 the banking service commission bill, 19m arrangement of clauses chapter i preliminary clauses1 short title and commencement 2 definitions  chapter ii banking service commission3 establishment of the commission 4 appointment and terms of office of chairman and members 5 prohibition as to holding offices by chairman or member on ceasing to be such chairman or member 6 removal and suspension of chairman or the members from office in certain circumstances 7 power of commission to constitute committees 8 secretary and other staff of the commission 9 authentication of orders ~nd other instruments of the commission  chapter iiifunctions of the commission 10 duty of commission to hold competitive examhations or make selections for appointment to posts in public sector banks 11 calling for applications and conduct of examinations or selections 12 duty of public sector banks to communicate to the commission of number of vacanr:ies 13 cases in which commission may not be consulted 14 duty of commission to make recommendation, 15 communicated vacancies to be filled only on the rec()mmendation of the commission 16 power of central government to entrust other advisory functions to the commission 17 reservation of posts for candidates belonging to scheduled castes and scheduled tribes and other categories of persons 18 fund of the commission  19 payment to the commission 20 budget of the commission 21 accounts and audit 22 annual report   chapter iv miscellaneous clauses23 obligation as to secrecy   24 chairman, members, etc, to be public servants 25 certain defects not to invalidate acts or proceedings 26 protection of action taken in good faith 27 commission not liable to be taxed 28 delegation of powers 29 amendment of act 14 of 1947 30 returns and information 31 power to make rules 32 power to make regulations 33 rules and regulations to be laid before parliament 34 power to remove difficulty nbw dellii; may 4 1ge~ vciisakha 1 , 1906 (saka) corrigpt_ (to 'rejas introduced id,jl4k' :sabha) the banking sm vice (x)mmissio~1 bill, ""1~e4  billto provide for the establishment of a commission for the 'recruitment    and selection of o~ers for appointment to services and pobts!                                                                        in    public sector banks and for matters connected therewith                                                             or incidental    thereto    be it enacted by parliament in the thirty-fifth year of the republic of india as follows:- chapter t preliminary1 (1) this act may be called the banking service commission act, 1984 short title and commencement (2) it shall come into force on such date as the central government lllay, by notification, appoint and different dates may be appointed for different provisions or this act 10 1 in this act, unless the context otherwise requires,-definitions ioof 1949, (a) "banking company" has the meaning assigned to it in the banking regulation act, 1949; (b) "chairman" means the chairman of the commission,; (r) "commission" means the banking service~ commission, established under sub-section (1) of section '3; 15 (el) "grade", in relation to a public sector bank, means a grade for officers as specified in the rules or as the case may be, the regulations of th~ b~nki (e) "junior management grade", in relation to a public sector bank, means the lowest grade of officers in that bank; (f) "member" means a member of the commission but does not include the chairman; (g) "notification" means a notification published in the offtcial 5 gazette; (h) "officer" means an officer of any grade; (i) "'prescribed" !lleans prescribed by rules made under this act; (i) "public sector bank" means-10 (i) a corresponding new bank specified in the first schedule to the banking' companies (acquisition and transfer of undertakings) act, 1970; 5 of 1970 (ii) a corresponding new bank specified in the first schedule to the banking companies (acquisition and transfer of j 5 undertakings) act, 1980; 40 of 1980 (iii) the state bank of india constituted under the state bank of india act, 1955; 23 of 1955 (iv) a subsidiary bank as defined in the state bank of india (subsidiary banks) act, 1959; 20 38 of 1959 (k) "regulation" means a regulation made under this act; 0) "reserve bank" means the reserve bank of indta, constituted under the reserve bank of india act, 1934; 2 of 1934 (m) "secretary" means the secretary of the commission; (11) "vacancy" includes a newly created post which has not 25 been filled in  chapter ii banking service commissionestablishmentof the commiaion 3 (1) with effect from such date as tlie central government may, by notification specify in this behalf, there shall be established for the 30 purposes of thi"  act a commission, to be called the banking service commissiod (2) the commission shall be a body corporate baving perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and may by the said name sue and be sued 35 (3) the head office of the commission shall be at delhi or at such other place as the central government may, by notification, specify   4 (1) the central government shall by notification, appoint 3 person to be the chairman of the commission and not more than eight other persons to be members of the commission: provided that at least one member shall be fro~ amongst persons belonging to the scheduled castes or the scheduled tribes appointmentand terms of office of cnairman and members (2) the chairman and members shall be persons who, in the opinion of the central government, are men of ability, integrity and standing and have special knowledge of, or practical e~l1ience in, financial, economic or business administratiqn or in the administration of gov-5 ernment or in any other matter which would render such persons suitable for appointment as chairman or ~mber: provided that as nearly as may be one-half of the members shall be persons who, on the date of their respective