the end of June (compared with end-June 1968) were Rs. 30.00 crores (Rs. 22.00 crores), Rs. 16,72 crores (Rs. 16.34 crores) and Rs. 14.71 crores (Rs. 5.42 crores), respectively.

143. In the sphere of medium-term agricultural credit the Bank continued to emphasize the importance of rationalization of the medium-term loan policies followed by the central co-operative banks so that their medium-term advances ore used only for genuine productive purposes and not as 'ways and meana* advances. However, the central co-operative banks had not made significant pro- gress in this direction. Fresh guidelines were, therefore, circulated to the Registrars by the Bank in August 1968 to impress upon them the need for urgent action for bringing about the necessary reforms in the medium-term loan policies followed by the banks. The Bank a ho took into account, while fixing the medium- term credit limits for 1968-69, the extent of rationalization effected in their loan policies by the banks.

144. During the year under report the medium-term loans sanctioned by the Reserve Bank at n concessional rate ol li per cent below the Bank rrrte amounted to Rs 19,00 crores as against Rs. 16 37, crores sanctioned last year. Drawals were Rs. 9 02 crores as against Rs. 9,12 croret* during the previous year, the outstanding its on June 30, 1969 were Rs 17.60 crores as against Rs. 16.47 erores as on June 30, 1068, inclusive of those under medium-term limits sanctioned at Bank rate.

145. The credit facility under Section 17(2) Obb) which was extended from the financial year 1968-69 for financing the production and marketing activities of silk and woollen handloom weavers' societies was further extended to the power- looms in the co-operative sector in July 1968. These advances also will carry interest at 14 per cent below the Bank rate. Another decision taken in pursuance of the recommendations of the Working Group on Industrial Financing through Co-operative Banks related to the approval of 22 broad groups of cottage and small-scale industries, in addition to the weaving industry, fur accommodation •under Section 17(2) (bb) of the Reserve Bunk of India Act at Bank rate for financing Iheir production and marketing activities The concessions allowed to weavers' societies in regard to the basis for fixing their normal credit limits and maintenance of margins in the context of the change-over from per loom basis to pnduction basis were continued during the financial year 19IS8-69. During the financial year ended March 31. 1969 nine State co-operativo banks were fianctionod credit limits aggregating Rs. 7 37 crores as against Rs 7.5(5 crores last yrar under Section 17(2) (bb) or (4)(r) of the Reserve Bank of India Act at U ror r mt below the Bank rate. The drawals amounted to Rs 8.12 crores as against Rs. 8.54 crores during the previous year and outstandings ai the pud of the venr stood at State co-operative 'bank was sanctioned a credit limit "f Rs. 0 44 crorp under Rs 5.63 crores as against Rs. 5.44 crores at trip end of' the previous vcar. ©ne- s t ed co-operative bank was sanctioned a credit limit of Rs. 0.44 crore under Section 17(4) (a¹) of the Reserve Rank of Tndh Act at a concessional rate of 1£ per cent below the Bank rate for financing hnridlr>nm weavers' co-r>DPrntives during thr; fiscal year. The outstandings against the limit at the end of the financial year werp Rs. 0.33 crore. The Bank also sanctioned during the year, credit limits aggregating Rs. 1.02 crores as apainst Rs. 1 05 crores in 1967-68 at Bank rate under Section 17(2)(a) or (4)(c) of the Reserve Bank of India Act for financing com- mercial and trade transactions of auex handloom weavers' societies. Drawals ajgrecated Rs 0.73 crore and the outstandings at the end of the financial year- were Rs 0.32 crore.

146. The provision of subsidy towards interest and guarantee against losses to central co-operative banks in respect of the Reserve Bank's scheme of handloom finance for giving working capital loans to weavers' societies for production and marketing activities was continued by the Government of India upto March 31, 1969.

147. In view of the continued scarcity conditions in certain parts of the country, the Bank sanctioned medium-term credit limits to the extent of Rs. 6.32. crores to five State co-operative banks out of the National Agricultural Credit (Stabilisa- tion) Fund for conversion of short-ter.ni loans into medium-term loans under Section 17(4AA) read with Section 46B(2) of the Reserve Bank of India Act. The drawals aggregated Rs. 2.48 crores, the outstandings as on June 30, 1969 were Rs. 5,18 crores as against Rs. 6.14 crores as on June 30, 1968, One State co- operative bank was sanctioned a credit limit of Rs. 0.42 evore against the Govern- ment and trustee securities representing its investments of the Agricultural Credit Stabilisation Fund under Section 17(4) (a) of the Reserve Bank of India Act to enable it to convert short-term loans into medium-term loans.

148. The pattern of assistance to State Governments to build up stabilisation funds of State co-operative banks to which a reference was made in last year's report was reconsidered by the Planning Commission and the Ministry of Finance. It was decided to adopt a uniform pattern of 75 per cent grant and 25 per cent loan for all States. During the financial year lG<68-69, the Government of India made a provision of Rs. 5.00 crores as against Rs. 3.50 crores in 1967-68 for central assistance to the State Governments for the purpose.

149. Mention was made in the last year's report about t he Central Govern- ment's instructions to all State Governments for building up Agricultural Credit (Relief and Guarantee) Funds upto a level of 4 per cent of the outstanding.-! at primary level by the end of 1970-71 for writing off such loans as could not br> repaid due to repeated natural calamities. Accordingly, all State Governments have created this Fund and the total amount at the credit of these Funds as on March 31, 1968 stood at Rs. 1,36 crores as against Rs, 1.26 crores as on March 31, 1907,

150. During the year under report, the Bank, in consultation with the Govern- ment of India, relaxed the condition regarding matching contribution upto a limit of Rs. 10,000 to a primary agricultural credit Society whiich was viable or potentially viable and was eligible for share capital contribution from the State Government out of loans obtained from the Bank's National Agricultural Credit (Long-term Operations) Fund. The ceiling for total Government contri- bution out of loans obtained from the Bank was, however, retained at Rs. 10,000 for each society as a general rule.

151. Loans amounting to Us. 4,06 crores (excluding a renewal of Rs. 7 lakhs) were sanctioned to 12 State Governments during the financial year 1968-69 out of the National Agricultural Credit (Long-term Operations) Fund under Section 17(4AA) read with 46A(2)(a) of the Reserve Bank of India Act for contributing to the share capital of one State co-operative bank, 50 centre co-operative banks, 1.571 primary agricultural credit societies and 5 central land development banks! The total drawals by the Stale Governments during the financial year 1968-69 amounted to Rs. 3.92 crores as against Rs. 7.28 crores during 1967-68 and their repayments in respect of the previous loans were Rs. 4.29 crores as attains*- Rs. 3.83 crores in 1967-68, The total amount outstanding against the State Govern- ments on this account was Rs. 31.19 crores as on March 31, 1969 as against Rs 31.70 crores as on March 31, 1968.

152. A meeting of the representatives of the Central i and Development Banks, the Life Insurance Corporation of India, State Bank of India and Government of India was convened in March 1969 to discuss the debenture programme of the land development hanks for the vear 1969-70. A programme of Rs. 113,00 crores for debenture floatations bv the banks was approved for 1969-70. as compared with the programme of Rs. 86.00 rrores for 1968-69. The support from public sector institutions as w^ll as of the Government of India has been placid at Rs. 37,00 crores. In view of the striking increase in the operations of the land development banks and the high level of the supported programme envisaged ior j ^⁹' ' str e ss has been laid on the purposes for which the loans would be disbursed and on their financial and operational soundness while determining the debenture programme of each land development bank. It was stipulated that to toe eligible for support from various source-! tho banks should heve advanced •not less than 90 per cent of the loans for productive purposes of which at least

70 per cent should have been for easily identifiable productive purposes such, as construction of new wells, installation of. diesel and electrio pumpsets, purchase of tractors, etc. Further, the support for the debentures had been allotted on. the. basis of the recovery performance of the banks. Thus, those banks whose overdues to demand worked out to 10 per cent or less at the apex bank level and -15' per cent or less at the primary level alone would qualify for full support from the various agencies. The banks which failed to reduce their overdues to the stipulated levels would be entitled to 75 per cent of the allotted support provided they were able to reduce their overdues as on June 30, 196!), to at least 50 per cent of what they were as at the end of 1967-68. The banks Which failed to reduce their overdues even to these levels would be eligible for only 50 per cent of the allotted support mainly through sources such as the mutual sinking fund investments by the Land Development Banks, the Central and State Governments and the Reserve Bank of India,

153. The land development banks, floated during the financial year 1068-89 ordinary debentures of Rs. 96.87 crores as against the supported programme of Rs. 86,00 crores. The debentures floated during 1967-68 were of the order of Rs. 71.18 crores. It was possible for the banks to float debentures in excess of the programme during 1968-69 because oi the liberal (support provided toy the commercial banks and some of the State Governments. The commercial banks' support to the debentures floated by the land development banks during 1E68-69 amounted to Rs. 22.86 crorcs as against Rs. 18.13 crores in 1967-68. During the period ended June 30, 1969¹ the central land development banks also floated rural debentures aggregating Rs, 5.00 crores to which the Reserve Bank subscribed Rs. 0.97 crore as agmnsL Rs. 0.88 crore during 1967-G8. The bank's holdings of ordinary and rural debentures were Rs. 28.52 crores and Rs. 8 9T crores as on June 30, 1969 as against Rs. 24.38 crores and Rs 7 94 crores respectively, as on June 30, 1968.

154. With the increase in the volume of business of the land development banks which was facilitated by liberal mpasure of support from institutional investors, the question of proper utilization and management of the available resources assumed importance. The Bank, therefore, circulated among the land development banks certain guidelines for the proper management of r e s u m es 'by them and for the adoption of operational procedures which would render the new policy of productiop-oriented credit purposeful.

155. As on June 30, 1969, there were 1,348 co-operative banks — 28 State, 3Q6 central and 954 primary—coming under the purview of the Banking Regulation Act, as against 1,422 banks at the beginning of the year Thp decline in the number was mainly due to the deletion of the names of certn r non- agricultural credit societies from the list of primary co-operative banks Further during the year under report, 2 State co-orerative banks were included in the Second Schedule to the Reserve Bank of India Act, 1934 bringing the number of scheduled State co-operative banks to 14.

156. The Government of India has been approached to amend rule 10 of the Banking Regulation (Co-operative Societies) Rules, 1906 with a view to exempting smaller type of co-operative banks with limited resources and area of operation from the publication of their annual accounts etc., in newspapers The draft rules for amending the Banking Regulation (Co-operative Societies) Kules, 196Q for this purpose have been published in the Gazette dated March 15 1969 for the information of all persons. The proposed amendments to rule W ot the Banking Regulation (Co-operative Societies) Rules, 1863 would not when they are notified in the official Gazette on or after September 1 1969 require the co-operative banks, whose total deposit liabilities are less than ten lakhs of rupees as at the end of the period to which their accounts, balance sheet relate to publish their accounts, balance sheet, etc., in newspapers.

V⁵⁷- ^ n uISbier of o f f l c ⁶s °f co-operative banks which stood at 3 805 as

?ni££"; T- L T ^ ' oo v° ⁴'^{0 13} on M a r ch ³¹' ¹⁹⁶⁹- D u r i ne t h* Perfod July 1, 1968 tp June 30, 1969, 33 licences were granted to State and Primary co-opera- tive banks for opening new offices as against 17 licences issued during 1967-68 Two licences were also issued to a central co-operative bank and an industrial co-operative bank for opening an office each outside the district in which they were registered In addition, 6 licences were issued to central co-operative* Si ^o Ranging the location of their existing places of business. During the year l"&8-6i a licence to commence banking business was issued to a newly- registered primary co operative bank, raising the total number of licensed: primary co-operative banks to 8 as on June 30, 1969. Under the first branch

expansion programme for the period August 1967 to J u ly 1969, 450 new offices have been opened by the co-operative banks upto the end of March 1969.

158. Nine central co-operative banks have been granted exemption by the Government of India from complying with the provisions of Section 11 of the Banking Regulation Act regarding minimum paid-up capital and reserves; eight banks for a period of 1 year from March 1, 1969 and one bank for a period of 3 years from February o, 1968. The a&plication of another central co-operative bank had been recommended for exemption to the Government of India.

159. In pursuance of the Banking Regulation Act, 1949 (as applicable to Co- operative Societies), 51 applications for issue of licences were received during the year of which two were from State co-operative banks, 42 from central co-operative banks and 7 from district industrial co-operative banks. Of these, one bank which has been registered after the coming into force of the Banking Regulation Act, 1949, had been issued the requisite licence enabling it to com- mence and carry on banking business. With this, the total number of State and central co-operative banks licensed comes to 6.

180. On November 25, 1968, the Bank reduced the margin levels on advance against indigenous cotton and kapas made to co-operative cotton mills by co- operative banks. Further on December 11, 1968 the Bank, removed the control on advances against indigenous cot Ion and kapas to co-operative cotton mills. However, co-operative banks were required to maintain a margin of 25 per cent

181. Fourteen State co-operative banks, 299 central co-operative banks and £26 primary co-operative banks were inspected under Section 35 of the Banking Regulation Act, 1949, during the period under review. Out of 328 primary co- operative banks, 88 were inspected by the officers of State co-operative banks on behalf of the Reserve Bank under Section 35(1) of the Banking Regulation Act, 1949. During the year, 10 central land development banks, 4 apex handloom •weavers' co-operative societies and 2 apex co-operative marketing societies were inspected on a voluntary basis. Copies of inspection reports of 11 State co- operative banks, 252 central co-operative banks including 3 district industrial co-operative banks and 294 primary co-operativp banks were furnished to the banks concerned. Inspection reports relating to 12 State land development banks, 4 State handloom weavers' societies and 2 anex marketing societies were also furnished to the concerned institutions during the year under report.

Co-operative Developtnevt

162. The Bank's Standing Advisory Committee on Rural and Co-operative Credit met twice durintr the period under report. The thirty-eighth meeting of the Committee held on September 11, 1968, was specially convened to consider the Report of the Working Group on Industrial Financing through Co-operative Banks. In its thirty-ninth meeting hold on May 26, 1969 the Committee considered use of Agricultural Credit Stabilisation Funds for grant of relief to cultivators affected *by crop failure in the matter of repayment of medium-term loans instalments, security for medium-term loans for agricultural purposes, loans for contribution to the share capital of primary land development banks, credit limits to district industrial co-operative banks from the Reserve Bank and medium-term loans ior purchase of shares in co-operative sugar factories.

163. The State Agricultural Credit Corporations Act, 1B68 was passed during the y e ar to establish Agricultural Credit Corporations in Assam, Bihar, West Bengal, Orissa, Raiasthan and Union Territories of Manipur and Tripura. Each Corpora- tion would have an authorized capital betWPen Rs. 1 crore and Rs. 5 crorea depending on the requirements of each State/Union Territory, the share capital being contributed bv the Central Government and the concerned State Govorn- ment.the Reserve Bank of India the Food Corporation of India, the State Bank of India and its subsidiaries and other commercial banks. Action for setting up the corporations had been Initiated by Government of India and concerned State Governments in consultation with the Bank.

