 bill no 48 of 1" the_banking laws (miscellaneous provisions) bill, 19<>3a bill further to amend the reserve bank of india act, 1934, the banking comj1anies act, 1949 and the state bank of india (subsidiary banks) act, 1959 be it enacted by parliame1lt in the fourteenth year of the republic of india as follows:- chapter i1 (1) this act may be called the banking laws (miscellaneous shorttltle s provisions) act, 1963 and commence-(2) it shall come into force on such date as the cedtral gov- ment ernment may, iby notification in the official gazette, appoint; and different dates may be appointed for different provisionsof thi· act  chapter ii 10 amendip5t oj' thb risdvil bank oj' india ac:r, 19342 of 1934 z in sectkm 34 of the reserve bank of india act, 1934 (herein- amendafter in this chapte!" referred to as the principal act), sub-section mentof (2) shall be omitted ' eeeuon it is 3 section 36 of the principal act shall be omitted 0miiai0d ofmctlon '1 1427 (b) 1&-1  iamendmentof lection 38 4 in section 38 of the principal act, the words and figures ''to re-issue any rupee coin delivered under section 36 nor" and the words "or by delivery to the central government under that section" shall be 9mitted ·5 after chapter ilia of the principal act, th~ following chap-5 ter and sections shall be inserted, namely:-'  "chapter iiibinsertion of new chapter after chapteriiia  ~ paovibiors ulatm'o to non-banki:n"o instrnj'tions receiving deposits and financial institutions45h the provisions of this chapter shall not apply to the 10 state bank or a banking company as defined in section 5 of the b,,,jr;iqg cc8llpanies act, 1949 or a banking institution notified loot lint under section 51 of that act chapter nib not to apply in certain calel provided that for the pu~pqses of this chapter, the madras industrial investment corporation limited shall not be deemed is to be a banking company deftditiolll 451 in this chapter, unless the context otherwise requins,-(a) "company" means a company as defined in section 3 of the companies act, 1956 and ipc~~d~ a fore,igll,com- 20 pany wi~n· the meaning of section 591 of that a,ct; 1 of 1958 (b) "corporation" means a corporation incorporated by an act of any legislature; (c) ·"financial institution" means any non-banking institution-  25 (i) whichcarrie; on as its business or part of its busine$stqejinancing, whether by way of making loans 01' adv~or otherwise, of trade, industry, commerce or agriculture; or (ii) which carries ori as its business or part of its 30 business the acquisition of shares, stock, bonds, deben-1ur~s 9r~q~p~e"tpr,·~t'- ~by/a government or local authority or' any other assets; or (iii) which carries on as its prinoipal b\1siness hire-purchase transactions or the financing of ~h 35 transactions; (d) "firm" hal the same meaning 8s in the indian partnership act, 1932; 8 of l8jj  the banking laws (miscellaneous provisions) bill, 1963 (to belis introduced in lok sabha)1 page 5, line 2,-for "veryfying" ~ "verifying" 2 page 6, against line 23, in the marginal heading,-for "congnisance" read tfcognisance tl 3 p~ge 7, against line 7,~ the marginal heading,  tor "ofll ~ nor" 4 page 8, line 39,-tel: it; ii read "," 5 page 10, line 10,-qmu liand" before "includes" 6 page 10, line 12,-for ~'"" ~ ti ii \ , l  -,- i t )   ~ -7 page 10, in the marginal heading to claue 18,-for t1par~ ii ~ead "part" 8 pag e 12, -line 24,-omit " ii ,  "'q,i page ~~, line 15,-- ',-qlilu n" aft er  "30 (1) tl 10 page 30, 1nsfit the following marginal heading to sec on 4!5t,-iienforcement of orders and decisions of high court" o 11 correct line numbers 'on pages 2, 3, 6, 11 and 13 new delhi, noyember 25, 1963 agrahayana 4, 1885(saka) (e) "non-banldnginstitution" means a eompmy, cor- poration, or firm 45j the bank may, if it ccmsiders·'necestitry in the~public bank to interest so to do, by general or- specialorder;-regulate or s 10 ~- --prhibit (4) regulate or prohibit the issue by: any non-banking issue of institution of any prospectus or advertisement soliciting pr?spectua deposits of money from the public' and orilhver-, tishneft\  (b) specify the conditions subject to 'which -any such solicttm~ prospectus or advertisement, if not prohibited, may be =1!i of issued  is as-to deposits and to give directions 20 45k (1) the bank may at any·time·dftecttj!atl~ry non- power·bf belting institution ·snall furnish to th'~ [bank, in sikh form, at bf'itk·to such intervals and within such titne, such -statemmfts,1nfonna- collect tion or partietllars relating to fir conn'ecfed -with  tlsits re- :~[;n ceived by the non-banking institution, as may be specified by from nonthe bank by general or special' ·order banking institutions (2) without prejudice to the generality of-the-pewer vested in the bank under sub-section (1), the statements, ·inf-ormation or particulars to be furnished under sub-section' (n may relate to all or any of the following matters,' namely, the<""'8dlount of the deposits, the purposes and periods fof' which, and the!' rates of interest and other terms and conditions on which they:  are received (3) the bank may, if it considers necessary' in the public interest so to do, give directions to non~banking institutions either generally or to any non-banking institution or group of non-banking institutions in parti~ular, in r~pect of any matters relating to or connected with the receipt of deposits, including the rates of intereht payable on such deposits, and the periods for which deposits may be received 30 (4) if any non-btmking institution' 'flltls'·to- corhply' witlt lany diret!tton given by the" 'bank under sf1~on (s); the bank may prohibit the acceptance of deposits by that· nofpobanking institution 3s (5) if any question arises whether any amount borrowed or proposed to be borrowed by a non-banking instituti0l\ is or is not a deposit it shall be referred to the bank whose decision thereon shall be final (8) every non-banking institution receiving deposits shall, if 10 required by the bank and within such time as the b~'lk may specify, cause to be sent at the cosb of the nem-banking institution a copy of its annual balance-sheet and profit and loss account or other 'annual accounts to every p~rson from whom s the non-banking institution holds, as on the laft day of the year to which the accounts relate, deposits higher 'than such sum as may be specified by the bank-45l (1) if the bank is satisfied that for the purpose of enabling it to regulate the credit system of ·the country to its 10 advantage it is necessary so tv do, it may-power of bank to call for tnformationfrom financial inatitutiolll and to etvedlreo-uodi (a) require financial institutions either generally or any group of financial institutions or financial institution in particular, to furnish to the bank in such form, at such intervals and within such time, such statements, information is or particulars relating to the business of such financial institutions or institution, as may be specified by the bank by general or special order; (b) give to such institutions either generally or to any such institution in particular, directions relating to the con- 20 duct of business by them or by it as financial institutions or institution (2) without prejudice to the generality of the power vested in the bank under clause (a) of sub-section (1), the statements, 5 information or particulars to be furnished by a fimmcial fnsti- 2 tution may relate to all or any of the followin~ matters, namely, the -paid-up capital, reserves or other liabilities, the investments whether in government securities or otherwise, the per; sons to whom, and the purposes and periods for which, fina·nce 30 is provided and the tenns and conditions, including the ratps of interest, on which it is provided (3) in issuin~ directions to any financial institution under clause (b) of sub-section (1) ,the bank shall have due regard to the conditions in which, and the objects for -which, the in- 35 stitution has been established, its statutory responsibilities, if any, and the effect the business of such financial institution is likely to have on trends in the money and capital markets 4~m it shall be the duty of every non-banking institution to furnish the statements, information or particulars called for, 0 and to comply wit:tl any direction given to it, under the prov!