State Bank of India Act, 1955 :: Indian Bare Acts
1. Short title and commencement
(1) This Act may be called the State Bank of India Act, 1955.
(2) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
2. Definitions
In this Act, unless the context otherwise requires,-
(a) "appointed day" means the date on which this Act
comes into force;
(b) "Central Board" means the Central Board of
Directors of the State Bank;
3[(bb) "Chairman" means the chairman of the
Central Board;]
(c) "goods" includes bullion, wares and merchandise;
(d) "Imperial Bank" means the Imperial Bank of India
constituted under the Imperial Bank of India Act, 1920;
(e) "prescribed" means prescribed by regulations made
under this Act;
(f) "Reserve Bank" means the Reserve Bank of India
constituted under the Reserve Bank of India Act, 1934;
(g) "State Bank" means the State Bank of India
constituted under this Act;
4[(h) "subsidiary Bank" means a subsidiary Bank
as defined in the State Bank of India (Subsidiary Bank) Act, 1959;]
2[(i) "vice-chairman" means the vice-chairman of
the Central Board;]
5[(j) "workman" has the meaning assigned to it in the Industrial Disputes Act, 1947.]
3. Establishment of the State Bank
(1) A Bank to be called the State Bank of India shall be
constituted to carry on the business of Banking and other business in
accordance with the provisions of this Act and for the purpose of taking over
the undertaking of the Imperial Bank.
(2) The Reserve Bank, together with such other persons as may
from time to time become shareholders in the State in accordance with the
provisions of this Act, shall, so long as they are shareholders in the State
Bank, Constitute a corporate with perpetual succession and a common seal under
the name of the State body Bank of India, and shall sue and be sued in that
name.
(3) The State Bank shall have power to acquire and hold property, whether movable or immovable, for the purposes for which it is constituted and to dispose of the same.
4. Authorized capital
Subject to the provisions of this Act, the authorized capital of
the State Bank shall be twenty crores of rupees divided into 6[two
crores] of fully paid up shares of 7[ten rupees] each :
Provided that the Central Government may increase or reduce the authorized capital as it thinks fit so however that the shares in all cases shall be fully paid up shares of 7[ten rupees] each.
5. Issued capital
(1) The issued capital of the State Bank shall, on the appointed
day, be five crores, sixty-two lakhs and fifty thousand rupees divided into
five lakhs, sixty two thousand and five hundred shares, all of which shall, on
the appointed day stand allotted to the Reserve Bank in lieu of the shares of
the Imperial Bank 8[transferred to and vested in it under section
6].
(2) The Central Board may from time to time increase the issued
capital but no increase in the issued capital shall be made in such a manner
that the Reserve Bank holds at any time less than fifty-five per cent. of the
issued capital of the State Bank.
(3) No increase in the issued capital beyond twelve crores and fifty lakhs of rupees shall be made under sub-section (2) without the previous sanction of the Central Government.
6. Transfer of assets and liabilities of the Imperial Bank
to the State Bank
(1) Subject to the other provisions contained in this Act, on
the appointed day,-
(a) all shares in the capital of the Imperial
Bank shall be transferred to, and shall vest in, the Reserve Bank, free of all
trusts, liabilities and encumbrances, and
(b) the undertaking of the Imperial Bank shall
be transferred to, and shall vest in, the State Bank.
(2) The undertaking of the Imperial Bank shall be deemed to
include all rights, powers, authorities and privileges, and all property,
movable and immovable, including cash balances, Reserve funds, investments and
all other interests and rights in, or arising out of such property as may be in
the possession of that Bank immediately before the appointed day, and all
books, accounts, and documents relating thereto, and shall also be deemed to
include all debts, liabilities and obligations of whatever king then existing
of that Bank.
9[(3) Unless otherwise expressly provided by or under this
Act, all contracts, deeds, bonds, agreements, powers of attorney, grants of
legal representation and other instruments of whatever nature subsisting or
having effect immediately before the appointed day and to which the Imperial
Bank is a party or which are in favor of the Imperial Bank shall be of as full
force and effect against or in favor of the State Bank, as the case may be, and
may be enforced of acted upon as fully and effectually as if instead of the
Imperial Bank the State Bank had been a party thereto or as if they had been
issued in favor of the State Bank.]
(4) If on the appointed day any suit, appeal or other legal proceeding of whatever nature, is pending by or against the Imperial Bank, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer to the State Bank of the undertaking f the Imperial Bank or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the State Bank.