Agricultural Refinance Corporation

164. The Corporation completed the sixth vear of its working on J u ne 30, 1969. The results of operations during the year showed a small surplus for the first

tune since the Corporation came into existence, after providing (or the payment of income tax as well as the statutory minimum dividend of H per cent to the shareholders. This development was brought about by a marked rise in tho business of the Corporation during 1968-6S>, in terms of the financial assistance availed of from it.

165. During the year 1968-69 the Corporation sanctioned refinance in respect of 108 schemes of agricultural development such as minor irrigation (71), land development (7), development of plantation and horticulture (26)t development of poultry farming (2), dairy development (1) and construction of godowns (1). The total financial outlay involved on these schemes was Bs. 79.21 crores. Of this the Corporation's commitment was Rs. 69.32 crores. The total number of schemes sanctioned by the Corporation during its six years of working ended June 30, 1969 waa 233, the total outlay and the Corporation's commitment under them, (being Rs. 182.03 crores and Rs, 156.48 crores, respectively. The outlay to be made during any particular year would form only a small proportion of the sanctioned outlay, as the implementation of schemes sanctioned is phased over a period of years. The disbursements made by the Corporation during the year amounted to Rs. 17.84 crores as compared to Rs. 5.67 crores during 1967-68, raising the total disbursements as at the end of June 30, 1969 to Rs. 30.49 crores.

166. The Corporation, during the year drew from the Government of India further loans amounting to Rs. 17.75 crores, raising the total borrowings from the Government of India to Rs. 25.75 crores as on June 30, 1969.

167. The Corporation has made some further relaxations during the year in its policy and procedure for advancing refinance facilities to the scheduled com- mercial banks. The Corporation decided to provide refinance facilities to the State co-operative banks and the scheduled commercial banks for construction of modern storage godowns or silos. Refinance facilities were also extended to scheduled commercial banks in respect of loana provided by them to the culti- vators for keeping deposits with the State Electricity Boards for energising their wells. A scheduled commercial bank advancing medium or long-term loans to cultivators for the purchase of farm equipment was made eligible for refinance from the Corporation, provided adequate arrangements for supervision over the utilisation of loana were, made. It was also decided that the condition regarding the formulation of agricultural development schemes in compact areas might not be rigidly Insisted upon m the case of the scheduled commercial banks' advances for the purchase of pumpsets, tractors.and other equipments. The CorDoration also decided during the year to allow the scheduled commercial banks to route loans, refinanced by the Corporation through an intermediate agency such as a co operative sugar factory in order to facilitate better supervision, provision of technical guidance and recovery of loans. The loan policy and nrocedurR governing the sanction of refinance to the scheduled commercial banks insofar as they related to the security aspect, were further simplified during the vear t^ facilitate easier access to the refinance provided by the Corporation to these banks Agricultural Finance Corporation

~t t^⁸' ^n i n^ltutional development in the banking sector was the establishment of the Agricultural Finance Corporation promoted by the Indian Banks' Associa- tion with a view to financing top priority agricultural projects and to help com mercial banks participate actively and extensively in the development ^f agriculture. The Corporation has an authorised capital of Rs 100 c r o r c s t he issued and subscribed capital and the ^aid-up capital being Rs 10 crores and Rs. 5 crores, respectrvely. It would be managed by a Board of DirectorsronsisW of fifteen members representing bankers and a Government nominee The loom sanctioned by the Corporation upto December 1963 since the inception amount?! to Rs. 3.6 ciores for energisation of 12,000 irrigation wells. "mounted

V. DEVELOPMENT IN EXCHANGE CONTROL

169. While carrying out Its functions as the agency entrusted with the nrirnini*

export proceeds of individual flrms and for recording the overall export perform ance oi individual exporteis.

170. In order to assist the export promotion effort, the scheme of Blanket Permits, under which export houses could obtain foreign exchange for export promotion travel without having to apply lor a permit for each visit, was con- siderably liberalised during the year under review. It was also decided to ailow the blanket permits to be used for advertising, market studies, import of samples aod participation in fairs and exhibitions abroad in addition to the travel expenses •of the business representatives. To cover these additional expenses the amounts ,of the permits were enhanced by 50 per cent.

171. Exchange Control cells were, set up at the Bank's offices at Bangalore Hyderabad, Jaipur, Nagpur and Patna to deal with travel applications in their respective regions,

172. In order to mitigate the effects of the U.K. Import Deposit Scheme exporters of goods covered by the Scheme were granted a general extension up' to 8 months for realisation of 50 per cent of export proceeds.. Authorised dealers were permitted to buy forward sterling from such exporters and to sell such for- ward sterling to the Reserve Bank for deliveries up to eight months.

173. In regard to exports or imports on deferred payment basis, permission was given to authorised dealers to provide forward exchange cover 011 a rollover' basis, i.e., to book forward contracts for the aggregate amount of the payments to be made or received and to extend the outstanding balance of the contract et six monthly intervals.

174. Certain relaxations were made in the rules regarding investments In India by non-residents of Indian origin. Prior to the change, non-residents were not permitted to make investments in public or private companies engaged in trade or business as distinct from indust'-y- In November 1968 it was decided to permit non-residents of Indian origin to make such investments irrespective of whether the companies concerned were engaged in industry, trade or business. In December 1968, as an experimental measure for 3 years, it was decided to permit invest- ment by such persons In partnership and proprietary firms, as well as in joint stock companies, subject to the condition that neither the capital nor the profits earned would be allowed to be repatriated. Funds held in National Defence Remittance Scheme Special Accounts are also allowed to be used for such Investment.

175. The powers of authorised dealers were enlarged during the year In regard to remittances for sundry purposes, such as, payment of subscriptions or member- ship fees to overseas institutions, remittance of legal expenses in connection with dishonoured export bills, admission fees to foreign universities, cancellation of forward exchange contracts, withdrawals from ordinary and blocked non-resident rupee accounts as well as National Defence Remittance Scheme Special Accounts, etc. Of these, special mention may be made of the relaxation relating to opera- tions on non-resident, blocked and N.D.R.S. Special Accounts, under which with- drawals from such accounts of persons of Indian nationality or origin are now allowed freely by authorised dealers for local payments, where the balance In the account Is Rs, 50,000 or less.

176. Airlines/steamer companies and travel agents were given wider powers to book passages for people going abroad to take up employment and their dependants. Further, non-residents of Indian nationality or origin are now permitted to pay In rupees fares for the iourney of themselves and their depen- dants by Indian carriers, out of funds hfld by them in a non-resident or blocked rupee account In India. Provision has also been made on an experimental basis, for grant of passage clearance on the invitation of relatives (in effect widening •the categories of relatives considered as "acceptable" hosts) or friends abroad, provided the amount of the passage fare both ways is also remitted to India by the host through banking channels.

177. The following table gives data relating to release of foreign exchange and grant of 'P' form clearance for travel abroad for various purposes during "the year ended June 1969.

I. Foreign Exchange Permit*

Number

P u r p o se of t r a v el

of

permits

Amo nit of exchange sanctioned (.Rs. lakhs)

. . . . ..

. B u s i n e ss . . .. . H i g h er s t u d i e s / t r a i n i ng . . . . . . . .. . M e d i c al t r e a t m e nt • S t u dy t o u rs . . . . . . . . . .. A t t e n d i ng c o n f e r e n c es . . . . . . . ..

M i s c e l l a n e o us . . . . . . . . . ..

552-00 577-12 50-Bo 17-72 1869 119-08

8,210 5,488 320 42S 833 7,262

T O T AL .

1285-41

22,741

II. 'P' forms

P u r p o se of t r a v el

Number of 'P' forms approved

12,361

. . . . . . . ..

298 5.532 3.924 4,751 J o i n i ng h e ad of family Visits to r e i a : i v s s / f r i e n ds E x p o rt pronioLion Employmsnt l i r m g r a t i o ri • S t u d i e s / t r a i n i ng M i s c e l l a n e o us

. . . . . . . .. . . . . . . . .. . . . . . . . ..

14,15 >

TOTAL •

59.157

VI. SEMINARS AND £URVEYS ORGANISED BY THE RESERVE BANK

178. In December 1968, the Bank sponsored a three-day seminar on the Financ- ing or Agriculture by Commercial Banks. The purpose of the seminar waj- to have an exchange ol views among the interests concerned in the matter of agri- cultural Ilnance in view of ihe need for commercial banks to increase their involve- .ment in the financing of agriculture. The seminar discussions were divided under three broad headings, viz., general aspects of financing agriculture by commercial -banks, organisation and other aspects and direct and indirect financing of agri- culture by commercial banks.

179. The papers presented as well as the proceedings of the seminar have been published in book form by the Reserve Bank of India,

180. During the year, at the suggestion of the Governor ol Ihe Reserve Bank in his capacity as Vice-Chairman of the National Credit Council, the Council set up 5 Study Groups to go Into the following issues: (a) the problem of deposit mobilisation by commercial as well as co-operative banks, (b) the exteat to which credit needs of industry and trade were likely to be inflated and how such trends could be checked, (c) the building up of an appropriate organisational system for Implementation of objectives of social control, (d) the need for adopting an area/ •project approach in implementing schemes for extending credit to agriculture as also the possibility of extending this approach to commercially viable projects in the rural electrification and minor irrigation fields, and (e) the problem of bank finance for road transport operators. The Reports of the Study Group on Deposit Mobilisation and that on Credit Facilities for .Road Transport Operators were submitted to the third meeting of the Council held at New Delhi in March 1989.

181. The Agricultural Credit Department of the Bank organised during the year two seminars. The first one In which Chief Executive Officers ol State Co- operative Banks participated was held in September 1968 and the second one for the Chief Executive Officers of Central Land Development Banks was held in Pebruary 1989. These seminars provided an opportunity for the officials of the financing institutions concerned to have an exchange of views with a view to bringing about improvements at the operational level.

182. The Agricultural Refinance Corporation jointly with the Reserve Banlt. also organised o seminars at Bombay, JNew jjeim, caicutia, Mauias duu A h m w- abaci witn a view to discussing witn the senior officers of commercial uanKi the metnous ior formulating scnemes oi agueiutural devejopment to be refinanced by -tne Agricultural Refinance Corporation.

183. Tne Bank also sponsored along with the University of Bombay the Eighth- Econometac oonierence which was heiu ai Bombay in January 1969.

184. During the year the Bank set up a Working Group, as already mentioned in paragraph 105, to suggest further simplification or modification ot the Credit Guarantee Scheme operated by the Industrial Finance Department of the Bank, with a view to expediting the issue of auarantees under the scheme for small-scale. industries.

185. The Departments of Economics and Statistics undertook a number of Surveys and Field Investigations In addition to their regular Surveys. With a view to providing some guidelines to commercial banks for opening branches in rural areas, the Division of Rural Economics in co-operation with the Department of Banking Operations and Development conducted district surveys to identiiy places with inadequate banking facilities and to assess the banking potential in. such places. During the year, such surveys were carried out In 33 districts. The Division of Rural Economics also completed two surveys, one on credit needs of manuring coconut palms in Kerala and another on the problems of accumulation of raw cotton stocks with co-operative marketing societies in two districts of -Gujarat State. The Division of Rural Economics and the Division of Rural Sur- veys jointly conducted a number of cost benefit studies on irrigation projects on behalf of the Agricultural Refinance Corporation. They also conducted field studies on the problems of small farmers in four districts, viz,, Mehsana, SanglL South Kanara and Thanjavur. The Division of Rural Surveys continued its re- gular surveys on Co-operative Bank Advances and Deposits. The Report on its Fifth Follow-up Survey on Development of Co-operative Marketing was published during the year.

186. With a view to improving I'.ic banks' statistical reporting so that data, on matters like sectoral allocation oi credit could be available promptly, the- Governor set up a Working Group in January 1968 consisting of three officers from the Reserve Bank and three representatives from the commercial banks to- go into the question of the form in which such data on credit allocation should be reported. The Working Group which reported in July 1968 suggested that the commercial banks should adlopt a system of Uniform Balance Books for recording bank advances data according to purpose, security and the interest rate. The Division of Banking has introduced the Uniform Balance Book reporting with effect from December 1968 and it is expected that this return will eventually replace the purposewise survey of bank advances, the fortnightly survey of advances, and half-yearly survey of interest rates on advances.

187. With a view to obtaining a purposewise classification of receipts in amounts below Rs. 10,000 or its equivalent, for which purpose details are not required to be reported to the Exchange Control Department by the authorised dealers, the Division of International Finance has been conducting ad hoc surveys from time to time. The latest survey covering four quarters (viz. October- December 1966; April-June 1967, January-March 1968, and July-September 1968), lor assessing the seasonal pattern: if any was Initiated In September 1966. The results relating to the first two quarterly periods were finalised last year, whilrr- those pertaining to the last two rounds were finalised this year.

188. The results of the Survey of Foreign Collaboration in Indian Industry Initiated by the Bank in March 1965 for the purpose of providing data regarding the major features and ingredients of foreiftn collaboration agreements were published as a Report in the current year. The Survey which was in the nature of a census of all public and private limited companies that had foreign capital participation or technical collaboration agreements on March 31, 1964 was under- taken by the Division of Trade. It related to effective agreements as distinct from approvals in respect of which alone data were hitherto available. The- Survey Report covered 827 companies in the private sector with a total of 1051 effective agreements and 24 government companies with 70 effective agreements. T he Report which ferought together information on the pattern of agreements and remittances connected with foreign collaboration was published in December 1968.

189. The Department of Statistics initiated in. March 1988 a Quarterly Survey DI Company Finances with a view to assessing the snort-term variations in sources and uses of iunds of large scale companies. Three articles based on the data received from non-government non-financial medium and Jarge companies were published in August 1U68, November 196b and May 1909 issues 01 the B a n ks ilulleun. The data in respect of the quarters ended March 31 and June 30, l!JtJ8 were being processed. With a view LO gaining a quicker insight into current- trends in industrial situation and likely developments in the near future, the Depuiimem initiated in August 1968 a Survey of Current Industrial Situation. A study based on the replies to the questionnaires issued lor this survey was publish- ed in the April 1969 issue of the Bank's Bulletin. It has been decided to con- duct a similar survey for assessing the latest industrial situation and a revised questionnaire has been sent to selected public limited companies. A new Section Is also being organised in the Department of Statistics with the objective of developing suitable econometric ' models, sectoral a<; we 1 as aggregative, which would facilitate the study of economic processes and assist in the formulation of policies.

190. The Department of Non-Banking Companies continued Its Annual Survey of Deposits with Non-Banking Companies. The lesults of the survey based on . the returns submitted by the non banking companies as on March 31, 1967 were published in the form of an article in the June 1969 issue of the Reserve B a n k, of India Bulletin.

