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Bare acts > Deposit Insurance Corporation (Amendment) Act, 1968 > Section 7
 
  


 

7. Insertion of new sections 13A, 13B, 13C and 13D.- After section 13 of the principal Act, the following sections shall be inserted, namely:-


"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.

(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;

(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] 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.

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 a 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.

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.

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, 1935 (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) With out prejudice to the provisions of any other law for the time being in force, a co-operative band 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, 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".

 

 

 

 

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