appointments, have had such experience for not less than ten years in a banking company or in 10 any public sector bank or reserve bank or in an institution wholly or substantially owned by the reserve bank or a public financial institution explanation i-for the purposes of this section and of section 5,-(a) each of the fouowing imtitutions shall be deemed to be a public financial institution, namely:-(i) the industrial credit and investment corporation of india limited, a company formed and registered und« the companies act, 1956; 1 of 1956 !:io (ii) the industrial reconstruction corporation of india limited, a company formed and registered under the companies act, 1956; 1 of 1956 (iii) the industrial finance corporation of india, established under section 3 of the industrial finance corporation act, 1948; 15 of 1948 25 18 of 1964 (iv) the industrial development bank of india, established under section 3 of the industrial development bank of india act, 1964; 28 of 1981 (v) the export-import bank of india, established under section ::; of the export-import bank of india act, 1981; 30 il of 1981 (vi) the national bank for agricultural and rural development, established under section 3 of the national bank for agricultural and rural development act, 1981; (vii) the life insurance corporation of india, established under section 3 of the life insurance corporation act, 1956; 31 of 1956  35 62 pi 1 11(13 (viii) the unit trust of india, established under section 3 of the unit trust of india act, 1963; (ix) any other financial institution which is declared by the central government, by notification, to be a public financial institution; 40 (b) an institution shall be deemed to be substantially owned by the reserve bank if, in the capital of such institution, that bank has not less than forty per cent· share i~xplanation h-for the purposes of this section and section 17, the expressions "scheduled castes" and "scheduled tribes" shull have the 4') meaning$ tespectively assigned to them in article 366 of the constitu-tion   (3) the chairman or any member shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-five years, whichever is earlier: provided that-(a) the chairman or any member may, by writing under his 5 hand addressed to the central government, resign his office; j,b) the chairman or any member may be removed from his office in the manner provided by this act (4) the other terms and conditions of service of the chairman and members shall be such as may be prescribed 10 (5) if the office of the chairman becomes vacant or if the chairman is unable to discharge his functions owing to absence, illness or any· other cause, such member of the comdiission as the central government may, by order, specify, shall discharge the functions of the chairman up to the date on which a new chairman is appointed or, as 15 the case may be, the chairman resumes his duties 5 a person who holds office as chairman or member shall, on his ceasing to hold such office by reason of the expiration of his term or otherwise, be ineligible for re-appointment in the commission or for employment under the government of india or of any state or in the 20 reserve bank or in any institution wholly or substantially owned by the reserve bank or in any public sector bank or any banking company or in a public financial institution: prohibition as to holding offices by chairman ormember on ceasing to be such chairman or member provided that a member to whom this section applies, shall be eligible for appointment as chairman, but shall not be eligible for any 25 other employment 6 (1) the central government may remove from office the chairman or any member, who--(a) is adjudged an insolvent, or (b) is convict~d of an offence involving moral turpitude, or 30 removal and suspension of chairman or the members from office in ~rtain circumstances (e) is, in the opinion of the central government, unfit to continue in office by reason of infirmity of mind or body, or , (d) engages, during the term of office, in any paid employment outside the duties of his office, or (e) has acquired such financial or other interest as is likely to 35 affect prejudicially his functioning as the chairman or a member, or (f) has so abusefl his position as to render his continuance in office undesirable (2) notwith&tanding anything contained in sub-section (1), the 40 chairman or any member shall not be removed from office on the ground specified in (~lause (d) or clause (e) or clause (f) of tha,t subsection unless the matter has been referred to an inquiry officer appointed under sub-section (3) and such officer has, after an inquiry, held in accordance with such procedure as the central government may specify in this behalf, reported that the member ought, on such grounds, to be removed 5 (3) for the purpose of holding an inquiry under sub-section (2), the central government may, by order, appoint, as an inquiry officer, a person who is holding or has held the office of a judge of the supreme court or of any high court (4) the central government may suspend from office the chainnan 10 or any member in respect of whom a r~ference has been made to an inquiry officer under sub-section (2), pending such inquiry (5) the terms and conditions of servic~ of any inquiry officer appointed under sub-section (3) shall be such as the cantl'al government may, by order, specify power of commission to cod6titute committees 15 7 (1) the commission may, in such manner and subject to such conditions and restrictitms as may be prescribed, constitute one or more committees con&isting wholly of its members or partly of it~ members and partly of other persons and delegate to any committee so constituted such of the functions and powers of the commission as may be 20 specified in the rules made by the central government: provided that the commission may constitute any committee either with, or without, the chairman as one of the members