VII. EDUCATION AND TRAINING

191. As stated in the last year's report, m December 1967 the Governor, Re- serve Bunk of India, appointed a Working Group on training facilities ror higher banking personnel. Its main terms of reference were (a) to suggest litres on which training programmes should be organised for the development of tlie bank- ing profession in the country with particular reference to the social and economic objectives of banking, aligning credit operations of commercial banks to national credit policies and priorities, and expansion ol the banking services, (b) to examine existing training programmes and their adequacy and to recommend appioprial? measures for their improvement and extension and (c) to suggest ways of co-ordinating the activities of the existing training institutiotis The Group examined training facilities currently available for the banking personnel and came to the conclusion that the gaps were too wide for existing institutions to fill. It, therefore, suggested that a National Institute of Bank Management should be established which should function as a central agency to Initiate and co-ordinate measures for the development of the banking profession In the country at the highest level. The Institute should seek to translate national policies relating to the banking sector into meaningful training programmes and help the implementation of those policies by creating a climate of intellectual appreciation and emotional dedication. The functions of the Institute should be •*i^ follows;—

(a) Formulating broad strategy of education, training and research pro-

grammes for effective Implementation of national banking po'icies.

(b) Conducting educational and training activities for the hiKh level hank ing personnel not catered to by the existing institutions and under- taking industry-wide research activities and providing consultancy

(c) Dissemination of information on bank management know-how (d) Reviewing the impact of training and research activity in the bunkiiw sector from time to time and recommending ways of fllline the saol by such further programmes as may be necessary.

192. The recommendations of the Working Group have been accepted bv the Government of India, the Reserve Bank of India and the banking m d u t ry In order to assist the Reserve Bank in implementing them, the Governor anoointpH in July 1888 an Ixecutive Committee consisting of representative; of commercia banks- and of those associated with training of executives. Steps are belnTtaken for the recruitment of faculty and administrative staff. The Institute L bS registered as a society under the Societies Registration Act, I860.

^ ¹⁹JL T h ej J ?s t i t u te h?s already commenced its activities. For purposes of nnnJ Ing the existing experience and identifying unresolved problems, it has set up

Steering Groups, consisting of both academic personnel and those having operat- ing experience, for organising workshops on topics such as (a) Deposit Mobilisa- tion, (b) Financing of small-scale industries, (c) Financing agriculture, (d) Cus- tomer Service, and (e) Management Development Policies. A Study Group has been appointed to review the training programmes conducted in the Bankers' Training College, Bombay, and the training institutions of commercial banks in order to ensure that they effectively meet the current and foreseeable future needs of training of middle and senior level personnel.

194. The Institute has entered into collaboration arrangements with the Indian Institute of Management, Ahmedabad, with a view to preparing teaching material for its training programmes as well as organising a three-tier executive training programme in the year 1970 specifically for bank executives.

195. With a view to equipping the btafl to cope up with the various responsi- bilities devolving on them, the Bank has int-oduced several schemes of training. A Stall Training College was set up in Madras in 1963 for training of officers and' supervisory staff. The College conducts a general course on central banking lor junior supervisory stall. The syllabus covers some basic courses in economics, money, central banking law and practice of banking, activities ol the various departments of the Bank and associate institutions, principles of management and personnel relations, The College also conducts an inspection course for the officers and supervisory staff ol the Department of Banking Operations and Development and the Agricultural Credit Department who conduct inspections of commercial and co-operative banks, respectively. The syllabus for the inspection course includes a study of the law and practice of banking and training in in- spection technique and procedure. An induction course is conducted for newly appointed junior supervisory staff and officers. Recently, a course in foreign exchange has been instituted for the officers of the Department of Banking Opera- tions and Development. Arrangements are in hand for starting courses for the -Officer staff in central banking policies and techniques, management principles, etc. For the clerical stair. Zonal Training Centres have been set up at Bombay, Calcutta Madras and New Delhi where courses are conducted for junior clerks i.e. new entrants as well as those who have put in a few years' service, and senior clerks ie those who have put In 5/7 years' service. These courses seek to ac- quaint the clerical staff with the practices and procedures foPowed in the diflerent departments of the Bank.

196 The total number of officers, supervisory stafl and clerical staff who have so far received training in the various establishments is about 7,000.

197 The Bank has standing arrangements with the Administrative Stalf Col- leee of India Hyderabad, for deputing officers to the management development courses conducted by them. Officers are also sent to the banking and other courses conducted in the Bankers' Training College for the managerial stall of commercial banks and also to the short-term courses on management development orgnised by the All-India Management and State Level Associations, Productivity Councils Management Institutes and similar other bodies. Officers are a'so sent to the Central banking courses conducted iolntly by some of the Central Banks (called the SBANZA Course) and by the Bank of England, and other courses ofv inlerest to the Bank organised by some foreign institutes. The Bank has also been sending officers for training in Banking institutions in U.S.A., U.K., Austra- lia, West Germany, etc.

198 Active steps have been taken by the Bank 1o equip itself for the Increas- ing volume of work In Hindi. A special Hindi Section with well-qualified staff has been set up in the Central Office Hindi translators and typists have been appointed at most of the offices of the Bank and letters and communications re- ceived in Hindi are being replied to in tho same language.

199 Hindi versions of the major reports which are of Interest to the public, suerTas the Annual Report. Report on Trend and Progress of Banking in India, are being published. Abridged versions of other reports are being published in Hindi. Some of the Departmental Manuals, Rules and Regulations are also being translated Into Hindi.

200 Apart from the Hindi Classes run for the benefit of the staff, those who are.

not able to participate in them, are allowed to take up the correspondence courses conducted by the Central Hindi Directorate of the Government of India and the fees for such courses are reimbursed to the staff in Class III.

Vill. ACCOUNTS AND OTHER MATTERS

201. During the accounting year ended June 30, ij69, the Bank's income after making statutory and other provisions, amounted to Rs. 99.35 crores as against Rs. 92.92 crores in the previous year. The expenditure which included establish- ment expenses, turnover commission to the State Bank of India and its subsidiaries lor transacting Government business and provision for sundry liabilities amount- ed to Rs. 29.35 crores as against Rs. 27.9a crores in the previous year. The net profit available for payment to Central Government was Rs. 70 crores as against Rs. 65 crores paid during 1967-68.

202. The gold held in the Issue Department of the Bank was revalued at the current official I.M.F. rate of 0.118489 grammes of fine gold per rupee in terms of Section 33(4; of the Reserve Bank of India Act, 1934 as amended by Section 26 of the Banking Laws (Amendment) Act, 1968 with effect from FeDruaxy 1, 1969. The profit on the revaluation of this asset was transferred to the Reserve Fund.

203. The contributions to the National Agricultural Credit (Long-term Opera- tions) Fund, the National Agricultural Credit (Stabilisation) Furi3 and National Industrial Credit (Long-term Operations) Fund were Rs. 12 crores, Rs. 2 crores and Rs. 20 crores, respectively, as against Rs. 12 crores, Rs. 8 crores and Rib. 25 crores, respectively, during 1967-68.

204. The rise of Rs. 6.43 crorea in the income during 1968-69 was mainly due •to the increased interest realised on rupee securities, Increased earnings on foreign currency holdings and reduced appropriations to the funds mentioned in the pre ceding paragraph. This was partly offset by a reduction in the discount earned •on rupee Treasury bills and an ad-hoc contribution of Rs. 5 crores to the Integra- tion and Development Fund ot the State Bank of India. The rise of Rs. 1.43 crores in the expenditure was mainly on account of increase in the establishment charges owing to the payment of salaries at the revised, scale to the award staff for the full year 1968-69 as against only two months during the year 1967-68 and payment of Adjustments Allowance to Class I and Class II staff, partly offset by a reduction in the liability on account of agency charges as no payment on account of arrears was necessary during the year.

Auditors

205. The accounts of the Bank have been audited by Messrs. S. B. Billimoria & Co., of Bombay, Messrs. Brahmayya & Co. of Madras and Messrs. Ray & Ray of Calcutta who were appointed by the Government of India as auditors of the Reserve Bank of India for the year 1968-69 by the notification No. F. 3(67)- BC/68 dated November 25, 1968, issued in exercise of powers conferred by Section 50 of the Reserve Bank ol India Act.

The Central Board

206. On reconstitution of Local Boards on January 15, 1969. Sarvashrl S. L. Klrloskar, Bhaskar Mitter, J. Ramdave Row and V. N. Puri were nominated as Directors of the Central Board of the Bank under Section 8(1) (b) of the Reserve Bank of India Act, 1934 to represent the Western, Eastern, Southern, and Northern Area Local Boards, respectively. Shri D. C Kothari was also nominated as Dir- ector of the Central Board of the Bank under Section 12(4) read with Section 8(l)(c) oT the Reserve Bank of India Act. 1934, vice Shrl Ramdave Row who on his being nominated as a Director under Section 8(1) (b) to represent the Southern Area Local Board, retired under Section 8(1) (c) of the Reserve Bank ol India Act, 1934.

207. Sarvashrl R. G. Saraiya, B. N. Mookerjee and V. S. Tyagaraja Mudaliar and Raja Bajrang Bahadur Singh retired as Directors of the Central Board of the Bank on expiry of their terms of appointment on January 14, 1969, The Board wishes to place on record its high appreciation of the valuable services rendered by the retiring Directors, all through their association with the Bank.

208. Seven meetings of the Central Board were held during the year, two In Bombay and one each in Calcutta, New Delhi, Madras, Hyderabad and Bangalore. The Committee of the Central Board held fifty-two meetings of which four were held in New Delhi, one each in Calcutta, Madras and Patna and the rest In Bombay,

209. Shrl D. N. Maltwte, Executive Director, retired from the Bank's service wltii effect from June 22, 1909. Shrl K. C. Mittra has been appointed as Execu- tive Director in place of Shri Maluste.

Local Boards

210. On expiry of the term of office of the members of all the four Local Boards, on January 14, 1969, the Central Government under the provisions of Section 9> (1) of the Reserve Bank of India Act, 1934, constituted new Local Boards for the Western, Eastern, Northern and Southern areas as irom January 15, 1969. While reconstituting the Local Boards the Government ol India have nominated the following new members:—

Western Area—(1) Shri S. L. KirJoskar and (2) Shri D. G- Patel (with effect from February 6, 1969;.

Eastern Area—(1) Shri Bhaskar Mitter, (2) Shri Abhijit Sen, (3) Shri Hari Shanker Singhania, and (4) Shri G. K- Bhagat.

Northern Area—(1) Shri V. N. Purl, (2) Shri J. D. Sethi, and (3). Shrl G. R- Mattoo.

Southern Area—(1) Shri J. Ramdaye Row, (2) Shrl John K. John, and (H> Shri A. SIvasailam.

Opening and Closing of Offices and Changes in the Organisation and Management:

211. A full-fledged office of the Issue Department was opened at Patria from February 3, 1969 for serving the needs of Bihar State. The Note Cancellation, Section functioning at that Centre was merged with this office. Deposit Accounts and Public Accounts Departments were opened at the centre on September 2r 1EKJ8 and April 1, 1969, respectively. A Deposit Accounts Department was also opened at Hyderabad on May 1, 1969.

212. A Services Board of the Reserve Bank of India was set up on July 13, 1968.

Bank's Previises

A- Office Premise*

213. The Annexes to the proposed office buildings at Hyderabad and Bangalore have been completed, while the Annexe at Madras is neqring completion. The construction of the Annexe building at Nagpur is in progress. Although the work, of the Annexe at Gauhati was taken up, due to the archaeological finds during excavation, the work was suspended and steps are being taken by the State Gov- ernment to allot an alternative plot to the Bank. The proposed office buildings and annexes at Jaipur and Bhubaneswar are in the planning stage,

B. Residential Quarters

214. The Bank Is doing Its best to provide residential quarters, which are heavily subsidized, for the various categories of staff at all important centres. The Bank has so far provided 149 quarters for Officers, 366 for Supervisory staff, 1376 for Clerical stair and 432 for Subordinate staff at Bombay, Calcutta, New Delhi, Madras, Nagpur, Patna and Kanpur, covering approximately 15 per cent of the total staff at these centres.

215. The Bank is also constructing 12 fiats for its Officers at Madras, 240 for Clerical staff at Bombay and 312 for Subordinate staff at Bombay and Madras, Further construction of staff quarters Is under the planning stage which will provided for 124 flats at Bombay and 56 flats at Bangalore for Officers and Sup- ervisory staff; 272 flats at New Delhi, 456 flats at Calcutta. 24 flats at Madras, 104 flats at Nagpur and 224 flats at Kanpur for the Clerical and Subordinate staff.

216. Efforts are being made to secure suitable land for construction of staff quarters at some other centres.

217. In view of the difficulty in securing accommodation, arrangements have been made to take flats on lease at the various centres for allotment to Officer staff who are transferable.

Miscellaneous

218. The construction of the Co-operative Training College and Hostel at Poona and the additional floor over th" hostel block of the Staff Training College at Madras has been completed during the year.

Employer-Employe* Relations

219. In the last Annual Report a reference was made to the Award oi the Arbitrator, Shri T. L. Venkatarama Aiyar, retired Judge of the Supreme Court of India, in respect of certain service conditions of workmen employees in Class II and III in the Bank, which came into force from 5th April 19d8. The benefits derived by employees in the above classes have been indicated in a summary farm in the last Annual Report. The directions in the Award were actually imple- mented during the current year and this has resulted in almost all the employees covered by the Award benefiting considerably. The amount paid on account of arrears of salary (for the period 1st January 1966 to 30th April 1968) alone amounted to Rs. 1,35,97,948.32- As indicated in the last Report Class III emplo- yees of the Bank who form 68 per cent of the total staff have been awarded uni- form scales of pay at all centres; as a result, the staff employed at the offices at Trivandrum, Jaipur, Patna, Nagpur, Bhubaneswar, Indore, Gauhati, Chandigarh and Srinagar, which were formerly "non-higher pay centres", have been brought on par with the staff at the "higher pay centres" and have benefited considerably. It may be pertinent to note that the maximum amount of arrears paid to an em- ployee amounted to Rs. 6,703.80 for 28 months and in some cases the increase in the monthly emoluments amounted to over Rs. 200/-.

220. As a result of implementing the Award, the total monthly emoluments drawn at present by a Clerk at the time of entry into the Bank's service are Rs. 325/- for a matriculate and Rs. 341/- for a graduate and after 22 years of service, the emoluments will be Rs. 990/- for a matriculate and Rs. l.OOtl/- for a graduate Including Bank's contribution to Provident Fund. Apart from the basic cadres, the higher grades of Class III employees are now entitled to maximum monthly emoluments which in a number of cases, such as Assistants, exceed Rs. 1,250/- including Bank's contribution to Provident Fund.

221. Free ordinary medical facilities at the Bank's dispensaries, which were t.o i'ar available only to the employees themselves, have been extended to their families also. The Bank has always been liberal in the matter of providing hospilahsation facilities for the Bank's staff in all categories. The comulative increase in the Bank's expenditure on this account has, with this further liberalisa- tion in the medical facilities, gone up by about SO per cent from Ra. 15,56,000 in 1967-68 to Rs. 23,69.900 in 1968-69.

