The Deposit Insurance and Credit Guarantee Corporation Act, 1961
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 1 Short title, extent and commencement.
(1) This Act may be called 1[the Deposit Insurance and Credit Guarantee Corporation] Act, 1961.
(2) It extend to the whole of India.
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
(2) It extend to the whole of India.
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
1. Subs. by s. 8, ibid., for "the Deposit Insurance Corporation" (w.e.f. 15-7-1978).
2. 1st January, 1962, vide notification No. G.S.R. 18, dated 28th December, 1961, see Gazette of India, Part II, sec. 3(i).
2. 1st January, 1962, vide notification No. G.S.R. 18, dated 28th December, 1961, see Gazette of India, Part II, sec. 3(i).
Section 2 Definition.
In this Act, unless the context otherwise requires,--
(a) banking means the accepting for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise;
(b) banking company means any company which transacts the business of banking in India and includes the State Bank 1[and a subsidiary bank], but does not include the 2[Tamil Nadu Industrial Investment Corporation Limited].
Explanation.--Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause;
(c) Board means the Board of directors constituted under section 6;
(d) company means any company as defined in section 3 of the Companies Act, (1 of 1956) and includes a foreign company within the meaning of section 591 of that Act;
3[(dd) co-operative bank means a State co-operative bank, a Central co-operative bank and a primary co-operative bank;]
(e) Corporation means 4[the Deposit Insurance and Credit Guarantee Corporation] established under section 3;
5[(ee) corresponding new bank means a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or, as the case may be, under section 3 of the Banking companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]
6[(eea) credit institution means all or any of the following, namely:--
(i) a banking company;
(ii) a corresponding new bank;
(iii) a Regional Rural Bank;
(iv) a co-operative bank;
(v) a financial institution];
(f) defunct banking company means a banking company--
(i) which has been prohibited from receiving fresh deposits; or
(ii) which has been ordered to be wound up; or
(iii) which has transferred all its deposit liabilities in India to any other institution; or
(iv) which has ceased to be a banking company within the meaning of sub-section (2) of section 36A of 7[the Banking Regulation Act, 1949 (10 of 1949)], or has converted itself into a non-banking company; or
(v) in respect of which a liquidator has been appointed in pursuance of a resolution for the voluntary winding up of its affairs; or
(vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned by any competent authority and the said scheme does not permit the acceptance of fresh deposits; or
(vii) which has been granted a moratorium which is in operation; or
(viii) in respect of which an application for the winding up of its affairs is pending in a 8[competent Court; or]
9[(ix) in respect of which any direction, prohibition, order or scheme referred to in sub-section (1) of section 18A is issued or made;]
10[(ff) defunct co-operative bank means a co-operative bank--
(i) which has been prohibited from receiving fresh deposits; or
(ii) which has been ordered or directed to be wound up; or
(iii) which has transferred all its deposit liabilities in India to any other institution; or
(iv) which has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulation Act 1949 (10 of 1949); or
(v) which has converted itself into a non-banking co-operative society; or
(vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned under any law for the time being in force and such scheme does not permit the acceptance of fresh deposits; or
(vii) which has been granted a moratorium which is in operation; or
(viii) in respect of which an application for winding up is pending before the Registrar of Co-operative Societies or other competent authority under any law relating to co-operative societies for the time being in force 11[in a State;or]
12[(ix) in respect of which any direction, prohibition, order or scheme referred to in sub-section (1) of section 18-A is issued or made;]
(g) “deposit means the aggregate of the unpaid balances due to a depositor (other than a foreign Government, the Central Government, a State Government 13[ 14[ a corresponding new bank or 15[a Regional Rural Bank or a banking company]] or a co-operative bank]) in respect of all his accounts by whatever name called, 16[ 17[ with a corresponding new bank or 18[with a Regional Rural Bank or with a banking company]] or a co-operative bank] and includes credit balances in any cash credit account but does not include,--
(i) where 15[a Regional Rural Bank or a banking company or a co-operative bank] at the commencement of this Act 19[or where an eligible co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968)] is working under a scheme of compromise or arrangement or of reconstruction sanctioned by any competent authority providing for the acceptance of fresh deposits any amount due to the depositor in respect of his deposit before the date of the coming into force of the scheme of the extent it is not credited after to the said date under the provisions of that scheme; or
20[(ia) any amount due on account of any deposit with any insured bank which has been specially exempted in this behalf by the Corporation with the previous approval of the Reserve Bank; or]
(ii) any amount due on account of any deposit received outside India;
19[(gg) eligible co-operative bank means a co-operative bank the law for the time being governing which provides that--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction, of the bank may be made only with the previous sanction in writing of the Reserve Bank;
(ii) an order for the winding up of the bank shall be made if so required by the Reserve Bank in the circumstances referred to in section 13D;
(iii) if so required by the Reserve bank in public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for the supersession of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor for such period or periods not exceeding 5 years in the aggregate as may from time to time be specified by the Reserve Bank;
(iv) an order for the winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor made with the previous sanction in writing or on the requisition of the Reserve Bank shall not be liable to be called in question in any manner; and
(v) the liquidator or the insured bank or the transferee bank, as the case may be, shall be under an obligation to repay the Corporation in the circumstances to the extent and in the manner referred to in section 21;]
(h) existing banking company means a banking company carrying on the business of banking at the commencement of this Act which either holds a licence at such commencement under section 22 of 21[the Banking Regulation Act, 1949 (10 of 1949)] or having applied for such licence has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it and includes the State Bank and subsidiary bank, but does not include a defunct banking company;
22[(hh) existing co-operative bank means a co-operative bank carrying on the business of banking at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), which either holds a licence at such commencement under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or having applied for such licence has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it but does not include a defunct co-operative bank;]
23[(hha) Financial institution means any financial institution within the meaning of clause (c) of section 451 of the Reserve Bank of India Act, 1934 (2 of 1934);]
24[(i) insured bank means 25[a banking company], 26[or a Regional Rural Bank]] 27[or a corresponding new bank] or an eligible co-operative bank for the time being registered under the provisions of this Act and includes for the purposes of sections 16, 17, 18 and 21,--
28[(i) a banking company referred to in clause (a) or clause (b) of sub-section (1) of section 13, or
(ia) a corresponding new bank to which the provisions of clause (a) of sub-section (1) of section 13 apply, or]
(ii) a co-operative bank referred to in clause (a) or clause (b) of section 13C,]
the registration whereof has been cancelled under section 13, or, as the case may be, under section 13C;]
(j)insured deposit means the deposit or any portion thereof the repayment whereof is insured by the Corporation under the provisions of this Act;
(k) new banking company means a banking company which begins to transact the business of banking after the commencement of this Act under a licence granted to it under section 22 29[the Banking Regulation Act, 1949 (10 of 1949)] 30***;
22[(kk)] new co-operative bank means a co-operative bank which begins to transact the business of banking after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), under a licence granted to it under section 22 of the Banking Regulation Act, 1949 (10 of 1949), and includes a primary credit society becoming a primary co-operative bank after such commencement;]
(l) premium means the sum payable by an insured bank under section 15 of this Act;
(m) prescribed means prescribed by regulations made under this Act;
27[(ma) Regional Rural Bank means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);]
(n) Reserve Bank means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 ( 2 of 1934);
(o) State Bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(p)subsidiary bank shall have the meaning assigned to it in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
31[(q) the expressions central co-operative bank, 32*** and State Co-operative Bank shall have the meanings respectively assigned to them in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
(r) the expressions 33[co-operative society, primary co-operative bank] and primary credit society shall have the meanings respectively, assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949)].