- 4 sions of this chapter duty of non-banking institutions to furn"iah statemedta, etc, required b1bdj1: s 4lin (1) the bank may, at any time, for the purpose of inspection veryfying the correctness or completeness of any statement, information or particulars furnished to it by a non-banking institution or for the purpose of obtaining any information or particulars which a non-banking in!rtitution hils failed to furnish on its being called upon to do so, cause an inspection to be- made by one or more of its officers or employees or other persons (hereinafter in this section referred to as the inspecting authority), of any such institution and its books and accounts 10 is (2) it shall be the duty of every director or member of any committee or other body for the time bein~ vested with the management· of the affairs of the non-banking institution or other officer or employee thereof to produce to the inspecting authority all such books, accounts and other documents in his custody or power and to furnish that authority with any statements and information relating to the business of the institution as that authority may rpquir, of him, within such time as may be specified by that authority 20 (3) the inspecting authoritv may examine on oath any director or member of any committee or body for the time-being vested with the m~nl'lp'pment of the 8ft'~irs of the non-banking institution or other' offleer or employee thpreof in relation to its business and may administer an oath aceordingly 450 (1) whoever in any return, sbt~ment or information penalties 2s required or furnh;hed by or under or for the purposes of any provision of this chrnt,er wilfullv maker a ~bltement which is false in any material particular, knowintt it to be false, or wilfullv omits to make a mgterial rt!ltement shall be punishable with imprisonment for a t~rm which may extend to three years 30 and shan also be liable to fine (2) if any pi'tson fails to produce any book, account or other document or to furnish imy statement, information or particulars, which under this ch1'\pter it is his duty to produce or furnish, or to answer any clupstion relatin~ to the business of a 35 non-bankin~ institution which h~ is asked by the inspecting authority under this chapter, he rhrll be punishable with fine  which mllv p~rtend to two thousand rupees in re'!-lpe'ct of each otfencl', and, if he persists in such rpfm~al with a further fine which mlly extend to one hundred rupees for every day during 40 which the offence continues (o!) n any non-banking instithtion-(4) receives any deposits in contravention of any' dfrection given to it under this chapter; or ' (b) issues· any· prospectus or advertisement otherwise than in i accordance with any order made under section 415j; 5 or (c) fails to comply with the provisions of su~tion (6) of section 45'1( or with the directions issued under subsection (3) of that section or clause (b) of sub-section (1) of 1iection 45l, 10 every director or member of any committee or other body for , the time being 'v'estedwith the management of the affairs of the non-banking institution unless he proves that the contreverirtion took place without his knowledge or that he exercised a11 due <ulfgence to prevent it shall be punishable with fine wluch may 15 e;t!end-(4) in the case cjif a contraventioft falling under clause (a), to twice the amount of the deposits received; (b) in the case of a contravention falllnj;c 'under c1tluse (b), to twice the amount of the dejjosits called foriby the 20 prospectus or advertisement; and (e) in any other (,lse to ·two thousand rupees conlllilanee ot 'offence 45p no court shall t:1ke cognisance of any offence punishable under section 450 except upon a complaint in wrhing made by an officer of the bank generally or specially authorised in 25 writing in this behalf by the bank and no court inferior to that of a 'pri!sfdeney magistrate or a magistrate of 'the first class shall try any such offence 45q the provisions of this chapter· id'lall ha\l'e'~ not-withstanding anything inconsistent therewith contained in any 30 other law for the time being in ,force or any instrument having effect by virtue of any such law" chapter iiibto over-ride other lawi  chaprer tir ambndment of the banring companies act, 1949amend'-mentol lection ii 8 in section 5 of the banking companies act, 1949 (hereinafter 35 10 of 1949 in this chapter referred to as the principal act), for the brackets, figure abd '~rds "'(1) in this act", the words uin this act" shall be substituted 7 for section 7 of the principal act, the following leetio~ ,hall substitube substituted, namw,y:-tionof new section for section 7 s "7 (1) no company othertbrm a ):>anking eompany shall use uae of as part of :its jl8iqe,any of, thewol'ds 'bank', 'badker'· or 'blnking' ~:  and no company shall carryon the business of banking in india "bank~r", unless it uses as part of its :njlme at le~to:ne of 1d1 :woteis ''blllkida'', (~) no fb:lq, infiivtdq_lor gip\lp ofij1dmdlblls,shau, for the r!, bad&-purpose of carrying on any business, usees p~; of ita, or hib company n~e any of the words 'bank', 'ban,kiqg' or 'ban,lwlg company' (3) nathing in this section shall apply to-10 (a) a subsidiary of a banking company formed for one or more of the purposes mentioned in sub-sectiod (1) of section 19, whose name indioates that it is a subsidiary of that banking company; is 1 of 1956 (b) any association of banks formed for the protection of their muitual interests and registered under section 25 of the companies act, 1956" 8 in section 10 of the principal act,-amendmentof (a) in sub-section (1), in sub-cla\1se (iiu of clause (c)-section 10 30 (i) for the words "who hjls a contract with the company 30 3s for its ~gement", the wor4s "whc:we term of office as a per$qn  managiqg the· company is" shall be, substituted; (ti) fel' the first pl"gviso, the following provisos shall be sqbjutqte4, namely:-"provided that the term of office of any such person mpy be renewed or extended by· ·futother periods not exceec;upg five years one~h occasion sub;ect·to the conditwn that such renewal or extension shall·not be ~anc­tiqned earlier than two years from the date on  which it is to come into force: provided also that where the term of oftlce of such person is for an indefinite period, suchtenn, unless it otherwise comes to an end earlier, shall come to an end immediately on 'the expiry of five years from the date of his appointment or on the e:t(pllly of three months from the date of commellcement of section 8 'of the bankillg laws (miscellane()us provlsiqlls) aqt, j,g63, which~er is later"; (b) lub-sectiona (3), (4) and (5) ,lw1 b onlltted amend-9 in section 12 of the principal act, in sub-section (2), lor the ment of words "in excess of five per cent", the words "in excess of one per section 12 cent" shall be substituted amend-10 in section 18 of the principal act, in c~use (b) of the· explanament of tion, the brackets and word "(private)" shall be omitted s section 18 11 in section 20 of the principal act,-amendmentof section 20 (a) for sub-section (1), the following sub-section shall be substituted, namely:-"(1) notwithstanding anything to the contrary contained in section 77 of the companies act, 1956, no banking com- 10 1 of 11158 pany shall-(a) make any loans or advances on the security of its own shares; or (b) grant unsecured 108118 or advances-(i) to any of its directors; or 15 (u) to firms or private companies in which any of its directors is interested as partner or m8naging agent or guarantor or to individuals in cases where any of its directors is a guarantor; or (iii) to any public company in which the chair- 20 man of the board of directors of the banking company (where the articles of association of the banking company provide for the appointment of a chainnan for a fixed tenn) is interested as chairman or managing director of the pubuc company or 88 25 director or partner of the managing agent of such company"; (b) in sub-section (2), for the words "granted by it to companies in which it or", the words, brackets and figure "granted by it to companies in cases (other than those in which the bank- 30 ing company is prohibited under sub-section (1) to make unsecureti loans and advances) in which" shall be substituted 12 after section 20 of the principal act, the following