222. The benefits, conferred by the Aiyar Award have been extended In an •equal measure to all the staff in Class IV in matters of service conditions which were common to them. Some o£ the benefits have also been extended to the Supervisory and Officer staff.

223. The Central Government extended the Award of the Arbitrator by one year from the date of its expiry on the 5th April, 1969.

224. On 15th August 1968 the Bank published its first issue of the house journal "Without Reserve" to serve as a channel of communication between the ttifllerent units of staff and management, emphasising community ot interests. The Journal is being published quarterly and is distributed free.

225. The work relating to the survey of employer-employee, relations In banking Industrv is in progress and the survey report is expected to tw completed by the •end of 1960.

Employees' Housing Loans Scheme

226. The Bank's Housing Loans Scheme which was introduced in 19fll has *eontinued to gain popularity among all classes of employees and during the year under report 'Society Loans' amounting to Rs. 68.34,400.00 have been sanctioned

to 16 Co-operative Housing Societies on behalf of 311 employee-members. Be- sides this, loans amounting to Rs. 13,17,040.00 have been sanctioned to 73 employees individually. The total quantum of 'Society' and 'Individual' loans sanctioned by the Bank since the introduction of the Scheme upto 30th June 1969 amounts to Rs. 1,45,99,600.00 and Ra. 36,60,953.00, respectively. These loans were availed of by 34 Societies representing 718 employee-members, and 204 individual employees.

RESERVE BANK OF INDIA

S E C

.

3

Balance Sheet as at Jims 30, 1969

( i i ) ]

ISSUE DIPARTMENT

T H E

LIABILITIES

ASSETS

Rs. P.

Rs. P.

Rs. P.

Rs. P,

G A Z E T T E

Depart-

Notes held in the Baofcing

G'lU Coin and Buliiou:—

O F merit

33,31,58^677-00

183,53,10,862 72

I

(aj H;ld in India (6; Held ou'side India

. 3691,98; 87/736.50

Foreign Secmities

200,88,69/731-50

N D

I Notes in circulation Total Notes issued

3725,30,46/13-50

A

:

383,41,80,594-22 6.^11,50,834.34

TOTAL . Rupee Coin . Government of India Rupee Secu-

rities . . ..

3277,77,14,984 .94

•

Internal Bills of Exchange and

other Commercial Paper .

S E P T E M B E R TOTAL LIABILITIES .

TOTAL ASSETS

3725,30,46,413 -y> •

3735^c34f,4i3-5O

2 0

,

1 9 6 9

/

B H A D R A

2 9

,

1 8 9

)

4 0 g

l

r

. ,

B A N K I NG D E P A R T M E Nt

4 0 8 2

L I A B I L I T I ES

ASSETS

Rs. P.

Rs. P.

5,00500,000' 00 150,00,00,000-00

T H E G A Z E T T E C a p i t al P a i d - up . . . . . .. R e s e r ve F u nd . . . . . . .. N a t i o n al A g r i c u l t u r al C r e d it ( L o n g - T e nn O p e r a t i o n s)

33,31,58,677.00 2,lM4S-oo 2,86,105-94

N o t es R u p ee C o in . . . . . . .. S m a ll C o in Bills P u r c h a s ed a nd D i s c o u n t e d :—

F u nd . . . . . . ..

O F

155,00,00,000 • 00 35,oo,oc,Qoo'oo

I

75,00,00,000 -oo

(a) I n t e r n al . . . . . .. (b) E x t e r n al (c) G o v e r n m e nt T r e a s u ry Bills . . ..

N a t i o n al A g r i c u l t u r al C r e d it ( S t a b i l i s a t i o n) F u nd , N a t i o n al I n d u s t r i al C r e d it ( L o n g - T e rm O p e r a t i o n s) . . . . . ..

F u nd

130,24,45.509-57

N D

I

D e p o s i t s :—

A

:

(a) G o v e r n m e nt

147,46103,010.56 226,06,06,187-28

B a U n c es head A b r o a d* . . . . :. I n v e s t m e n t s ** . . . . . ..

L o a ns a nd A d v a n c es t o :—

59.66,57,731-45 I2,68,oo,586'30

ft) C e n t r al G o v e r n m e nt . . . .. (it) S t a te G o v e r n m e n ts . . . ..

(t) C e n t r al G o v e r n m e nt . . . ..

(4) B a n ks

( H) State G o v e m m e n t s@ . . . ..

24^5,00,000-00

L o a ns a nd A d v a n c es t o :—

(1) S c h e d u l ed C o m m e r c i al B a n l rt (I'O S c h e d u l ed S t a te C o - o p e r a t i ve B a n ts

191,68,69,746-58 16,33,08,028-76

S E P T E M B E R (iff) N o n - S c h e d u l ed S t a te C o - o p e r a t i ve B a n ks ( w) O t h er B a n ks . . . . ..

70,17,569-93 38,50,892-71

(0 S c h e d u l ed C o m m e r c i al B a n k s! (it) S t a te C o - o p e r a t i ve B a n k st . . .. (tit) O t h e rs

181,24^00,000 -oo 203,82,87,481.00 2,03,44,640-00

2 0

,

L o a n s, A d v a n c es a nd I n v e s t m e n ts f r om N a t i o n al A g r i- c u l t u r al C r e d it ( L o n g - T e nn O p e r a t i o n s) F u nd

(a) L o a ns a nd A d v a n c es t o :—

(c) O t h e rs Bills P a v a b l e. . . . . . .. O t h er L i a b i l i t i es . . , . . .,

1 9 6 9

/

(1) S t a te G o v e r n m e n ts . . . .. (it) State C o - o p e r a t i ve B a n ks . . ..

31,46,97,1^4-29 17,59,94,9*8.00

(iff) C e n t r al L a nd M o r t g a ge B a n ks

(b) I n v e s t m e nt in C e n t r al L a nd M o r t g a ge B a nk D e-

b e n t u r es . . . . .. ,

8,96,93,135.00

B H A D R A

L o a ns a nd A d v a n c es from N a t i o n al A g r i c u l t u r al C r e d it

2 9

,

( S t a b i l i s a t i o n) F u nd

L o a ns a nd A d v a n c es to State C o - o p e r a t i ve B a n ks

5"I7J"9,7<5I-OO

1 8 9 1

L o a n s, A d v a n c es a nd I n v e s t m e n ts f r om N a t i o n al I n-

[

d u s t r i al C r e d it ( L o n g - T e rm O p e r a t i o n s) F u nd

(a) L o a ns a nd A d v a n c es to t he D e v e l o p m e nt

P A K T

B a nk

6,26,71,0+4.00

I I

(6) Investment in bonds/debentures issued by the

S E C

.

development Bank . . . ..

3

Other Assets

65,42,71,297-49

( i i )

J

TOTAL ASSETS

TOTAL LIABILITIES .

1083,19^40,389-13

. 1083,19,40,389-13

Contingent liability on partly paid shares Rs. S,993992' 80 (Sterling Investments of £50,000 converted @ Rs icx)-£5"5556).

•Includes Cash, Fixed Deposits and Short-term Securities.

**C0 Excluding Investments from the National Agricultural Credit (Long-Term Operations) Fund and the National Industrial CrectCLong-Term Opera-

tions) Fund. (u) Includes £50,000 and U.S. £+,907,500 held abroad.

T H E G A Z E T T E @Excmdingl"amandAdvarK"sfromt±eNationalAgriculniralCredit (Long-Tcrm Operations) Fund.

{Includes Rs. 109,55^,00,000 advanced to scheduled commercial banks against usance bills under Section I7(4)(c) of the. Reserve Bank of Ind,a Act.

O F {{Excluding Loans and Advances from the National Agricultural Credit (Long-Term Operations) Fund and the National Agricultural Credit. (Stabi-

I

lisation) Fund.

N D

I

R. C. SACHDEVA,

A

:

Chief Accountant.

J. K. JHA; Governor. B. N. ADAKKAK, Deputy Governor

Dated, the iird Jgly, 1969. A. BAKSI, Deputy Governor. J. J. ANJARIAJ Deputy Governor- P. N. DAMKY, Deputy Governor-

S E P T E M B E R

2 0

,

1 9 6 9

/

B H A D R A

2 9

,

1 8 9 1

4 0 8 *

Pro/it and Lass Accounts

4

O

8

4

"— —-

FOR

THE YEAR ENDED

June, 30 1969

June 30,1968 June 30, 1967

~ — •

— __

T H E G A Z E T

Rs. p.

Rs. P.

I

Rs. P.

INCOME

Interest, Discount, Exchange, Commission, e t cj

E O F

I

99,34,87,614-23 92,92,11,671-89 85.12,17,798.63 N D

EXPENDITURE

Establishment

I ^ S E F

I4>25,i3,347.22

r e

10,24,00,952-84 67,605-07 30,000-00

M B E R

78,028-50 37,500,00 ⁸3,7&7O5'27 2*78,549-33

11^74=52,581.32 66,859-23 30,000.00 64,70,307.75 1^3^39.37

2

0

,

14,708.45 850,377 • 65 Directors' and Local Board Members' Fees & Expences Auditors' Fees . ^ ^ ^ "s . Rent, Taxes, Insurance, Lighting, etc. Law Charges • Postage and Telegraph Charges '. Remittance of Treasure . Stationery, etc.

'

9^61,938.76 42,17,526.30

9,86,913-50 47,16,620-50 20,07,889.69

1 9 6 9

/ Security Printing (Cheque, Note Fo'rms, etc) Depreciation and Repairs to Bank Propertv ' ' Agency Charges .

' '

44,26,080.96 16,15,830,06 4,65,24,897.71 68,^1,357,31

7,83,59,733 • 25

B H A D R A Contribution to StafTand Superannuation Funds .' Miscellaneous Expecses

7,32,000.00

5j°8,9f5,i24-95 86,27,823.13 6,66,21,923-58 7,32^00,00 76,io,9i9'8i

15)97=976-97 5,00,13,904,09 69,08^487-84 8,65,30,376.36 7,32^)00,00 40,66,145 • 79

2 9

35,13,774-50

.

Net available balance

70^0,00^18,65 65,ooyOO,348-ii

60,00,00,903-98 TOTAL

99,34,87,614-22 92,92,11,671-89

85,12,17,798-63

1—

Surplus payable to the Central Government ~

70,00,00,218-65 65,00,00,348,11

6O,0O,OO,903-9S

1 8 9 1 [ P A R T I

'—' '. L

1 _

S E C

Ri/ssrve Fund A&ouni

3

150,00^0,000.00

By B a l a n ce on " y t h. J u n e3 1 9 69 . . . . . . . ..

( i i ) ]

By t r a n s f er f r om P r o f it a nd L o ss A c c o u nt . . . . . ..

Nil

T H E

150,00,00,000-00

T O T AL .

{After making usual or necessary provisions in terms of Section 47 of the Reserve Bank of India Act.

G A Z E T T E

R. C SACHDEVA, Chief Accountant.

O F

I

N D

L. K. JHA, Governor. B. N. ADARKAR, Deputy Governor. A. BAKSI, Deputy Governor. J. J ANJ\KIA, Deputy Gcfoemor. P. N. DAMRY. Deputy Governor.

I

A

:

Repoti of t^e Auditors

S E P T E TO THE PRESIDENT OF INDIA,

We, the undersigned Auditors of the Reserve Bank of India, do heiebv report ro the Central Government upon the Balance Sheet and Accounts of

M B E R the Bank as at 30th June, 1969.

2 0

,

1 9 6 9

/ We have examined the ?bo\e Balance Sheet with the Accounts, Certificates and Vouchers relating thereto of the Central Office and of the Offices at Calcutta, Bombay and Madras and with the Returns submitted and certified by the Managers of the other Offices and Branches, which Returrs are in- corprated in the above Ba'ance Sheet, and report that where we have called for explanations and infopm*ion from the Central Board such in forma'ion and exolanatio is have been given and have been satisfactory. In our opinion, the Balance Sheet is a fuu and fair Balance Sheet containing the particulars prescribed by and in which th- assess have been valued in accordance with the Reserve Bank of India Act, 1934 and the Regulations framed thereurder and is properly drawn up so as to exhibit i "rue and correct view of thes+a'eof the Bank's affairs according to the best^of our information and the explanations given to us, and as shown by r'ie Books of the Bank.

B H A D R A

2 9

S. B. BrLLIMOBIA & CO., "j BKAHMAYYA & Co., VAuditors -

,

Dated, the 23rd July 1969.

RAY & RAY J

I

S 9 [

[No. F. 3(44)IBC/69l

D. N. GHOSH, Depun ^.

4 0 8 5

(Department of Revenue and Insurance)

STAMPS

New Delhi, the 20th September, 1969.

8.0. 3780.—In exercise of the powers conferred by clause (a) of sub-section (1) if section 9 of the Indian Stamp Act, 1899 (2 ot 1899), the Central Government hereby remits [in addition to the remission of duty made in the order of the Government of Indin in the Ministry of Finance (Department of Revenue and Insurance) No. 21/68-Stampf?/F.No. 1/50/68-Cus.VH which was published in Part II-Section 3-Sub-section (ii) in the Gazette of India dated the 23rd November, 1968, at page 5339] the duty with which the bonds to the value of one lakh, sixty-four thousand and four hundred rupees issued in excess by the Maharashtra State Financial Corporation are chargeable under the said Act.

[No. 9/69-F.No. 1/21/69-Cus.VII/Stapms.]

P. K. KAPOOR, Under Secy.

ERRATUM

In the Ministry of Finance (Department of (Revenue and Insurance) Notification No. 2/69-Stamps/F. No. 1/6/69-Cus.VII, dated the 9th August, 1969 published in the Gazette of India, Part Il-section 3-sub-sectIon (li), dated the 9th August, Xfl69, the S.O. No. should be read "3198-A", Instead of "3199".

MINISTRY OF PETROLEUM AND CHEMICALS AND MINES AND METALS

(Department of Petroleum)

New Delhi, the 3rd September 1969

8.0. 3782.—Whereas it appears to the Central Government that it la necessary in the public interest that for the transport of Petroleum from the drill sites Well No. 119 to GGS VII in the Kalol Oil Field, in Gujarat State, Pipelines should

be laid by thg Oil & Natural Gas Commission and that for the purpose of lad- ing such pipelines, it is necessary to acquire the Right gf User in the land des-_ crlbed in the schedule annexed thereto.

2. Now, therefore, in exercise of the powers conferred by sub-section (i) of the Section 3 of the Petroleum Pipelines (Acquisition of Right of User In land) Act, 1962 (50 of 1962), the Central Government hereby declares Its intention to acquire the right of user therein.

3. Any person interested in the said land may, within 21 days from the date of this notification object to the laying of the pipelines under the land to the Competent Authority, at Western Region, Shed No. 27), Makarpura Road, Near Centra] Workshop, Baroda-4, in the Office of the Gujarat Pipelines (Oil & Natu- ral Gas Commission), Baroda. Every person making such an objection shall also state specifically whether he wishes to be heard in person o; by a legal practitioner.

SCHEDULE

For laying lint from Well No. KjD 119 to G. O. S. VII

State—Gujarat Dist—-Ahmedabad Taluka—Dascro:

Village

Survey No.

