रजिस्ट्री सं ० डी० 221
REGISTERED No. D. 221
भारत का राजपत्र
The Gazette of India
EXTRAORDINARY
भाग II-खण्ड 1
PART II- Section 1
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं० 63]
नई दिल्ली, सोमवार, नवम्बर 26, 1973/ अप्रहायण 5, 1895
NEW DELHI, MONDAY , NOVEMBER 26 , 1973 / AGRAHAYANA 5 , 1895
No. 63 ]
इस भाग में भिन्न पृष्ठ संख्या वी जाती हैं जिससे कि यह अलग संकलन के रूप में रखा जा सके ।
Separate paging is given to this Part in order that it may be filed as a separate compilation .
MINISTRY OF LAW , JUSTICE AND COMPANY AFFAIRS (Legislative Department)
New Delhi , the 26th November , 1973 / Agrahayana 5 , 1895 ( Saka)
The following Act of Parliament received the assent of the President on the 26th November , 1973 , and is hereby published for general informa-
tion:-
THE STATE BANK LAWS ( AMENDMENT) ACT, 1973
No. 48 OF 1973
[26th November , 1973 ]
An Act further to amend the State Bank of India Act , 1955 and the State Bank of India ( Subsidiary Bank ) Act , 1959 .
BE it enacted by Parliament in the Twenty - fourth Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. ( 1 ) This Act may be called the State Bank Laws (Amendment ) title and Short
Act , 1973 . commen-
(2) It shall come into force on such date as the Central Government cement .
may, by notification in the Official Gazette , appoint and different dates
may be appointed for different provisions of this Act.
CHAPTER II
AMENDMENTS TO THE STATE BANK OF INDIA ACT, 1955
Amend- 23 of 1955 .
section 2 2. In section 2 of the State Bank of India Act , 1955 ( hereinafter in this Chapter referred to as the State Bank Act) , after clause ( i) , the ment of following clause shall be inserted , namely :-
' ( j ) "workman " has the meaning assigned to it in the Industrial
14 of1947. Disputes Act, 1947,' ,
( 633 )
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634
3. In section 19 of the State Bank Act , in sub - section ( 1 ) , after clause ) , the following clauses shall be inserted, namely: ---
Amend- anent of section 19.
' ca) one director , from among the employees of the State Bank , who are workmen, to be appointed by the Central Govern- ment in the manner provided in the rules made under this Act ;
(cb ) one director , from among such of the employees of the Siate Bank , as are not workmen, to be appointed by the Central Government in the manner provided in the rules made under this Act;".
4. In section 20 of the State Bank Act, after sub -section ( 3 ) , the following sub - section shall be inserted , namely: -
Amend- ment of section 20 .
" ( 3A ) A director appointed under clause ( ca) or clause ( cb ) of sub - section ( 1 ) of section 19 shall hold office for such term, not exceeding three years , as the Central Government may specify and thereafter until his successor shall have been duly appointed, and shall be eligible for re-appointment." .
Amend- ment of section 21.
5. In section 21 of the State Bank Act , in sub - section (1 ) , in clause (e) , for the words "the secretary and treasurer " , the words " the chief general manager " shall be substituted .
6. In section 21B of the State Bank Act,-
Amend- ment of section 21B .
10 of 1949.
( i) for the words , brackets , figures and letters " in relation to any business that may be carried on or transacted by the State Bank under sub - section (1 ) of section 32 and clauses ( i ) ( excluding the proviso ) , ( ii ) , ( iii ) , ( v ) to ( ix ) , ( xa ) , ( xii ) to ( xv ) , ( xvii ) , ( xviii ) , (xixb ) and ( xixc ) of section 33 and shall " , the words , brackets , letters and figures "in relation to the business of banking and the forms of business set out in clauses (a) , ( b ) , ( e ) , (f ) , ( g ) , ( h ) , ( i ) , (k) and ( 1) of sub - section (1) of section 6 of the Banking Regula- tion Act , 1949 , and such other forms of business referred to in sub- section ( 1 ) of the said section 6 , as may be approved by the Central Board in this behalf and shall also " shall be substituted ;
(ii ) the following proviso shall be added at the end, namely: -
"Provided that a Local Board shall transact the businesses of borrowing of moneymo and the acquiring , holding , issuing on commission , under - writing and dealing in stock , funds , shares , debentures , debenture stock , bonds , obligations , securities and investments , only if the Central Board approves any of such businesses in this behalf and confers or assigns any of such busi- nesses to the Local Board ." .
