DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION ACT, 1961
(1) This Act may be called1[The Deposit Insurance and Credit Guarantee Corporation] Act, 1961.
(2) It extend to the whole of India.
(3) It shall come into force on such date2as the Central Government may, by notification in the Official Gazette, appoint.
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1. Substituted for words "the Deposit Insurance Corporation" by Act 21 of 1978, Section. 8(2) (w.e.f.15-7-78).
2. The Act came into force on 1-1-1962, sec G.S.R. 18, dated 28-12-1961, Gazette of India, 1962, Pt. II, Section. 3(i) p.7.
In this Act, unless the context otherwise requires,--
(a)"banking" means the accepting for the purpose of leading or investment of deposits of money from the public repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise;
(b)"banking company" means any company which transacts the business of banking in India and includes the State Bank 1 [and a subsidiary bank] but does not include the 2 [Tamil Nadu Industrial Investment Corporation Limited];
Explanation:--Any company which is engaged in the manufactured of foods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of the clause;
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(1) The Central Government shall, by notification1in the Official Gazette, establish a Corporation by the name of the Deposit Insurance Corporation which shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of property and to contract, and may, by the said name, sue or be sued.
2[1A) Any reference in this Act to the Deposit Insurance Corporation shall, on and from the date on which Chapter II of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978, comes into force, be construed as a reference to the Deposit Insurance and Credit Guarantee Corporation.]
(2) The head office of the Corporation shall be at Bombay, but it may, with the previous sanction of the Reserve Bank, establish branches or agencies in any oth
1[4. Capital Of Corporation .--
(1) The authorised capital of the Corporation shall be one crore of rupees but the Central Government may, in consultation with the Reserve Bank, increase such capital from time to time, so however, that the total authorised capital shall not exceed2[fifty crores of rupees].
(2) The3[issued capital] for the time being of the Corporation shall be fully paid up and shall stand allotted to the Reserve Bank].
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1. Substituted for the original S. 4 by Act 56 of 1968, Section. 4.
2. Substituted for words "fifteen cores of rupees" by Banking Laws (Amendment) Act (1 of 1984), Section. 57 (w.e.f. 15-2-840.
3. Su
The general superintendence, direction and the management of the affairs and business of the Corporation shall vest in a Board of directors which may exercise all powers and do all acts and things which may be exercised or done by the Corporation.
(1) The Board of directors of the Corporation shall consist of the following, namely:--
1[(a) the Governor, for the time being, of the Reserve Bank or, if the Reserve Bank, in pursuance of the decision of the Committee of the Central Board of Directors of that Bank, nominates any Deputy Governor for the purpose, the Deputy Governor so nominated, who shall be the Chairman of the Board;]
(b)2[a Deputy Governor or any other officer] of the Reserve Bank nominated by that bank;
(c) an officer of the Central Government nominated by that Government;
3[(d) five directors nominated by the Central Government in consultation with the Reserve Bank, three of whom shall be persons having special knowledge of commercial banking, insurance, commerce, industry or fi
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(2) The Chairman or if for any reason he is unable to attend the director nominated under clause (b) of sub-section (1) of section 6 shall preside at meetings of the Board and, in the event of equality of votes, shall have a second or casting vote.
prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed or may be delegated to it by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for the purpose of discharging such of its functions as may be prescribed or may be delegated to them by the Board.
(4) A committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be prescribed.
(5) The members of a committee (other than directors of the Board) shall be paid by the Corporation such fees and allowan
The directors of the Board shall be paid by the Corporation such fees and allowances for attending the meetings of the Board or of any its committees and for attending to any other work of the Corporation as may be prescribed:
Provided that no fees shall be payable to the Chairman or to the director nominated under clause (b) of clause (c) of sub-section (1) of section 6.
The Corporation shall register every existing banking company as an insured bank before the expiry of thirty days from the date of commencement of this Act.
The Corporation shall register every new banking company as an insured bank as soon as may be after it is granted a licence under section 22 of the1[Banking Regulation Act, 1949],2[*****]
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1. Substituted by Act 56 of 1968, Section. 2.
2. Words "or, as the case may be, after it is notified under Section 51 of the said Act omitted by Banking Laws (Amendment) Act (1 of 1984), Section. 59 (w.e.f. 15-2-84)
1[11A. Registration Of Regional Rural Banks.--
The Corporation shall register every Regional Rural Bank, before the expiry of thirty days from the date of its establishment.]
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1. Inserted by Act 21 of 1976, Section. 33(5)(b) (w.r.e.f 26-9-75).
Every banking company being a defunct banking company at the commencement of this Act, by reason of sub-clause (vii) or sub-clause (viii) of clause (f) of section 2 shall, unless it becomes a defunct banking company 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 moratorium or, as the case may be, the rejection of the application for its winding up.
1[(1)] The registration of a banking company as an insured bank shall stand cancelled on the occurrence of any of the following events, namely:--
(a) if it has been prohibited from receiving 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 of2[the Banking Regulation Act, 1949] or that a licence under that section cannot be granted to it; or
(c) if it has been ordered 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 cased to be a banking company within the meaning of sub-section (2) of section 36A of2[the Banking Regulation Act, 1949] or has
1[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.