Hectare Are P. Are.

TARAPUR .

0

6

0

8 9

1 0

V.P. Cart track

                     0
 12                  0            11
14                    0           10
16                    0           11
                     0             2

V. P. Cart track

97               0
98              0          1
96               0         2
99               0        19
                           0

V. P. Cart track

15 95 65 AA 40 70 21 98 63 47 °5 55

1 00

0 0

V.P.G rffuck

                                        13          21
                            0           1           95
       164                  0           0           50
      1 00                 0            14          95
       158                  0            6           76
       157                  0            4           55
      - iS5                 0           10          79
V.P. Giit  t  a:k           0            0          78
       154                  0          21   •       82
       195                  0         •  6          12
       799                  0            6
       197                  0            6
       7 07                 0          19
       7 O6                 0          12
       ro8                  0           T-7
                            0            1
                           0            5

V. P. Cart track

577

17 35 F6 68 36 24 85 ADALAJ

. Road I elvcen village

• 0 •

Adaluj & Uvarsad.

- 0*

0'

90 59 95

?77 "

576

' 3 * * 6 * 8

LNo. 20/3/67-lOC/Lab. & Legis.]

New Delhi, the 11th. September 1969

S.O. 3783.—Whereas it appears, to the Central Government that it is necessary In the public interest that for the transport of Petroleum from the drill sites well No. 21 to well No. 20 in the Anklcswar Oil T'VH, in Gujarat State, Pipelines should be laid by the Oil and Natural Gas CommisKirm and that for the nur-osc of lavinp such Pipelines, it is necessary to acquire the Right of Usei in the land described in the schedule annexed thereto.

2, Now, therefore, in exercise of the powers conferred by Sub-Section (i) of the Section 3 of the Petroleum Pipelines (Acquisition of Rifiht of User in land) Act, 1S62 (50 of 1962), the Central Government hereby declares its intention to acquire the right of user therein.

3. Any person interested in the said land may, within 21 days from the date of

this notification object to the laying of the pipelines under the land to the Com- petent Aulhority. at Western Region, Shed No. 27, Makarpura Road, Near Central Workshop, Baroda-4, in the Office of the Gujarat Pipelines (Oil & Natural Gas Commission), Baroda. Every person making such an objection shall also state specifically Whether he wishes to be heard in person or by a legal practitioner.

SCHEDULE

State—Gujarat Dist—Broach Tal—Ankleswar.

For laying pipeline from well No. 21 to well 30.

Village

HAJAT

Arc.

Hectare

Survey No.

P.Are.

0

16 i

0

0 0

15 16

90 82 6o 77 15 16 13 35

[No. 31/67/63-Prod/lOC/Lab.&Legis.]

ERRATA

New Delhi, the 5th September 1989

S.O. 3784.—In the Notification of the Government of India in the Ministry of Petro- lean & C i m i c i h, No. 2907)/68-IOC-LAB , dated 23-12-1968, published under JS.O. No. 40 in C13 jU;rim::ntGjzetteofInJiaPartII,Section3,Sub-Section(ii)dated 4-1-1569.

1. At pate No. 35 and Ht village Pansoll

For S. No.

"Read'

H.

0 0 192 299

2. Omit S. No. 294

II. At Page No. 35 & at village Nawagam.

'For'

Are.

P. Are

H.

P. Arc Are.

0 0

00 50

3 13

4 15

56 5°

'Read'

For S.No.

'For'

H. Are P. Arci

©

P.Are

0

01 0

H. Are 0 5

616/1 .

616/2/1 .

616/2/2 .

• • • • • • • " •

0 1

00

05 0

• • • • • • 617/1 • 617/2 . 617/3 .

Omit S. No.

(ii)

S.No.

S.No.

S.No. 302/1 & S.No. 302/2

714/1 741/2 741/3

304/( 304/2.

[No. 29/7/68-IOC/Lab. & Legis.] j

M. V. S. PRASADA RAU, "Under Secy.

(Department of Mines and Metals

ERRATUM

New Delhi, the 10th September 1969

S.O. 3785-—In the Notification ol the Government of India in the Ministry of Petroleum and Chemicals and Mines and Metals (Department of Mines and Metals) No. S,O. 3378, dated the 13th August, 1!J69, published at pages 3609 to 3611 in Part II, Section 3, sub-section (ii) of the Gazette of India dated the 23rd August, 1969, at page 3611,—

(i) in line 2, for "Area" read "Are"; (ii) in line 21, for '"Area" read "Ara".

I No. C2-20(18)/64.]

M. S. K. RAMASWAMI, Dy. Secy.

MINISTRY OF INFORMATION AND BROADCASTING

New Delhi the 2nd September 1969

S-O. 3786.—In exercise of the powers conferred by Section 5(1) of the Cinema- tograph Act, 1952 and sub-rule (3) of rule 8 read with sub-rule 2 of rule 9 of the Cinematograph (Censorship) Rules, 1958, the Central Government hereby appoints Shri Lalit Kumar Mulraj Khatau as a member of the Advisory Panel Central Board of Film Censors at Bombay with immediate elTect, upto 31st December, 1960.

[No. ll/12/69-F(C.)l

SO. 3787.—In exercise of the powers conferred by Section 5(1) of the Cinema- tograph Act, 1952 and sub-rule (3) of rule 8 read with sub-rule 2 of rule 9 of the Cinematograph (Censorship) Rules, 1955, the Central Government hereby appoints Shri Pakala Surianarayana Rao after consultation with the Central Board of Film Censors as a member of the Advisory Panel of the said Board at Madras with immediate effect upto 31st December. 1969.

LNo ll/3/68-F(C).]

New Delhi, the 10th September 1969

S.O. 3788—In exercise of the powers conferred by Section 5(1) of the Cinemato- graph Act, IS52 and sub-rule (3) of rule 8 read with sub-rule 2 of rule 9 of the Cinematograph (Censorship) Rules, 1958, the Central Government hereby appoints Dr. B. P. Adhlkari after consultation with the Central Board of Film Censors as a member of the Advisory Panel of the said Board at Calcutta with immediate effect upto 31st December, 1969

TNo ll/l/68-F(C).]

ORDER

New Delhi, the 11th September 1969

S.O. 3789.—In pursuance of the directions issued under the provisions of each of the enactments specified in the First Schedule annexed hereto, the Central Government after considering the recommendations of the Films Advisory Board, Bombay hereby approves the fUm/specifled in column 2 of the Second Schedule annexed hereto in Gujarati to be of the description specified against it in column 6 of the said Second Schedule.

THE FIRST SCHEDUC.E

(1) Sub-Section (4) of the Section 12 and Section 16 oflfthe Cine-natograph Act, 1952

(Central Act XXXVII of 1952).

(2) Sub-Section (3) of Section 5 and Section 9 of the Bombay Cinemas (Regulation) Act,

1953 (Bombay Act XVII of 1953).

(4) Sub-Section (4) of Section 5 and Section 9 of the Saurashtra Cinemas (Regulation) Act,

10^3 'Sanraihtro AcfXVIT of T95V).

THE SECOND SCHEDULE

Tide of the film

s.

Name of the Name of the-

applicant Producer

Length 35 mm

No.

Whether a Scientific film or *. film intended for educational purposes or a film dealing with news and current events 01 a documentary film

6

1

2

4 5

3

1.

Director of Information

Vaishnavajan 28o-42M

Documentary film (for release in Gujarat Circuit only).

Government of Gujarat, Sachivalaya, Ahmedabad.

[No. F. 24/1/69—FP App. 1385]

BANU RAM AGOARWAL, UNDISK SECY.

MINISTRY OF LABOUR, EMPLOYMENT AND REHABILITATION (Department of Labour and Employment) New Delhi, the 9th September 19G9

S.O." 3794.—Whereas the State Government of Bihar has, in pursuance of clause (d) of section 4 of the Employees' State Insuiance Act, 1948 (34 of 1948), nominated Shrl M. A)am, Secretory to the Government of Bihar, Department of Labour and Employment, to represent that State on the Employees' State Insu- rance Corporation in place of Shri K. A. Ramasubramanian;

Now, therefore, in pursuance of section 4 of the Employees' State Insurance Act, 1948 (34 of 1948), the Central Government hereby makes the following fur- ther amendment in the Notification of the Government of India, In the Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employ- ment) No. S.O. 2551, dated the 9th August, 1966, namely:

In the said Notification under the heading "(Nominated by the State Governments under clause (d) of Section 4)", for the entry against item 10, the following entry shall be substituted, namely: — "Shri M. Alam, Secretary to the Government of Bihar, Department of Labour and Employment, Fatna-"

[No. F. 3(2)/69-HLl

S.O. 3Ji)J.—Whereas it appears to the Central Government tnat the employei and the majority of the employees in relation to ihe tVuuhshmeni known as Messrs M.C.T.M. Firm, 30, Coral Merchant Street, Mudus-l have agreed ihm the provisions or. the Employees' Piovldent Funds Act, 1UJ2 (19 of 19.JJI, snuuiu be made applicable to the said establishment;

Now, therefore, in exercise of the powers conferred uy tub-section (4J 01 sec- tion 1 of the said Act, the Central Government hereby applies the PIOVIMOUS of the said Act to the said establishment.

This Notification shall come into force on the thirty-first day oi August, 19ti!i

[No. 8(91)/69-PF.Ii(i>.]

of Labour, Employment and Rehabilitation (Department of Labour and Employ- men.) No. SO. 2551, dated the 9th August, 1960, namely : -

In the said notification, under the heading "(Nominated by the Central Govern- ment under clause (e) of section 4 to represent Union Territories' , for the entry against item 22, the following entry shall be substituted, namely .—

"SbrJ V. K. Chanana, Labour Commissioner, Delhi Administration, Delhi."

LNo. F. .V2/69-HI.]

S.O. 3801.—Whereas the State Government of Madhya Pradesh, haa in pursuance of clause (d) of section 4 of the Employees' State Insurance Act, 1948 (34 of 1948), nominated Shri B. M. Date, Labour Commissioner, Madhya Pradesh. Indore, to represent that State on the .Kmployees' State Insurance Corporation in place of Shri M. M. Khar;

Now, therefore, in pursuance of section 4 of the Employees' State Insurance Act, 1948 (34 of 1948), the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employment) No. S.O. 2551 dated the 9th August, 1966, namely :—

In tht: said notification, under the heading "[Nominated by the State Govern- ments under clause (d) of section 4]", for the entry against item 13, the following "ntry shall be substituted, namely :—

"Shri B- M- Date, Labour Commissioner, Madhya Pradesh, Indore."

[No. F. a/2/69-HI.]

New Delhi, the 12th September 1969

SO. 3802.—In exercise of the powers conferred by section 73F of the Employees' State Insurance Act, 1948 (34 of 1948), the Central Government, having regard to the location of the Andhra University Press, Waltalr, in an implemented area, hereby exempts the said Press from the payment of the employer's special contri- bution leviable under Chapter VA of the said Act for a period of one year with effect from the 10th July, 1969, upto and inclusive of the Fth July, 1970

|"No. F. 6(41)/69-HI.]

S.O. 3803.—In exercise of the powers conferred by section 73F of the Employees' State Insurance Act, 1948 (34 of 1948), the Central Government, having regard to the location of the Central Government Press, Ahmedabad, in an implemented area, and in continuation of the notification of the Government of India in the Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employment) No. S.O. 4042, dated the 8th November, 1968, hereby exempts the said press from the payment of the employer's special contribution leviable under Chapter VA, o{ the said Act for a further period of one year with effect from 16th August, 1969, upto and inclusive of 15th August, 1970

[No, F. 6/91/68-HI.l DAL JIT SINGH, Under Secy.

(Department of Labour and Employment)

New Delhi, the 10th September 1969

S- O. 3810.—In exercise of the powers conferred by section 39 of the Industrial Dispute* Act, 1947 (14.of 1947),and in supersession of the notifications of the Government of India in the laic Ministry of Labour and Emp'oyirient No. S.O. 2723 dated the r4th November, 1961, and in the- Ministry of Labour, limp"05 merit and Rehabilitation (Department of Labour and Employment) No. R.O. 3257, dated ilie 15th September, 1967, the Central Govern- ment hereby directs that the power excrcisable by it under sub-section (i) of section 34 of the said Act, shall, in respect of the offences punishable under sections 26.27 28 and 29 of that Actbecxerc sable a¹ so by each of the officers mentioned in column 2 of the table annexed hereto in the area specified in the corresponding entry in column 3 of the said table.

THt' TA BLF

Designation of Officerh

Tcrrritorial jurisdiction s.

No.

2

3

1

2

¹

J

10

11

12

j

20

21 22

I

2

3

/I⁷. .1 Mir a-.

26 27 28

The State of Tamil Nadu and \ Kerala and the Union. Terri- | tory of Pondicherry.

L.E.O (C), Madrat-1 L-K.O. ',Q, Madras-II L.E.O. (C), Modras-III L.E.O. i C\ Tiruchirapalli L-E.O. (C), Coimbatorc L.E.O. (C), Madurai L.E.O. (C), Salem L.E.O. (C), Krnakulam

1 J

30 3i 32 33

[ The State of Madhya Pradesh.

34 35 36 37 38

V. Jabalpur L.B.O. (C), Jabalpur-I L.E.O. (C\ Tabalpur-II L.E.O. (C), Ratlam L.K.O. (C), Bhopal L.E.O. CQ, Sarna

J

1

The Stace of Uttar Pradesh, y , Punjab and Haryana and the

Union Territories of Delhi, Himachal Pradesh and Chandigarh.

VI. Kanpw L.E.O. (C), Kanpur-I L.E.O. (C), Kanpur-II L.E.O. (C), Ksnpur-III L.E.O. (C), Delbi-I L.E.O. (C), Ddhi-11 L.E.O. (C), liareilh L.E.O. (C), Goratlipur L.E.O. (C), Allahabad L.H.O. ( Q, Lucknow L.h.O. (C), Jullurdur L.E.O. (C), Dchraduii L.H.O. (C,), Jhon

39 40 41 42 43 44 45 46 47 4£ 49 5o

1 J

* The State of Bihar (excluding

Singhbhum District). 51 52 53 54 55 56 57 58 59 60 61 62 63 64

VII. Dhavbad L.E O. (C), Dehri-on Sone L.E.O. (C)j Katrasgarh L.E.O. (C), Koderma L.P..O. (C), Muzaffanlur L.H.O. (C), Pnthci-dih L.E.O. (C), KL-kend L.E.O. (C), Gindih L.li.O. (C), Bhagmara-I L.F.-O. (C), Bhagmarfl-n L.H.O. (C), Cluikunda L.E O.(C\ Jh;-,fia L.E.O. (C), Katihar L.E.O. IC), Bcimo L.E.O CQ, Dhanbad-1 L.E.O (C), Dbanbad-11 L.E.O. (C), Dhatibad-HI L.H.O. (G), Dhanbad-IV L.li.O. (C\ Dhanbad-V

65 66 67 6R

V i l l. Hyderabad

. The States of Mysore and

Andhra Pradesh.