section shall be inserted, namely: - "20a (1) notwithstanding anything to 'the contrary con- 35 tained ill section 293 of the companies act, 1956, a banking comlot 1958 pany shall not, except with the prior approval of the reserve bank, remit in whole or in part any debt due to it by-insertion of new section after section'20 restrictions on power toremlt debts (a) any of its directors; or (b) any firm or company in which any of its directors is interested as director, partner, managing agent or guarantor, or (c) any individual if any of its directors is his partner or s guarantor (2) any remission made in contravention of the provisions of sub-section (1) shall be void and of no effect" 13 in section 21 of the principal act,-amendmentol  (a) in sub-section (1), after the words "pubbc mterest", section 21 10 the words "or in the interests of depositors" shall be inserted; (b) in sub-section (2), for the words beginning with "as to the purposes" and ending with "directions as so given", the following shall be substituted, namely:-is (a) the purposes for which advances mayor may nat be made, (b) the margins to be maintained in respect of secured advances, 20 (c) the maximum amount of advances or other financial accommodation which, having regard to the paid-up capital, reserves and deposits of a bankin~ company and other relevant consideratioal, may be made by that banking company to anyone company, firm, association of persons or individual, (d) the maximum amount up to which, having regard to the considerations referred to in clause (c), guarantees may be given by a banking company on behalf of anyone company, firm, association of persons or individual, and 30 ' ;0  -,  (e) the rate of interest and other terms and conditions on which advances or other financial accommodation may be made or guarantees may be given"; (c) after sub-section (2), the following sub-section shall be inserted, namely:-35 "(3) every banking company shall be bound to comply with any directions given to it under this section" 142'1 (b)ls-3 a' amend-if in section 26 of the principal act, the words "giving particument of lars of the deposits standing to the credit of each such account" section 26 shall be omitted amend-15 in section 30 of the principal act, in clause (d) of sub-section ment of (3), for the words "of profit and loss", the words "of profit or loss" s section 30 shall be substituted: amendmentof 16 in section 34a of the principal act, for sub-section (3), the following sub-section shall be substituted, namely:-sec~od 34a "(3) for the purposes of this 'section, "banking com,any" and includes the reserve bank, the state bank of india and 10 any subsidiary bank as defined in the state :balik of lndia (subsidiary banks) act, 1959"; 38 of 1959 amendmentof section 35 17 in section 35 of the principal act, in sub-section (2) and in sub-section (3), after the words "director or other offtce't", the \vords "or employee" shall be inserted is insertion 18 after part ii of the principal act, the following part and of new part after seetioris shall be inserted, namely:-partn  "part iia control over managementpower of reserve bank to remove managerial and other periods from oftice s6aa (1) where the reserve bank is satisfied that in the 20 public interest or for preventing the affairs of a banking company being conducted in a manner detrimental t() the interests of the depositors or for securing the proper management of any banking company it is necessary so to do, the reserve bank may, for reasons to be recorded in writing, by ottier, remove 25 from office, with effect from such date as may be specified in the order, any director, chief executive office'r (by whatever name called) or other officer or employee of the banking company (2) no order under sub-section (1) shall be made unless 30 the director or chief executive officer or other officer or employee concerned has been given a teaso:nal:he opportunity of making a representation to the reserve bank against the proposed order: provided that it shall not be necessary to give any such opportunity if, in the opinion of the reserve bank, any delay 3s would be detrimental to the interests of the banking company or its depositors:' ("> where any order is made in respect of a director or chief ·executive oftlcer or other officer or emploree of a b~nkins s company under sub-section (l) he shall cease to be a directot or, as the case may be, chief executive officer or other ~fticer or emplqyee of the banking company and shall not, in anyway, whether directly or indirectly, be concerned with, or take part in the iq,bnag~t of, ally ,banking company for such period not exceeding five years as may be specified in the order 10 (4) if any person in res~ct of whom an order is made by the reserve bank under sub-section (l) contravenes the pro--visions of this section; he shall be punishable with fine which may e~tend to two hundred and fifty rupees for each day during which such contravention continues is (5) where an order under sub-section (1) has been made, the reserve bank, ijl&y, by order in writing, appoint a suitable person in place of the director or chief executive offi~er or other officer or employee who has been removed from his office under that sub-section, with effect from such date as may be specified in the order' (6) arj,y person appointed as director or chief executive oj!lcer or other officer or employee under this section, shall-20 (a) hold office during the pleasure of the reserve bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time as the reserve bank may specify; (b) not incur any obligation or liability by reason only 25 of his being a director or chief executive officer or other officer or employee or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto (7) notwithstanding anything contained in any law or in 30 any contract, memorandum or articles of association, on the removal of a person from office under this section, that person shall ~ot be entitled to claim any compensation for the loss or ter~4tation of office  3~ab (1) if the reserve bank is of opinion th~t in the in- power of 35 terests of the 'banking 'company' or its depositors it is necessary hellerve so tr do, it may, from time to time by order in writin,g, appoint, ~;::!~ vy,ith effect from such date as may be specified in the order, not additional moret~n five persons to hold office as additional directors of directors the banking cplppany  1-,· (2) any person appointed as additional director in pursuance of this section- (a) shall hold office during the pleasure of the reserve bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at s a time as the reserve bank may specify; (b) shall not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto; and 10 (c) shall not be required to hold qualification-shares in the banking,company (3) for the purpose of reckoning any proportion of the total number of directors of the banking company, any additional director appointed under this section shall not be taken into is account partiia to override other h,ws 36ac any appointment or removal of a director, chief executive officer or other officer or employee in pursuance of section 36aa or secl:ion 36ab shall have effect notwithstanding anything to the contrary contained in the companies act, 1956, 20 1 of 1958 or any other law for the time 'being in force or in any contract  or any other instrument"  19 in section 44a of the principal' act,-(a) sub-section (5), shall be omitted; amendmentof section 44a (b) in sub-section (6), for the words "the' terms of the :as order sanctioning the scheme", the words "the provisions of the scheme as sanctioned" shall be substituted (c) after sub-section (6), the following sub-sections shall be inserted, namely:-: "(6a) where' a scheme of amalgamation is sanctioned 30 by the reserve bank under the provisions of this section, the reserve bank may, by a further order in writing, direct that on such date as may be specifted therein the banking company (hereinafter in this section referred as the amalgamated banking company) which by reason of the 3s amalgamation w'ill cease to function, 'shall stand dissolved and any such direction shall take effect notwithstanding anything to the contrary contained in any other law 5 (6b) where the reserve bank directs a dissolution of the