Section Text
(1) Inaddition to the business of banking, a banking company may engage in any one ormore of the following forms of business, namely:-
(a) the borrowing, raising, ortaking up of money; the lending or advancing of money either upon or withoutsecurity; the drawing, making, accepting, discounting, buying, selling,collecting and dealing in bills of exchange, hoondees, promissory notes,coupons, drafts, bills of lading, railway receipts, warrants, debentures,certificates, scrips and other instruments and securities whether transferableor negotiable or not; the granting and issuing of letters of credit,traveller's cheques and circular notes; the buying, selling and dealing inbullion and specie; the buying and selling of foreign exchange includingforeign bank notes; the acquiring, holding, issuing on commission, underwritingand dealing in stock, funds, shares, debentures, debenture stock, bonds,obligations, securities and investments of all kinds; the purchasing andselling of bonds, scrips or other forms of securities on behalf of constituentsor others, the negotiating of loans and advances; the receiving of all kinds ofbonds, scrips or valuables on deposit or for safe custody or otherwise; theproviding of safe deposit vaults; the collecting and transmitting of money andsecurities;
(b) actingas agents for any Government or local authority or any other person or persons;the carrying on of agency business of any description including the clearingand forwarding of goods, giving of receipts and discharges and otherwise actingas an attorney on behalf of customers, but excluding the business of a 1 [managingagent or secretary and treasurer] of acompany;
(c) contracting for public andprivate loans and negotiating and issuing the same;
(d) the effecting, insuring,guaranteeing, underwriting, participating in managing and carrying out of anyissue, public or private, of State, municipal or other loans or of shares,stock, debentures, or debenture stock of any company, corporation orassociation and the lending of money for the purpose of any such issue;
(e) carrying on and transactingevery kind of guarantee and indemnity business;
(f) managing, selling andrealising any property which may come into the possession of the company insatisfaction or part satisfaction of any of its claims;
(g) acquiring and holding andgenerally dealing with any property or any right, title or interest in any suchproperty which may form the security or part of the security for any loans or advancesor which may be connected with any such security;
(h) undertaking and executingtrusts;
(i) undertaking theadministration of estates as executor, trustee or otherwise;
(j) establishing and supportingor aiding in the establishment and support of associations, institutions,funds, trusts and conveniences calculated to benefit employees or ex-employeesof the company or the dependents or connections of such persons; grantingpensions and allowances and making payments towards insurance; subscribing toor guaranteeing moneys for charitable or benevolent objects or for anyexhibition or for any public, general or useful object;
(k) the acquisition,construction, maintenance and alteration of any building or works necessary orconvenient for the purposes of the company;
(l) selling, improving,managing, developing, exchanging, leasing, mortgaging, disposing of or turninginto account or otherwise dealing with all or any part of the property andrights of the company;
(m) acquiring and undertakingthe whole or any part of the business of any person or company, when suchbusiness is of a nature enumerated or described in this sub- section;
(n) doing all such other thingsas are incidental or conducive to the promotion or advancement of the businessof the company;
(o) any other form of businesswhich the Central Government may, by notification in the Official Gazette,specify as a form of business in which it is lawful for a banking company toengage.
(2) No banking company shall engage in any form ofbusiness other than those referred to in sub-section (1).
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1. Substituted by Act 33 of 1959, Section 4, for "managing agent"w.e.f. 1-10-1959