L.E.O. fC), Hyderabad-1 L.E.O. (G), Llydcrabad-Il L.E.O CQ, Hyderabad-Ill L.K.O. (C), Vijayawada L.K.O. (C), Visakhapatnaro L.K.O. (C\ Cuntakal L.E.O, CQ, Bangalore L.E.O. CQ, Manchcrial L.E.O. (C), Chitradurga L.E.O. CQ, Gulbarga L.E.O ( Q, Bellarv.

69 70 71 72 73 74 75 76 77 78 79

I

2

    IX.  Ajiner
80   LE.O.  (C), AhmeJabad
Bl   L  t,.O. (C), Bhilwara
82   L.K.O. (C), Jaipur
83   L.E.O. (C), jojhpuv
84   L.E.O. (C), A)mer-I
*5   L.E.O. (C), Ajmer-11
86   L.E.O. (C), Kota
87  L.E.O.  (C), Baroda
88   L.K.O. (C), Udaipur.
    X.  Asatsol
89   L.K.O. (C), Asanalol-1
90   L.E.O,(C), Abansol-11
91  L.E.O.(C),  Asansol-IIl
92   L.E.O.(C),  Ukhia
93  L.E.O.  (C),Raniganj.
   XL  Bhubanewar
94  L.E.O. (C), Bhubaiieswiir
95  L,E.O.(C),  Titilagarh
96  L.E.O.(C),  Rourkela.

3

 |  The  States  of Rajasthan  and
 1   Gujarat,
 I
J
 1 The Districts of Burdwan, Bir-
 }•  bhum,  Bantura  and  Punt-
|   ha in the State of "West Bengal.
~]  The State of Orisaa and Singh-
 >  bhum District of Bihar

[No. F. i/si/69-TR-I]

New Delhi, the 15th September 1969

S.O. 3811.—In pursuance of section 17 of the Industrial Disputes Act, 1947 (14 of 1947), tnc Central Government hereby publishes the following award of the Industrial Tribunal, Hyderabad, 111 thf industrial dispute between the employers in relation to the Andhra Bank Limited, Hyderabad and their workmen, which wis r ww d h\ t>v Coin a) (juvei'inneni on the flth Septombcr, 1989

BEFORE THE INDUSTRIAL, TRIBUNAL (CENTRAL) AT HYDERABAD.

PRESENT:

Sri Mohammad Najmuddlii, M.A., B.L., Chairman, Industrial Tribunal. Hyderabad

INDUSTRIAL DISPUTE NO. 49 OF 1068,

BETWERN .

C. V Sivaramn Krishna, Workman of Andhra Bank Limited, Hyderabad

AND

The Management, Andhra Bank Limited, Hyderabad.

APPEARANCES :

Sarvasri P. Venkateswara Sarrr.a, V. V. K. Ranadhir and C. V. Sivarama Krishn,a for Claimant.

Sarvasri S. Narsimham and B. Papa for Management.

AWARD

The Government of India in its Ministry of Labour, Employment and Rehabilita- tion (Department of Labour and Employment¹) had, by order No. 23/4/68-LR.III dated 20th August, 1968, referred this case to me for adjudication. The issue as schedule appended to the notification is this:

Having regard to paragraph 5.356 of the Award of the National Tribunal (Bank Disputes), whether the Management of Andhra Bank, Hyderabad, was justified in re-fixing the pay of Sri S. V. Sivnrama Krihna, the workman in the Machilipatnam branch of the Bank and insisting on the recovery of Rs. 8,782.48 from his pay?

If not, to what relief is the workman entitled?

2. The Andhra Bank Employees' Association, Machillpatnam, is party to the reference through its General Secretary. The statement of claim was filed by and under the signature of Mr. Sarma, the General Secretary of the Association. Briefly, the case of the Association is that the recovery mentioned in the issue under reference cannot be made. The Management filed counter through Mr. S. Narsimham, Staff Superintendent, Andhra Bank Limited. Briefly, the case oi the Management Is that the proposed recovery was proper and valid. I am not referring t0 the pleadings of the parties in any detail because that is not necessary A memorandum of settlement elated this day the 1st September, 1969 is filed. On behalf of the Andhra Bank Employees Association it is signed by Mr. P. Venkateswara Sarma and by Mr. V. V. K. Ranadhir. They are respectively President and Assistant Secretary of the Association. It is also signed by the claimant, Mr. C. V. Sivarama Krishna On behalf of the Management it Is signed by Mr. S. Narsimham and by Mr. B. Papa Raju. They art? respectively Staff Superintendent and Officer, Stair Department in the Andhra Bank. I have perused the terms of settlement. I find that the settlement is fair and equitable between the parties.

3. Award is herewith passed In terms of the memorandum of settlement dated 1st September, 1969, copy whereof is appended hereto.

Given under my hand and the seal of the Tribunal, this the 1st day cf September, 1969

(Sd.) M. NAJMUDDIN,

Industrial Tribunal-

BEFORE THE INDUSTRIAL TRIBUNAL (CENTRAL) AT HYDERABAD

INDUSTRIAL DISPUTE NO, 49 OF 1968

C V. Sivarama Krishna.

Versus

The Andhra Bank Ltd.

On a reflxation of basic pay made by the Andhra Bank a dispute was raised on behalf of Mr. C, V. Sivararnakrishna, and the same was referred for adjudication to the Industrial Tribunal under Section 10(l)(d) of the Industrial Disputes Act by the Central Government. The parties filed their respective statements and there- after discussions were held between the parties and a settlement was arrived at regarding the case which is the subject matter of reference numbered as I.D. 49 of 1968. The settlement arrived at is as follows: —

It is mutually agreed that the Management will fit Mr. C. V. Sivarama Krishna in the appropriate Desat Award scale of pay as per paragraph 9,356 of the Desai Award as interpreted by the Supreme Court in Civil Appeals Nos, 1008 and 1009 of 1965 between State Bank of Patiala and Mr. Ramprakash and another (1966 Part I LLJ Page 34) and then fit the employee in the appropriate scales of pay under B. P. Settlement as per sub-clause (a¹) of Clause 4.7 of B- P. Settlement. Fitted on this basis, the basic pay of Mr. C. V- Slvaramakrishna, Stenographer, Central Office, on January 1. 1962 under Desai Award would be Rs. 237/-. In accordance with the above, the gross amount (dearness allowance, etc.) due to Mr. Sivarama Krishna ia calculated and fixed at RSL 6,714.99 upto 31st August, 1969. His contribu- tion to p.F. on the basic pay etc., coming to Rs. 453/- is deducted and an amount of Rs, 6,261.99 plus bonus of Rs. 331.35, total Rs. 6,593.34 Is found payable to Mr. C. V. sivarama Krishna and the workman accepts this amount In full satisfaction of the claim The arrears will be paid to the employee on or before 30th September 1969.

The question of any other adjustments in overtime wages etc., will not be reopened by or on behalf of the workman or the Andhra Bank Employees' Associa- tion, who are both signing this in token of acquiescence.

In view of the settlement referred to above, there is no dlsnute now between the parties and there is no need to pursue the matter before the Honourable Tribunal.

Under the circumstances explained, we request that this Honourable Tribunal may be pleased to pass an Award in tprrns *xf fhe Agreement.

For the Andhra Bank Employees' Association., For the. Andhra Bank Ltd.,

1. P. VENKATESWARA SARVLA, 1. S. NARASIMHAM,

President, 1-9-6!.) Staff Superintendent, 1-9-69.

2. V. V. K. RANADH1R 2. B. PAIARASU,

Asstt. Secy., 1-9-69 OHI er-Staff Dept, 1-9-69.

3 C V. SIVA K<\MA KRISHNA 1-0-m

M. NAJMUDDIN,

Industrial Tribunal. [No. 23/4/68/LRIIIJ

ORDERS

New Delhi, thp 5th September 1989

S.O. 3812.—Whereas the industrial dispute specified in the Schedule hereto annexed is pending before Shri P. P. R. Sawhney, Presiding Officer, Industrial Tribunal, Chandigarh;

And whereas the services of Shri P. P. R. Sawhney have ceased to be available;

Now, therefore, in exercise of the powers conferred by section 7A, and sub- section (1) of the section 33B of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby constitutes an Industrial Tribunal with Shri P. N. Thukral as the Presiding Officer, with headquarters at Faridabad, withdraws the proceedings in relation to the said dispute from the Industrial Tribunal, Chandigarh and transfers the same to the said Industrial Tribunal, Faridabad, for the disposal of the said proceedings with the direction that the said Tribunal shall proceed with the proceedings from the stage at which they are transferred to it and dispose of the same according to law.

SCHFDTILE

Order No. and

S. No, Parries to the dispute

S.O. No. of Gazette and year of

date.

publication

4522/68.

23/8O/68/LR- III,

Hunk Limited and their

1 Punjab National workmen.

dated the 10 th- Dccember, 1968

[No. 23/80/68/LR-III]

New Delhi, the 8th September 1969

S.0.3813.—Whereas the Central Gove.nment is of opinion that an industrial dispute exists between the employers in relation to the Vijaya Bank Limited and their workmen in respect of the matter specified in the Scheduled hereto annexed; And, whereas the Central Government considers it desirable to refer the said dispute for adjudication;

Now therefore in exercise of the powers conferred by section 7A and clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947^), the Central Government hereby constitutes an Industrial Tribunal of which Shri B M Jayamahadeva Prasad shall be the Presiding Officer, with headquarter! at Bangalore and refers the said dispute for adjudication to the aald Tribunal.

QCHDDI4

Whether the management of the Vijaya Bank Limited, Mangalqre-3. WM justified in transferring Shri A- P. TInalkar, Joint Secretary of the vyaya Bank Employees' Association. Coondapoor from their Dharwar Branch to K. G. Road, Bangalore Branch? If not, to what relief la ha entitled?

[No. 23/78/69/LRIII.J

S.O. 3814.—Whereas the Central Government ia of opinion that an industrial dispute exists between the employers In relation to the Vijaya Bank Limited and their workmen In respect of the matter specified In the Schedule hereto annexed;

And, whereas the Central Government considers It desirable to refer the said dispute for adjudication;

Now, therefore, In exercise of the powers conferred by section 7A and clause (d) of aub-sectlon (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby constitutes an Industrial Tribunal of which Shri B. M. Jayamahadeva Prasad shall be the Presiding Officer, with headquarters at Bengalore and refers the said dispute for adjudication to the said Tribunal.

SCHEDULE

"Whether the management of the Vijaya Bank Limited, Mangalore-3, was justified In transferring Shri Ganesh Shetty, clerk from their Dajibanpeth, Hubli Branch (Mysore State), tp Kanhangad Branch (Kerala Stale)? If not, to what relief is he entitled?"

[No. 23/77/69/LRIIL]

New Delhi, the 10th September 1969

S.O. 3815.—Whereas the Central Government is of opinion that an industrial dispute exists between the employers in relation to the New Great Insurance Company of India Limited, Nagpur and their workman in respect of the matters specified In the Schedule hereto annexed;

And, whereas the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute for adjudication to the Industrial Tribunal No. 2, Bombay, constituted under section 7A of the said Act.

SCHEDULE

"Whether the management of the New Great Insurance Company of India Limited, Nagpur was justified in terminating the services of Shri R. 3. Kale with effect from the 3rd August, 1968? If not, to what relief la he entitled?"

[No. 40/5/69-LR-III(LR-I).]

New Delhi, the 12th September 1969

( S.O. 3816.—Whereas the Central Government is of opinion that an Industrial dispute exists between the employers in relation to the Bank of Rajasthan and their workmen in respect of the matter specified in the Schedule hereto annexed;

And, whereas the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by section 7A and clause (d) of sub-section (1) of section 10 of tho Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby constitutes an Industrial Tribunal of which Shri Gjpal Narain Sharma shall be th° Presiding Officer, wiUi headquarters at Jaipur and refers the said dispute for adjudication lo the said Tribunal.

SCHEDtfLl

"Whether Shri Mishrilal Ayarwal formerly a workman of the BhUwar* branch of the Bank .i Rajaathan, Johri Bazar, Jaipur ia entitled to permanent absorption in the employment of the bank ana \t so, from what date?"

[No. 23/86/69/LRm.l

S. S. SAHASRANAltAN. Uner Secy.

{Department of Labour and Employment)

New Delhi, the 10th September 1969

S.O. S817.—In pursuance of section 17 of the Industrial Disputes Act, 1947 <14 of 1947), the Central Government hereby publishes the following award ,of the Industrial Tribunal, Bombay In the Industrial dispute between the employers in relation to the Bombay Licensed Measures Limited, Bombay and their work- men represented by the Transport and Dock Workers Union, Bombay, which was Teceived by the Central Government on the 31st August, 1969.

^BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL, BOMBAY.

REFERENCE NO. CGIT-14 OF 1967

"PARTIES :

Employers In relation to the Bombay Licensed Measurers Limited, Bombay

AND

Their workmen,

TRESENT;

Shrl A- T. Zambre, Presiding Officer.

APPEARANCES :

For the employers:—Shri V. Parasuram, Secretary, Bombay Licensed Measur- ers Ltd.

For Vie workmen:—Shri I. S- Sawant, Assistant Secretary, Transport and Dock Workers' Union, Bombay.

STATE: Maharashtra. INDUSTRY: Ports and Docks (Licensed Measurers).

Bombay, the 25th August 1969

AWARD PAUT II

"The Government of India, Mlniftry of Labour, Employment and Rehabilitation lay their Order TNTo. 28/93/66/LRIV dated 27th April 1967 have referred to this Tribunal for adjudication an industrial dispute existing between the em- ployers In relation to Messrs. Bombay Licensed Measurers Ltd , Bombay and their workmen represented by the Transport and Dock Workers' Union, Bombay, 'in respect of the matters specified In the schedule attached to it.

2 The employers are doing the business of issuing certificates of measure- ment in respect tit carsfo exported from or Imported into Bombay Docks and the workmen in their employ who are nnrties to ihe dispute are working as stamp- men and ralUpermen, assistant hsvnldar and havalctar etc. They are the mem- bers of the Transport and Dock Wooers' Union. There was an pmlcable settle- •m^nt in respect of some demands Rnd I have onssert award part I dated 13th August lfififl At ocr term? of that compromise the demands Noa (2^ fixation (3) suwrvisinn (6) linp distance nT'owance (7) leave travel concession (R) free •uniforms and (fl) education allowance were settled and the three demands viz., demand No. 1—Pay scales demand No, (4"i dearncss allowance and demand No '(5) overtime were kerrt pendinp. It was then agreed that thes" demands should be kep< wr-ndlng till the finnl rtv-^-nmendatiom 0° 1he Central \N r ^ &'U': for Port and Dock Workers T*ut wrien the mniW vas again kept for 'r^rinu: the part'e? settled thcife three demand¹! also anrt filed a memorandum of settlement Tegue'-liutf Ihls Tribunal to pasK an award Part II in terms of the same Und(er

this settlement the union has agreed not to raise any dispute over pay scales and dearness allowance (demands Nos. 1 and 4 of the terms of reference) during; the currency of the settlement

3. Before considering the reasonableness of the settlement it is necessary to state here that after the interim recommendations of the Central Wage Board for Port and Dock Workers were published the management had implemented them by granting interim relief to the workmen assuming them to be dock workers. Subsequently owing to the decision of the Central Government Industrial Tribunal, Calcutta, regarding workmen in the employ of the licensed measures the manage- ment made an application—Application No. CGIT-33 of 1967—for permission to discontinue the payment of interim relief which application was also pending. Now under the present settlement the management has agreed to withdraw Appli- cation No. CGIT-33 of 1967 regarding discontinuance of the payment of interim* relief and the union has agreed not to press its demand for revision of pay scales and dearness allowance- Consequently the management will continue to pay to the workmen the interim relief.