(a) banking means the accepting for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise;
(b) banking company means any company which transacts the business of banking in India and includes the State Bank 1[and a subsidiary bank], but does not include the 2[Tamil Nadu Industrial Investment Corporation Limited].
Explanation.--Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause;
(c) Board means the Board of directors constituted under section 6;
(d) company means any company as defined in section 3 of the Companies Act, (1 of 1956) and includes a foreign company within the meaning of section 591 of that Act;
3[(dd) co-operative bank means a State co-operative bank, a Central co-operative bank and a primary co-operative bank;]
(e) Corporation means 4[the Deposit Insurance and Credit Guarantee Corporation] established under section 3;
5[(ee) corresponding new bank means a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or, as the case may be, under section 3 of the Banking companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]
6[(eea) credit institution means all or any of the following, namely:--
(i) a banking company;
(ii) a corresponding new bank;
(iii) a Regional Rural Bank;
(iv) a co-operative bank;
(v) a financial institution];
(f) defunct banking company means a banking company--
(i) which has been prohibited from receiving fresh deposits; or
(ii) which has been ordered to be wound up; or
(iii) which has transferred all its deposit liabilities in India to any other institution; or
(iv) which has ceased to be a banking company within the meaning of sub-section (2) of section 36A of 7[the Banking Regulation Act, 1949 (10 of 1949)], or has converted itself into a non-banking company; or
(v) in respect of which a liquidator has been appointed in pursuance of a resolution for the voluntary winding up of its affairs; or
(vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned by any competent authority and the said scheme does not permit the acceptance of fresh deposits; or
(vii) which has been granted a moratorium which is in operation; or
(viii) in respect of which an application for the winding up of its affairs is pending in a 8[competent Court; or]
9[(ix) in respect of which any direction, prohibition, order or scheme referred to in sub-section (1) of section 18A is issued or made;]
10[(ff) defunct co-operative bank means a co-operative bank--
(i) which has been prohibited from receiving fresh deposits; or
(ii) which has been ordered or directed to be wound up; or
(iii) which has transferred all its deposit liabilities in India to any other institution; or
(iv) which has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulation Act 1949 (10 of 1949); or
(v) which has converted itself into a non-banking co-operative society; or
(vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned under any law for the time being in force and such scheme does not permit the acceptance of fresh deposits; or
(vii) which has been granted a moratorium which is in operation; or
(viii) in respect of which an application for winding up is pending before the Registrar of Co-operative Societies or other competent authority under any law relating to co-operative societies for the time being in force 11[in a State;or]
12[(ix) in respect of which any direction, prohibition, order or scheme referred to in sub-section (1) of section 18-A is issued or made;]
(g) “deposit means the aggregate of the unpaid balances due to a depositor (other than a foreign Government, the Central Government, a State Government 13[ 14[ a corresponding new bank or 15[a Regional Rural Bank or a banking company]] or a co-operative bank]) in respect of all his accounts by whatever name called, 16[ 17[ with a corresponding new bank or 18[with a Regional Rural Bank or with a banking company]] or a co-operative bank] and includes credit balances in any cash credit account but does not include,--
(i) where 15[a Regional Rural Bank or a banking company or a co-operative bank] at the commencement of this Act 19[or where an eligible co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968)] is working under a scheme of compromise or arrangement or of reconstruction sanctioned by any competent authority providing for the acceptance of fresh deposits any amount due to the depositor in respect of his deposit before the date of the coming into force of the scheme of the extent it is not credited after to the said date under the provisions of that scheme; or
20[(ia) any amount due on account of any deposit with any insured bank which has been specially exempted in this behalf by the Corporation with the previous approval of the Reserve Bank; or]
(ii) any amount due on account of any deposit received outside India;
19[(gg) eligible co-operative bank means a co-operative bank the law for the time being governing which provides that--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction, of the bank may be made only with the previous sanction in writing of the Reserve Bank;
(ii) an order for the winding up of the bank shall be made if so required by the Reserve Bank in the circumstances referred to in section 13D;
(iii) if so required by the Reserve bank in public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for the supersession of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor for such period or periods not exceeding 5 years in the aggregate as may from time to time be specified by the Reserve Bank;
(iv) an order for the winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor made with the previous sanction in writing or on the requisition of the Reserve Bank shall not be liable to be called in question in any manner; and
(v) the liquidator or the insured bank or the transferee bank, as the case may be, shall be under an obligation to repay the Corporation in the circumstances to the extent and in the manner referred to in section 21;]
