Section Text
1 [In this Act], unless there is anything repugnant in the subject orcontext, -
2 [(a) "approved securities" means--
(i) securities in which a trustee may invest money underclause (a), clause (b), clause (bb), clause (c) or clause (d) of section 20 ofthe Indian Trusts Act, 1882 (2 of 1882);
(ii) such of the securities authorised by the CentralGovernment under clause (f) of section 20 of the Indian Trusts Act, 1882 (2 of 1882),as may be prescribed;]
(b) "banking" means the accepting, for thepurpose of lending or investment, of deposits of money from the public,repayable on demand or otherwise, and withdrawal by cheque, draft, order orotherwise;
(c) "banking company" means any company whichtransacts the business of banking 3 [in India];
Explanation.--Any company which is engaged in themanufacture of goods or carries on any trade and which accepts deposits ofmoney from the public merely for the purpose of financing its business as suchmanufacturer or trader shall not be deemed to transact the business of bankingwithin the meaning of this clause;
4 [(ca) "banking policy" means any policy which is specifiedfrom time to time by the Reserve Bank in the interest of the banking system orin the interest of monetary stability or sound economic growth, having dueregard to the interests of the depositors, the volume of deposits and otherresources of the bank and the need for equitable allocation and the efficientuse of these deposits and resources;]
5 [(cc) "branch" or "branch office" , in relation toa banking company, means any branch or branch office, whether called a payoffice or sub-pay office or by any other name, at which deposits are received,cheques cashed or moneys lent, and for the purposes of section 35 includes anyplace of business where any other form of business referred to in sub-section(1) of section 6 is transacted;]
6 [(d) "company" means any company as defined in section 3 ofthe Companies Act, 1956 (1 of 1956); and includes a foreign company within themeaning of section 591 of that Act;)
7 [(da) "corresponding new bank" means a corresponding newbank constituted under section 3 of the Banking Companies (Acquisition andTransfer of Undertakings) Act, 1970 (5 of 1970); or under section 3 of theBanking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of1980);]
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(f) "demand liabilities" means liabilities whichmust be met on demand, and "time liabilities" means liabilities whichare not demand liabilities;
9 [(ff) "Deposit Insurance Corporation" means the DepositInsurance Corporation established under section 3 of the Deposit InsuranceCorporation Act, 1961 (47 of 1961);]
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(ffb) "Exim Bank" means the Export-Import Bankof India established under section 3 of the Export-Import India Act, 1981 (28of 1981);]
11 [(ffc) "Reconstruction Bank" means the IndustrialReconstruction Bank of India established under section 3 of the IndustrialReconstruction Bank of India Act, 1984 (62 of 1984);]
12 [(ffd) "National Housing Bank" means the National Housing Bankestablished under section 3 of the National Housing Bank Act, 1987;]
(g) "gold" includes gold in the form of coin,whether legal tender or not, or in the form of bullion or ingot, whetherrefined or not;
13 [(gg) "managing agent" includes. -
(i) Secretaries and Treasurers;
(ii) Where the managing agent is a company, and director ofsuch company, and any member thereof who holds substantial interest in suchcompany;
(iii) Where the managing agent is a firm, any partner ofsuch firm;]
14 [(h) "managing director", in relation to a banking company,means a director who, by virtue of an agreement with the banking company or ofa resolution passed by the banking company in general meeting or by its Boardof directors or, by virtue of its memorandum or articles of association, isentrusted with the management of the whole, or substantially the whole of theaffairs of the company, and includes a director occupying the position of amanaging director, by whatever name called:]
15 [Provided that the managing director shall exercise his powers subjectto the superintendence, control and direction of the Board of Directors;]
16 [(ha) "National Bank" means the National Bank forAgriculture and Rural Development established under section 3 of the NationalBank for Agriculture and Rural Development Act, 1981;]
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(j) "prescribed" means prescribed by rules madeunder this Act;