4- Under the settlement the management has also agreed to pay to the stamp- men and callipermen overtime wages at the rate of Rs. 8/- Irrespective of the- period of overtime. There is also a provision regarding payment of overtime wages for work done on dock holidays. Under the settlement the workmen are also entitled to get arrears for overtime work done beyond the scheduled working hours and In my opinion the settlement is fair and reasonable and I pass an award In terms of the settlement exhibit l which shall form part of this award Part II.

No order as to co^ts.

(Sd.) A. T. ZAMBRE, Presiding Officer- Central Government Industrial Tribunal, Bombay.

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL

AT BOMBAY

REFERENCE CGIT NO. 14 or 19G7

M/s. Bombay Licensed Measurers Ltd., Bombay

AND

Their workmen.

In the matter of pay scales, fixation, supervision, D.A., overtime etc.

May It please the Hon. Tribunal

The parties to the above reference have arrived at the following settlement in respect of the remaining three demands, namely, pay scales, dearness allow- ance and overtime and pray that a Part II award be made In terms thereof.

1. Pay-scales: 2. Deafness allowance.—These demands are not pressed by the Union and the Union agrees not to raise any dispute over these demands during the currency of this settlement.

3. Withdrawal of the application for discontinuance of interim relief.-—Since the Union has not pressed its demands for revision of wage scales and deamesa allowance the Company agrees to withdraw its application No. CGIT 33 of 196T dated 14th December 1967 for discontinuance of the Interim relief paid to the workmen. The Company agrees to continue the quantum of interim relief now- paid to the staff as an additional payment.

4. Overtime,—

(I) (a) Stampmen and Callipermen will be paid for overtime work done beyond the scheduled working hours on any day (including Sun- day or B. P. T. Dock Holiday) at the rate of Rs. 8/- irrespective' of the period of overtime-

(b) Stampmen and Callipermen required to work on a Sunday, or on a- B.P.T. Dock Holiday will be paid Rs. 8/- In addition to the salary which they will be' otherwise earning In the normal course.

(c) II the Stampmen and Calllpermen are required to work on a Sunday or on a B. P. T. Dock Holiday, they will be given a substituted weekly oft.

(d) Payment of overtime according to this agreement will be made from

1st July 1969.

(li) Overtime payment for the period 1st April 1968 to 30th June 1969

(b) It is understood that the workmen have no claim whatsoever on account or arrears of overtime for the period prior to ' 1st April 1968- 5, Arrears payable under this settlement will be paid to the workmen within •one month from the date of this agreement.

" 6. In view of this settlement It ifl agreed between the parties that the Com- pany will not be called upon to implement any of the recommendations that may be contained in the final report of the Central Wage Board for Port and Dock Workers.

7. This settlement shall remain In force for a period of 3 years from 1st July 1969. It will continue to operate thereafter until the expiry of two months' written notice of termination given by either party.

For BOMBAY LICENSED MEASURE?" LTD.,

[Sd. Illegeble,]

Joint Managing Director

for TRANSPORT & DOCK WORKERS' UNION

fSd. Illegeble,] Bombay Dated 29th July, 1969

Secretary.

[No. 28/93/66-LR.IV-]

CORRIGENDUM

New Delhi, the 9th September 1969

S.O. 3818.—In the order of the Government of India, Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employment) S.O. 3473, dated the 25th August, 1969 published In the Extraordinary Gazette of India Part II, Section 3 Sub-section (li) dated the 25th August, 1969, on page 1194 for rttie words ''Shri Tajummal Hussain" read "Shrl B. S. Somasundaram".

[No. 29/53/69-Fac.IL] C. RAMDAS, Dy. Secy.

(Department of Labour and Employment) New Delhi, the 11th September 1969

S.O. 3819.—In exercise of the powers conferred by section 4 of the Iron and Ore Mines Labour Welfare Cess Act, 1961 (58 of 1961) read with clause (ill) of rule 3 of the Iron Ore Mines Labour Welfare Cess Rules, 1963, the Central Government in consultation with the government of the state of Madhya Pradesh, hereby appoints Shri Munna Lal, Member of the Legislative Assembly, Madhya Pradesh, Raipur (Village and Post Ganjpara, Raipur), to be a Member of the Iron Ore Mines Labour Welfare Fund Advisory Committee for the State of Madhya Pradesh, constituted by the notification of the Government of Indiai In the Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employment), No. S.O. 1532 dated the 11th April, 1909, and makes the following amendment in the said notification, namely:—

In the said notification, in serial number 3, for the existing entry the follow- ing entry shall be substituted, namely:— =

"Shrl Munna Lal, M.L.A., Village and Post Ganjpara, Raipur",

[No. F.10/24/68-Minj!

New Dclht the llth September 1969

S.O. 382*.—In exercise of tie powers conferred by sub-section (1) ol section, 9 of the Mines Act, 1952 (35 oi 1952), the Cenual Government hereby appoint* Shri P. S. Murmu, Assistant Inspector, Labour Welfare, under the Coal Minea Labour Welfare Fund Organisation vo be an Inspector of Mines subordinate to the Chief Inspector of Mines.

[No. 1/5/6&-MIL]

C. R. NAIR, Under Secy.

(Department of Labour and Employment)

New Delhi, the 12th September 1969

S.O. 3821.—In pursuance o£ aection 17 of the Industrial Disputes Act, 1947 (14 of 1947), he Central Government hereby publishes the followinff award of the Central Government IndutWa! Tribunal, Calcutta, in the industrial dispute between the employers In relation to the management of Fratonno Dutta Kajora Colliery, Post Office Kajoragram, Disiutt Burdwan and their workmen, which was receiv- ed by the Central Government on the 3rd September, 1969.

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL, CALCUTTA.

REFERENCE NO. 40 or 1969

PARTIES -.

Employers In relation to the management of Prasonno Dutta Kajor&i Colliery,

AND

Their workmen.

PRESENT:

Shri B. N. Banerjee

Presiding Officer,

APPEARANCES :

On behalf of Employer's—Absent Absent On behalf of Workmen—Shri B. S. Azad, General Secretary, Khan Shramik Congress.

STATE: West Bengal

INDUSTRY: Coal Mines

AWARD

By Order No. 6/15/69-LRII, dated April 25, 1969, the Government of Indla- ln the Ministry of Labour, Employment and Rehabilitation, (Department of Labour and Employment), referred to this Tribunal an industrial dispute bet- ween the employers in relation to the management of Prasonno Dutta Kajora* Colliery and their workmen, for adjudication, namely:

"Whether the management of Prasonno Dutta Kajora Colliery, Post Office Kajoragram, District Burdwan was justified in suspending beyond* 10 days and stopping from work Shri Mahadeb Singh, Depot Munshl with effect from the 7th February, 1968' If not, to what relief is he-

2. The workmen, represented by Khan Shramik Congress, filed their written statement in time The employer company were conspicuous by absence andt It was only on the date previous to the date fixed for peremptory hearing that they sent their written statement Also on the date, previous to the date fixed for peremptory hearing, this tribunal received a telegram from the management- couched In the following language-

"MANAGER SIC-SICK DATE ADJOINT-MANAGER PRASANNA DUTTA KAJORA COLLIERY"

The language of the telegram is clumsy and vague but I presume the telegrami was sent only to obtain adjournment.

3. I am disinclined to grant any adjournment to Prasonna Dutta Kajora col- liery. During this year, they failed to appear in successive references before this tribunal, namely, Reference No. 54 of 1968, Reference No. 14 of 1B69, Refer- ence No. 20 of 1969, Reference No. 21 of 1969 and Reference No. 35 of 1969. In one of the references I awarded heavy costs against the management, namely in Reference No. 14 of 1969, in order to induce them to appear, but the measure failed. The employers have a pattern of avoiding appearance, namely ignore of notices from this tribunal throughout and immediately before the peremptory date of hearing send a telegram asking for adjournment. They do not even care for sending somebody before the tribunal to explain their real difficulties. In my opinion, it is useless to grant adjournment to this company. I, therefore, reject the prayer for adjournment-

4. Mr. B. S. Azad, General Secretary of Khan Shramik Congress appeared 01 behalf 01 the workmen The concerned workman himself deposed. It appearL from the evidence and the documents exhibited that the workman was charged with misconduct in the following language (vide Evt 1):

"It is reported by our "Loading Clerk" Sri J. M. Ghose that yesterday on 5/2/68 at 6-30 P.M. while he was returning from Depot to his quarter you and Benarshi Singh (Mining Sardar) both have threatened him due to transfer of you from Depot to office and also abused him in a violent manner and attempted to assault him.

Show cause within 48 hours hence, why disciplinary action will not be taken against you.

You are immediately suspended till further enquiry."

The workman submitted a reply (Ext. 2) to the charge denying the same. A notice of enquiry dated October ll, 1968 was served upon the workman fixing the date of enquiry on October 16, 1968. The workman says:

"I attended the enquiry. I was asked several questions by th" enquiring officer- In my presence he did not record anything. I was not even asked to put my signature on any paper. I produced one witness before the enquiring officer, of the name of Chandl Kahar. He was examined."

5. The grievance made before me was two-fold, (i) result of the enquiry was not made known to the workman; (ii) the workman has not been paid any subsis- tence allowance since the date of his suspension. Now, clause 17(1) of the Stand- ing Order of the company reads:

"The workman may be suspended pending departmental enquiry and in such cases he shall be paid a subsistence allowance equal to half of his wages as defined In the Payment of "Wages Act, 1936, for the period of suspension upto 30 days If. however, he Is kept suspen- ded by the management beyond 30 day-, this subsistence allowance will be at the rate of 3/4 of his wpge, as aforesaid but if the en- quiry is delayed beyond 30 davs because of the workman, the sub- sistence allowance shall be reduced to 1/4 of his wages." The date of the suspension is February 6, 1068. Since thereafter the workman \B under suspension without notice of the fate of the enquiry against him. He is therefore entitled to subsistence allowance in accordance with Clause 17(1) •f the Standing Order of the company.

6. He is also entitled to be apprised of the result of the enquiry.

7. In the result. I hold that the management of Prasonna Dutta Kajora col- liery was justified In keeping the concerned workman suspended pending en- quiry with effect from February 7, 1968 but was liable to pay the subsistence #ages to him- The management is liable to apprise him of the result of the enquiry, whatever that may be, immediately. The subsistence allowance must be paid to the workman within a fortnight of the publication of this award and the result of the enquiry made known to the workman as herein directed.

This is r\y award.

(Sd.) B. N. BANERJEE, Presiding Officer.

The 28th August, IS69.

[No. 6/15/09-LRII.1

S.O. 3822.—In pursuance of section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby publishes the following award of the Industrial Tribunal, Madras, in the Industrial dispute between the employers in relation to the management of Messrs- Trlchy District Quarry Workers Co- operative Labour Contract Society, Trichnapalll and their workmen, which was received by the Central Government on the 5th September, 1989.

BEFORE THE INDUSTRIAL TRIBUNAL, MADRAS.

Tuesday the 26th day of August 1969

PRESENT:

Thlru B. S. Somasundaram, B.A., B.L., Industrial Tribunal, Madras.

INDUSTRIAL DISPUTE NO. 24 OF 1969.

(In the matter of the dispute for adjudication u/s. 10(l)(d) of the I. D. Act 1947 between Thlru M. Manickam and the President. The Trichy District Quarry Workers Co-operative Labour Contract Society, Trichy-2).

BITWEEN :

Thiru M. Manickam, Quarry Maistry, Kuttlmalal Quarry, Edamalaipatti.

AND

The President, The Trlchy District Quarry Workers Co-operative Labour Contract Society, Trichy-2.

REFERENCE:

Order No. 36/3/69-LRI, dated 5th March 1969, of the Ministry of Labour, Employment and Rehablltation, (Department of Labour and Employment), Government of India, New Delhi.

This dispute coming on this day for final disposal, upon persuing the refer- ence, claim and counter statements and all other material papers, on record and upon hearing the argument of Thlru M. Manlckam appearing In person and the President of the Trichy District Quarry Workers Co-operative Labour Con- tract Society being absent and set er parte, this Tribunal made the following:

AWARD

The Trlchy District Quarry Workers Co-operative Labour Contract Society Is engaged in quarrying blue jelly and granite stones from the rocks and selling them to others. The Society was started in the year 1956 with about 500 workers as its members. Manickam claimant herein was employed as a maistry in the Kuttimalai Quarry in Trlchy District. He was appointed on 1st June 1965 as per Ex. W-l. His services were terminated on 19th October 1968 by the order Ex. W-2 on the ground that the financial position of the Society was not quite sound. He raised a dispute and this has resulted in the present refer- ence with the issue given below for adjudication.

lBnue: Whether the action of the management of Messrs Trichy District Quarry Workers Co-operative Labour Contract Society In terminating the ser- vices of Shrl M. Manickam Maistry with effect from 23rd October, 1968, waa justified? If, not to what relief is the employee entitled?

2. Maniokam In the claim statement avers that there was some mis-under- standing between him and the President consequent on his refusal to gather certain particulars as required by him and that because of this understand- ing the President has chosen to terminate his services suddenly without any enquiry whatsoever.

3. The contention of the management in the counter is that the termination was due to the financial position of the Society, that the slaimnnt hns drawn about R's 54/- illegally an travelling allowance on several dates and that his services were terminated with effect from 19th October 1968.

4. When the dispute 1" taken up tn-day for hearing the management is abspnt. Manickam, tbp claimant, )i present The management i*; set ex-pafte. Manickam as W. W.-l. has marked Ex. W-l the order of appointment and stated

that due to private mis-understanding the President has chosen to terminate MB services without any enquiry whatsoever suddenly on 19th October 1968. Ad- mittedly, there haa been no enquiry for any alleged mis-conduct or mis-behaviour. The dismissal is not justifiable. Manickam shall be re-instated with continuity of service and back wages.

5. There will be an award to that effect

Sd. B. S, SOMASUNDARAM,

Industrial Tribunal.

List of Witnesses Examined: —

For worker: W, W-l Thiru M. Manickam- For the management: None.

List of Documents Marked:

For the Worker: W—1 1-6-65 Appointment order. W—2 19-10-68 Dismissal order. For the management: Nil.