7. In section 22 of the State Bank Act , --
Amend- ment of section 22 .
(i) in clause ( d) of sub - section ( 1 ) , for the words " secretary and treasurer " , the words " chief general manager " shall be substi- tuted;
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SEC . 1J
635
(ii) after clause (d) of sub -section (1 ) , the following clause shall be inserted, namely: -
" (da) in the case of a director appointed under clause ( ca) or clause ( cb ) of sub -section (1) of section 19,-
(i) he is not serving in the State Bank or has not been serving in it for a continuous period of at least five years ; and
( ii) he is of such age that there is a likelihood of his attaining the age of superannuation during his term of office as a director ; or" ;
( iii) in the proviso to clause ( h ) of sub -section ( 1) , for the words "Provided that " , the following shall be substituted , namely:-
"Provided that in the case of a director appointed under clause ( ca) or clause ( cb) of sub - section ( 1) of section 19, the disqualification mentioned in clause ( d) shall not operate: Provided further that" .
8. In section 24 of the State Bank Act, in sub -section ( 3 ) ,
(i) for the words , brackets and letter " nominated under clause
Amend- ment of section 24 .
(d) ", the words , brackets and letters " appointed under clause ( ca) or clause (cb ) or nominated under clause ( d) " shall be substituted;
(ii) for the word " nominate " , the words " appoint or nominate as the case may be, " shall be substituted.
9. In section 25 of the State Bank Act,-
Amend- ment of #ection25.
(i) in sub - section ( 2) , for the words " of a member of a Local Board other than the secretary and treasurer " , the words , brackets, letters and figures " a director appointed under clause (ca ) or clause (cb ) of sub - section' ( 1 ) of section 19 or of a member of a Local Board other than the chief general manager " shall be substituted ;
( ii) in sub - section ( 3 ) , for the words " under this section" , the words , brackets and figure " under sub - section ( 2 ) " shall be subs- tituted;
(iii ) after sub - section ( 3 ) , the following sub-section shall be inserted , namely :-
" (4) Where any vacancy occurs before the expiry of the term of office of a director appointed under clause (ca ) or clause (cb) of sub -section ( 1 ) of section 19, such vacancy shall be filled in accordance with the said clause (ca ) or , as the case may be, clause ( cb ) , and the director so appointed shall hold office for the period specified under sub - section (3A ) of section 20." .
10. In section 31 of the State Bank Act ,-
(i) in the proviso to sub - section (3 ) ,
Amena- ment of section 31 .
(a) in clause ( ii ) , the word " or " shall be added at the end;
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[PART II- 636
(b) after clause ( ii ) , the following clause shall be inserted , namely:-
" ( iii) an officer or other employee of the State Bank, if he is a director appointed under clause (ca) or clause (cb ) of sub -section ( 1 ) of section 19. " ;
(ii) in sub -section ( 4) ,-
(a) the words " , other than a managing director" shall be omitted;
(b) for the words " any such director " , the words " any director " shall be substituted .
11. In section 31A of the State Bank Act, in sub -section (4) , for the words " other than the secretary and treasurer" , the words " other than the chief general manager " shall be substituted .
Amand- ment of section 31A .
12. For section 33 of the State Bank Act, the following section shall be substituted , namely: -
Substi- tution of new sec- tion for section33 .
10 of 1949 .
" 33. Subject to the other provisions contained in this Act, the State Bank may carry on and transact the business of banking as defined in clause ( b ) of section 5 of the Banking Regulation Act, 1949, and may engage in one or more of the other forms of business specified in sub -section ( 1 ) of section 6 of that Act. " .
Other business which the State Bank may transact.
13. In section 34 of the State Bank Act, sub - sections ( 1 ) , (2 ) , (3 ) and (5) shall be omitted.
Amend- ment of section 34 .
14. In section 39 of the State Bank Act , after the words " and balanc- ed" , the word " as " shall be inserted .
Amend- ment of section 39.
