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The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

Central

An Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organisation, in order to control the heights of the economy and to meet progressively, and serve better, the needs of development of the economy in conformity with national policy and objectives and for matters connected therewith or incidental thereto.

Act number
5 of 1970
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
31 Mar 1970

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

29 sections

  1. Section 1Short title and commencement
  2. Section 2Definitions.
  3. Section 3Establishment of corresponding new banks and business thereof.
  4. Section 3ATrust not to be entered on the register.
  5. Section 3BRegister of beneficial owners
  6. Section 4Undertaking of existing banks to vest in corresponding new banks
  7. Section 5General effect of vesting.
  8. Section 6Payment of compensation.
  9. Section 7Head office and management.
  10. Section 8Corresponding new banks to be guided by the directions of the Central Government.
  11. Section 9Power of Central Government to make scheme.
  12. Section 9APower of Reserve Bank to appoint additional director
  13. Section 10Closure of accounts and disposal of profits.
  14. Section 10AAnnual general meeting.
  15. Section 10BTransfer of unpaid or unclaimed money.
  16. Section 11Corresponding new bank deemed to be an Indian company
  17. Section 12Removal of Chairman from office
  18. Section 12ABonus.
  19. Section 13. Obligations as to fidelity and secrecy.
  20. Section 14Custodian to be public servant
  21. Section 15Certain defects not to invalidate acts or proceedings
  22. Section 16Indemnity
  23. Section 16AArrangement with corresponding new bank on appointment of directors to prevail
  24. Section 17References to existing banks on and from the commencement of this Act.—
  25. Section 18Dissolution
  26. Section 18ASupersession of Board in certain cases
  27. Section 19Power to make regulations.
  28. Section 20Amendment of certain enactments
  29. Section 21Repeal and savings