amalgamated banking company, it shall transmit a copy of the order directing such dissolution to the registrar before whom the banking company has been registered and on receipt of such order the registrar shall strike off the name of the company 10 ~ -; 15 (6c) an order under sub-section (4) whether made before or after the commencement of section 19 of the banking: laws (miscellaneous provisions) act, 1963 shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with, and a copy of the said order certified in' writing by an officer of the reserve bank to be a true copy of such order and \ a copy of the scheme certified in the like manner to be a true copy thereof shall, in all legal proceedings, be admitted as evidence to the same extent as the original order and the original scheme" 20 in' section 44b of the principal act, in sub-section (1), for amendthe words "unless the compromise or arrangement", the words "or met~t of  sec ion 20 sanction any modification in any such compromise or arrangement 44b unless the compromise or arrangement or modification, as the case may be", ~hall be substituted 30 21 in section 45 of the' principal act, after sub-£ection (7), the amendfollowing sub-section shall be inserted, namely: _ ment of section 45 "(7a) the sanction accorded by the central government under sub-section (7), whether before or after the commencement of section 21 of the banking laws (miscellaneous provisions) act, 1963, shall be conclusive evidence that all the requirements of this section relating to reconstruction, or, as the case may be, amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the central government to be a true copy thereof, shall, in all legal proceedings, be admitted as evidetlce to the same extent as the original scheme" 22 in section 45f of the principal act,-amend-(i) in sub-section (1), for the words "proceedings by or me~t of against the' banking company", the words "legal proceedings!' ::~i~n shall be substituted; (ii) in sub-section (2)-40 (a) after the word "directors", the words "officers and other employees" shall be inserted, and (b) the words, br$ckets and figures "before the commencement of the banking companies (aj:nenq~t) act, 1953" shall be omitted  23 in section 45s of the principal act,-(a) in sub-section (1)-5 amendmentof section 45s (i) the words "which has been ordered to be wound up" shall be omitted; 10 (ii) for the words beginning with "take possession of such property" and ending with "special officer", the followin&! shall be substituted, namely:-"(a) take possession of such property, books of accounts or other documents, and (b) forward them to the official liquidator or the special officer"; (b) for sub-section (2), the following sub-sections shall be is substituted, namely:-"(2) where any such property and effects are in the possession of the chief presidency magistrate or the district magistrate, as the case may be, such )4~strate shall, on request in writing being made to him by the qfticial 20 liquidator or the special officer referred to in su~ctiqd (1), sell such property and effects and forward the ·net ,proceeds of the sale to the official liquidator or the special oftlcer: provided that such sale shall, as far as practicable, be effected by public auction 25 (3) for the purpose of securing compliance with the provisions of sub-section (1), the chief presidency magistrate or the district magistrate may take or cause to be taken such steps and use or cause to be used suchfol'ce as may, in his opinion, be necessary  30 (4) no act of the chief presidency magistrate or the district magistrate done in pursuance of this section shall be called in question in any court or before any a~thority" u in section 45t of the principal act,-amend-(a) in sub-section (3) j for the words "in the same manner met~t of sec ion as an arrear of land revenue", the following shall be substituted, 45t namely:-s "by the liquidator in the same manner as an arrear of land revenue and for the purpose of such recovery the liquidator may forward to the col1ector within whose jurisdiction the property of the person against whom any order or decision of the high court has been made, is situate, a certi-10 hcate under his signature specifying the amount so due and the person by whom it is payable"; (b) after sub-section (3), the following sub-section shah be inserted, namely:-"(4) on receipt of a certifibate under sub-section (3), 15 the collector shall proceed to recover from such person the amount sp::!dfied therein as if it were an arrear of land revenue: 20 of 1908 provided that without prejudice to any other powen; of the colleclor, he shall, for the purposes of recovering the said amount, have all the powers, which, under the code of civil procedure, 1908, a civil court has for the purpose of the recovery of an amount due under a decree" zs in section 46 of th:" principal act, for sub-section (4), the amendfollowing sub-sections shall be substituted, namely: -ment of "(4' if any other provision of this act is contravened or if section 46 8fly (j~tault is made in complyin-g with any requirement of this act or of any arder, rule or direction made or condition unposed thereunder, any person guilt' of such contravention or default shall be punishable with fine which may extend to two thousand rupees, and where a contravention or -default is a contintling one, with a further fine which may extend to one hundred rupees for every day during which the contravention or default continues 35 (5) where a contravention or default has been committed by a company, every person who, at the time the contravention or default was committed, wil's in charge of, and was responsible to, the company for the conduct of the business of the com-j),any, as well as the company, shall be deemed to be guilty of the contravention or default and shall be liable to be proceeded ilsain$t and punished accordingly: provided that nothing contained in this sub-section shall render any such person lia;ble to any punishment provided in this act if he proves that the contravention or default was committed without his knowledge or that he exercised all due diligence to prevent the contravention or default s (6) notwithstanding anything contained in sub-section (5), where a contravention or default has been committed by a company, and it is proved that the same was committed with the consent or connivance of, or is attributable to any gross negligence on the part of, any director, manager, secretary or other 10 officer of the company, such d!rector, manager, secretary or other officer shall also be deemed to be guilty of that contravention or default and shall be liable to be proceeded against and punished accordingly explanat1on-for the purposes of this section,-is (a) "company'" means any body corporate and includes a firm or other association of individuals; and' (b) "director", in relation to a firm, means a partner in the firm" amendmimt of 26 in section 47 of the princip'31 act, after the words "punishable ao section 47 under", the words, brackets, figures and letters "sub-section (4) of section 36aa or" shall be inserted amend-27 in section 49 of the principal act, for the figures "384", the ment of figures and lette r "3bba" shall be substituted section 49 amendment of section 49a 28 in section 49a of the principal act, for the words "banking 2s institution notified by the central government in this behalf", the words "banking institution, firm or other person notified by the central government in this behalf on the recommendation of the reserve bank" shall be substituted amend-29 in section 53 of the principal act, after the words "any bank- 30, ment of ing company", the words "or institution" shall be inserted section 53  chapter iv amfndment of 'l'h~ state bank of india (subsidiary banks) act, 1959amendment of pection 19 30 in section 19 of the state bank of india (subsidiary banks) 35 act, 1959, in sub-section (2) for the words "in excess of five per cent", 38 of 1959 the words "in exce~ of one per cent" shall be substituted the existing enactments relating to banks do not provide for any control over companies or institutions, whioh, although they are nat treated as banks, accept deposits from the geneml public or carry od other business which is allied to banking for ensuring more effective supervision and