NOTE: The parties are directed tcr take return of their document/documents within six months from this date. ins. 30.8/

True Copy Forwarded By Order,

(Sd-) Illegible Head Ministerial Officer, Industrial Tribunal, Madras.

[No. 36/3/69-LR. IV-l

S.O. 3823.—In pursuance of section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby publishes the following award of the Central Government Industrial Tribunal, Calcutta, in the industrial dispute bet- ween the employers in relation to the management of Prasonna Dutta Kajora Colliery, Post Office Kajoragram, District Burdwan and their workmen, which was received by the Central Government on the 3rd September, 1969.

CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL, CALCUTTA.

REFERENCE NO. 41 or 1969

PARTIES :

Employers In relation to the management of Prasonna Dutta Kajora Colliery,

AND

Their workmen.

PRESENT:

Shri B, N. Banerjee

Presiding Officer.

APPEARANCES :

Absent On behalf of Employers On behalf of Workmen Shrl B. S. Azad, General Secretary, Khan

Shramik Congress.

STATE: West Bengal

INDU.S-RY: Coal Mine*

AWARD

", B£ , ° ,r*er N,⁰' ⁶/^{1 9}/e £ )-L R n. dated April 29, 1909, the Government of India in the Ministry of Labour, Employment and Rehabilitation (Department of Labour and Employment), referred an industrial dispute between the employers in relation to the management of Prasonna Dutt Kajora Colliery and their workmen to thii tribunal, for adjudication, namely:

"Whether the management of Prassona Dutta Kajora Colliery, Post Office Kajoratfram. District Burdwan was justified in suspending and stopp- ing work of Sarvashri Chtuidl Kahar, Loose-man Bikaram Chammar.

and Rudal Kahar, Pick-Miners with effect from the 19th October, lB68r II not, to what relief the workmen are entitled?"

2. The workmen, represented by Khan Shramik Congress, filed their written, statement in time. The employer company were conspicuous by absence and It was only on August 26, 1969, two days prior to the date fixed for peremptory hear- ing, that they filed their written statement. They wore summoned to produce certain documents on the date fixed for hearing, which they ignored.

3. On the date of peremptory hearing, Mr. B. S. Azad appeared for the workmen but the employers were absent- I am disinclined to grant adjourn- ment to any reference In which Prasonno Dutta Kajora colliery Is a party. During this year, the said colliery failed to appear in successive references before ihls Tribunal, namely, Reference No. 54 of 1968, Reference No. 14 of 1969, Refer- ence No. 20 of 19G9, Reference No. 21 of 1969, Reference No. 35 of 1969 and Reference No. 40 of 1969- In one of the references, I awarded heavy costs against the management, namely in Reference No. 14 of 1969, in the hope of making them careful in future but the measure failed. The employers did not care to send anybody before the Tribunal to explain their real difficulties and I do not understand why they studiously avoid this tribunal. In my opinion, it is useless to grant adjournment to this company. I, therefore, proceed ex- parte.

4. The three concerned workmen aepeared and deposed. It appears from their evidence that they received chargesheets charging them with specific misconduct. They submitted replies to the chargesheets, which are Exts. 1, 3 and 5. All of them said that they did not receive any notice of enquiry nor was there any enquiry held Into their alleged misconduct which of course they strongly denied.

5. I have glanced through the written statement filed on behalf of the manage- ment. Paragraph 10 of the said written statement contains the following statements:

"This Employer states that the aforesaid acts of the workmen concerned are" serious misconduct under the relevant rules and/or contracts governing the service conditions of the workmen concerned and they failed to explain and/or appear before the management of the aforesaid acts duly recorded In the charge sheet, the services of the workmen con- cerned are deemed and/or liable to have been terminated."

The above statement goes a long way to support the grievances of the workmen that there was no enquiry held into their misconduct.

6. The grievances made before me are two-fold, (I) suspension without enquiry and (ii) non-payment of subsistence allowance during the period of suspension pending enquiry. Now, clause 17(i) of the Standing Order of the company reads: "The workman may be suspended pending departmental enquiry and in such cases he shall be paid a subsistence allowance equal to half of his- wages, as defined in the Payment of Wages Act, 1938, for the period of suspension upto 30 days. If, however, he is kept suspended by the management beyond 30 days this subsistence allowance will be at the rate of 3/4th of his wages as aforesaid but if the enquiry i3 delayed beyond 30 days because of the workman, the subsistence allowance shall be reduced to l/4th of his wages."

The date of suspension of the three workmen is October 19, 1968. The workmen. are entitled to subsistence allowance according to the aforesaid Rule. The enquiry, if it has not yet been held, must be held or else the chargesheet must be wiftidrawn and the workmen must be reinstated in their original office.

7. In the result, I hold that the management of Prasonno Dutta Kajora colliery may have been justified in keeping the three workmen suspended for a very- long period pending enquiry into their misconduct with effect from October 19, 1968, at its peril, namely, subject to the liability of payment of subsistence allowance during the entire period of suspension. The management is also liable to hold the enquiry and to apprise the workmen of the result of the enquiry. I, therefore, award that the management must pay to the workmen the subsistence idldwance according to Clause I7(i) of the Standing Order within a fortnight of the publication of this award and hold the enquiry into trie charge, If not already

held, and publish the result thereof within a month from the publication of this award.

This is my award.

Dated,

August 29, 1969.

(Sd.) B. N. BANERJEE,

Presiding Officer.

[No. 6/19/69-LRll],

ORDERS

New Delhi, the 6th. September 1969

S.O. 3824. -Whereas the Ceutiul Government is of opinion that an Industrial dispute exists between the employers in relation to the Singarem Colieries Com- pany Limited, Post Office Kothagudium Collieries (Andhra Pradesh) and their workmen 111 respect of the- matters specnied In the Schedule hereto annexed;

And, whoieas, the Central Government considers it desirable to refer the said dispute tor adjudication;

Now, therefore, in exercise of the powers conferred by section 7A and clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act 1947 (14 of 1947), the Central Government hereby consitimtes and Industrial Tribunal with Shri Mohammad Najmuddin, as Presiding Officer with headquarters at Afzal Lodge, Tilatt Road, Ramkotc, Hyderabad-1, and refers the said dispute for adjudication, to the said Industrial Tribunal.

SCHEDULE

"Having regard to the nature of duties performed by Sarvashri S. Laxmiah, G. Ramachander and Laxminarayana as Tub-repairers in No. 2 incline, how far Is the management of Singareni Collieries Company Limited, Kothagudium justified in placing them in new category II under the Central Wage Board Recommendations?

If not, what extent of relief these workmen are entitled to and from what" date?"

[No. F. 7/53/68-LRII.])

S.O. 3825.—Whereas, the Central Government is of the opinion that an- industrial dispute exists between the employers In relations to the Singareni Collieries Company Limited, Post Officer Kothagudium Collieries (Andhra Pradesh) and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by section 7A and clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act 1947 (14 of 1947) the Central Government hereby constitutes an Industrial Tribunal with Shri Mohammad Najmuddin. as Presiding Officer with headquarters at Afzal Lodge, Tilak Road, Ramkote, Hyderabad-1, and refers the said dispute for adjudication *o the said Industrial Tribunal.

SCHEDULE

"Whether the management of Singareni Collieries Company Limited. Post Office Kothagudium Collieries are justified in not taking into account the previous services of the workers recruited through Coal Field Recruiting Organisation, put in by them in the coal mines of the company, for the purpose of computing their gratuity? If not, to what relief are these workmen entitled?"

[No. F. 7(24)/68-LRII.]'-

New Delhi, the Bth September 1969

S.O. 3826.—Whereas the Central Government is of opinion that an industrial dispute exists between the employers in relation to the management of Messrs Daulatram Rameshwarlal, Post Box No. 1942, Andhra Bank Buildings, Madras-l, and their workmen in respect of the matters specified In the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by section 7A and clause

SCHEDULE

"Whether termination of services of Shri Rambilas Sharma by Shrl J. K. Bhuwalka of Agarwal Trading Company and Messrs Daulat Ram Rameshwar Lal, with effect from the 16th December, 1967 Is justified? If not, to what relief is he entitled?"

[No. 36(18)/69-LR.IV.}

New Delhi, the 12th September 1969

S.O. 3827.—Whereas the Central Government is of opinion that an Industrial dis- pute exists between the employers in relation to the management of Kharkharce Colliery of Messrs Bharat Mining Corporation Limited, Post Office, Kharkharee, District Dhanbad, and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by clause (d) of sub-section (1) of section 10 of the Industrial Dispuies Act, 1947 (14 of 1947) the Central Government hereby refers the said dispute for adjudication to the Central Government Industrial Tribunal, (No. 3), Dhanbad constituted under section 7A of the said Act.

SCHEDULE

''Whether the action of the management of Kharkharee Colliery of Messrs Bharat Mining Corporation Limited in laying off the und T-mentlonert workmen with effect from the date shown against each lor indefinite period ii justified? If not, to what relief are the workmen concerned entitled?"

S. No, Name

Designation

Date from which laid off

1. Shri Ramprasnd Gope

2. Shri Baldeo Gope 3. Shri Ramashankar 4. Shri Baijnath Gope

Prop Mazdoor Prop Mazdoor Prop Mazdoor Line Mazdoor

30-6-1968 30-6-1968 25-8-1968 20-7-1968

LNo. 2/131/69-LRII.]

S.O. 3828.—Whereas the Central Government Is of opinion that an industrial dispute exists between the employers in relation to the East Lohapati Colliery, Post Office, Jharia, District Dhanbad, and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by clause (d) of sub- section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute for adjudication to the Central Government Industrial Tribunal (No. 3), Dhanbad constituted under section 7A of the said Act,

SCHEDULE

"Whether the management of East Lohapati Colliery ia justified in stopping their workman Shri Dukhit Pandey, pump khalashi with effect from. 25th July, 1968?

If not, to what relief is the workman entitled?"

[No. 2/49/69-LRIL]

S.O. 3829.—Whereas the Central Government is of opinion that an industrial dispute exists between the employers in relation to the management of Mahabir Colliery, Post Office Raniganj, District Burdwan and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by clause (d) of sub, section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute for adjudication to the Central Government Industrial Tribunal, Calcutta, constituted under section 7A of the- said Act.

SCHEDULE

"Whether the management of Mahabir Colliery, Post Office RaniRanj, District Burdwan, unjustifiably stopped Shri Bimal Much! and Shri Balu- Muchi, Pick miners from services from 5th June 1969 and if so, to what relief they are entitled?"

[No. R/5a/69-LRJI.J

S.O. 3830.—Whereas the Central Government is of opinion that an industrial dispute exists between the employers in relation to the management of Lower Kenda Colliery, Post Office Kajoragram, District Burdwan and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said¹ dispute for adjudication;.

Now, therefore, in exercise of the powers conferred 'by clause (d) of sub- section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the. Central Government hereby refers the said dispute for adjudication to th.^ Centra] Government Indus trial Tribunal, Calcutta constituted under section 7 A of the. said Act.

SCHEDULE

"Whether the mangement of Lower Kenda Colliery is justified in not paying variable dearness allowance at the rate of Rs. 1.11 with effect from 1st October 1967 and at the rate of Rs. 1.47 with effect from 1st April, 1968 as per the recommendations of the Wage Board for Coal Mining Industry? If not, what should be the quantum of variable dearness allowance and from what dates?"

[No. 0/82/6B-LRII.7

New Delhi, the 15th September 1969

S.O. 3831—.Whereas the Central Government is of opinion that an Industrial dispute exists between the employers in relation to the management of Barora Colliery of Messrs Barora Coal Concern, Post Office Nawagarh, District Dhanbad, and their workmen in respect of the matters specified in the Schedule hereto annexed;

And, whereas, the Central Government considers it desirable to refer the said dispute for adjudication;

Now, therefore, in exercise of the powers conferred by clause (d) of sub-section (1) of section 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby refers the said dispute for adjudication to the Central Govern- ment Industrial Tribunal (No. 3), Dhanbad, constituted under section 7A of the naid Act

-411* TO*¹ G A Z- Of f ^ l A: SL.T. 20 1769/BHADRA 29. 1891 [PART II—SEC Vii)]

SCHEDTTLK

"Whether the action of the management of Barora Coljiery of Messrs Barora Coal Concern, Post Office Nawagarh, District Dhanbad in reducing the rate of wages oi weekly paid workmen with effect from the 26th Novemher. 1968, was justified? If not, to what relief are the workmen entitled?'⁷

[No. a/124/60-LRIL]

S.O. 3832.—Whereas by an order of the Government of India in the Ministry i of Labour, Employment and Rehabilitation (Department of Labour and Employ- ment) No. 2/124/69-LRII, dated the 15th September 1969, an industrial dispute between the employers in relation to the management of Barora Colliery of Messrs Barora Coal Concern, Post Office Nawagarh, District Dhanbad and their workmen has been referred to the Industrial Tribunal, (No. 3) Dhanbad, for adjudication.

Now, therefore. In exercise of the powers conferred by sub-section (3) of the Bection 10 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government i hereby prohibits the continuance of the strike in existence in the said colliery in connection with the said dispute.

[No. 2/124/69-LRII-i.]

CORRIGENDUM

New Delhi, the 12th September 1969

S.O. 3833.—In item (d), under para 8 of the Arbitration Award published in the "Notification of the Government of India, in the Ministry of Labour, Employment and Rehabilitation, (Department of Labour and Employment) No. S.O. 2905 published in Part II Section 3 Sub-Section (ii) of the Gazette of India dated the "19th July, 1969, Read "DHIRERA MINES" For "PURABSAR MINES".

[No. 24/8/69-LR.IV.]

P. C. MJSRA, Under Secy.

(Department oi Labour and Employment)

[Office of the Chief Labour Commissioner (Central)]

ORDER

New Delhi the 6th September 1969

S.O. 3834.—Whereas an application has been made under Section 19(b) of Uhe Payment of Bonus Act, 1965 by Messrs Gogte Minerals (employer) in rela- tion to their establishments mentioned in the Schedule below for extension of the period for the payment of bonus to their employees for the accounting year end- ing on 3lst October, 1968.

And, whereas, being satisfied that there are sufficient reasons to extend the time I have, in exercise of the powers conferred on me by the proviso to clause (b) of Section Iff of the said Act read with the notification of the Government of "India in the Ministry of Labour and Employment No. WB-20(42)/65 datari the 28th August, 1065, passed orders on ( . extending the period for payment of the said bonus by the said employer bv 6 (five) months from tlie last date for pay- ment of bonus under clause (b) of Section 19 of the Act.

Now thia la published for Information of the employer and all the employee* •of the said establishment.

THE SCHEDULE

Name and addrwra of the employer (B)

EstabUshment(s)

Gogte Minerals.

:M/s. Gogte Minerals, 146, Tilakwadl, Belgaum.

[No. B.A.-6(12)/69-L.S.I.]

O. VENKATACHALAM,

Chief Labour Commissioner (Central).

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD N EW DELHI AND PUBLISHED BY THIC MANAGER OF PUBLICATIONS, DELHI, 1 9 69