15. In section 40 of the State Bank Act,-
Amend- ment of section 40.
(i) in sub- section (1 ) , for the words " within two months from the date on which its accounts are closed and balanced " , the words , figures and letters " within three months from the 31st day of Dec- ember , as on which its books are closed and balanced" shall be sub- stituted;
( ii ) to sub- section ( 1) , the following proviso shall be added , namely:-
"Provided that the Central Government may, after consul- tation with the Reserve Bank , extend the said period of three months by such further period, not exceeding three months , as it may think fit . " .
16. In section 41 of the State Bank Act,-
Amend- ment of section 41 .
(i) in sub- section ( 1 ) , for the words " audited by two auditors", the words "audited by two or more auditors " shall be subsiltuted;
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SEC . 11
637
(ii) in sub-section ( 7) , after clause ( e) , the following Baplana- tions shall be deemed to have been inserted on and from the 1st day of December , 1964, namely : --
"Explanation 1. For the purposes of this Act,-
(a) the balance - sheet shall not be treated as not dis- closing a true and fair view of the affairs of the State Bank, and
(b) the profit and loss account shall not be treated as not showing a true balance of profit or loss for the period
10 of 1949
covered by such account, merely by reason of the fact that the balance-sheet or , as the case may be, the profit and loss account, does not disclose any matters which are , by the provisions of the Banking Regulation Act , 1949 , read with the relevant provisions of this Act, not required to be disclosed .
Explanation 2.- For the purposes of this Act, the accounts of the State Bank shall not be deemed as having not been pro- perly drawn up on the ground merely that they de not disclose certain matters if-
10 of1949.
(i) those matters are such as the State Bank is, by virtue of any provision contained in the Banking Regulation Act, 1949 , read with the relevant provisions of this Act, or any other Act, not required to disclose ; and
(ii ) the provisions referred to in clause ( i) are specified in the balance- sheet and profit and loss account of the State Bank or in the auditors' report." .
17. In section 42 of the State Bank Act , in sub- section (1 ) ,
Amand- ment of saction42.
(i) after the words " shall be held", the words " in each year" shall be inserted;
(ii ) the words " before the end of March in each year" shall be omitted;
(iii) for the proviso , the following proviso shall be substituted, namely:- "Provided that such annual general meeting shall be held before the expiry of six weeks from the date on which the balance-sheet , together with the profit and loss account and auditors' report , is , under sub - section ( 1 ) of section 40 , forwarded to the Central Government or to the Reserve Bank, whichever date is earlier. " .
18. In section 49 of the State Bank Act,-
Amend- mentof section 49.
(i) in sub -section ( 1 ) , for the words " make rules to carry out the purposes of this Act" , the words " make rules to provide for all matters for which provision is necessary or expedient for the pur- pose of giving effect to the provisions of this Act" shall be substituted;
(ii) in sub -section ( 2 ) , after clause ( b ), the following clause shall be inserted , namely:-
" (c) the manner of appointment of a director under clause (ca) or clause ( cb ) of sub-section ( 1 ) of section 19, and all other matters connected therewith or incidental thereto . " .
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638
[PART -
19. In section 50 of the State Bank Act,-
Amend- mentof section 50 .
( i) in sub - section ( 2 ) , for clause ( q) , the following clause shall be substituted , namely :-
" ( q) the terms , conditions , stipulations , restrictions and limitations , if any , in the transaction by the State Bank of its businesses in regard to the advancing or lending of money or the discounting or purchase of any instrument , negotiable or other- wise, with or without reference to any security , purpose , amount , period or otherwise ; " ;
( ii) after sub - section ( 2 ) , the following sub - section shall be in- serted , namely: -
" (2A) All regulations made under this section shall have effect from such earlier or later date as may be specified in the regulations ." .
CHAPTER III
AMENDMENTS TO THE STATE BANK OF INDIA ( SUBSIDIARY BANKS) ACT, 1959
38of 1959 .
Amend- mentof section 2 .
20. In section 2 of the State Bank of India ( Subsidiary Banks ) Act , 1959 , ( hereinafter in this Chapter referred to as the Subsidiary Banks Act) , after clause ( 1) , the following clause shall be inserted , namely : --
14 of 1947 , ' ( m) " workman " has the meaning assigned to it in the Indus- trial Disputes Act , 1947. ' .