management of the monetary and credit system by the reserve bank, it is desirable that the reserve bank should be enabled to regulate the conditions on which deposits may be accepted by these non-banking companies or institutions the reserve bank should also be empowered to give to any financial institution or institutions directions in respect of matters, in which the reserve bank, as the central banking institution of the country, may be interested from the point of view of the control of credit policy the reserve bank's powers in relation to commercial banks should alao be enhanced and extended in certain directions, so as to provide for meter supervision of the opemtions and working of such bankl the bill seeks to achieve these objects 2 opportunity is being taken to omit certain provisions of the reserve bank of india act, which are no longer necessary, and to bring out more clearly the intention underlying certain provfsiodl of the banking companies act s the provisions of the bill are explained in detail in the do_ on the various clauses t t krishnamachalu nzw dami the 19th nooembn, 1983  president's recommendation under articlm 11'7 0"1 the constitution of india[copy of letter no f 16 (3) -bc/63, dated the 20th november, 1963 from shri t t krishnamachari, minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the proposed banking laws (miscellaneous provisions) bill, 1963, recommends the introduction of the bill in the lot sabba under claum (1) of article 117 of the constitution 1'7 mi'f (d) li-i ' , clause 2-according to section 34 of the reserve bank of india act, currency notes issued by government and taken over by the bank, or bank notes issued by the bank, if they are not presented for payment within forty years after the date of issue, are deemed to have been lost and to have gone out of circulation the assets held against such notes me then resumed if subsequently it is proved that any note has not really been lost and has to be honoured, the claim is settled ad-hoc the advantages of this procedure, which provides for assets being resumed in certain circumstances, are not commensurate with the labour and expenditure involved in maintaining detailed statistics for the purpose of ascertaining when any notes are due io be written off from circulation it is, therefore, proposed, after an examination of the practice and legal requirements in other countries, to delete the provision in section 34, requiring notes to be tte,ted as not being in effective circulation if they are not presented for payment for a period of forty years or more the net loss, if any, to government or to the reserve bank as a result of the'proposed ~endment, after taking into account the saving in expenditureas a result of the discontinuance of the system of maintaining dl!tailed statistics, is not expected to be substantial clauses 3 and 4-when the reserve bank was established, it was considered desirable to provide for the bank's assets, in the form of rupee coins (which technically include rupee notes) to be maintained at certain minimum levels related to the total note issue section 36 of the reserve bank of india act accordingly provides that the wlue of rupee coins including one rupee notes should not be less than rs 50 crores or one-sixth of the total assets held in the issue department, whichever may be higher in existing conditions, it is not considered necessary to 'prescribe any statutory minimum for assets held in the form of rupee coins including rupee notes it is, therefore, p~pqsed to delete section 36 and to make certain consequential amendments ill section 38 clause 5-a new chapter is proposed to be introduced in the reserve bank of india act for enabling that bank to obtain returns and information from (a>, certain financial institutions, namely, firms, companies or other bodies corporate which are financing trade, industry, commerce or agriculture, or are carrying on as b part of their business the acquisition of shares, stocks, bonds, debentures or other aeeurittes, or ve engaged mainly in the ftnancmg of h1fe purchase transactions and (b) non-banking institutions accepting deposits from members of the general public the objects in view are to provide for-(i) the supervision and control of the financial institution mentio·ned above in the interests of better or more effective control of credit, and (ii) the regulation of the business of acceptance of deposits by these and other nonlbanking institutions, in ~e public interest the reserve bank will be emi'owered to provide, by general or special order, for the forms in which returns and information are to 'be furnished to it, and also to give directions to any class of institutions or to any institution in particular for the purposes speci1led the reserve bank will also be enabled to carry out inspections, where necessary, for carrying out the purposes of the new chapter clause 7-section 7 of the blnking companies act now provid~ that no company other than a banking company shali use as a part of its name any word or words which indicate that it carries on the business of banking as it is desirable that a similllr prohibition should also apply to firms, individuals or groups of individuals, it fa proposed to amplify the existing section suitably clause 8-it is not clear whether under section 10 as it is now worded the appointment for an indefinite period of any person manag ing the affairs of a bank will be in order it is proposed to make it clear that the appointment cannot in any event be in excess of fiveyears at a time and that any renewal of the term or contract should not be sanctioned earlier than two years before the date from which it is to be renewed clauses 9 and 30-the voting rlghts of individual shareholders of any banking company or of any subsidiary of the state bank are now restricted by law to five per cent of the total voting rights of all the shareholders of that company it is proposed to reduce thil figure to one per cent clause 10-as the refinance corporation has ceased to be a private company the word 'private' in the reference to the company is proposed to be omitted clause ll-sub-section (1) of section 20 now prohibits the grant of unsecured loans to directors and to private companies in which they are interested it is proposed to amend this section 10 as (ci) to make it clear that the question of a ·banking company being a partner or managing agent of any other concern does not arise and (b) to extend the prohibition to public companies also in cer1ajn cases claule 12-it is proposed that a banking company should be prevented, without the approval of the reserve bank from writfn, off any loan due from a director, or a company, firm or tndividual in which or in whom a director may be interested clause 13-it is proposed that the reserve bank should be enabled to give to any bank dir~tions, in case this is considered necessary, regarding the maximum amount of the advances that may be granted to, or guarantees given on behalf of, anyone company, firm or individual claule 14-banks are required at present to submit tg the s serve bank an annual return showing particulars of deposits which have not been operated upon for a period of ten years or more a the total amount of such deposits all over india is only about ri 4 crores, it is not worthwhile to ask for detailed particulars and it is proposed to amend the section so as to provide for retu1'!a ihowmg only the total amount of such unclaimed deposits in the case of each bank clause 15-the amendment proposed is clariftcatory clause 16-section 34a of the banking companies act prevent the disclosure of information regarding the secret reserves of bank-'ing companies with offices in more than one state to tribunals or other authorities established under the industrial disputes act, but provides for a suitable procedure for the supply of some, essential information to such authorities through the reserve bank it fa proposed to extend the provisions of this section to all other banking companies clause 17-the amendment is of a clariflcatory nature and ii intended to make it clear that employees of a banking company who may not be classified as officers will be required to furnish information to the reserve bank during inspections claule 18-there is no provision according to the law u it now