7. Transfer of service of existing officers and employees
of the Imperial Bank to the State Bank
(1) Every officer or other employee of the Imperial Bank
(excepting the managing director, the deputy managing director and other
directors) in the employment of he Imperial Bank immediately before the
appointed day shall, on and from the appointed day, become an officer or
other employee, as the case may be, of the State Bank, and shall hold his
office or service therein by the same tenure, at the same remuneration and upon
the same terms and conditions and with the same rights and privileges as to pension,
gratuity and other matters as he would have held the same on the
appointed day if the undertaking of the Imperial Bank had not vested in the
State Bank, and shall continue to do so unless and until his employment in the
State Bank is terminated or until his remuneration, terms or conditions are
duly altered by the State Bank.
(2) Any person who, on the appointed day, is entitled to or is
in receipt of, a Pension or other superannuation or compassionate allowance or
benefit from the Imperial Bank or any provident, pension or other fund or any
authority administering such fund shall be entitled to be paid by, and to
receive from, the State Bank or any provident, pension or other fund or any
authority administering such fund the same pension, allowance or benefit so
long as he observes the conditions on which the pension, allowance or benefit
was granted, and if any question arises whether he has so observed such
conditions, the question shall be determined by the Central Government and the
decision of the Central Government thereon shall be final.
(3) Notwithstanding anything contained in sub-section (1) or
sub-section (2), no appointment made or promotion, increment in salary,
pension, allowance or any other benefit granted to any person after the 19th
day of December, 1954, and before the appointed day which would not ordinarily
have been made or granted or which would not ordinarily have been admissible
under the rules or authorizations of the Imperial Bank or of any provident,
pension or other fund in force prior to the 19th day of December, 1954, shall
have effect or be payable or claimable from the State Bank or from any
provident, pension or other fund or from any authority administering the fund,
unless the Central Government has, by general or special order, confirmed the
appointment, promotion or increment or has directed the continued grant of the
pension, allowance or other benefit as the case may be.
(4) Notwithstanding anything contained in the Industrial
disputes Act, 1947, or in any other law for the time being in force, the
transfer of the services of any office or other employee of the Imperial Bank
from that Bank to the State Bank shall not entitle such officer or other
employee to any compensation under that Act or other law, and no such claim
shall be entertained by any court, tribunal or other authority.
(5) Any person holding office as managing director, deputy
managing director, director or member of any Local Board of the Imperial Bank
immediately before the appointed day shall be deemed to have vacated his office
as such on the appointed day, and notwithstanding anything contained in this
Act or in any other law for the time being in force or in any agreement or
contract, he shall not be entitled to any compensation from the Imperial Bank
or the State Bank for the loss of office or for the premature termination of
any agreement or contract relating to his employment, except such pension,
compensation or other benefit which the State Bank May grant to him, having
regard to what that person would have received as an officer of the Imperial
Bank if this Act had not been passed and if he had retired from his employment
in the ordinary course.
(6) Where any managing director, deputy managing director, director, officer or other employee of the Imperial Bank has, after the 19th day of December, 1954, and before the appointed day, been paid any sum by way of compensation or gratuity, the State Bank be entitled to claim refund of any sum so paid if the payment is not confirmed by the Central Government by general or special order.
8. Existing provident and other funds of the Imperial Bank
For the persons who immediately before the appointed day are the
trustees of the following funds, that is to say,-
(a) the Imperial Bank of India Employees Provident Fund;
(b) the Imperial Bank of India Employees Pension and Guarantee
Fund;
(c) the Bank of Bombay Officers Pension and Guarantee Fund;
(d) the Bank of Madras Pension and Gratuity Fund; and
(e) the Bank of Madras Officers Provident and Mutual Guarantee
Fund;
there shall be substituted as trustees such persons as the Central Government May, by general or special order, specify.
9. Compensation to be given to share-holders of Imperial
Bank
(1) Every person who immediately before the appointed day is
registered as a holder of shares in the Imperial Bank shall be entitled to
compensation in accordance with the provisions contained in the first Schedule.
(2) Nothing contained in sub-section (1) shall affect the rights inter se between the holder of any share in the Imperial Bank and any other person who May gave an interest in such share, and such other person shall be entitled to enforce his interest against the compensation awarded to the holder of such share, but bot against the Reserve Bank.