of such committee (2) the sittitlg fee and travelling allowance payable to persons, other 25 than the chairman and members for attending any meeting of the committee, shall be such as may be prescribed 8 (1) the commission may, \wth the previous sanction of the central government, appoint a secretary for the efficient discharge of its functions under this act secretary and other stat! of the commission 30 (2) the terms and conditions of service of the secretary shall be such as may be prescribed (3) subject to such regulations as may be made in this behalf, the commission may appoint such other employees as it may think necessary for the efficient discharge of its functions under this act on such 35 terms and conditions as the commission may, having regard to the terms and conditions of service of the comparable posts in the central government, determine with the previous sanction of the cenb'al government 9 (1) all orders and instruments issued by the commission shall 40 be authenticated by the signature of the secretary or any other employee of the commission authorised by the chairman in this behalf authentication of orders and other instrumentsol the commission (2) orders or instruments issued by the commission and authentl cated in accordance with the provisions of sub-section (1) shall be evidence of the matters rec;orded ther~in and shall be admissible in 45 evidence notwithstandirig anything contained in the indian evide',n,ce act, 1872, or in any other law for the time being in force  chapter iii functions of the commission10 it shall be the duty of the commission to conduct eysminations or to make selections or both for appointments in public sector banks for filling vacancies in-5 duty of commission to ljold competitive (a) posts of officers required to be filled by direct recruitment; (b) posts of officers of and above the rank of assistant general manager or of its equivalent rank required to be filled by promotion; and (c) such other posts as the central government may, by noti- j 0 fication, specify 11 (1) the commission shall call for applications from such category of persons and in such manner as may be specified in the regulations and conduct examinations or make selections qr both having regard to the requirement of section 17 and the vacancies communicated to it 15 under section 12: provided that such examinations or selections or both shall be made in accordance with the principles specified in the regulations exam~na­tions or make selections for appointment to posts in public sector banks calling forapplications and conduct of examinations or selections (2) the fee payable on an application under sub-section (1) shall be such as may be specified by regulations and such fee shall not exceed 20 eighty rupees 12 (1) it shall be the duty of every public sector bank to communicate to the commission-(a) twenty-five per cent of the estimated total number of vacancies in the junior management grade in the general category, 25 - (b) all other vacancies in posts of offtcers required to be filled by direct recruitment, duty ot public sector banks to communicate to the commission otnwnberol vacancies (c) vacancies in posts of officers of and above the rank of assistant general manager or of its equivalent rank required to be filled by promotion, 30 ~nd such communication shall be sent in respect of all such vacancies which <ire likely to occur during the unexpired portion of the year in which this section comes into force, as soon as may be after such commencement and in respect of all such vacancies as are likely to occui during each subsequent year, as soon as may be after the commence- 35 ment of such year: ~  ¥ provided that in relation to junior management grade in the general category, the central government may, if it is of opinion that it is necessary so to do in the interests of the public sector banks, by notification, raise the percentage of vacancies to be communicated to the commission to thirty-three and one-third per cent 40 (2) communications of vacancies referred to in sub-section (1) shall be made· in such form and in such manner as may be specifted in the regulations explanation-for the purposes of this section, "junior management grade 10 the general category', 10 relatlon to a pl'blic sector bank, means au categortes of post's in the jumor managemem grade as specified in the rules or, as the case may be, the regulatlons of tne bank other than such 5 calegol',es of posts as ~ntl l:entral uovernment may, having rtlgard to the nature of such posts, declare, by notification, to be posts of a technical category j        _                    _                                ••                                                    - --,-,    13 it shall not be necessary to consult the commission in regard to the selection of a person-| cases      ||------------|| which      || commis-    || sion       || may        || not        || be         || consulted, |10 (a) for appointment to a post in the junior management grade on compassionate grounds or oloher special grounds (in pursuance of the scheme framed by a public sector bank in (!onsultatjon with the commission and with the previous sanction of the central government) ; 15 (b) if the person appointed is not likely to hold the post for a period of more than one year, and it is necessary in the interests of the public sector bank to make the appointment immediately and reference to the commission will cause undue delay: provided that-20 (1) such appointment is made in the manner specified by the commission by regulations and is reported to the commission as soon as it is made; (ii) if the appointment continues beyond a period of six months, a fresh estimate as to the period for which the person 25 appointed is likely to hold the post shall be made and reported to the commission; and (iii) if such estimate indicates that the person appointed is likely to hold the post for