j'jo cv ~j/~'j biu no 'i'of,wto, "'_," -"  ,""  1~ 'state bank of india (amendmeni') bill, 1963 a bill further to amend the state bank of ·india act, 1955 be it enacted by parliament in the fourteenth year of the republic of india as follows:-1 (1) this act may be called the state bank of india (amend- short title ment) act, 1963 and commence-s (2) it shall come into force on such date as the central govern- ment ment may by notification in the o1!icial gazette, appoint 23 of 1955 2 in section 2 of the state bank of india act, 1955 (hereinafter a d men -referred to as the principal act) ,-ment of (i) after clause (b), the following clause shall be inserted, section 2 namely:-10 , (bb) "chairman" means the chairman of the central boardj'; (ii) after clause (d), the following clause shall be inserted, namely:-'(dd) "local board" means a local board constituted under section 21;'; (iii) after clause (h), the following clause shall be inserted, namely:-ii (i) "vice-chairman" means the vice-chairman of the central board" 3; in section 19 of the principal act,-(a) in sub-section (1) -~ amencl ment of section 19 (i) in clause (a), the words ", except in the case of first appointments," shall be omitted; (ii) for clauses (c) and (d), the following clauses shall s be substituted, namely:-"(bb) the presidents of the local boards appointed under sub-section (5) of section 21, ex 01fi,cio; (c) if the total amount of the holdings of the shareholders, other than the reserve bank, whose names 10 are on the principal register three months before the date fixed for election of directors is-(i) not more than ten per cent of the total issued capital, two directors, ":::': i  (ii) more than ten per cent but not more is than twenty-five per cent of such capital, three directors, and (iii) more than twenty-five per cent of such capital, four directors, to be elected in the prescribed manner by such share- ao holders; (d) not less than two and not more than six directors to be nominated -by the central government in consultation with the reserve bank, from among persons having special knowledge of the working of 2s co-operative institutions and of rural economy or experience in commerce, industry, banking or finance;"; (b) sub-sections (2) and (3) shall be omitted  4 in section 20 of the principal act,-amed4-ment of section 20 (a) in sub-section (2), the words "or, in the case of the ftrst 30 two appointments, the central government," shall be omitted; (b) for sub-section (5), the following sub-section shall be substituted, namely:-s 10 u (5) the following provisions shall have effect in relation to directors nominated under clause (d) of subsection (1) of section 19, to the central board reconstituted for the first time on or after the commencement of the state bank of india (amendment) act, 1963, namely:-- (i) if the number of such directors holding office at the end of one year from the date of such reconstitution is not more than three, then one of such directors, and if such number exceeds three, then two of them, shall retire at the end of the said year; is (ii) if the number of such directors holding office at the end of two years from the date of such reconstitution is not more than three, tjhen one of such directors, and if such number is four, then two of them, shall retire at the end of the said two years; 20 (iii) if the number of such directors holding office at the end of three years ,from the date of such reconstitution is not more than two, then one of such directors shall retire at the end of the said three years; (iv) any such director holding office for a period of four years from the date of such reconstitution shall retire at the end of such period: (v) the director or directors to retire at the end of each year under clauses (i), (ii) and (iii) shall be determined by lot" i for section 21 of the principal act, the following section shall substibe substituted, namely: _ tution of new section for section 21 "21 (1) there shall be constituted at each place where the local state bank has a local head office, a local board which shall boards consist of the following members, namely:-(a) the chairman, ex officio: (b) all such directors elected or nominated to the central board under ~la\lse (c) or clause (d) of sub-section (1) 35 of section 19 as are ordinat'ily resident in the area served by the branch register of the local head office; (c) six members to be dominated by the central government in consultation with the reserve bank; 5 (d) one member to be elected in the prescribed manner by the shareholders, other than the :reserve bank, whose names are en,tered in the branch register of the local head oftice, if the total holdings of such shareholders amount to two and a half per cent or more of the total ilsued capiml: provided that a person elected as a member of a local 10 board under this clause shall not cease to be a member thereof for reason only that the total