(h) existing banking company means a banking company carrying on the business of banking at the commencement of this Act which either holds a licence at such commencement under section 22 of 21[the Banking Regulation Act, 1949 (10 of 1949)] or having applied for such licence has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it and includes the State Bank and subsidiary bank, but does not include a defunct banking company;
22[(hh) existing co-operative bank means a co-operative bank carrying on the business of banking at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), which either holds a licence at such commencement under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or having applied for such licence has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it but does not include a defunct co-operative bank;]
23[(hha) Financial institution means any financial institution within the meaning of clause (c) of section 451 of the Reserve Bank of India Act, 1934 (2 of 1934);]
24[(i) insured bank means 25[a banking company], 26[or a Regional Rural Bank]] 27[or a corresponding new bank] or an eligible co-operative bank for the time being registered under the provisions of this Act and includes for the purposes of sections 16, 17, 18 and 21,--
28[(i) a banking company referred to in clause (a) or clause (b) of sub-section (1) of section 13, or
(ia) a corresponding new bank to which the provisions of clause (a) of sub-section (1) of section 13 apply, or]
(ii) a co-operative bank referred to in clause (a) or clause (b) of section 13C,]
the registration whereof has been cancelled under section 13, or, as the case may be, under section 13C;]
(j)insured deposit means the deposit or any portion thereof the repayment whereof is insured by the Corporation under the provisions of this Act;
(k) new banking company means a banking company which begins to transact the business of banking after the commencement of this Act under a licence granted to it under section 22 29[the Banking Regulation Act, 1949 (10 of 1949)] 30***;
22[(kk)] new co-operative bank means a co-operative bank which begins to transact the business of banking after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), under a licence granted to it under section 22 of the Banking Regulation Act, 1949 (10 of 1949), and includes a primary credit society becoming a primary co-operative bank after such commencement;]
(l) premium means the sum payable by an insured bank under section 15 of this Act;
(m) prescribed means prescribed by regulations made under this Act;
27[(ma) Regional Rural Bank means a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);]
(n) Reserve Bank means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 ( 2 of 1934);
(o) State Bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(p)subsidiary bank shall have the meaning assigned to it in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
31[(q) the expressions central co-operative bank, 32*** and State Co-operative Bank shall have the meanings respectively assigned to them in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
(r) the expressions 33[co-operative society, primary co-operative bank] and primary credit society shall have the meanings respectively, assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949)].
1. Subs. by Act 1 of 1984, s. 56, for , a subsidiary bank and any other banking institution notified under section 51 of the Banking Regulation Act, 1949 (10 of 1949) (w.e.f. 15-2-1984).
2. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for Madras Industrial Investment Corporation Limited (w.e.f. 20-12-1974).
3. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
5. Subs. by Act 1 of 1984, s. 56, for sub-clause (ee) (w.e.f. 15-2-1984).
6. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
7. Subs. by Act 56 of 1968, s.2, for the Banking companies Act, 1949 (10 of 1949), (w.e.f. 1-7-1971).
8. Subs. by Act 30 of 2021, s. 2, for “competent Court” (w.e.f. 1-9-2021).
9. Ins. by s. 2, ibid. (w.e.f. 1-9-2021).
10. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
11. Subs. by Act 30 of 2021, s. 2, for “in a State.” (w.e.f. 1-9-2021).1
12. Ins. by s. 2, ibid. (w.e.f. 1-9-2021).
13. Subs. by Act 56 of 1968, s.3, for or a banking company (w.e.f. 1-7-1971).
14. Subs. by Act 5 of 1970, s. 20, for , a banking company (w.e.f. 19-7-1969).
15. Subs. by Act 21 of 1976, s. 33, for a banking company (w.e.f. 26-9-1975).
16. Subs. by Act 56 of 1968, s. 3, for with a banking company (w.e.f. 1-7-1971).
17. Subs. by Act 5 of 1970, s. 20, for with a banking company (w.e.f. 19-7-1969).
18. Subs. by Act 21 of 1976, s. 33, for with a baking company (w.e.f. 26-9-1975).
19. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
20. Ins. by Act 81 of 1985, s. 5 (w.e.f. 1-5-1986).
21. Subs. by Act 56 of 1968, s. 2, for the Banking Companies Act, 1949 (w.e.f. 1-7-1971).
22. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
23. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
24. Subs. by Act 56 of 1968, s. 3, for clause (i) (w.e.f. 1-7-1971).
25. Subs. by Act 19 of 1988, s. 3 and Second Schedule, for corresponding new bank or a banking company (w.e.f. 31-3-1988).
26. Ins. by Act 1 of 1984, s. 56 (w.e.f. 1-7-1971).
27. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
28. Subs. by s. 56, ibid., for, sub-clause (i) (w.e.f. 19-7-1969).
29. Subs. by Act 56 of 1968, s. 2, for the Banking Companies Act, 1949 (w.e.f. 1-7-1971).
30.The words and figures , and includes any banking institution notified under section 51 of the said Act after such commencement omitted by Act 1 of 1984, s. 56 (w.e.f. 15-2-1984).
31. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for clause (q) (w.e.f. 12-7-1982).
32. The words “co-operative society” omitted by Act 24 of 2004, s. 3 (w.e.f. 1-3-1966).
33. Subs. by s. 3, ibid., for primary co-operative bank (w.e.f. 1-3-1966).
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2. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for Madras Industrial Investment Corporation Limited (w.e.f. 20-12-1974).
3. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
5. Subs. by Act 1 of 1984, s. 56, for sub-clause (ee) (w.e.f. 15-2-1984).
6. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
7. Subs. by Act 56 of 1968, s.2, for the Banking companies Act, 1949 (10 of 1949), (w.e.f. 1-7-1971).
8. Subs. by Act 30 of 2021, s. 2, for “competent Court” (w.e.f. 1-9-2021).
9. Ins. by s. 2, ibid. (w.e.f. 1-9-2021).
10. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
11. Subs. by Act 30 of 2021, s. 2, for “in a State.” (w.e.f. 1-9-2021).1
12. Ins. by s. 2, ibid. (w.e.f. 1-9-2021).
13. Subs. by Act 56 of 1968, s.3, for or a banking company (w.e.f. 1-7-1971).
14. Subs. by Act 5 of 1970, s. 20, for , a banking company (w.e.f. 19-7-1969).
15. Subs. by Act 21 of 1976, s. 33, for a banking company (w.e.f. 26-9-1975).
16. Subs. by Act 56 of 1968, s. 3, for with a banking company (w.e.f. 1-7-1971).
17. Subs. by Act 5 of 1970, s. 20, for with a banking company (w.e.f. 19-7-1969).
18. Subs. by Act 21 of 1976, s. 33, for with a baking company (w.e.f. 26-9-1975).
19. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
20. Ins. by Act 81 of 1985, s. 5 (w.e.f. 1-5-1986).
21. Subs. by Act 56 of 1968, s. 2, for the Banking Companies Act, 1949 (w.e.f. 1-7-1971).
22. Ins. by Act 56 of 1968, s. 3 (w.e.f. 1-7-1971).
23. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
24. Subs. by Act 56 of 1968, s. 3, for clause (i) (w.e.f. 1-7-1971).
25. Subs. by Act 19 of 1988, s. 3 and Second Schedule, for corresponding new bank or a banking company (w.e.f. 31-3-1988).
26. Ins. by Act 1 of 1984, s. 56 (w.e.f. 1-7-1971).
27. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
28. Subs. by s. 56, ibid., for, sub-clause (i) (w.e.f. 19-7-1969).
29. Subs. by Act 56 of 1968, s. 2, for the Banking Companies Act, 1949 (w.e.f. 1-7-1971).
30.The words and figures , and includes any banking institution notified under section 51 of the said Act after such commencement omitted by Act 1 of 1984, s. 56 (w.e.f. 15-2-1984).
31. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for clause (q) (w.e.f. 12-7-1982).
32. The words “co-operative society” omitted by Act 24 of 2004, s. 3 (w.e.f. 1-3-1966).
33. Subs. by s. 3, ibid., for primary co-operative bank (w.e.f. 1-3-1966).
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Section 3 Establishment and incorporation of Deposit Insurance Corporation.
(1) The Central Government shall, by notification in the Official Gazette, establish a Corporation by the name of the Deposit Insurance Corporation which shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of property and to contract, and may, by the said name, sue or be sued.
1[1A) Any reference in this Act to the Deposit Insurance Corporation shall, on and from the date on which Chapter II of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978 (21 of 1978), comes into force, be construed as a reference to the Deposit Insurance and Credit Guarantee Corporation.]
(2) The head office of the Corporation shall be at Bombay, but it may, with the previous sanction of the Reserve Bank, establish branches or agencies in any other place in India.
1[1A) Any reference in this Act to the Deposit Insurance Corporation shall, on and from the date on which Chapter II of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978 (21 of 1978), comes into force, be construed as a reference to the Deposit Insurance and Credit Guarantee Corporation.]
(2) The head office of the Corporation shall be at Bombay, but it may, with the previous sanction of the Reserve Bank, establish branches or agencies in any other place in India.
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
Section 4 Capital of Corporation.
1[4. Capital of Corporation.--(1) The authorised capital of the Corporation shall be one crore of rupees but the Central Government may, in consultation with the Reserve Bank, increase such capital from time to time, so, however, that the total authorised capital shall not exceed 2[fifty crores of rupees].
(2) The 3[issued capital] for the time being of the Corporation shall be fully paid-up and shall stand allotted to the Reserve Bank.]
(2) The 3[issued capital] for the time being of the Corporation shall be fully paid-up and shall stand allotted to the Reserve Bank.]
1. Subs. by Act 56 of 1968, s. 4, for section 4 (w.e.f. 1-7-1971).
2. Subs. by Act 1 of 1984, s. 57, for "fifteen crores" (w.e.f. 15-2-1984).
3. Subs. by Act 21 of 1978, s. 8, for "authorised capital" (w.e.f. 15-7-1978).
2. Subs. by Act 1 of 1984, s. 57, for "fifteen crores" (w.e.f. 15-2-1984).
3. Subs. by Act 21 of 1978, s. 8, for "authorised capital" (w.e.f. 15-7-1978).
Section 5 Management of Corporation.
The general superintendence, direction and the management of the affairs and business of the Corporation shall vest in a Board of directors which may exercise all powers and do all acts and things which may be exercised or done by the Corporation.
Section 6 Board of directors.
(1) The Board of directors of the Corporation shall consist of the following, namely:--
1[(a) the Governor, for the time being, of the Reserve Bank or, if the Reserve Bank, in pursuance of the decision of the Committee of the Central Board of Directors of that Bank, nominates any Deputy Governor for the purpose, the Deputy Governor so nominated, who shall be the Chairman of the Board;]
(b) 2[a Deputy Governor or any other officer] of the Reserve Bank nominated by that bank;
(c) an officer of the Central Government nominated by that Government;
3[(d) five directors nominated by the Central Government in consultation with the Reserve Bank, three of whom shall be persons having special knowledge of commercial banking, insurance, commerce, industry or finance and two of whom shall be persons having special knowledge of, or experience in, co-operative banking or co-operative movement and none of the directors shall be an officer of Government or of the Reserve Bank or an officer or other employee of the Corporation or a director, an officer or other employee of a banking company or a co-operative bank or otherwise actively connected with a banking company or a co-operative bank].
4[(e) four directors, nominated by the Central Government in consultation with the Reserve Bank, having special knowledge or practical experience in respect of accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law or small-scale industry or any other matter, the special knowledge of, and practical experience in which, is likely, in the opinion of the Central Government to be useful to the Corporation.]