a period of more than one year from the date of appointment, the commission shall immediately  be go consulted in ~gard to the filling of the post duty of commission to make rncommendation, 14 it shall be the duty of the commission to make, on the basis of the results of examinations conducted or on the basis of the selection ma$ie by it or, as the case may be, on the basis of both, recommendations to each public sector bank in such manner as may be specified by regulations for 35 appointments to fill the vacancies communicated to it by such bank under section 12 , communicated vacancies to be filled only on the recommendation o! 15 (1) notwithstanding anything to the contrary contained in any award, settlement or agreement, or in any judgment, decree or order of any court or tribunal or other authority or in any other law in force for 40 the time being, appointments to all the vacancies required to be communicated to the commission under section 12 shall, on or from such date as the commission may notify in respect of each public sector bank, be made by such public sector bank only on the recommendation of the commission, except where consultation with the commission is not neces-45 sary under this act, ~~~~:-(2) if, in any year, the commission is unable to make recommendation for appointment to all the vacancies communicated to it by a public sector bank under section 12, or if the public sector bank is unable, in any year, to make appointments on the basis of recommendations made ·w the commission, the vacancies may be carried forward to the subsequent year, to be filled in the said manner: provided that the public sector bank may, in consultation with the commission, fill such vacancies temporarily in such manner and for such 5 period as the commission may, by regulations, specify 16 the commission shall discharge such functions of an advisory nature as the central government may, by notification, entrust to it 17 the central government may, by order, '(ilrect that in relation to every public sector bank, reservations in favour of the scheduled castes, 10 scheduled tribes and other categories of persons !!1ull! be made in such mann'!r and to such extent as it may specify: provided that in giving any direction as aforesuct, the central government shall have due regard to the reservation oj: posts made for the scheduled castes, scheduled tribes and other c8tejories of persons in 15 relation to recruitment to the services of the government and to the general need, and special requirements, of such public iipctor bank power of central governmentto entrust other advisory functions to the commission reservation of posts for candidates belonging to scheduled castes and scheduled tribes and other categories of persons fund of the commission 18 (1) the commission shall have its own fund and all the receipts of the commission shall be credited to the fund and all payments by the commission shall be made therefrom 20 (2) all moneys belonging to the fund shall be deposited in such banks or invested in such manner as the commission may, subject to any general or special order maje by the central government in this behalf, decide (3) the commission may spend such sums as it thinks fit for perform- 2') ing its functions uq,der this act and such sums shall be treated- as expenditure payable out of the fund of the commission payment to the commission 19 (1) the central government may, subject to any rules that may be made in this behalf, direct every public sector bank to pay to the commission such fee as it may determine and the aggregate amount of 30 the fee so determined shall not exceed the expenses incurred by the commission (2) the aggregate amount of fee payable under bub-section (1) shall be apportioned by the central government between different public sector banks and in making such apportionment in relation to a public 35 sector bank, the central government shall have due regard to the demand and time liabilities of that public sector bank (3) for the purpose of meeting the expenditure of the commission, the central government may, by general or specw order, direct the payment by every public sector bank of an advance of such amount u it may specify and the advance so made shall be appropriated or adjusted in such manner as may be prescribed 10 of 1949 explancztion-the expressions "demand liabilities" and "time liabili-5 ties" shall have the meanings respectively assigned to them in the banking regulation a~t, 1949 budgctot the commission 20 the commission shall prepare, in such form and at such time each year as :may be prescribed, a budget in respect of the year next ensuing showing the estimated receipts and expenditure, and submit the same 10 to the central government for approval accounts and audit 21 (1) the commission shall maintain proper accounts and other relevant records and prewe an annual statement of accounts for such period, in such form, at such time and in such manner as may be prescribed 15 1 of 1956 (2) the accounts of the commission shall b,! audited by a person who is qualified to act as an auditor of a company under section 2261 of the companies act, 1956, and the auditor shall receive such remuneration as the commission may, in consultation with the central government, fix -1 of 1956 (3) in conducting the audit, the auditor shall have the same rights and duties as are posse!!!!pd bv an auditor of a comoanv as jf the commission were a company within the m~aning of the companies act 1956 annual report 22 the commission shall prepare once every year in such from and at such time as may be prescribed, an annual-report giving a full' account 25 of its activities during the pr~vious year and copies thereof alon!!" with copies of its annu~l accounto; and auditor's report shall be forwardeed to the central government amf that government shall cause the same to be laid before both houses of parliament  chaprer iv miscellaneousobligation