ltands, for the reserve bank to make appointments directly on it own initiative to the post of a director or chief executive officer of a banking company the provisions regarding the removal of the chairman, director, manager or chief executive oftleer of - banking company are also inadequate for the purpose of enabling the reserve bank to control the affairs of any such banking company, as a chainnan or other director, manager or chief executive omcer cannot now be removed unless he has been found by any tribunal or authority, other than a crimi-nal court, to have contravened the provisions of any law in circumstances which make it undesirable for him to continue to be associated with the banking company it is now proposed that the reserve bank should be enable!! to remove any person associated with a banking company, if it is considered necessary or desirable to do so, whether or not that person has been found to have contravened the provisions of any law, and that the reserve bank should be enabled to appoint any other person in place of the person who may be removed a new section is also proposed to be included in the act, conferrin~ on the reserve bank the power to appoint not more than five additional directors in the case of any banking company cla1lbe 19--section 44a of the banking companies act now provides for the voluntary amalgamation of banking companies in accordance with schemes drawn up for this purpose and sanctioned by the reserve bank the transferee banks which have taken over other institutions under these schemes have experienced some dimculties as a result of litigation by other parties requiring them to prove that all the requirements and formalities in connection with the amalgamation have been complied with it is proposed to amend the section, so as to make it clear that the orders of the reserve bank sanctioning the schemes shall be conclusive evidence to the effect that the amalgama1:ions have been in order clause 20--section 44b of the banking companies act now re-"quires the concerned high court to sanction a scheme of compromise or arrangement with the creditors only after it has been certified by the reserve bank as being reasonable and in order it ill proposed that modifications, if any, in the schemes should also be subject to the reserve bank's approval clause 21--section 45 of the banking companies act deals with the compulsory reconstruction or amalgamation of banks by the central government in pursuance of the policy which is being followed after the failure of the palal central bank it is proposed to amend this section so as to make it clear that an order or a certified copy of an order issued by the central government, reconstntcting or amalgamating a banking company shall be conclusive evidence that the procedure prescribed by law has been followed and that the reconstruction or amalgamation, as the case may be, is valid " clause 22-section 45f of the banking companies act now provides that in the event of the liquidation of a banking company, the entries in the documents or certified copies of the documents shall be admitted as evidence in proceedings by or against the banking company this section is proposed to be amended, so as to make it clear that such entries shall be admissible as evidence in all legal proceedings (and not only in proceedings by or against a banking company) and against all oft\cers and employeer (and not only against directors) the section, after it is amended, will incidentally be appucable not only in relation to banking companies which were wound up before 1953, but also in relation to other banking companies in liquidation clause 23-section 458 of the banking companies act now authorises certain officers of the state governments to take charge of the properties and assets of banking companies in liquidation on behalf of the liquidators concerned it is proposed to amend the section so as to empower these oftlcers to sell the properties locally on behalf of the liquidators -clause 24-sub-section (3) of section 45t of the banking companies act now provides that ahy amount due to a banking 'company may be recovered as an arrear of land revenue it is proposed to amend this section, so ras to make it clear that the liquidator concerned will be able to issue the necessary certificates and to realise the amounts  clause 25-the amendment is clarificatoryclause 26--section 47 of the banking companies act now provides that no court shall take cognisance of certain offences under the act, except on a complaint by the reserve bank in view of the other amendments to the banking companies act, a consequential modification is proposed, inserting a reference to the proposed sec-  tion 36aa clause 27-according to the companies (amendment) act, 1960, the provisions relating to the tennination of the appointment of a chief executive officer, after a period of five years from the 1st april, 1956 when the companies act, 1956 came into force are not appli-  cable in relation to private limited companies it is proposed to make it clear that the amendment to the companies act, in so far as it has the impuedi ,effect of continuing indefinitely the appointment of chief executive ofbcer of a private limited company will not be 8pplicable or effective in relation to private limited banking companies cla'uhb 28 and 29-the proposed amendments are of a drafting nature - - - - -  chapl'er mcentral banking functions - - - - - 34 (1) the liabilities of the issue department shall be an liabiliuel amount equal to the total of the amount of the currency notes of the ot the government of india and bank notes for the time being in circulation =~~t (2) for the purposes of this sectian,-(a) any currency note of the government of india or 'bank note whu:h has not been presented for payment within forty yeara from the 1st day of april following the date of its issue, and (b) any 'bank note referred to in section 26a, shall be deemed not to be in circulation, and the wiue thereof shall, notwithstanding anything contained in su'b-section, (2) of section 23, be paid by the issue department to the central government or the banking department, as the case may be: provided that any note referred to in clause (4), if subsequently presented for payment, and any note referred to in clause (b), if directed to be paid by the central government, shall be paid by the banking department and any such payment in the case of currency note of the government of india shall be debited to the central government - - - - - 36 (1) after the close of any financial year in which the mini- method mum amount of rupee coin held in the assets, as shown in any of ?f de~l the weekly accounts of the issue department for that year prescribed ~g ~lth under sub-section (1) of section 53 is greater than fifty crores of ti:~ u:; rupees 0; one-sixth of the total amount of the assets as shown in that rupee coin account, whichever may be the greater, the bank may deliver to the asset central government rupee coin up to the amount of su~ exeeas but not without that government's consent exceeding dve crores of rupees, against payment of legal tender value in the form of bank notes, gold or securities: provided that if the bank so desires and if the amount of gold coin, gold bullion and foreign securities in the assets does not at that time exceed one-half of the total assets, a proportion not exceeding two-fifths of such p1y~ent shall be in gold coin, gold bullion or such foreign securities as may be held as part of the assets under subsection (6) of section 33 (2)' after the close of any financial year in which the maximum amount of rupee coin held in the assets, as so shown, is less than fifty crores of rupees or one-sixth of the total amount of the assets, as so shown, whichever may be the greater, the centml government shall deliver to the bank rupee coin up to the amount of such deficiency, but not without its consent exceeding five crores of rupees, against payment of legal tender value (3) at the close of an¥ week in which the amount of rupee coin held in the assets, as shown in the weekly accounts of the issue department for that week, is less than fifty crores of rupees or onesixth of the total wnount of the assets as so shown, whichever may be the greater, the central government may, with the consent of the bank, deliver