5[(2)(i). A director nominated under clause (b) or clause (c) 6[or clause (d) or clause (e)] of sub-section (1) shall hold office during the pleasure of the authority nominating him; and
7[(ii) Subject to the provisions contained in clause (i), a director nominated under clause (d) or clause (e) of sub-section (1), shall hold office for such period, not exceeding three years, as may be specified by the Central Government in this behalf, 8*** and shall be eligible for re-nomination:
Provided that no such director shall hold office continuously for a period exceeding six years.]]
(3) A person shall not be capable of being nominated as a director under clause (d) 9[or clause (e)] of sub-section (1) if--
(a) he has been removed or dismissed from the service of Government or of a local authority or of a corporation or company in which not less than fifty-one per cent. of the paid-up share capital is held by Government; or
(b) he is or at any time has been adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(c) he is of unsound mind and stands so declared by a competent Court; or
(d) he has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude.
(4) If a director nominated under clause (d) of sub-section (1)--
(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or
(b) is absent without leave of the Board for more than three consecutive meetings thereof; or
(c) becomes a director or an officer or an employee of an insured bank or is, in the opinion of the Central Government, otherwise actively connected with such bank; or
(d) becomes an officer or other employee of Government or of the Reserve Bank or of the Corporation;
his seat shall thereupon become vacant.
10[(5) If a director nominated under clause (e) of sub-section (1)--
(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or
(b) is absent without leave of the Board for more than three consecutive meetings thereof,
his seat shall thereupon becomes vacant.]
1[(a) the Governor, for the time being, of the Reserve Bank or, if the Reserve Bank, in pursuance of the decision of the Committee of the Central Board of Directors of that Bank, nominates any Deputy Governor for the purpose, the Deputy Governor so nominated, who shall be the Chairman of the Board;]
(b) 2[a Deputy Governor or any other officer] of the Reserve Bank nominated by that bank;
(c) an officer of the Central Government nominated by that Government;
3[(d) five directors nominated by the Central Government in consultation with the Reserve Bank, three of whom shall be persons having special knowledge of commercial banking, insurance, commerce, industry or finance and two of whom shall be persons having special knowledge of, or experience in, co-operative banking or co-operative movement and none of the directors shall be an officer of Government or of the Reserve Bank or an officer or other employee of the Corporation or a director, an officer or other employee of a banking company or a co-operative bank or otherwise actively connected with a banking company or a co-operative bank].
4[(e) four directors, nominated by the Central Government in consultation with the Reserve Bank, having special knowledge or practical experience in respect of accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law or small-scale industry or any other matter, the special knowledge of, and practical experience in which, is likely, in the opinion of the Central Government to be useful to the Corporation.]
5[(2)(i). A director nominated under clause (b) or clause (c) 6[or clause (d) or clause (e)] of sub-section (1) shall hold office during the pleasure of the authority nominating him; and
7[(ii) Subject to the provisions contained in clause (i), a director nominated under clause (d) or clause (e) of sub-section (1), shall hold office for such period, not exceeding three years, as may be specified by the Central Government in this behalf, 8*** and shall be eligible for re-nomination:
Provided that no such director shall hold office continuously for a period exceeding six years.]]
(3) A person shall not be capable of being nominated as a director under clause (d) 9[or clause (e)] of sub-section (1) if--
(a) he has been removed or dismissed from the service of Government or of a local authority or of a corporation or company in which not less than fifty-one per cent. of the paid-up share capital is held by Government; or
(b) he is or at any time has been adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(c) he is of unsound mind and stands so declared by a competent Court; or
(d) he has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude.
(4) If a director nominated under clause (d) of sub-section (1)--
(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or
(b) is absent without leave of the Board for more than three consecutive meetings thereof; or
(c) becomes a director or an officer or an employee of an insured bank or is, in the opinion of the Central Government, otherwise actively connected with such bank; or
(d) becomes an officer or other employee of Government or of the Reserve Bank or of the Corporation;
his seat shall thereupon become vacant.
10[(5) If a director nominated under clause (e) of sub-section (1)--
(a) becomes subject to any of the disqualifications mentioned in clauses (a) to (d) of sub-section (3); or
(b) is absent without leave of the Board for more than three consecutive meetings thereof,
his seat shall thereupon becomes vacant.]
1. Subs. by s. 8, ibid., for clause (a) (w.e.f. 15-7-1978).
2. Subs. by Act 56 of 1968, s. 5, for "a Deputy Governor" (w.e.f. 7-5-1970).
3. Subs. by Act 56 of 1968, s. 5, for clause (d) (w.e.f. 10-3-1986).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
5. Subs. by Act 1 of 1984, s. 58, for sub-section (2) (w.e.f. 15-2-1984).
6. Ins. by Act 66 of 1988, s. 24 (w.e.f. 30-12-1988).
7. Subs. by s. 24, ibid., for clause (ii) (w.e.f. 30-12-1988).
8. The words "and thereafter until his successor assumes office" omitted by Act 45 of 2006, s. 17 (w.e.f. 16-10-2006).
9. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
10. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
2. Subs. by Act 56 of 1968, s. 5, for "a Deputy Governor" (w.e.f. 7-5-1970).
3. Subs. by Act 56 of 1968, s. 5, for clause (d) (w.e.f. 10-3-1986).
4. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
5. Subs. by Act 1 of 1984, s. 58, for sub-section (2) (w.e.f. 15-2-1984).
6. Ins. by Act 66 of 1988, s. 24 (w.e.f. 30-12-1988).
7. Subs. by s. 24, ibid., for clause (ii) (w.e.f. 30-12-1988).
8. The words "and thereafter until his successor assumes office" omitted by Act 45 of 2006, s. 17 (w.e.f. 16-10-2006).
9. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
10. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
Section 7 Meetings of Board.
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(2) The Chairman or, if for any reason he is unable to attend the director nominated under clause (b) of sub-section (1) of section 6 shall preside at meetings of the Board and, in the event of equality of votes, shall have a second or casting vote.
(2) The Chairman or, if for any reason he is unable to attend the director nominated under clause (b) of sub-section (1) of section 6 shall preside at meetings of the Board and, in the event of equality of votes, shall have a second or casting vote.