holdings as aforesaid fall below two and a half per cent of the total issued capital, at any time after his election; (e) the secretary add treasurer of the local head '5 office, appointed by the state bank, ez offieio (2) where as a result of the establishment of any local head office (hereinafter referred to as the new local head office) for any area which is already served by the branch register of another local head office (hereinafter referred to as the 20 existing local head office) a local board (hereinafter referred to as the new iocal board) is constituted for the new local head office, any person who is at the time of such constitution, holding office as a member of a local board (hereinafter referred to as the existinj( local borrd) for an existing local head office 25 under clause (e) or clause (d) of sub-section (1) and is ordlnarilv resident in the orea served by the branch register of the new local head office shall cease to hold office as member of the existinll local board and shan become a nlember of the new local board and shall on becominj( such member ibp deemed to 30 have been nominated or, as the case may be, elected to the new local board and shalt hold office as such member for the unexpired portion of his term of office as a member of the exist  ing local board (3) any vacancy caused in the existing local board as 8 3~ result of any member thereof becomin~ a memlber of the new local board under sub-section (2) shan be deemed to be a casual vacancy and be filled in accordance with the provisions of leo": tion 2!5 (4) notwithstanding anything contained in clause (d) of sub-iection (1) ,-(a) on the reconstitution of an existing local board for the first time on or after the commencement of the state , bank of india (amendment) act, 1963, or (b) on the constitution of a new local board under sub-section (2) of which an elected member of an existing local board does not in pursuance of that sub-section become a member, 10 the reserve bank shall nominate a member in place of the member to be elected under that clause and such nominated member shall be deemed to have been elected under the said cliause (5) the governor of the reserve bank shall, in consultation is with the chairman, appoint-(a) a member of a local board nominated or elected under clause (c) or clause (d) of sub-section (1) to be the president thereof, and (b) a member of a local board holding office under 20 clause (b) or nominated or elected under clause (c) or clause (d) of that sub-section to be the vice-president thereof" 6 after section 21 of the principal act, the following sections insertion hall be inserted, namely: _ of new sections 21a,21b and 21c 1/21a (1) subject to the provislons contained in this sec- term of tion and in sub-section (2) of section 21, a member of a local ooke of board nominated under clause (c) of sub-section (1) of section members  h ii h i of local 21 or elected under clause (d) of that sub-secbon sao d board office for two years and thereafter until his successor has been duly nominated or elected and shall be eligible for re-nomination or re-election, as the case may be: i 3s provided that out of the six me~bers nominated under clause (c) of sub-section (1) of section 21, on the constitution of a new local board or the reconstitution of an existing local board for the first time on or after the commencement of the state ban~ of jndia (amendment) act, 1963, three shall retire at the end of one year and three shall retire at the end of two years from the date of the constitution or, as the case may be, reconstitution of that local board, and the members to retire at the end of the first year shall be determined by lot (2) a member of a local board nominated ,by the reserve 5 bank under sub-section (4) of section 21 shall retire at the expiry of one year from the date of such nomination (3) a director of the central board becoming a member of a local board by virtue of the provisions of clause (b) of subsection (1) of section 21 shall cease to hold office as such mem- 10 ber on his ceasing to be a director or on his ceasing to !be ordinarily resident in the relevant a'rea (4) the president and the vice-president of a local board shall each hold office for two years or the remaining period of his office as a member of the local board, whichever is shorter, j, and shall be eligible for re-appointment so long as he is a member of the local board | powers    ||-----------|| local     || board    |21b save as may otherwise be prescribed and subject to any general or speciel directions which the central board may give from time to time, a local board shall, in respect of the 20 area served by the branch register of the local head office for which the board has been constituted, exercise all powers and perform all functlens and duties of the state bank in relation to any business that may be carried on or transacted by the state bank under sub-section (1) of section s2 and clauses (i) :as (excluding the proviso) (ii) , (iii), (v) to (ix), (xa) , (xii) to (xv), (xvii), (xviii), (xixb) and (mc) of section 33 and shall exercise such other powers and perform such other functions and duties as may be conferred on or assigned to it by the central board 30 local committees 21c (1) a local committee may be constituted by the central board for any area and shall consist of such number of mempers as may be prescribed (2) the chairman shall be an ex of]icio member of every such loca! committee 35 (3) a local committee shall exercise such powers and perform such functions and duties as the central board may confer on or assign to it" 7 in section 22 of the principal act, in sub-section (1),-amendment of section 22 (a) in clause (d), after the words "managing director" the d " ' , wor s secretary and treasurer," shall be inserted' , (b) for the proviso, the following proviso shall be substituted, namely:-s 10 - "provided that in the case of a member of local board nominated by the reserve bank under sub-section (4) of section 21, the disqualification mentioned in clause (h) shall not operate for a period of six months from his becoming such member" s in section 24 of the principal act, in sub-section (3), after the amend word and figures "section 19", the words, brackets, letter end figures inent of "or any member of a local board nominated under clause (c) of section sub-section (1) of section 21" shall be inserted 24 is 9 in section 25 of the principal act, for sub-section (2), the !:~n:i following sub-section shall be substituted, namely:-section "(2) where any vacancy occurs before the expiry of the 25 term of office of a director, other than the chairman, vicechairman or a managing director or of a member of a local 20 board other than the secretary and treasurer, the vacancy shall be filli!d-2s 30 (a) in the case of an elected director or member, by election; and (b) in the case of a director nominated under clause (d) of sub-section (1) of section 19 or a member of a local board nominated under clause (c) of sub-section (1) of section 21, by nomination in consultation with the reserve bank: provided that where the duration of the vacancy in the office of an elected director or member is likely to be less than six months, the vacancy may be filled by the remaining directors or members, as the case may be, by co-opting a person not disqualified under section 22" 10 after section 31 of the principal act, the following section insertion of 35 shall be inserted in chapter v, namely:-new section after iection31 u31a (1) a local board shall meet at such time and place meetings and shall observe such rules of procedure in regard to the trans- of local action of business at its meetings as may be prescribed boards (2) all questions at the meeting shall ·be decided by a majority of the votes of the members present and in the case of equality of votes, the person presiding at the meeting shall have a second or casting vote (3) a member who is directly or indirectly concerned or 5 interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into byor'on behalf of the state bank, -shall, at the earliest possible opportunity, disclose the nature of his interest to the local board and shall not be present at any meeting of the local board when any such cdn- 10 tract, loan, arrangement or proposal is discussed  unless his presence is required by the other members for the purpose of 'eliciting information, and no member so required to be· present shall vote on any such contract, loan, arrangement or proposal: provided that nothing contained in this sub-section shall is apply to such member by reason only of his being-(i) a shareholder (other than a director) holding not more than two per cent of the paid-up capital in any public compan~ as de~~ in the companies act, 1956;, or ~ny iof 195': corporabon estabhshed by or under any law for the time 20 being in force in india or any co-operative society, with which or to which the state bank has entered into or made or proposes to enter into or make, a contract, loan, arrangement or proposal; or (ii) a director ex officio of the state 'bank or a director 25 of a" subsidiary bank  (4) if for any reason neither the president nor the vicepresident is able to be present at a meeting of the· loc!ai board, any member, other than the secretary and treasurer, elected by the members present from -amongst themselves, shall prealde at 30 the ineetmg (5) notwithstanding anything contained in this section, the chairman, shall preside at any meeting of a local board at which he is present and in the absence of the chairman, ihe ' vicechairmen, if he is a member of the local board, shall, whenever 35 he is present, preside at such meeting" amend-11 in section 33 of the principal act, in clause (:ri:rb), fcy!' the ment of words "seven years", the words "ten years" shall be substituted seetion'ss 12 fin