10. Transferability of shares
(1) Save as otherwise provided in sub-section (2), the shares of
the State Bank shall be freely transferable.
(2) Nothing contained in sub-section (1) shall entitle the Reserve Bank to transfer any shares held by it in the State Bank if such transfer will result in reducing the shares held by it to less than fifty-five per cent of the issued capital of the State Bank.
11. Restriction on voting rights
No shareholder, other than the Reserve Bank, shall be entitled
to exercise voting rights in respect of any shares held by him in excess of ten
per cent, of the issued capital:
Provided that such shareholder shall be entitled to exercise voting rights at such higher percentage as the Central Government may, after consultation with the Reserve Bank, specify.".
12. Shares to be approved securities
Notwithstanding anything contained in the Acts hereinafter mentioned in this scoring the shares of the State Bank shall be deemed to be included among the securities enumerated in section 20 of the Indian Trusts Act, 1882, and also to be approved securities for the purposes of the Insurance Act, 1938, and 11[Banking Regulation Act, 1949"].
13. Register of share-holders
(1) The State Bank shall keep at its Central Office, a register,
in one or more books of the shareholders, and shall enter therein the following
particulars so far as they may be available :-
(i) the names, addresses and occupations, if
any, of the shareholders and a statement of the shares held by each
shareholder, distinguishing each share by its denoting number;
(ii) the date on which each person is so
entered as a shareholder;
(iii) the date on which any person ceases to
be a shareholder; and
(iv) such other particulars as may be
prescribed.
13[Provided that nothing on this
sub-section shall apply to the shares held with a depository].
(2) Notwithstanding anything contained in sub-section (1), it
shall be lawful for the State Bank to keep the registrar of shareholders in
computer floppies or diskettes subject to such safeguards as may be prescribed.
(3) Notwithstanding anything contained in the Indian Evidence Act, 1872, a copy of, or extract from, the registrar of shareholders certified to be a true copy under the hand of an officer of the State Bank authorized in this behalf shall, in all legal proceedings, be admissible in evidence.".
13A. Register of beneficial owners.
The register of beneficial owners maintained by depository under section 11 of the depository Act, 1996 (22 of 1996) shareholders for the purposes of this Act.
15. Trusts not to be entered on the register
of share holders
No notice of any trust, express, implied or constructive, shall
be entered on the register of shareholders or be receivable by the State Bank.]
17[Provided that nothing in this section shall apply
to a depository in respect of shares held by it as a registered owner on behalf
of the beneficial owners.
Explanation.- For the purposes of section 13, section 13A and this section, the expressions "beneficial owner", "depository" and "registered owner". shall have the meanings respectively assigned to them in clauses (a), (e) and (j) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996).]
16. Offices, branches and agencies
(1) Unless otherwise provided by the Central Government, by
notification in the Official Gazette, the central office of the State Bank
shall be at Bombay.
(2) The State Bank shall have local head offices in Bombay,
Calcutta and Madras and at such other places in India as the Central
Government, in consultation with the Central Board, may determine.
(3) The State Bank shall maintains as its branches or agencies
all branches or agencies of the Imperial Bank which were in existence 18[in
India] immediately before the appointed day, and no such branch may be closed
without the previous approval of the Reserve Bank.
(4) The State Bank may establish branches or agencies at any
place in or outside India in addition to the branches or agencies referred or
agencies referred to in sub-section (3).
(5) Notwithstanding anything contained in sub-section (4), the State Bank shall establish not less than four hundred branches in addition to the branches referred to in sub-section (3) within five years of the appointed day or such extended period as the Central Government may specify in this behalf, and the places where such additional branches are to be established shall be determined in accordance with any such programme as may be drawn up by the Central Government from time to time in consultation with the Reserve Bank and the State Bank, and no branch so established shall be closed without the previous approval of the Reserve Bank
17. Management
(1) The general superintendence and direction of the affairs and
business of the State Bank shall be entrusted to the Central Board which may
exercise all powers and do all such acts and things as may be exercised or done
by the State Bank and are not by this Act expressly directed or required to be
done by the State Bank in general meeting.
(2) The Central Board in discharging its functions shall act on business principles regard being had to public interest.
18. Central Board to be guided by directions of Central
Government
(1) In the discharge of its functions 4[including
those relating to a subsidiary Bank], the State Bank shall be guided by such
directions in matters of policy involving public interest as the Central
Government may, in consultation with the Governor of the Reserve Bank and the
Chairman of the State Bank, give to it.