to the bank rupee coin up to the amount of such deficiency against payment of legal tender value - - - - - 38 the central gove~nt shall, undertake not to re-issue any rupee coin delivered under section 36 nor to put into circulation any rupees, except through the bank; and the bank shall undertake not to dispose of rupee coin otherwise than for the purposes of' circulation or by delivery to the central government under that section - - - - - ob!ijationa of governmentand the bank in respect of rupee oo1n  erraacts nom 'l'hli: banking companies a~, id4g(10 01' 19~) - - - - - interpre-s (1) in this act, unless there is anything repugnant in the subtatlod ject or context,-, (4) "approved securities" means securities in which a trustee may invest money under clause (4), clause (b), clause (bb), claus (c) or claus (d) of section 20 of the indian truiw act, louiii 1882; - - - - - 7 after the expiry of two years from the commencement of thia use of actt no company, other than a banking company, shall use as part of worcw itl name any of the words "bank", "banke!''' or '~badking" add no "bank", company shall carry on the business of banking in india, unleu it "banker", uaes as part of its name at least one of such words: "banlddl" provided that nothing in this section shall apply to-1 of 1958 (a) a suibsidiary of a banking company formed for one more of the purposes mentio~ in sub-section (1) of section 19 whose name indicates that it is a subsidiary of that banking company; (b) any association of banks formed for the protection of their mutual interests and registered under section 25 of the companies act, 1956 - - - - - ie (1) no banking company-- - - - - (c) shall be managed by any person-- - - - - prohibition of employ mentof man8ling agents and   restrictiona (iii) who has a contract with the company for its manag~ on certain ment for a period exceeding five years at anyone time: forms of employ provided that any contract with the company for its manage- ment ment may be renewed or extended for a further period not exceeding five years at a time if and so often as the directors so decide: -  _ ! - - - - - (3) where a person holding the office of a chairman or director or lllillulger or chief executive officer (by whatever name called) of a 'banking company is, or has been found by any tribunal or other authority (other than a criminal court) to have contravened the provision of any law and the reserve bank is satisfied that the contravention is of such a neture that the association of such person with the banking company is or will be detrimental to the interests of the banking company or its depositors or otherwise undeairable, the reserve bank may make an order that that person shall cease to hold the office with effect from such date as may be speci1ied therein and thereupon, that office shell, with effect from the said date, become vacant  t - ~ (4) any order made under sub-section (3-) in respect of any person may also provide that he shall not, without the previous permjasion of the reserve bank in writing, in any way, directly or indirectly, 1427 (b)ls,-4 be concerned with, or take part in the management of, the banking  j"'] ,'" com~y or any other banking company for such period not exceecung five years as may be speci1ied in the order (5) no order under sub-section (3) shall be made lin j'eapect of any person unless he has been given an opportunity of making a representation to the reserve bank against the proposed order: provided tbat it shall not be necessary to give any sueb opportunity if, in the opinion of the reserve bank, any delay would be detrimental to the interests of the banking company or its depositon  - - - - - 12 (1) - - - - - regulation ofpald-up - - - - - capital, (2) no person holding shares in a banking company shall, in sublcribed capital and respect of any shares held by him, exercise voting rights on poll a~ in excess of five per cent of the total voting rights of all the sharecap1teland votiai hol~ers of the banking company richtaot abare-bolden cbhre-ie"e 18 every bankiilg company, not being a scheduled bank, shall maintain in india, by way of cash reserve with itself or in current account qpen~ w,ith the reserve bank or the state bank of india or any other bahk notified by the central government in this behalf or partly in cash with itself and partly in such account or accounts, a sum equivalent to at least three per cent of the total of it~; time and, demand :liabilities in india, and shall submit to the reserve bank  before the fifteenth day of every month a return showing the amount so held on friday of each week of the precedingmonth  ~th particulars of its time and demand liabilities in ind,~a on ea,cb such friday, or, if any such friday is a public holiday under the negotiable instruments act, 1881, at the close of business 28 of 1881 on the preceding working day  expl~tion-in this section and in section 24, llliabilities in india" shall not include-: (ci) thepeid-up capital or the reserves or any credit balance in the 'profit and loss account of the banking company; 2 of 1934 (b) any advance taken from the reserve bank or from the state bank of india or from the refinance corporation for industry (private) limited, or from any bank notified by the central govenunent under clause (e) of the explanation to subsection (1) of section 42 of the resen-e bank of india act, 1934 - - - - - 1 of 1956 zoo (1) notwithstanding anything to the contrary contained in restricsection 77 of the companies act, 1956, no banking company shall :ions on make any loans or advances on the security of its own shares or ad0ad8 and , vance • grant unsecured loans or advances to any of its direetors or to' firms or private companies in which it or any of its directors is interesb!d as partner or managing agent or to any incuviduals, fums or private companies in cases where any of the directors is a guarantor (2) every banking company shall, before the close of the month succeeding that to which the return relates, submit to the reserve bank a return in the prescribed form and manner, showing all' unsecured loans and advances granted by it to companies in which 'it or any of its directors is interested as director or managing agent or guarantor (3) if on examination of any return submitted under : sub-section (2) it appears to the reserve bank that any loans or advances referred to in that sub-section are being granted to the detriment of the interests of the depositors of the banking company, the reserve· bank may, by order in writing, prohibit the banking company f-rom granting any such further loans or advances or impose such restrictions on the grant thereof as it thinks fit, and may by like omer direct the banking company to secure the repayment of any such loan or advance within such time as may be specified in the order %1 (1) where the reserve bank is satisfied that it is necessary power of or expedient in the public interest so to do, it may detennine the reserve policy in relation to advances to be followed by ba·nking companies bank to rall kin  part' __ 1 d h th control adgene y or by any ban g company in h:w-ar, an· w en e vances b policy has been so determined, all banking companies oi' the· banking banking y company concerned, as the case may be, shall be bound to follow companies the policy as so determined (2) without prejudice to the generality of the power vested in the reserve bank under sub-section (1), the reserve bank may give directions to banking companies, either generally or to ally banking company or group _ of banking companies in particular, as to the purposes for which advances mayor may not be macle, the margins retw'llot unclaimed dej)olltl to be maintained in respect of secured advance and the rates of interest to be charged on advances, and each banking company shall be bound to comply with any directions as so given - - - - - 26 every banking company shall, within thirty days after the close of each calen~ar year, submit a return in the prescribed form and manner to the reserve bank as at the end of such calendar year of all accounts in india which have not been operated upon for ten years, giving particulars of the deposits standing to the credit of each such account: provided that in the case of money deposited for a fixed period the said term of ten years