seetion 36 of the principal act, to sub-section (1), the fol- ametullowing proviso shall be added, namely: _ " mmt ef section" "provided that if the balance in the integration and development fund on the date of declaration of any dividends by the state bank is rupees five crores or more, no amount shall the paid into tbat fund under clause (4) and the dividends payable to the reserve bank shall be paid to that bank; and if such balance on such date is less than rupees five crores, only so much of the dividends then payable as will bring such balance to rupees five 10 crores shall be paid into that fund and the balance of such dividends shall be paid to the reserve bank" 13 in section 41 of the principal act, in clause (a) of sub-secuon amend-(7), for the words "a true and correct view", the words "a true and ldedt of fair view" shall be substituted metlgd '1 15 14 section 43 of the principal act shall be re-numbered as sub- amen£-section (1) thereof and after sub-section (1) as so re-numbered, the me:t ~ following sub-section shall be inserted, namely:-lee on - "(2) the officers, advisers and employees of the state bank shall exercise such powers and perform such duties as may be ao entrusted or delegated to them by the central board" 15 section 48 of the principal act shall be omitted omiuloa af hc-tion 41 16 in section 50 of the principal act, in sub-section (2) ,-amend-30 (a) for clause (d), the following clause shall be substituted, ::~:~ namely:-"(d) the powers, functions and duties of local boards and the restrictions, conditions or limitations, if any, subject to which they may !be exercised or performed, the formation and constitution of local committees (including the number of members of any such committee) and o£ committees of local boards, the powers, functions and duties of such committees, the holding of meetings of local committees and committees of local boards and the conduct of business thereat;"; (b) in clause (f), after the words "the central board" the words "or of local boards" shall be inserted; (c) c18use (h) shall be omitted spec{li it:when the celal'bodd 'is recodltituted for the err -time ptovwons under the provisions of section 19 of the principal act a amended by as to this act,-directors (a) the chairman and the vice-chairman of the central board and the managing directors of the state bank holding  s office as such immediately before such recunstitution shall continue to hold their respective offices after such reconstitution for the unexpired portion of the term of their office; -(b) all the directors of 'the central board deemed to be elected under the proviso to clause (c) of sub-sectton (1)0£ sec- to tion 19 of the principal act or nominated under elause (d) of that sub-section and holding office as such immediately before such reconstitution shall be deemed to have vacated their respective offices on such reconstitution; and the remaining directors elected under clause (c), and the dil'eetors nominated·under is clauses (e) and (f) of the said sub-section (1) ahall continue to -hold office after swch reconstitution until their suecetsol's are duly elected under clause (c) or, as the case may be, nomtnated under clauses (e) and {f), of subsection (1) of section 19'01 the principal act as amended by this act 20 vacation of oftlce by mem-~l"i of local boalda 18 on the reconstitution of any local board for the first time under the principal act as amended by this act, all members of that local board holding oftice under clause (a) of sub-section (1) of section 21 of the prindpal act or elected or nominated under c1auae (b) of that sub-section and holding office as such immediately before as such reconstitution, shall be deemed to have vacated their offices on such recorstitution  statement of objects and reasons, the busineesand activities of the state bank of india have in~ vt:ry consid~rably, since the !bank was established on the 1st, july, 1955 it is, therefore, considered desirable that provision should be made for facilitating the creation of a larger number of local head offices, for certain changes in the composition of the central and local boards of the !bank and for v~ting ~e specific pow:ers ~ the local boards so as to enable ,the bank to dispose of its business expeditiously and to imprqve the iquauty of its services generally 2 ad integration an~ d~velqp11lent fund was created in 1955 for ~ing, the q~ve1opment activities of the 'bank as the '!balance in the, fund is now adequate, it is proposed to moctify the relevant provisions of the act, so as to limit the accumulation in the 'fund at any , ' time to a sum of rs 5 crores 3 the notes on clauses explain the various provisions of the bill new dam: t t krishnamachari the 18th ,december, 1963  note, on clguse,clause 3 provides for the revised constitution of the central board it is proposed that apart from the chainnan, the vice-chalrman, two managing directors and