(2) All directions given by the Central Government shall be given through the Reserve Bank and, if any question arises whether a direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
19. Composition of the Central Board
19[***] The Central Board shall consist of the following,
namely: -
(a) a chairman and a vice-chairman to be appointed by the
Central Government in consultation with the Reserve Bank 20[***];
(b) not more than two managing directors, if any, appointed 21[by
the Central Government in consultation with the Reserve Bank];
22[(bb) the presidents of the Local Boards appointed under
sub-section (5) of section 21, ex officio;
(c) if the total amount of the holdings of the shareholders,
other than the Reserve Bank, whose names are on the 23[register of
shareholders] three months before the date fixed for election of directors is-
(i) not more than ten per cent of the total
issued capital, two directors,
(ii) more than ten per cent. but not more than
twenty-five per cent of such capital, three directors, and
(iii) more than twenty-five per cent. of such
capital, four directors, to be elected in the prescribed manner by such
shareholders;
24[(ca) one director, from among the employees of the State
Bank, who are workmen, to be appointed by the Central Government in the manner
provided in the rules made under this Act;]
(cb) one director, from among such of the employees of the State
Bank, as are not workmen, to be appointed by the Central Government in the
manner provided in the rules made under this Act;]
(d) not less than two and not more than six directors to be
nominated by the Central Government in consultation with the Reserve Bank, from
among persons having special knowledge of the working of co-operative
institutions and of rural economy or experience in commerce, industry, Banking
or financial;]
(e) one director to be nominated by the Central Government; and
(f) one director to be nominated by the Reserve Bank.
20. Terms of office of chairman, managing director, etc.
(1) 26[The chairman, vice-chairman an each managing
director] shall hold office for such term, not exceeding five years, as the
Central Government may fix when appointing them and shall be eligible for
reappointment.
27[(1A) Notwithstanding anything contained in sub-section
(1), the Central Government shall have the right to terminate the term of
office of the chairman, vice-chairman or a managing director, as the case may
be, at any time before the expiry of the term fixed under sub-section (1) by
giving him notice of not less than three months in writing or three months
salary and allowances in lieu of such notice; and the chairman, vice-chairman
or a managing director, as the case may be, shall also have the right to
relinquish his office at any time before the expiry of the term so fixed by
giving to the Central Government notice of not less than three months in
writing.]
28[***]
(3) Subject to the provisions contained in section 19 29[and
in sub-section (5)], a director elected under clause (c) 30[***] of 31[section
19 or nominated under clause (d) of that sub-section] shall hold office for 31[four
years] and thereafter until his successor shall have been duly elected 32[or
nominated], and shall be eligible for re-election 32[or
re-nomination] :
33[Provided that no such director shall hold office
continuously for a period exceeding six years.]
34[(3A) 35[A director] appointed under clause
(ca) or clause (cb) of sub-section (1) 36[of section 19 or nominated
under clause (d) of that section] shall hold office for such term, not
exceeding three years, as the Central Government may specify and thereafter
until his successor shall have been 37[duly appointed], and shall be
eligible 37[for re-appointment]:]
36[Provided that no such director shall hold office
continuously for a period exceeding six years.]
38[(4) A director nominated under clause (e) or clause (f)
of sub-section (f) 39[of section 19 or nominated under clause (d) or
clause (e) or clause (f) of that section] shall hold office during the pleasure
of the authority nominating him.]
40[(5) The following provisions shall have effect in
relation to directors nominated under clause (d) of sub-section (1) of section
19, to the Central Board reconstituted for the first time on or after the
commencement of the State Bank of India (Amendment) Act, 1964, namely:-
(i) if the number of such directors holding
office at the end of one year from the date of such reconstitution is not more
than three, then one of such directors, and if such number exceeds three, then
two of them, shall retire at the end of the said year;
(ii) if the number of such directors holding
office at the end of two years from the date of the such reconstitution is not
more than three, then one of such directors, and if such number is four, then
two of them, shall retire at the end of the said two years;
(iii) if the number of such directors holding
office at the end of three years from the date of such reconstitution is not
more than two then one of such directors shall retire at the end of the said
three years;
(iv) any such director holding office for a
period of four years from the date of such reconstitution shall retire at the
end of such period;
(v) the director or directors to retire at the end of each year under clauses (I), (ii) and (iii) shall be determined by lot.]