21. In the Subsidiary Banks Act , except in section 23 and sub - sec- tion ( 3 ) of section 49 , for the words "general manager " , wherever they occur , the words " managing director " shall be substituted.
Substitu- tion of "manag- ing direc- tor for "general manager" .
22. In section 25 of the Subsidiary Banks Act , in sub - section ( 1 ) ,
Amend- mentof section 25.
(i) after clause ( a) , the following clause shall be inserted, namely:-
" (aa ) the managing director appointed under sub - section (1) of section 29 , or under section 32 ; " ;
(n) after clause ( c) , the following clauses shall be inserted, namely:-
" ( ca) one director , from among the employees of the subsi- diary bank , who are workmen , to be appointed by the Central Government in the manner provided in the rules made under this Act;
(cb) one director , from among such of the employees of the subsidiary bank as are not workmen , to be appointed by the Central Government in the manner provided in the rules made under this Act ; " .
23. In section 26 of the Subsidiary Banks Act , after sub - section ( 2 ) , the following rub -section shall be inserted , namely: ---
Amend- mentof section 26 .
" ( 2A ) A director appointed under clause ( ca) or clause ( cb ) of sub - section ( 1) of section 25 shall hold office for such term , not SEC . 1 ]
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639
exceeding three years , as the Central Government may specify and thereafter until his successor shall have been duly appointed , and shall be eligible for re - appointment . " .
24. In section 27 of the Subsidiary Banks Act , in sub - section ( 1 ) ,- Amend- ment of section 27 (i) in clause ( d) , after the words " the subsidiary bank, " the words " other than the office of the managing director " shall be in- serted;
( ii ) after clause (d) , the following clause shall be inserted, namely:-
" (da) in the case of a director appointed under clause ( ca) or clause ( cb ) of sub - section ( 1) of section 25 ,
(i) he is not serving in the subsidiary bank or has not been serving in it for a continuous period of at least five years ; and
(ii) he is of such age that there is a likelihood of his attaining the age of superannuation during his term of office as a director ; or" ;
(iii) in the second proviso , for the words " Provided further that" , the following shall be substituted , namely: -
"Provided further that in the case of a director appointed under clause ( ca) or clause ( cb ) of sub-section (1) of section 25 , the disqualification mentioned in clause ( d) shall not operate: Provided also that" .
Amen'd- ment of section 30.
25. In section 30 of the Subsidiary Banks Act , in the proviso , after the words " the chairman of the State Bank" , the words " or the managing director of the subsidiary bank" shall be inserted .
Amend- ment of section 31 .
26. In section 31 of the Subsidiary Banks Act , in sub - section ( 2 ) , for the words , brackets and letter " nominated under clause ( e ) " , the words , brackets and letters " appointed under clause ( ca) or clause ( cb ) or nomi- nated under clause ( e ) " shall be substituted .
27. In section 33 of the Subsidiary Banks Act ,-
Amend- ment of section 33 .
(i) in sub - section ( 1 ) , after the words "director of a subsidiary bank", the words , brackets , letters and figures " other than the manag- ing director or a director appointed under clause ( ca ) or clause ( cb ) of sub - section ( 1 ) of section 25" shall be inserted;
(ii ) in sub - section ( 2 ) , for the words " under this section " , the words , brackets and figure " under sub - section (1 ) " shall be substitut- ed;
(vii ) after sub - section ( 2 ) , the following sub - section shall be inserted , namely:-
" (3 ) Where any vacancy occurs before the expiry of the term of office of a director appointed under clause (ca ) or clause (cb) of sub - section ( 1 ) of section 25, such vacancy shall be filled in accordance with the said clause (ca ) or , as the case may be, THE GAZETTE OF INDIA EXTRAORDINARY
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640
clause (cb ) , and the director so appointed shall hold office for the period specified under sub - section ( 2A) of section 26. " .
28. In section 34 of the Subsidiary Banks Act , in the proviso to sub- section (5) ,一
Amend- mentof section34.