one representative each of the reserve bank and the central government--  (i) the presidents of ell local boards which have been or may be constituted should become directors of ·the central board by virtue of their oirce, (ii) there should be not less than two 'and not more than four directors to be elected by shareholders other than reserve bank of india whose names are borne 011 the principal ;register (as against six directors who are elected at present from the various branch registers), and (iii) there should be not less than two and not more than six directors to be nominated by central government in place of eight directors who are nominated at present as the elected memlbers of the central board will be chosen in future from the principal register, the number of local head offices, or of branch registers maintained at such offices, will not in future be relevant for the purposes of the constitution of the central board or for periodical elections to it and there will in consequence be no implied limit to the number of local head offices which may be constituted from time to time t:'lame 4 provides for a consequential amendment to section 20 and for the rotation of the directors nominated on the re-constitution of the central board for the first time after the commencement of the amended act clause 5" provides for the revised constitution of the local boards a local board, after re-organisation, will (apart from the members of the central board who are also members of the local board) consist of eight members instead of four as at present six members will be nominated by the central government and one member " wnr be elected by shareholders whose 'names are entered on the concerned branch ft'gister (as against three nominated members and one elected member qs provided fot: at present) the secretary and treasurer of the local head office, by virtue of his office, will also beamember of the local board as the chairman of the state bank may !lot attend all meetings of local board, a president will be appointed for every local board by the governor of reserve bank from the loeal elected or nominated members of the board clause 6 seeks to insert three new sections, namely sections' 21a, 2lb and 2le, which respectively provide for the term of office of the members of local board, the powers of local board and the constitution of local committees in order to provide for the expeditious disposal of the business of the bank, the powers of local boards are proposed to be increased, particularly in so far as the grant of loans and advances is concerned clauses 7 to 10 provide for consequential amendments as a result of the provision for the re-constitution of the local boards clause i1 seeks to amend section 33 (xixb) so as to permit the state bank to grant term loans to industrial or commercial units, which may be generally approved for this purpose by the central board, for periods upto ten years (instead of seven years as  at present) clause 12 amends section 36 when the state bank of india was established, provjiion was made for the dividends declared by that bank, and due to be paid to the reserve bank of india, 'to be credited (so far as these dividends relate to 55 per cent of the share capital of the state bank of india, which is the minimum required to be held by the reserve bank of india at any time) to an integration and development fund this fund was intended and has been utilised for financing the development activities of the bank as the amount available in this fund' is now considered to be adequate, it is no longer necessary to continue the provision for the dividends in question to ibe credited unconditionally or for an indefinite period to the fund it is, therefore, proposed that if the credit balance in the fund at the time of the declaration of any future dividend by the state bank is rs 5 crores or more, the dividends due to the reserve bank, on the compulsory minimum holding of shares, should be paid to the reserve bank, instead of being credited to the fund clauses 13 to 75 the amendments proposed are of a clariftcatory or drafting nature eza- ,if- providea for ~ eouequential idmdldmellt to mo-_5q of the state·bak·ollddla act which derali ~ ~tiodi for- ji~! eft to the provi&iods of the a«  cklun, 17 providea for the coilt1nuance in ofbce· of the cbb:",·n, vice chairman and man'ging directo1'8 of the ~ add for the vacation of their ofllce by the directors of the central board of the bank ,other· than thoee representing the reserve bank udtbe ceo· tnl government so as to faollitate the recodstitutipn of the central ~ udder the amended pt'ovisioa qause 18, of the bm teeks to amend section 6o·of the act -which empowers the central board to make regulations for the-'purpose of giving effect to the provisions of the act the matters in respect of which such regulations may be made have been speci1led in the aid section the amendment to ·the liection