21. Local Boards
(1) There shall be constituted at each place where the State Bank
has a local head office, a Local Board which shall consist of the following
members, namely:-
(a) the chairman, ex officio.
42[(b) all such directors elected or
nominated to the Central Board under clause (c) or clause (d) of section 19 as
are ordinarily resident in the area falling within the jurisdiction of the
local head office;]
(c) six members to be nominated by the Central
Government in consultation with the Reserve Bank;
(d) 43[***]
(e) 44[the chief general manager]
of the local head office, appointed by the State Bank, ex officio.
45[(2) Where as the result of the establishment of any local
head office (hereinafter referred to as the new local head office) for any area
which is already falling within the jurisdiction of another local head office
(hereinafter referred to as the existing local head office) a Local Board
(hereinafter referred to as the new Local Board) is constituted for the new
local head office, any person who is, at the time of such constitution, holding
office as a member of a Local Board (hereinafter referred to as the existing
Local Board) or an existing local head office under clause (c) of sub-section
(1) and is ordinarily resident in the area falling within the
jurisdiction of the new local head office, shall cease to hold office as member
of the existing Local Board and shall become a member of the existing Local
Board and shall become a member of the new Local Board and shall on becoming
such member be deemed to have been nominated to the new Local Board and shall hold
office as such member for the unexpired portion of his term of office as a
member of the existing Local Board.]
(3) Any vacancy caused in the existing Local Board as a result
of any member thereof becoming a member of the new Local Board under sub-section
(2) shall be deemed to be a casual vacancy and be filled in accordance
with the provisions of section 25.
(4) 46[***]
the Reserve Bank shall nominate a member in place of the member
to be elected under that clause and such nominated member shall be deemed to
have been elected under the said clause.
47[(5) The Governor of the Reserve Bank shall, in
consultation with the chairman appoint-
(a) a member of a Local Board nominated under
clause (c) of sub-section (1) to be the president thereof; and
(b) a member of a Local Board holding office under clause (b) of nominated under clause (c) of that sub-section to be the vice-president thereof];
21A. Term of office of office of members of
Local Board.
(1) Subject to the provisions contained in this section
and in sub-section (2) of section 21, a member of a Local Boar nominated under
clause (c) of sub-section (1) of section 21, or elected under clause (d) of
that sub-section shall hold office for two years and thereafter until his
successor has been duly nominated or elected and shall be eligible for
re-election, as the case may be :
Provided that out of the six members nominated under
clause (c) of sub-section (1) of section 21, on the constitution of a new Local
Board of the reconstitution or an existing Local Board for the first time on or
after the commencement of the State Bank of India (Amendment) Act, 1964, three
shall retire at the end of one year and three shall retire at the end of two
years from the date of the constitution or, as the case may be, reconstitution
of that Local Board, and the members to retire at the end of the first year
shall be determined by lot.]
(2) 50[***]
(3) A director of the Central Board becoming a member of a Local
Board by virtue of the provisions of clause (b) of sub-section 21 shall cease
to hold office as such member on his ceasing to be a director or on his ceasing
to be ordinarily resident in the relevant area.
(4) The president and the vice-president of a Local Board shall
each hold office for two years or the remaining period of his office as a
member of he Local Board, whichever is shorter, and shall be eligible for
re-appointment so long as he is a member of the Local Board.
51[(5) A member of a Local Board nominated under clause (c) of sub-section (1) of section 21 shall hold office during the pleasure of the Central Government.]
21B. Powers of Local Board
Save as may otherwise be prescribed and subject to any general
or special directions which the Central Board may give from time to time, a
Local Board shall in respect of the area 52[falling within the
jurisdiction] of the Local head office for which the Board has been
constituted, exercise all powers and perform all functions and duties of the
State Bank 53[in relation to the business of Banking and the forms
of business set out in clauses (a), (b), (e), (f), (g), (h), (I), (k) and (l)
of sub-section (1) of section 6 of the Banking Regulation Act, 1949, and such
other forms of business referred to in sub-section (1) or the said section 6,
as may be approved by the Central Board in this behalf and shall also] exercise
such other powers and perform such other functions and duties as may be
conferred on or assigned to it by the Central Board :
54[Provided that a Local Board shall transact the businesses of borrowing of money and the acquiring, holding, issuing on commission, under-writing and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities and investments, only if the Central Board approves any of such businesses in this behalf and confers or assigns any of such businesses to the Local Board.]