as to secrecy 23 the chairman and members and the sec'retary or other employees of the commission, and every member of any committe~ constituted under sub-section (1) of section 7, shall maintain strictest secrecy regarding the affairs of the commission and shall not divulge, directly or in-35 dir"!ctly any information of a confidential nature to a member of the public unless compelled to do so by any judicial or other authority or unless instructed to do so by a superior oftlcer in the discharge of his duties 24 the chairman and members and the secretary or other employees 40 of the commission, and every member of any committee constituted under 'sub-section (1) of section 7 shall b~ deemed to be a public servant 4s of 1860 within the meaning of section 21 of the ij:ldian penal code chail'-man, members, etc, to be public servants 25 (1) all acts done by the chairman and members and the members of any committe~ constituted under· sub-section (1) of section 7, acting 45 in good faith, shall notwiths~ndlng any defect in their appointment or procedure, be valid~ ---  -~  -\ certain detects not to invalidate acts or nroceedings (2) no  act or proceeding of the commission or of any committee thereof shall be invalid merely on the ground of the existen-ce of any vacancy therein or defect in the constitution of the commission or the committee, as the case may be protection of action taken in good faith 26 no suit, prosecution or other legal proceedings shall lie against the 5 central government or the commission or any committee constituted under sub-section (1) of section 7 or any member of the commission or of such committee or the chairman or secretary or other employee of the commission for anything which is in good faith done or intended to be done under this act or any rule made thereunder 10 commission not liable to be taxed, 27 notwithstanding anything contained in the income-tax act, 1961, or any other enactment for the time being in force relating to income-tax" surtax or any other tax on income, profits or gains, the commission shall not be liable to pay any tax or surtax in respect of-(4) any income, profits or gains accruing or arising out of the 15 fund of the commission or any amount received in that fund; and (b) any income, profits or gains derived, or any amount received, by the commission delegation of powers 28 the commission may, by general or special order delegate to the chairman, any member, secretary or any employee of the commission, 20 subject to such conditions and limitations, if any, as may be specified therein, such of its powers and duties under this act as it may deem fit amendment of act 14 of 1947 29 for the purposes of the industrial disputes act, 1947, the central government shall be deemed to be the appropriate government in relation to an industrial dispute concernin~ the commission and the deftni- 25 tion of "appropriate government" in that act shah have effect accordingly returns and infor- mation 30 (1) the commission shall furnb;h to the central government such returns or other information with respect to its properties or activities as the central government may from time to tjme, require 30 (2) the commission may for the purpose of enabling it to 'discharge its functions under this act, call upon any public sector bank to give such statements or furnish such particulars as the commission may deem fit and every such bank shall comply with the same 31 (1) the central government may, by notification, make rules for 35 carrying out the provbdons of this act power to make rules (2) tn particular and witlmut prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-(a) the terms and conditions of service of the chairman and 40 members; - (b) the sitting fee and travelling allowanl"e payable to person!! other than the chairman and members, for i'itten'ding any meetin~ of the committee, under sub-section (2) of section 7; (c) the terms and conditions of service of the secrptarv lln'fpr 45 bub-section (2) of section 8; (4) the category of persons for whom any vacancy or percentage of vacancies in a public sector bank may be reserved by the central government; (e) the procedure for determination of the fee to be paid by every public sector bank to the commission under section 19; (i) the form in which and the time within which the commission shall prepare and submit its budget to the central government under section 20; (g) the period for which, the form and manner in which and the 10 time within which the commission shall prepare its annual statement of accounts under sub-section (1) of section 21; (h) the form and manner in which and the date by which the commission s'hall prepare an annual report giving a full account of its activities during the previous year and submitting the same to 15 the central government under section 22; (i) any other matter which is to be, or may be, prescribed power to make regulations 32 (1) the commission may, with the previous approval of the central government by notification, make regulations, not inconsistent with the provisions of this act or the rules made thereunder to provide for 20 all matters for which provision is necessary or expedient for the purpose of giving effeet to the provisions of this act (2) without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-(a) the matters referred to in sub-section (3) of section 8; (b) the manner in which, and the category of persons from whom, applications may be called for appearing at examinations selections or t€sts held by the commis'sion under sub-section (1) of section 11; (e) the principles in accordance with which candidates shall be selected for different posts under the proviso to sub-section (1) of section 11; (d) the fee payable by candidates intending to appear at examinations, selections or tests conducted by the commission under subsection (2) of section 11; (e) the form and manner in which communication of vacancies