Section 8 Committees of Corporation.
(1) The Board may constitute an Executive Committee consisting of such number of directors as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed or may be delegated to it by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for the purpose of discharging such of its functions as may be prescribed or may be delegated to them by the Board.
(4) A committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(5) The members of a committee (other than directors of the Board) shall be paid by the Corporation such fees and allowances for attending its meetings and for attending to any other work of the Corporation as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed or may be delegated to it by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for the purpose of discharging such of its functions as may be prescribed or may be delegated to them by the Board.
(4) A committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(5) The members of a committee (other than directors of the Board) shall be paid by the Corporation such fees and allowances for attending its meetings and for attending to any other work of the Corporation as may be prescribed.
Section 9 Fees and allowances of directors.
The directors of the Board shall be paid by the Corporation such fees and allowances for attending the meetings of the Board or of any its committees and for attending to any other work of the Corporation as may be prescribed:
Provided that no fees shall be payable to the Chairman or to the director nominated under clause (b) of clause (c) of sub-section (1) of section 6.
Provided that no fees shall be payable to the Chairman or to the director nominated under clause (b) of clause (c) of sub-section (1) of section 6.
Section 10 Registration of existing banking companies.
1[10. Registration of existing banking companies.--The Corporation shall register every existing banking company as an insured bank before the expiry of thirty days from the date of commencement of this Act.]
1. Ins. by Act 56 of 1968, s. 6 (w.e.f. 1-7-1971).
Section 11 Registration of new banking companies.
The Corporation shall register every new banking company as an insured bank as soon as may be after it is granted a licence under section 22 of the 1[Banking Regulation Act, 1949 (10 of 1949)], 2***
1. Subs. by s. 2, ibid., for "the Banking Companies Act, 1949" (w.e.f. 1-7-1971).
2. The words and figures ", or, as the case may be, after it is notified under section 51 of the said Act" omitted by Act 1 of 1984, s. 59 (w.e.f. 15-2-1984).
2. The words and figures ", or, as the case may be, after it is notified under section 51 of the said Act" omitted by Act 1 of 1984, s. 59 (w.e.f. 15-2-1984).
Section 11A Registration of Regional Rural Banks.
1[11A. Registration of Regional Rural Banks.--The Corporation shall register every Regional Rural Bank, before the expiry of thirty days from the date of its establishment.]
1. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
Section 12 Registration of defunct banking companies.
Every banking company being a defunct banking company at the commencement of this Act, by reason of sub-clause (vii) or sub-clause (viii) of clause (f) of section 2 shall, unless it becomes a defunct banking company under any other sub-clause of that clause, be registered by the Corporation as an insured bank as soon as may be after the termination of the order moratorium or, as the case may be, the rejection of the application for its winding up.
Section 13 Cancellation of registration.
1[(1)] The registration of a banking company as an insured bank shall stand cancelled on the occurrence of any of the following events, namely:--
(a) if it has been prohibited from receiving fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been cancelled under section 22 of 2[the Banking Regulation Act, 1949 (10 of 1949)] or that a licence under that section cannot be granted to it; or
(c) if it has been ordered to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a banking company within the meaning of sub-section (2) of section 36A of 2[the Banking Regulation Act, 1949 (10 of 1949)] or has converted itself into a non-banking company; or
(f) if a liquidator has been appointed in pursuance of a resolution for the voluntary winding up of its affairs; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been sanctioned by any competent authority and the said scheme does not permit the acceptance of fresh deposits; or
(h) if it has amalgamated with any other banking institution.
3[(2) The provisions of clauses (a), 4*** (c), (d) and (h) of sub-section (1) shall apply to a corresponding new bank as they apply to a banking company.]
5[(3) The provisions of clauses (a), 4 *** (c), (d) and (h) of sub-section (1) shall apply to a Regional Rural Bank as they apply to a banking company.]
(a) if it has been prohibited from receiving fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been cancelled under section 22 of 2[the Banking Regulation Act, 1949 (10 of 1949)] or that a licence under that section cannot be granted to it; or
(c) if it has been ordered to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a banking company within the meaning of sub-section (2) of section 36A of 2[the Banking Regulation Act, 1949 (10 of 1949)] or has converted itself into a non-banking company; or
(f) if a liquidator has been appointed in pursuance of a resolution for the voluntary winding up of its affairs; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been sanctioned by any competent authority and the said scheme does not permit the acceptance of fresh deposits; or
(h) if it has amalgamated with any other banking institution.
3[(2) The provisions of clauses (a), 4*** (c), (d) and (h) of sub-section (1) shall apply to a corresponding new bank as they apply to a banking company.]
5[(3) The provisions of clauses (a), 4 *** (c), (d) and (h) of sub-section (1) shall apply to a Regional Rural Bank as they apply to a banking company.]
1. Section 13 re-numbered as sub-section (1) thereof by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).
2. Subs. by Act 56 of 1968, s. 2, for "the Banking Companies Act, 1949" (w.e.f. 1-7-1971).
3. Ins. by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).
4. The brackets and letter "(b)," omitted by 1 of 1984, s. 60 (w.e.f. 15-2-1984).
5. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
2. Subs. by Act 56 of 1968, s. 2, for "the Banking Companies Act, 1949" (w.e.f. 1-7-1971).
3. Ins. by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).
4. The brackets and letter "(b)," omitted by 1 of 1984, s. 60 (w.e.f. 15-2-1984).
5. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
Section 13A Registration of co-operative banks.
1[13A. Registration of co-operative banks.--(1) No co-operative bank shall be registered under this section unless it is an eligible co-operative bank.
(2) Subject as aforesaid--
(a) the Corporation shall register every existing co-operative bank as an insured bank before the expiry of thirty days next following the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968);
(b) the Corporation shall register as an insured bank--
(i) every new co-operative bank [other than a primary credit society becoming a primary co-operative bank after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968)] as soon as may be after it is granted a licence under section 22 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) a primary credit society becoming a primary co-operative bank after such commencement within three months of its having made an application for a licence under the said section:
Provided that a bank referred to in clause (b) shall not be so registered if it has been informed by notice in writing by the Reserve Bank that such a licence cannot be granted to it.