21C. Local Committees
(1) A local Committee may be constituted by the Central Board
for any area and shall consist of such number of members as may be prescribed.
(2) The chairman shall be an ex officio member of every such
Local committee.
(3) A Local Committee shall exercise such powers and perform such functions and duties as the Central Board may confer on or assign to it.]
22. Disqualifications for directorship of Central Board or
membership of Local Boards or Committees
(1) No person shall be qualified to be a director of the Central
Board or a member of a Local Board or of a Local Committee if-
(a) he holds the office of director,
provisional director, promoter, agent or manage of any Banking company already
established or advertised as about to be established; or
(b) he is a salaried office of Government not
specially authorized by the Central Government to be a director or member; or
(c) he has been removed or dismissed from the
service of Government on a charge of corruption or bribery; or
(d) he holds any office of profit under the
State Bank other than the office of chairman, vice-chairman, 55[managing
director, 56[chief general manager], or legal or technical adviser];
or
57[(da) in the case of a director
appointed under clause (ca) or clause (cb) 58[***] of section 19,-
(i) he is not serving in the State Bank or has
not been serving in it for a continuous period of at least five years; and
(ii) he is of such age that there is a
likelihood of his attaining the age of superannuation during his term of office
as a director; or]
(e) he is or at any time has been adjudicated
an insolvent or has suspended payment of his debts or has compounded with his
creditors; or]
(f) he is declared lunatic or becomes of
unsound mind; or
(g) he is or has been convicted of any offence
involving moral turpitude; or
59[(h) in the case of an elected
director, he is not registered as a holder in his own right of unencumbered
shares in the State Bank of a nominal value of at least five thousand rupees:
Provided that in the case of director appointed under
clause (ca) or clause (cb) of section 19, the disqualification mentioned in
clause (d) shall not operate];
Provided further that [in the case of a member of Local
Board nominated by the Reserve Bank under sub-section (4) of section 21, the
disqualification mentioned in clause (h) shall not operate for a period of six
months from his becoming such member.
(2) No two persons who are partners of the same firm or are
directors of the same private company or one of whom is an agent of the other
or holds a power of attorney from a firm of which the other is a partner may be
directors of the Central Board or members of the same Local Board or Local
Committee at the same time.
(3) The appointment, nomination or election as director or
member of a Local Board or of a Local Committee of any person who is a member
of Parliament or the Legislature of any State shall be void unless within two
months of the date of his appointment, nomination or election he ceases to be a
member of Parliament or the State Legislature, and if any director or member of
a Local Board or of a Local Committee is elected or nominated as a member of
Parliament or any State Legislature, he shall cease to be a director or member
of the Local Board or of the local Committee as from the date of such election
or nomination, as the case may be.
60[(4) In this section,-
(a) "Banking company" has the same
meaning as in the Banking Regulation Act, 1949;
(b) "manager" means the chief
executive officer, by whatever name called, of a Banking company;
(c) "private company" has the same meaning as in the Companies Act, 1656.]1
23. Vacation of office of directors, etc
If a director of the Central Board or a member of a local Board
or a Local Committee-
(a) becomes subject to any of the disqualifications mentioned in
section 22; or
(b) resigns his office by giving notice in writing under his
hand, in the case of 26[chairman, vice-chairman and a managing
director], to the Central Government and in the case of other directors or
members of Local Boards or Committees, to the Central Board, and the
resignation is accepted; or
(c) is absent without leave of the Central Board, the Local
Board or the Local Committee of which he is a director or member, as the case
may be, for more than three consecutive meetings thereof ;
his seat shall thereupon become vacant.
61[***]
24. Removal from office of directors, etc
(1) The Central Government may, after consulting the Reserve
Bank, remove from office 26[the chairman, vice chairman or a
managing director.]
28[***]
(3) The Central Government, after consulting the Reserve Bank,
may remove from office any director 62[appointed under clause (ca)
or clause (cb) or nominated under clause (d)] 63[of section 19] 64[or
any member of a Local Board nominated under clause (c) of sub-section (1) of
section 21] and 65[appoint or nominate, as the case may be,] in his
stead another person to fill the vacancy.