under sub-section (2) of section 12 shall be made; (i) the manner in which appointments may be 'm~de to fill any vacancy without consulting the commission; 10 (g) the manner in which and period for which appointments may be made to fil1 vacancies in relation to which the commission is unable to make a recommendation; (h) the number of places and time at which the commis'sion shall conduct examinations or tests for recruitment to different posts; (i) generally for the efficient conduct of the affairs of the com-~ _iaa' 45 ~~101\ rules and regulations to be laid before parliament 33 every rule and every regulation made under this act shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the! session immediately following the session or the successive 5 sessions aforesaid, both houses agree in making any modification in the nile or regulation, as the case may be, or both houses agree that the rule or regulation, a's the case may b~, should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or 10 annulment shall be without prejudice to the validity of anything previously done under that rule or regulation power to remove difficulty 34 if any difficulty arises in giving effect to the provisions of this act, the central government may, by order, do anything, not inconsistent with such provisions, for the purpose of removing the difficulty: 1,1) provided that no such order shall be made after the expiration of three years from the date on which this act receives the assent of the pre!sident while reviewing the then existing alt8ngements for 1he recrultment and man-power planning in the public !'tector banks, the banking commission had recommended the establishment of an independent common recruitment· agency for all the public sector banks on the lines of the union public service commission so that objective, rationale and impartial selections could be ensured government had accepted this recommendation of the banking commission accordingly, >the banking service commission act, 1975 was enacted by parliament to provide for the establishment of a banking service commission 2 before the commission established under the banking service commission act, 1975 could stallt functioning, the act was repealed in 1978 thereafter, banking service recruitment boards were established by way of an alternative machinery to effect recruitment of officers and clerks in the public sector banks the working of the recruitment boards for over five years has shown deficiencies such as duplication of efforts and wastage of resources on the recruitment of officers from different regions it was, therefore, considered necessary to make some modifications in the exislting process for the recruitment of officers in the public sector banks so that there is economy in expenditure, speedier conduct of recruitment and judicious placement and improved quality of _candidates the bill seeks to give effect to this idea for providing for the establishment of a body corporate to be called "the banking service commissipn " 3 the proposed commission will be responsible for the direct recruitment of officers ir all the 28 public sector banks by conducting examinations or making selections 25 per cent of the vacancies in the junior management grade in the general category are to be filled in by direct recruitment the bill also seeks to vest in the commission the power to make appointments on promotion to the posts of assistant general managers and above in the public sector banks 4 the proposed commission will consist of a chairman and not more than eight members of whom not l<:!ss than half shall be persons with experience in, or knowledge of, banking and financial institutions the expenii·ture of the commission is proposed to be met mainly from the fees to be paid by the public sector banks on whose behalf the recruitments are to be made by the commission the bilj seeks to exempt the commission from payment of taxes on income, profit and gain 5 the bill seeks to achieve the above objects notes on clauses explain the various provisions 'of the bill new deun; the 17th april, 1984 pranab mukherjee clause 2-this clause seeks to define the various expressions used in the bill clause 3-this clause provides for the establishment of the "banking service commission" with effect from a date to be notified by the central govemmen1, as a body corporate with headquarters at delhi or at such other place as the central government may, by notification, specify, clause 4-this clause seeks to provide for the appointment and terms of office of the chairman and members of the commission the clause lays down the criteria for the selection of the chairman and members and provides that as nearly as one-half of the members shall be persons having had experi-ence for not less than ten years in banking or related activities this clause further stipulates that at least one of the members shall be from persons belonging to the scheduled castes or the scheduled tribes this clause also provides that the chairman and members will have a tenure of five years or can continue until they attain the age of 65 years, whichever is earlier clause 5-this clause seeks to provide that the chairman or a member of the commission shall be ineligible for future employment under the government of india or in a state government or in the reserve bank of india or in any institution wholly or substantially owned by the re-serve bank of india or in any banking company or any public financial institu';ion this clause also prohibits the chairman or a member from being reappointed for another term, but a member shall be eligible for appointment as the chairman clause 6-thls clause seeks to lay down the procedure for removal and suspension of the chairman and members of the commission from office in cer~ain circumstances clause 7-this clause provides for the constitution of one or more committees by the commission and for delegation of such of