2[(iii) every co-operative bank which has come into existence after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), as a result of the division of any other co-operative society carrying on business as a co-operative bank, or the amalgamation of two or more co-operative societies carrying on banking business, at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), or at any time thereafter, within three months of its having made an application for a licence under the said section;]]
(2) Subject as aforesaid--
(a) the Corporation shall register every existing co-operative bank as an insured bank before the expiry of thirty days next following the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968);
(b) the Corporation shall register as an insured bank--
(i) every new co-operative bank [other than a primary credit society becoming a primary co-operative bank after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968)] as soon as may be after it is granted a licence under section 22 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) a primary credit society becoming a primary co-operative bank after such commencement within three months of its having made an application for a licence under the said section:
Provided that a bank referred to in clause (b) shall not be so registered if it has been informed by notice in writing by the Reserve Bank that such a licence cannot be granted to it.
2[(iii) every co-operative bank which has come into existence after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), as a result of the division of any other co-operative society carrying on business as a co-operative bank, or the amalgamation of two or more co-operative societies carrying on banking business, at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), or at any time thereafter, within three months of its having made an application for a licence under the said section;]]
1. Ins. by Act 56 of 1968, s. 7 (w.e.f. 1-7-1971).
2. Ins. by Act 1 of 1984, s. 61 (w.e.f. 15-2-1984).
2. Ins. by Act 1 of 1984, s. 61 (w.e.f. 15-2-1984).
Section 13B Registration of defunct co-operative banks.
1[13B. Registration of defunct co-operative banks.--Every co-operative bank being a defunct co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), by reason of sub-clause (vii) or Sub-clause (viii) of clause (ff) of section 2 shall, unless it becomes a defunct co-operative bank under any other sub-clause of that clause, be registered by the Corporation as an insured bank as soon as may be after the termination of the order of moratorium, or as the case may be, the rejection or dismissal of the application for its winding up provided it is an eligible co-operative bank and it either holds a licence granted under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or having applied for such licence in accordance with that section, has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it.]
1. Ins. by Act 56 of 1968, s. 7 (w.e.f. 1-7-1971).
Section 13C Cancellation of registration of co-operative banks.
1[13C. Cancellation of registration of co-operative banks.--The registration of a co-operative bank as an insured bank shall stand cancelled on the occurrence of any of the following events, namely:--
(a) if it has been prohibited from accepting fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been cancelled under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or a licence under that section cannot be granted to it; or
(c) if it has been ordered or directed to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulation Act, 1949 (10 of 1949); or
(f) if it has converted itself into a non-banking co-operative society; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been sanctioned by a competent authority and the said scheme does not permit the acceptance by it of fresh deposits; or
(h) if it has been amalgamated with any other co-operative society; or
(i) if it ceases to be an eligible co-operative bank, that is, if the law for the time being governing such co-operative bank does not provide for all or any of the matters referred to in clause (gg) of section 2.]
(a) if it has been prohibited from accepting fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been cancelled under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or a licence under that section cannot be granted to it; or
(c) if it has been ordered or directed to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulation Act, 1949 (10 of 1949); or
(f) if it has converted itself into a non-banking co-operative society; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been sanctioned by a competent authority and the said scheme does not permit the acceptance by it of fresh deposits; or
(h) if it has been amalgamated with any other co-operative society; or
(i) if it ceases to be an eligible co-operative bank, that is, if the law for the time being governing such co-operative bank does not provide for all or any of the matters referred to in clause (gg) of section 2.]
1. Ins. by Act 56 of 1968, s. 7 (w.e.f. 1-7-1971).
Section 13D Circumstances in which Reserve Bank may require winding up of co-operative banks.
1[13D. Circumstances in which Reserve Bank may require winding up of co-operative banks.--(1) The circumstances referred to in sub-clause (ii) of clause (gg) of section 2 (being circumstances in which the Reserve Bank may require the winding up of a co-operative bank) are the following, namely:--
(a) that the co-operative bank has failed to comply with the requirements specified in section 11 of the Banking Regulation Act, 1949 (10 of 1949); or
(b) that the co-operative bank has by reason of the provisions of section 22 of the said Act become disentitled to carry on banking business in India; or
(c) that the co-operative bank has been prohibited from receiving fresh deposits by an order under sub-section (4) of section 35 of the said Act or under clause (b) of sub-section (3A) of section 42 of the Reserve Bank of India Act, 1934 (2 of 1934); or
(d) that the co-operative bank having failed to comply with any requirement of the Banking Regulation Act, 1949 (10 of 1949), other than the requirements laid down in section 11 thereof, has continued such failure or, having contravened any provision of that Act has continued such contravention beyond such period or periods as may be specified in that behalf by the Reserve Bank from time to time, after notice in writing of such failure or contravention has been conveyed to the co-operative bank; or
(e) that the co-operative bank is unable to pay its debts; or
(f) that in the opinion of the Reserve Bank--
(i) a compromise or arrangement sanctioned by a competent authority in respect of the co-operative bank cannot be worked satisfactorily with or without modifications, or
(ii) the continuance of the co-operative bank is prejudicial to the interests of its depositors.
(2) Without prejudice to the provisions of any other law for the time being in force, a co-operative bank shall, for the purpose of clause (e) of sub-section (1), be deemed to be unable to pay its debts:--
(i) if, on the basis of the returns, statements or information furnished to the Reserve Bank under or in pursuance of the provisions of the Banking Regulation Act, 1949 (10 of 1949), the Reserve Bank is of opinion that the co-operative bank is unable to pay its debts; or
(ii) if the co-operative bank has refused to meet any lawful demand made at any of its offices or branches within two working days, if such demand is made at a place where there is an office, branch or agency of the Reserve Bank, or within five working days if such demand is made elsewhere and, in either case, the Reserve Bank Certifies in writing that the co-operative bank is unable to pay its debts.]