(4) The shareholders, other than the Reserve Bank, may, by a
resolution passed by majority of the votes of such shareholders holding in the
aggregate not less than one-half of the share capital held by all such
shareholders, remove any director elected under clause (c) 58[***]
of section 19 and elect in his stead another person to fill the vacancy.
66[***]
(6) No person shall be removed from his office under sub-section (1) 67[***] or sub-section (3) unless he has been given an opportunity of showing cause against his removal.
25. Casual vacancies
68[(1) If the chairman vice-chairman or a managing director
is rendered incapable of discharging his duties by reason of infirmity or
otherwise or is absent on leave or otherwise circumstances not involving the
vacation of his office, the Central Government may, in consultation with the
Reserve Bank, appoint another person to officiate in the vacancy.]
69[(2) Where any vacancy occurs before the expiry of the
term of office of a director, other than the chairman, vice-chairman or a
managing director or 70[[a director appointed under clause (ca) or 71[clause
(cb) of section 19 or of a member of a Local Board other than the chief general
manager, the vacancy shall be filled-
(a) in the case of an elected director, by
election; and
(b) in the case of director nominated under
clause (d) of section 19 or a member of a Local Board, nominated under clause
(c) of sub-section (1) of section 21, by
nomination in consultation with the Reserve Bank:
Provided that where the duration of the vacancy in the
office of an elected director is likely to be less than six months, the vacancy
may be filled by the remaining directors] by co-opting a person not
disqualified under section 22.]]
(3) A person elected or nominated or co-opted, as the case may
be, 72[under sub-section (2)] shall hold office for the unexpired
portion of the term of his predecessor.
73[(4) Where any vacancy occurs before the expiry of the term of office of a director appointed under clause (ca) or clause(cb) 58[***] of section19, such vacancy shall be filled in accordance with the said clause (ca) or, as the case may be, clause (cb), and the director so appointed shall hold office for the period specified under sub-section (3A) of section 20.]
26. Remuneration of directors
(1) Without prejudice to the provision contained in section 27,
28 and 29, the directors shall be paid such fees and allowances for attending
the meeting of the Central Board or of any of its Committees and for attending
to any other work of the State Bank as may be prescribed.
(2) Notwithstanding anything contained in sub-section (1), no fees shall be payable to a managing director or any other director who is an officer of the Central Government or the Reserve Bank.
27. Powers and remuneration of chairman
(1) The chairman shall preside at all meetings of the Central
Board and subject to such general or special directions as the Central Board
may give, exercise all such powers and do all such acts and things as may be
exercised or done by the State Bank.
(2) The chairman shall receive such salary, fees, allowances and
perquisites 74[as may be determined by the Central Government.]
75[***]
28. Powers and remuneration of vice-chairman
(1) The vice-chairman shall preside at the meetings of the
Central Board in the absence of the chairman and, subject to the general
control of the chairman, exercise such powers and perform such duties as may be
entrusted or delegated to him by the Central Board.
(2) The vice-chairman shall receive such salary, fees,
allowances and perquisites 74[as may be determined by the Central
Government.]
75[***]
(3) The fact that the vice-chairman exercises any of the powers and does any act or thing for or on behalf of the State Bank shall be conclusive proof of his authority to do so.
29. Powers and remuneration of managing director
(1) A managing director-
(a) shall be a whole-time officer of the State
Bank; and
(b) subject to the general control of the chairman
and the vice-chairman, shall exercise such powers and perform such duties as
may be entrusted or delegated to him by the Central Board.
(2) A managing director shall receive such salary and allowances
74[as may be determined by the Central Government.]
75[***]
30. Executive and other committees of the Central Board
The Central Board may constitute such and so many committees, including an executive committee, of itself as it deems fit to exercise such powers and perform such duties as may, subject to such conditions, if any, as the Central Board may impose, be delegated to them by the Central Board.
31. Meetings of the Central Board
(1) The Central Board shall meet at such time and place and
shall observe such rules of procedure in regard to the transaction of business
at its meetings as may be prescribed.
(2) All question at the meeting shall be decided by a majority
of the votes or the directors present and in the case of equality of votes, the
chairman or, in his absence, the vice-chairman shall have a second or casting
vote.