16 [(ja) "regional rural bank" means a regional rural bankestablished under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);]
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18 [(1) "Reserve Bank" means the Reserve Bank of India constitutedunder section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);]
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(n) "secured loan or advance" means a loan oradvance made on the security of assets the market value of which is not at anytime less than the amountof such loan or advance; and "unsecured loan oradvance" means a loan or advance not so secured;
19 [(ni) "Small Industries Bank" means the Small IndustriesDevelopment Bank of India established under section 3 of the Small IndustriesDevelopment Bank of India, 1989;]
20 [(na) "small-scale industrial concern" means an industrialconcern in which the investment in plant and machinery is not in excess ofseven and a half lakhs of rupees or such higher amount, not exceeding twentylakhs of rupees, as the Central Government may, by notification in the OfficialGazette, specify in this behalf, having regard to the trends in industrialdevelopment and other relevant factors;]
21 [(nb) "Sponsor Bank" has the meaning assigned to it in theRegional Rural Banks Act, 1976 (21 of 1976);
(nc) "State Bank of India" means the State Bankof India constituted under section 3 of the State Bank of India Act, 1955 (23of 1955);]
22 [(nd)] "subsidiary bank" has the meaning assigned to it inthe State Bank of India (Subsidiary Banks) Act, 1959;
23 [(ne)] " substantial interest". -
(i) in relation to a company, means the holding of abeneficial interest by an individual or his spouse or minor child, whethersingly or taken together, in the shares thereof, the amount paid up on whichexceeds five lakhs of rupees or ten percent of the paid-up capital of thecompany, whichever is less;
(ii) in relation to a firm, means the beneficial interestheld therein by an individual or his spouse or minor child, whether singly ortaken together, which represents more than ten per cent of the total capitalsubscribed by all the partners of the said firm;]]
24 [(o) all other words and expressions used herein but not defined anddefined in the Companies Act, 1956 (1 of 1956), shall have the meaningsrespectively assigned to them in that Act.]
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1. Substituted by Act 55 of 1963, Section 6, for "(1) In this Act,"w.e.f. 1-2-1964
2. Clause (a) Substituted by Act 1 of 1984, Section 13 w.e.f. 15-2-1984.
3. Substituted by Act 20 of 1950, Section 3, for "in any State".
4.Inserted By Act 58of 1958, Section 2 w.e.f. 1-2-1969.
5. Inserted By Act 58 of 1959, Section 2 w.e.f. 1-10-1959.
6. Substituted by Act 58 of 1959 Section 2, for clause (d) w.e.f.1-10-1959.
7. Inserted By Act 1 of 1984, Section 13 w.e.f. 15-2-1984.
8. Clause (e) omitted by Act 52 of 1953, Section 2.
9. Inserted By Act 47 of 1961, Section 51 and Schedule II, Pt. II w.e.f.1-1-1962.
10. Inserted By Act 1 of 1984, Section 13 w.e.f. 15-2-1984.
11. Inserted by Act 62 of 1984, Section 71 and Third Schedule w.e.f.20-3-1985.
12. Inserted by Act 53 of 1987, Section 56 and Second Schedule w.e.f.9-7-1988.
13. Inserted by Act 58 of 1968, Section 2 w.e.f. 1-2-1969.
14. Substituted by Act 33 of 1959, Section 2, for clause (h) w.e.f.1-10-1959.23Added by Act 58 of 1968, Section 2 w.e.f. 1-2-1969.
15. Added by Act 58 of 1968, Section 2 w.e.f. 1-2-1969.
16. Inserted by Act 61 of 1981, Section 61 and Second Schedule, Pt. IIw.e.f. 1-5-1982.
17. Clauses (i), (k) and (m) omitted by Act 33 of 1959, Section 2 w.e.f.1-5-1982.
18. Inserted by Act 1 of 1984, Section 13 w.e.f. 15-2-1984
19.Inserted by Act 39of 1989, Section 53 and Second Schedule, Pt. III w.e.f. 25-10-1989
20. Inserted by Act 58 of 1968, Section 2 w.e.f. 1-2-1969.
21. Inserted by Act 58 of 1968, Section 2 w.e.f. 1-2-1969
22. Clause (nb) re/lettered as Clause (nb) by Act 1 of 1984, Section 13w.e.f. 15-2-1984
23. Clause (nc) re/lettered as Clause (ne) by Act 1 of 1984, Section 13w.e.f. 15-2-1984
24. Inserted by Act 33 of 1959, Section 2 w.e.f. 1-10-1959.
25. Sub-section (2) omitted by the A.O. 1950
26. Omitted by the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003. Prior to omission it read as:
"10 [(ffa) "Development Bank" means the Industrial DevelopmentBank of India established under section 3 of the Industrial Development Bank ofIndia Act, 1964 (18 of 1964);"