the functions and powers of the commission as may be specified in the rules clause s-this clause provides for the appointment of a secretary with the previous sanction of the central government and other employees of the commission and for the determination of thei,r 'terms and conditions of office cla,'use 9-this clause seeks to lay down the procedure for authentication of orders and other instrume~s of the commission clause to-this clause seeks to provide that the duty of the commission will be to conduct examinations or selections or both for all appointments to be made to the various grades of officers in the public sector banks it shall also provide for the selection of officers: on promo'1:ion of and above the rank  of assistant general manager or its equivalent rank in the public sector banks clause 11-this clause 'seeks ,to provide for the calling for applicatioda and conduct of examinations or selections or both for recruitment of officers in the public sector banks and also -!or the collection of fees from candidates clause l2-this clause makes it obligatory on ~ part of a public sector bank to communicate to the co~is'sion 25 per cent of the estimated total number of vacancies in ,the junior management grade in the general category this clause also makes it obligatory on the part of the public sector banks to communicate to ,the commission all other vacancies of officers for which direct recruitment is to be made and the vacancies of officers of and above the rank of assistant general manager for which appointments are to be made; by promotion this clause further empowers the central government to raise the above referred percentage df 25 to a maximum of 33-1l3 clause l3-this clause specifies the cases in regard to which consultation with the commission shall noit be necessar,y clause l4-this clause lays down that it shall be the duty of the commission to make recommendations to each of ,the public sector banks, on the basis of the results of the examinations conducted by it or selections made by it, for appointments to fill vacancies communicated to it by such bank cbause is-this clause provides that notwithstanding anything to the contrary contained in any award, settlement or agreement, or in any judgment, decree or order of any court or tribunal or other authority or in any other law in force for the time being, appointments to all the vacancies communicated to the commission shall be made by the public sector banks only on the recommendations of the commission except where consultation with the commission is not necessary it, however, provides for such vacancies to be filled in tempor8,l'ily, after consultation with the commission, for such periods as may be specified by the-commission clause i6-this clause empowers the central government to entrust to the commission such other functions of an advisory nature as it may' think fit - 0ause 17-this clause provides for the reservation of posts for candidates be!onging to the scheduled castes; the scheduled tribes and other  categories of persons the clause provides that while giving directions to the bank the central government shall give due regard"to the reservation of posits made foj' the scheduled castes the scheduled tribes and other categories of persons in relation to ~itment to the services of the government and to tthe general need in, and special requirements of, the bank concerned ~u8e 18-thls clause deals with the fund of thecotnmission receipts of the commission shall be credited to the fund and payments would be made therefrom cla1(sp' 19-this clause provides that the central government may, ?y general or s~lal order and subject to any{ rules 1hat may be made in this regard,dlrect every public sector bank to pay to the commission such fee as it may determine in determining the fee, due regard will be given to demand and time liabilities of the bank clause 20-this clause provides that the commission shall prepare a budget in respect of the year next ensuing in such fonn and at such time each year as may be prescribed clause 21-fl'hios clause provides for the maintenance of proper accounts records and preparation of annual statement of accounts in the form and manner as may be prescribed and fol' the audit of the accounts of the commission c'l4use 22-this clause lays down that the annual report of the commission along with copies of 1he commission's annual accounts and auditor's report shall be laid before both the houses of parliament clause 23-this clause provides for the obli~tion of secrecy on the part of the chairman, members, secretary and other employees of the commission clause 24-thi's eieuse declares the chairman, member, secretary and other employee of the commission to be a public servant within the meaning of section 21 of the indian penal code clause 2!>-this clause provides that the acts done by the chairman, members and members of any of the committees in good faith $hall be valid and that defects in the constitution of the commission or itw committees shall not invalidate the actions or proceedings of the commission or its committees clcluse 26-this clause gives protection to the codulliasion, the government, the chairman, members, secretary or other employees of 1he commission for an)'thing which has been done in good faith clatjle 27  1'hia c~uje exempli the commission from the liability to pay taxes on income, profits or gaids cioue 28-this clause authorises the commission to delegate i powers to the chairman, any member, the secretary or any employee of the conuniaaicm ' clauae it-this clause seeks to amend the industrial disputes act to make it clear that the appropriate government in relation to the proposed commission will be the central government clause 30-this clause lays down that the returns and other informa 1ion as required by the central government sh$l1 be· furnished by the commiasion it also provides that the commission may also call upon the public sector banks to give such information a':; the commission may ,reem fit to enable it to discharge its duties clawl! 