shall be reckoned from the date of the expiry of such fixed period - - - - - 30 (1) - - - - - (3) in addition to the matters which under the aforesaid act the auditor is required to state in his report, he shall, in the case of a banking company incorporated in india, state in his report,--- - - - -  "  (d) whether the profit and loss account shows a true balance of proftt and loss for the period covered by such account; - - ma (1) - - • - • - - production' ofdocuthis section, "banking company" shall l' of 1147 to it in the industrial disputes act, menta of (3) for the purposes' of conmential have the meaning assigned nature 1947 iupecuon 35 (1) - - - - - (2) it shall be the duty of every director or other officer of the banking company to produce to any officer making an inspection under sub-section (1) all such books, accounts and other documents in his custody or power and to furnish him with any statements and information relating to the affairs of the banking company as the said officer may require of him within such time as the said officer may specify (3) any person making an inspection under 6ubaection (1) may examine on oath any director ol" other ofticer of the banking company in relation to its business, and may administer an oath accordingly - - - 44a (1) '" - '" - - procedure toramal-(5) where a scheme of amalgamation is sanctioned by the re- gamauon serve bank under the provisions of this section, the reserve bank ?f bankshall transmit a copy of the order sanctioning the scheme to the 1~ com- t bef h h nk" pa es regis rar ore w om t e ba mg campa rues concerned have been '!'egistered, and the registrar shall, on receipt of any such order, ~rike off the name of the company (hereinafter in this section referred to as the amalgamated banking company) which by reason of the amalgamation will cease to function (6) on the sanctioning of a scheme of amalgamation by the reserve bank, the property of the amalgamated banking company shall, by virtue of the order of sanction, be transferred to and vest il;l, and the liabilities of the said company shall, by virtue of the said order he transferred to, and become the liabilities of, the banking company which under the scheme of amalgamation is to acquire the business of the amalgamated banking company, subject in all cases to the terms of the order sanctioning the scheme 44b (1) notwithstanding anything contained in any law for restriction the time being in force, no high court shall sanction a compromise o~ comproor arrangement between a banking company and its creditors or any mise or arrangeclass of them or between such company and its members or any ment betclass of them unless the compromise or arrangement is certified by ween bankthe reserve bank in writing as not being incapable of being work- ing corned and as not being detrimental to the interests of the depositors pand~tand ere 1 ors of such banking company - - '" - - 45f (1) entries in the books of account or other documents of documents a banking company which is being wound up shall be admitted in ?f bankevidence in all proceedings by or against the banking company; and ~:~;~~~e all such entries may be proved either by the production of the evidence books of account or other documents of the banking company containing such entries or by the production of a copy of the entries, certified by the official liquidator under his signature and stating that it is a true copy of the original entries and that such original entries are contained in the books of account or other documents of the banking company in his possession lllf 1872 (2) notwithstanding anything to the contrary contained in the indian evidence act, 1872, all such entries in the books of account or other documents of a banking company shall, as agai~st the directors of the banking company in respect of which the winding up order has been made ,before the commencement of the banking companies (amendment) act, 1953, be prima facie evid,ence of 52 of 1953 tb~ tr:wh of ~l matters purporting to be therein recorde4       chief 455 (1) for the p1ll1>ose of enabling the official liquidator or the pres~dency sp'~~ officer appointed under sub-section (3) of section 37 to take ~n1~:~t in~o his custody or under his control, all property, effects and action-magistrate abl~ cjaiins to which a banking company, which has been ord,ered to allriat to be wound up, is or appears to be entitled, the offtcial liquidator oftlcial or the special officer, as the case may ibe, may request in writing ~q~dathe chief presidency magistrate or the district magistrate, within ~, whose jurisdiction any property, books of acc,ount or other docucharge of mtmte of such banking company may be situate or be fo;und, to take property possession thereof, alld the chief presidency magistrate or the dis-ofbanjdng trict magistrate, as the case may be, shall, on such request being eonlpany made to him, take possession of such property, books of account or being wound other documents and forw&rd them to the offtcial liquidator or the up special officer (2) for the p!lrpose of securing compljance with the provisions of sub-sectiqn (1) the chief presiclency :m:agistrate or the district magistrate may tak~ or cause to be taken su~h steps and use or cause to be used such force as may, in his opinion, be necessary , , ' 45" (1)      (3) without prejudice to the provisions of sub-section (1) or subsection (2), any amount found due to the banking company by an order or decision of the high court may, with ute leave of the high court, be recove~ in the slmle manner as an arre8l' of land revenue       part iv miscellaneous    penawes 46 (1)  (4) if any other provision of this, act is contrallened or if any default is made in complying with any requirement of this act or of any order, rule or direction made or condition imposed thereunder everydirecrtor, liquidator and other officer of the company and any other person who is knowingly a party to the contravention or default shall be, punishable with fine which may extend to two thousand rupees, and where a contravention or default is aeontinuing one, with a further fine which may extend to one hundred rupees for everyday during which such contravention or default continues  - - - - - 47 no court shall take cognizance of any offence punishable co;ntzanee under section 46 except upon complaint in writing made by an om- of offence • cer of the reserve bank generally or specially authorized in wrlting in this behalf by the reserve bank, and no court 'inferior to that of a presidency magistrate or a magistrate of the first class shall try any such offence  - - - - - of 1956 49 the exemptions, whether express or implied, in favour of a special private company in sections 90, 165, 182, 204 and 255, cla1;lses (a) proviand (b) of sub-section (1) of section 293 and sections 300, 384 and 8lona for 416 of the companies act, 1956, shall not operate in favour of a =~~ private company which is a banking company companie • 49a no person other than a banking company, the reserve restridion bank, the state bank of india or any other banking institution noti- on acceptfied by the central government in this behalf shall accept from the anee of public deposits of money withdrawable by cheque: d':poaithdrta wi awable by cheque provided that nothing contained in this section shall apply to any savings bank scheme run by the government - - - - - 53 the central government may, on the recommendation of the powerto reserve bank, declare, by notification in the official gazette, that exempt in any or all of the provisions of this act shall not apply to any bank- ::!a1n ing' company or to any class of banking companies either generally  or for such period as may be specified - - - - - - 19 (1)  - restriction onindividual holdin, • (38 of 1959) - • - • - • - • (2) notwithstanding anything contained in sub-section (1), no person referred to in the proviso to that sub-section, other than the state bank, shall be entitled to exercise voting rights in respect of any shares held by such person in excess of five per cent • f the issued capital of the subsidiary bank concerned - - - - - a bill further to amend the reserve bank of india act, 1934, the banking companies act, 1949 and the state bank of india (subsidiary banks) act, 1959 (slari t t k,i~l, minister of plntltlt») 