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Section 57 - Liquidation of the Bank, Section 58 - Power of the Central Board to make regulations : RBI Act 1934

 

 

How to do Liquidation of the Bank? What is the Power of the Central Board to make regulations? Section 57 and 58 of Reserve Bank of India Act 1934

Section 57 of RBI Act 1934 : "Liquidation of the Bank"

(1) Nothing in the Companies Act, 1956 (1 of 1956)], shall apply to the Bank and the Bank shall not be placed in liquidation save by order of the Central Government and in such manner as it may direct.

Section 58 of RBI Act 1934: "Power of the Central Board to make regulations"

(1) The Central Board may, with the previous sanction of the Central Government 2[by notification in the Official Gazette,] make regulations consistent with this Act to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing provision, such regulations may provide for all or any of the following matters, namely :-

(a) to (e)

(f) the manner in which the business of the Central Board shall be transacted, and the procedure to be followed at meetings thereof ;

(g) the conduct of business of Local Boards and the delegation to such Boards of powers and functions ;

(h) the delegation of powers and functions of the Central Board to Deputy Governors, Directors or Officers of the Bank ;

(i) the formation of Committees of the Central Board, the delegation of powers and functions of the Central Board to such Committees, and the conduct of business in such Committees ;

(j) the constitution and management of staff and superannuation funds for the officers and servants of the Bank ;

(k) the manner and form in which contracts binding on the Bank may be executed ;

 


(l) the provision of an official seal of the Bank and the manner and effect of its use ;

(m) the manner and form in which the balance-sheet of the Bank shall be drawn up, and in which the accounts shall be maintained ;

(n) the remuneration of Directors of the Bank ;

(o) the relations of the scheduled banks with the Bank and the returns to be submitted by the scheduled banks to the Bank ;

(p) the regulation of clearing-houses for banks (including post office savings banks) ;

(pp) the regulation of fund transfer through electronic means between the banks or between the banks and other financial institutions referred to in clause (c) of section 45-I, including the laying down of the conditions subject to which banks and other financial institutions shall participate in such fund transfers, the manner of such fund transfers and the rights and obligations of the participants in such fund transfers;

(q) the circumstances in which, and the conditions and limitations subject to which, the value of any lost, stolen, mutilated or imperfect currency note of the Government of India or bank note may be refunded ; and

(r) generally, for the efficient conduct of the business of the Bank.

(3) Any regulation made under this section shall have effect from such earlier or later date as may be specified in the regulation.

(4) Every regulation shall, as soon as may be after it is made by the Central Board, be forwarded to the Central Government and that Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation, or both Houses agree that the regulation should not be made, the regulation shall, thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.

(5) Copies of all regulations made under this section shall be available to the public on payment.

 

RBI ACT 1934

Section 51 - Appointment of special auditors by Government

Section 52 - Powers and duties of auditors

Section 53 - Returns

Section 54 - Rural Credit and Development

 

 

Section 54A - Delegation of powers

Section 54AA - Power of bank to depute its employees to other institutions

Section 57 - Liquidation of the Bank

Section 58 - Power of the Central Board to make regulations

Section 58A - Protection of action taken in good faith

Section 58B - Penalties

 

 

Section Section 58C -Offences by companies

Section 58D - Application of section 58B barred

Section 58E - Cognizance of offences

Section 58F - Application of fine

 

 

Section 58G - Power of Bank to impose fine

First Schedule

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