is being proposed with a view to enable the central board to prescribe inter ali4 the restrictions, conditions or 11m1tations, if iny, 'subject to which the powers, functions and duties of local boards may be exeretsed· 'or -performed, and the number of members -of local committees these ~  'matters of a routine or' 'tiiministrative nature the -de1eptlon of 1egj8iative powenis thus of a normal charaeter   ,   chapter v" - f - management '  - - 19 (1) the central board shall consist of ihe followilig, namely:-composition of the centralboard "(0) a chairman 'and a vice-chairman to be appointedby' the central government in consultation, with the reserve 'bank' and after consideration, except in the· case of first appointment:, of the recommendations made by the central board in that behalf; - - - - - (c) six directors to be elected in the prescribed manner by the shareholders, other than the reserve bank, whose names are entered in the various branch registers: provided that if the total amount of the holdings of all such shareholders on any branch register three months before the date fixed for election is below two and a half per cent of the total issued capital, all the directors to be elected iby the shareholders on that register shall be nominated by the reserve bank, and such directors shall, for the purposes of this act, be deemed to be directors elected under this clause; (d) eight directors to be nominated by the central govemment in consultation with the reserve bank to represent, as far as possible, territorial and economic interests and in such manner that not less than two of them have special knowledge of the 'working of co-operative institutions and of rural economy and the others have experience in commerce, industry, banking or finance; - - - - (2) notwithstanding anything contained in clauses (b) and (c) of sub-section (1), on the first constitution of the central board all the directors referred to in the said clauses shall be appointed by the central government, and the directors so appointed shall, for the purposes of this act, be deemed to have been appointed or elected as the case may be, within the meaning of the said claui8& (3) all directors of the central board first constituted, other than the chairman, vice-chairman and managing directors, shall retire at the expiry of two years from the appointed day zoo (l) - - - - - term of   oftlce of (2) a managmg director shall hold offtce for such term, not chairman, exceeding five years as the central board or, in the case of the manqlng first two appointments, the central govemment, may fix when ap- director pointing him, and shall be eligible for reappointment etc  - - - - - - (5) the following provisions shall have effect in relation to directors electeci or nominated to the central board after the expiration of two years from the appointed day:-(i) out of the six directors elected under clause (c) of subsection (1) of section 19, two shall retire at the end of one year, two at the end of two years and two at the end of three years from such expiration; (ii) out of the eight directors nominated under clause (d) of sub-section (1) of section 19, two shall retire at the end of one year, two at the end of two years, two at the end of three years and two at the end of four years from such expiration; " (iii) the directors to retire at the end of each year under clauses (i) and (ii) shall be determined by lot zl (1) there shall be constituted at each place where the state local bank has a local head oftlce, a local board which shall consist of the boards following members, namely:-and local commlt-(4) all the directors elected or nominated to the central leer board under clause (c) or clause (d) of ,ub-eection (1) of section 19 and ordinarily resident in the area served by the branch register of the local head oftlce; and (b) such number not exceeding four to ·be elected by the shareholders whose names are entered on the branch register or nominated by the central government in consultation with the reserve bank as may be prescribed (2) a local committee may be constituted by the central board far any area conaisting of iluch nmnber of members as it may determine (2a) the chairman e~ officio shall be a member of every local board and local committee constituted under this section (3) a local board and a local committee shall exercise such powers and perform such functiona and duties as the central board may assign to the local board or local committee ;; 22 (1) no person shall be qualifted to be a director of ute central board or a member of a local board or of a local committee if-- - - - - (d) he holds any oftlce of profit under the state bank other than the office of chairman, vice-chairman, managing director, or legal or technical advijer; or  - - - - dilquallftcauoaa for directorship of central boud or 'membership of local boards or committees "' (h) in the case of an elected director, he