(a) that the co-operative bank has failed to comply with the requirements specified in section 11 of the Banking Regulation Act, 1949 (10 of 1949); or
(b) that the co-operative bank has by reason of the provisions of section 22 of the said Act become disentitled to carry on banking business in India; or
(c) that the co-operative bank has been prohibited from receiving fresh deposits by an order under sub-section (4) of section 35 of the said Act or under clause (b) of sub-section (3A) of section 42 of the Reserve Bank of India Act, 1934 (2 of 1934); or
(d) that the co-operative bank having failed to comply with any requirement of the Banking Regulation Act, 1949 (10 of 1949), other than the requirements laid down in section 11 thereof, has continued such failure or, having contravened any provision of that Act has continued such contravention beyond such period or periods as may be specified in that behalf by the Reserve Bank from time to time, after notice in writing of such failure or contravention has been conveyed to the co-operative bank; or
(e) that the co-operative bank is unable to pay its debts; or
(f) that in the opinion of the Reserve Bank--
(i) a compromise or arrangement sanctioned by a competent authority in respect of the co-operative bank cannot be worked satisfactorily with or without modifications, or
(ii) the continuance of the co-operative bank is prejudicial to the interests of its depositors.
(2) Without prejudice to the provisions of any other law for the time being in force, a co-operative bank shall, for the purpose of clause (e) of sub-section (1), be deemed to be unable to pay its debts:--
(i) if, on the basis of the returns, statements or information furnished to the Reserve Bank under or in pursuance of the provisions of the Banking Regulation Act, 1949 (10 of 1949), the Reserve Bank is of opinion that the co-operative bank is unable to pay its debts; or
(ii) if the co-operative bank has refused to meet any lawful demand made at any of its offices or branches within two working days, if such demand is made at a place where there is an office, branch or agency of the Reserve Bank, or within five working days if such demand is made elsewhere and, in either case, the Reserve Bank Certifies in writing that the co-operative bank is unable to pay its debts.]
1. Ins. by Act 56 of 1968, s. 7 (w.e.f. 1-7-1971).
Section 14 Intimation of registration.
(1) Where the Corporation has registered any 1[ 2[banking company, Regional Rural Bank] or co-operative bank] as an insured bank, it shall, within thirty days of its registration, send an intimation in writing to the 1[2[banking company, Regional Rural Bank] or co-operative bank] that it has been registered as an insured bank.
(2) Every such intimation shall indicate the manner in which the premium payable by the bank under section 15 may be calculated.
(2) Every such intimation shall indicate the manner in which the premium payable by the bank under section 15 may be calculated.
1. Subs. by Act 56 of 1968, s. 8, for "banking company" (w.e.f. 1-7-1971).
2. Subs. by Act 21 of 1976, s. 33, for "banking company" (w.e.f. 26-9-1975).
2. Subs. by Act 21 of 1976, s. 33, for "banking company" (w.e.f. 26-9-1975).
Section 15 Premium.
(1) Every insured bank shall, so long as it continues to be registered, be liable to pay a premium to the Corporation on its deposits at such rate or rates as may 1[with the previous approval of the Reserve Bank, be notified by the Corporation, from time to time, to the insured banks and different rates may be notified for different categories of insured banks:]
Provided that the premium payable by any insured bank for any period shall not exceed fifteen paisa per annum for every hundred rupees of the total amount of the deposits in that bank at the end of that period or, where its registration has been cancelled during that period, on the date of its cancellation:
2[Provided further that the Corporation may, having regard to its financial position and to the interests of the banking system of the country as a whole, and with previous approval of the Reserve Bank of India, from time to time, raise the aforesaid limit of fifteen paisa per annum for every hundred rupees of the total amount of the deposits in that bank:
Provided also that] where the registration of any insured bank is cancelled under section 13 3[or under section 13C] such cancellation shall not affect the liability of that bank for payment of premium for the period before such cancellation and of any interest due under the provisions of this section.
(2) The premium shall be payable for such periods, at such times and in such manner as may be prescribed.
(3) If an insured bank makes any default in payment of any amount of premium, it shall, for the period of such default, be liable to pay to the Corporation interest on such amount at such rate 4[not exceeding eight per cent. over and above the bank rate as may be prescribed].
Provided that the premium payable by any insured bank for any period shall not exceed fifteen paisa per annum for every hundred rupees of the total amount of the deposits in that bank at the end of that period or, where its registration has been cancelled during that period, on the date of its cancellation:
2[Provided further that the Corporation may, having regard to its financial position and to the interests of the banking system of the country as a whole, and with previous approval of the Reserve Bank of India, from time to time, raise the aforesaid limit of fifteen paisa per annum for every hundred rupees of the total amount of the deposits in that bank:
Provided also that] where the registration of any insured bank is cancelled under section 13 3[or under section 13C] such cancellation shall not affect the liability of that bank for payment of premium for the period before such cancellation and of any interest due under the provisions of this section.
(2) The premium shall be payable for such periods, at such times and in such manner as may be prescribed.
(3) If an insured bank makes any default in payment of any amount of premium, it shall, for the period of such default, be liable to pay to the Corporation interest on such amount at such rate 4[not exceeding eight per cent. over and above the bank rate as may be prescribed].
1. Subs. by Act 21 of 1978, s. 8, for certain words (w.e.f. 15-7-1978).
2. Subs. by Act 30 of 2021, s. 3, for “Provided further that” (w.e.f. 1-9-2021).
3. Ins. by Act 56 of 1968, s. 9 (w.e.f. 1-7-1971).
4. Subs. by Act 21 of 1978, s. 8, for not exceeding eight per cent. per annum as may be prescribed (w.e.f. 15-7-1978).
2. Subs. by Act 30 of 2021, s. 3, for “Provided further that” (w.e.f. 1-9-2021).
3. Ins. by Act 56 of 1968, s. 9 (w.e.f. 1-7-1971).
4. Subs. by Act 21 of 1978, s. 8, for not exceeding eight per cent. per annum as may be prescribed (w.e.f. 15-7-1978).