(i) in clause ( ii ) , the word " or" shall be added at the end;
(ii ) after clause ( ii ) , the following clauses shall be inserted, namely:-
" ( iii) an officer or other employee of the State Bank , or any other institution, if he is the managing director appointed under sub-section (1 ) of section 29 or under section 32 ; or
(iv) an officer or other employee of the subsidiary bank, if he is a director appointed under clause ( ca) or clause (cb) of sub-section (1 ) of section 25." .
29.In section 37 of the Subsidiary Banks Act , for sub -section (1 ) , the following sub-section shall be substituteů, namely : --
Amend- mentof section37.
10 of 1949.
"(1) Subject to the other provisions contained in this Act, a sub- sidiary bank may carry on and transact the business of banking as defined in clause ( b ) of section 5 of the Banking Regulation Act, 1949, and may engage in one or more of the other forms of business specified in sub -section ( 1 ) of section 6 of that Act .".
30. In section 39 of the Subsidiary Banks Act, after the words " and balanced" , the word " as " shall be inserted .
Amend- mentof section39.
31. In section 41 of the Subsidiary Banks Act , in sub -section ( 7),-
Amend- mentof section 41..
(i ) in clause (a ) , for the words " exhibit a true and correct view", the words " exhibit a true and fair view " shall be substituted;
(ii ) after clause (e) , the following Explanations shall be inserted , namely:-
"Explanation 1. For the purposes of this Act ,-
(a) the balance- sheet shall not be treated as not dis- closing a true and fair view of the affairs of the subsidiary bank, and
(b) the profit and loss account shall not be treated as not showing a true balance of profit or loss for the period covered by such account ,
10 of 1949, merely by reason of the fact that the balance-sheet or, as the case may be, the profit and loss account , does not disclose any matters which are , by the provisions of the Banking Regulation Act , 1949, read with the relevant provisions of this Act , not required to be disclosed .
Explanation 2. For the purposes of this Act , the accounts of the subsidiary bank shall not be deemed as having not been properly drawn up on the ground merely that they do not dis- close certain matters if-
(1) those matters are such as the subsidiary bank is , by virtue of any provision contained in the Banking Regula- SEC. 1 ]
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641
10 of 1949
tion Act, 1949 , read with the relevant provisions of this Act , or any other Act, not required to disclose, and
(ii) the provisions referred to in clause ( i ) are speci- fied in the balance- sheet and profit and loss account of the subsidiary bank or in the auditor's report." .
32. In section 43 of the Subsidiary Banks Act , in sub -section ( 1 ) ,- Amend- ment of section 43 .
(i) in clause ( a) , for the words " within three months from the date on which its accounts are closed and balanced" , the words , figures and letters " within three months from the 31st day of December as on which its books are closed and balanced" shall be substituted;
(ii) after clause ( b ) , the following proviso shall be inserted , namely:-
"Provided that the Reserve Bank may, after consultation with the State Bank , extend the said period of three months by such further period , not exceeding three months , as it may think fit ." .
33. In section 44 of the Subsidiary Banks Act,-
Amend- ment of section 44.
(i) in sub -section (1) , for the words " annually before the end of March" , the words " in each year " shall be substituted;
( ii) to sub -section ( 1 ) , the following proviso shall be added , namely:-
"Provided that such annual general meeting shall be held before the expiry of six weeks from the date on which the balance- sheet , together with the profit and loss account and audi- tor's report , is , under sub - section (1) of section 43 , forwarded to the State Bank , or to the Reserve Bank, whichever date is earlier.".
34. In section 62 of the Subsidiary Banks Act ,--
Amend- ment of section 62.
(i) in sub -section ( 1 ) , for the words " make rules to give effect to the provisions of this Act " , the words " make rules to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act " shall be substituted;
(ii ) in sub - section ( 2 ) , after clause (f) , the following clause shall be inserted , namely:--
" (g) the manner of appointment of a director under clause (ca) or clause (cb ) of sub -section ( 1 ) of section 25 , and all other matters connected therewith or incidental thereto ." .
35. In section 63 of the Subsidiary Banks Act, after sub-section (2 ) , the following sub -section shall be inserted , namely: -
Amend- ment of section 63 .
"(2A) All regulations made under this section shall have effect from such earlier or later date as may be specified in the regu- lations" .
K. K. SUNDARAM, Secy , to the Govt . of India .
PRINTED BY THE MANAGER , GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS , DELHI , 1973