is not registered as a holder in his own right of unencumbered sbues in the state bank of a nominal value of at least five thousand rupees and in the case of an elected member of a nominal value of at least one thousand rupees: provided that in the case of a director or member deemed to' have been elected to the central board or a local board, as the case may be, on its first constitution, the disqualification mentioned in clause (h) shall not operate for a period of six months from his ibecoming such director or member  - - - 24 (i) - - - - removal from oftlee of dji'eclors, etc (3) the central government, after consulting the reserve bank, may remove from oftlce any director nominated udder clause (d) of sub-section (1) of -section 19 and nominate in his stead another person to ful the vacancy 15 (1)  - cuual vaeancies (2) where any vacancy occurs before the expiry of the tenn of oftlce of a director, other than the chalnnan yiee-ehairman or a managing director, the vacancy shall be ftlled-(a) in the case of an elected direetor, by election; and (b) in the case of a director nom ta ate«i udder c}auae (4) of sub-section (1) of llectton 19, by nominattonin coasultatfon with the reaerve bank: provided that where the duration of the vacancy in the office of an elected director is likely to be less than six months, the vacancy may be ft11ed by the rentaining directors by co-opting a pel"llon not disqualified under section 22 - - - - -  chapter vi business of tid state bank - • - •33 subject to the other provisions contained in this act, the other stat~ bank may carry on and transat't any of the following kinds businebe of business, namely: -wh1eh the state bank - - - - - may transact (mb) the advancing or lending of money to persons engaged in such industries or classes of industries or in such business or trade or classes of business or trade as may be specified by the central board by directions issued in this behalf, for any period in excess of six months but not exceeding seven years, and subject thereto and to such directions as may be issued by the central board, such advance or loan may be made en such terms and conditions and upon such security (including the security of any immovable property) as the state bank may deem fit; - - - -  chaprer vii ftnms, accounts and au_itfund 38 (j) the state bank shall maintain a special fwld to be known int8lraas the in~ation and development li'und into which shall be lion and paid- development (0) the dividends payable to the reserve 8adk on such shares of the state bank held by it is do not exaeed ftfty-five per cent, of the total issued capital; and (b) such contributions as'the reserve bank or the centnl  go,vemment may make from time to time - - - - - audit '" '" '" '" '" (7) the auditors shall make a report to the central government upon the annual balance sheet and accounts, and in every such report they shall state-(0) whether, in their oplnlon, the balance sheet is a full and fair balance sheet coilltaining all the necessary particulars and properly drawn up so as to exhibit a true and correct view of the aftairs of the state bank, and in case they have called for any explanation ~r information, whether it has been given and whether it is satisfactory; '" '" '" - -  chapi'er viii miscellaneous'" - - - - power to relddye cwkulties 48 the central government may, for the pwpoee of removing any difticulties, particularly in relation to transition from the pr~ visions of the imperial bank of india act, 1920, to the provisions 47 of 19~ of this act, by order, direct that this act shall, during such period as may be specified in such order, have effect subject to  ell ada~ tations, whether by way of modification, addition or omission, as it may deem expedient: power of provided that no such order altall be made after the expiry of one year from the appointed day   '" '" '" so (i) - '" '" '" '" =~ (2) in particular, and without prejudice to the generality of the makeregu- foregoing power, such"'regulations may provide forlations - - - - - - (d) the number of electecl or nominated member of local board and local committees, the terms of oalee of the members, the manner of their election or nomination, the formation and constitution of committees of local boardl, the powers, functions and duties of local boards, local committees and committees of local boards, the holding of meeting of local boards, local committees and committees of local boards and the conduct of business thereat; "  - - - - (f) the manner in which the business of the central board shall be transacted and the procedure to be followed at the meetings thereof; - - - - - - (h) the delegation of powers and functions ·of the central board to the vice-chairman, the managing directors or other directors or officers or other employees of the state bank;     - it b~ further to amend the state bank of india act, 1955 (shri t t krishnamachari, minister of finance) 