(3) A director who is directly or indirectly concerned or
interested in any contract, loan, arrangement or proposal entered into or
proposed to be entered into by or on behalf of the State Bank shall at the
earliest possible opportunity disclose the nature of his interest to the
Central Board and shall no be present at any meeting of the Central Board when
any such contract, loan, arrangement or proposal is discussed unless his
presence is required by the other directors for the purpose of eliciting
information, and no director so required to be present shall vote on any such
contract, loan, arrangement or proposal :
76[Provided that nothing contained in this
sub-section shall apply to such direct by reason only of his being-
(i) a shareholder (other than a director) holding not more than
two per cent. of the paid-up capital in any public company as defined in the
Companies Act, 1956, or any corporation established by or under any law for the
time being in force in India or any co-operative society with which or to which
the State Bank has entered into or made, or proposes to enter into or make, a
contract, loan, arrangement or proposal; or
(ii) a director ex-officio of the State Bank or a director of a
subsidiary Bank;] 77[or]
77[(iii) an officer or other employee of the State Bank, if
he is a director appointed under clause (ca) or clause (cb) 58[***]
of section 19.]
(4) If for any reason neither the chairman not the vice-chairman is able to be present at a meeting of the Central Board, any director 78[***], authorized by the chairman in writing in this behalf, and in the absence of such authorization, 79[any director] elected by the directors present from amongst themselves, shall preside at the meeting and, in the event of equality of votes, shall have a second or casting vote.
31A. Meetings of the Local Boards
(1) A local Board shall meet at such time and place and shall
observe such rules procedure in regard to the transaction of business at its
meetings as may be prescribed.
(2) All questions at the meeting shall be decided by a majority
of the votes of the members present and in the case of equality of votes, the
person presiding at the meeting shall have a second or casting vote.
(3) A member who is directly or indirectly concerned or
interested in any contract, loan, arrangement or proposal entered into or
proposed to be entered into by or on behalf of the State Bank, shall, at the
earliest possible opportunity, disclose the nature of his interest to the Local
Board and shall not be present at any meeting of the Local Board when any such
contract, loan, arrangement or proposal is discussed unless his presence is
required by the other members for the purpose of eliciting information, and no
member so required to be present shall vote on any such contract, loan,
arrangement or proposal :
Provided that nothing contained in this sub-section
shall apply to such member by reason only of his being-
(i) a shareholder (other than a director) holding not more than two
percent. of the paid-up capital in any public company as defined in the
Companies Act, 1956, or any corporation established by or under any law for the
time being in force in India or any co-operative society, with which or to
which the State Bank has entered into or made or proposes to enter into or
make, a contract, loan, arrangement or proposal, or
(ii) a director ex-officio of the State Bank or a director of a
subsidiary Bank.
(4) If for any reason neither the president not the
vice-president is able to be present at a meeting of the Local Board, any
member, 81[other than the chief general manager], elected by the
members present from amongst themselves, shall preside at the meeting.
(5) Notwithstanding anything contained in this section, the chairman shall preside at any meeting of a Local Board at which he is present and in the absence of the chairman, the vide-chairman, if he is a member of the Local Board, shall whenever he is present, preside at such meeting.]
32. State Bank to act as agent of the Reserve Bank
(1) The State Bank shall, if so required by the Reserve Bank act
as a agent of the Reserve Bank at all places in India where it has a branch 82[or
where there is a branch of a subsidiary Bank], and where there is no branch of
the Banking department of the Reserve Bank, for-
(a) paying, receiving, collecting and
remitting money, bullion and securities on behalf of any Government in India;
and
(b) undertaking and transacting any other
business which the Reserve Bank may from time to time entrust to it.
(2) The terms and conditions on which any such agency business
shall be carried on by the State Bank on behalf on the Reserve Bank shall be
such as may be agreed upon.
(3) If no agreement can be reached on any matter referred to in
sub-section (2) or if a dispute arises between the State Bank and the Reserve
Bank as to the interpretation of any agreement between them, the matter shall
be referred to the Central Government and the decision of the Central Government
thereon shall be final.
(4) The State Bank may transact any business of perform any functions entrusted to it under sub-section (1) 83[by itself or through a subsidiary Bank] or through an agent approved by the Reserve Bank.
33. Other business which the State Bank may
transact
Subject to the other provisions contained in this Act, the State
Bank may carry on and transact the business of Banking as defined in clause (b)
of section 5 of the Banking Regulation Act, 1949, and may engage in one or more
of the other forms of business specified in sub-section (1) of section 6 of
that Act.]
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