31-this clause empowers 11e central government to make rules for carrying out the provisions contained in the act cloue 32-thiil clause empowers the commission, with the previous 4lppro",al, of t~ central govt!rnment, to make regulations to provide for au matters for which provision is necessary or elq>edient for the purpose of q"ivln~ effect to the provisions of the act o clctuse 33-tbis clause provides for 1~eo laying of rules and regulations ma~ unc;ler the  act before each house of ~arliament   ci4we 34~'i'his· chius~ empo~er!! the c~ntral government to issue an order for the p1lrpo8e of removing any difficulty in giving effect te the nrovisions of the act -sub-cl,a~se (1) of clause 3 ()f the bill provides for the establi'shment of the banking service commission from such date as the central government may, by notification, specify in ,this behalf si~ce the expenditure on the co~mission will be borne by the public ~ctor banks, the establishment of the commission will not involve any direct expenditure from the con'$olidated fund of india however, the exi$ting machinery of the government will not be able to cope witb the additional work which will have to be done in the ministry of finance (departmen<t; of economic affairs, banking division) with regard to the establishmeat of the commission, and appointment of some staff woq1d be necessary this will involve expenditure from 1he consolidated fund of india it is estiroated ,that this will be of the order ot one lakh twenty-dve thwsand rupees of a recurring nature in a year and twenty-five thouund rupees of a non-recurring na1ure 2 the bill if enacted is not likely to involve any other expenditure clause 31 of the bill empowe,rs the central government to make rules for matters relating to the terms and conditions of service of the chairman and other members the sitting &!e and travelling allowance payable to persons other than' the chairman and members far attending any meeting of the committees of the commis'sion, the terms and conditions of service of the secretary, the category of persons for whom any vacancy or percentage of vacancies in a public seetar bank may be reserved by the central government, the procedure for determination of the fee to be paid by every public sector bank to the commission, preparation and submission of the budget of the commission, its annual statement of accounts and annual report and any other matter which is to be, or may be, prescri1)ed 2 clause 320 of the bill empowers the commission to make, with the previous approval of the central government, re~ations ,to provide for methods of appointment, conditions of service, scales of pay, duties and conduct of the employees of the commission, the manner in which the category of persons from which application's may be called, the principles according to which candidates shall be selected, the fees payable by candidates the farm and manner in which vacancies shall be communicated to the commission, the manner in which temporary appointments may be made and unfilled vacancies may be filled, the number of times and places at which the commission shall conduct examinations and generally for the efficient conduct of the affairs of the commission 3 the aforesaid matters in respect qf which power is proposed to be conferred 011 the central government to make rules or on the commission to mak~ regulations relate ·to matters of detail and it is hji,rdly possible to provide for them in the bill itself the delegation of the legislative power is, therefore, of a normal character (14 of 1947) - - - - - 2 in this act, unless there is anything repugnant in the subject or defini context,-lions (a) "appropriate government" means-15 of 1948 34 of 1948 27 of 1953 31 of 1956 61 of 1981 47 of 1961 52 of 1963 37 of 1964 42 of 1975 21 of 1976 (i) in relation to a:ny inhtrstrial dispute concerning any indurtry carried on by or under the authority of the central government, or by a railway company or concerning any such controlled industry as may be specified in this behalf by the central gevernment or in relation to an indusbnal dispute concerning 1he industrial finance corporation of india established under section 3 of the industrial finance corporation act, 1948, or the employees' state insurance corporation established under section 3 of the employees' state insurance act, 1948, or the "indian airlines" and "air-india" corporations established under section 3 of the air corporations act, 1953, or the life insurance corporation of india established under section 3 of the life insurance corporation act, 1956, or the national bank for agriculture and rural development established under section 3 of the national bank for agriculture and rural development act, 1981, or the deposit insurance corporation established under section 3 of the deposit insurance corporation act, 1961, or the unit trust of india established under section 3 of the unit trust of india act, 1963, or the food corporation of india established under section 3 or a board of management established for two or more contiguous sta1es under section 16, of the food corporations act, 1964, or the banking service commission established under section 3 of the banking service commission act, 1975, or a regional rural bank established under section 3 of the regional rural banks act, 1976, or a banking or an insurance company, a mine, an oil-field, a cantonment board, or a major port, the central government and ' (ii) in relation to any other industrial dispute, the state government; - - - - - & mu: to provide for the establilhment of a commission for the recruitment aacl selection of o&ilcers for appointment to services and posts in public sector ~ and for matters connected therewith or incidental thereto (shri pniniib kumii1' mukiter;ee, minister of finclnce) 