(2) Subject as aforesaid--
(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 Banki
Every co-operative bank being a defunct co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968, by reason of sub-clause (vii) or Sub-cl. (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 as 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, 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.
The registration of a co-operative bank as an insured bank shall stand cancelled on the occurrence of any of the following event, 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, 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; or
(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; 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, 1934; or
(d) that the co-o
(1) Where the Corporation has registered any 1 [2 [banking company, Regional Rural Bank] or co-operative bank] as an insured bank, it shall, within thirty days of its registration, send an intimation in writing to the 1 [2 banking company, Regional Rural Bank] or co-operative bank] that it has been registered as an insured bank.
(2) Every such intimation shall indicate the manner in which the premium payable by the bank under section 15 may be calculated.
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1. Substituted for 'banking company' by Act 56 of 1968, Section. 8
2. Substituted for 'banking company' by Act 21 of 1976, Section. 33(5) (W.r.e.f. 26-9-1975).
(1) Every insured bank shall, so long as it continues to be registered, be liable to pay a premium to the Corporation on its deposits at such rate or rates as may1[with the previous approval of the Reserve Bank, be notified by the Corporation, from time to time, to the insured banks and different rates may be notified for different categories of insured banks.]
Provided that the premium payable by any insured bank for any period shall not exceed fifteen naye paise peer annum for every hundred rupees of the total amount of the deposits in that bank at the end of that period or, where its registration has been cancelled during that period, on the date of its cancellation:
Provided further that where the registration of any insured bank is cancelled under section 132[or under section 13C,] such cancellation shall not affect the liability of
1[15A. Cancellation Of Registration Of An Insured Bank For Non-Payment Of Premium.--
(1) The Corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive periods:
Provided that no such registration shall be cancelled except after giving to the concerned bank one month's notice in writing calling upon that bank to pay the amount in default.
(2) The Corporation may restore the registration of a bank whose registration has been cancelled under sub-section (1), if the concerned bank requests the Corporation to restore the registration and pays all the amounts due by way of premia from the date of default till the date of payment together with interest due there on the date of payment:
Provided that the
(1) Where an order for the winding up or liquidation of an insured bank is made, the Corporation shall, subject to the other provisions of this Act, be liable to pay to every depositor of that bank in accordance with the provisions of section 17 an amount equal to the amount due to him in respect of his deposit in that bank at the time when such order is made:
Provided that the liability of the corporation in respect of an insured bank referred to in clause (a) or clause (b)1[of sub-section (1) of section 13]2[or clause (a) or clause (b) of section 13C] shall be limited to the deposits as on the date of the cancellation of the registration.
Provided further that the total amount payable by the Corporation to any one depositer in respect of his deposit in that bank in the same capacity and in the same right shall not exceed one thousand a
(1) Where an insured bank has been ordered to be wound up or to be taken into liquidation and a liquidator, by whatever name called, has been appointed in respect thereof, the liquidator shall, with the lest possible delay and in any case not later than three months from the date of his assuming charge of office, furnish to the Corporation a list in such form and manner as may be specified by the Corporation showing separately the deposits in respect of each depositor and the amounts of set off referred to in sub-section (3) of section 16.
(2) Before the expiry of two months from the receipt of such list from the liquidator the Corporation shall pay1[the amount payable under section 16 in respect of the deposit of each depositor--
(a) directly to the depositor, or
(b) to the depositer through
(1) Where a scheme of amalgamation of any insured bank with any other banking institution (hereinafter referred to as the transferee bank) or a scheme of compromise or arrangement or of reconstruction in respect of such bank has been sanctioned and the Corporation has become liable to pay to depositors of the insured bank under sub-section (2) of section 16, the transferee bank where the scheme is of amalgamation and the insured bank in any other case shall, with the least possible delay and in any case not later than three months from the date on which such scheme takes effect, furnish to the Corporation a list in such form and manner as may be specified by the Corporation and certified to be correct by the chief executive officer of the transferee bank or as the case may be, of the insured bank showing separately deposits in respect of each depositor and the amounts of set off referred to in sub-section (3) of section 16 an
Any amount paid by the Corporation under section 17 or section 18 in respect of a deposit shall to the extent of the amount paid, discharge the Corporation from its liability in respect of the deposit.
Where any depositor to whom any payment is to be made in accordance with the provisions of section 17 or section 18 cannot be found or is not readily traceable adequate provision shall be made by the Corporation for such payment and the amount of such provision shall be accounted for separately in its books.
(1) Where any amount has been paid under section 17 or section 18 or any provision therefor has been made under section 20, the Corporation shall furnish to the liquidator or the insured bank or to the transferee bank, as the case may be, information as regards the amount so paid or provided for.
(2) On receipt of the information under sub-section (1) notwithstanding anything to the contrary contained in any other law for the time being in force.--
(a) the liquidator shall, within such time and in such manner as may be prescribed, repay to the Corporation out of the amount, if any, payable by him in respect of any deposit such sum or sums as make up the amount paid or provided for by the Corporation in respect of that deposit;
(b) the insured bank or as the case may be, the transferee bank sha
(1) The Corporation may guarantee credit facilities given by any credit institution and may also indemnify credit institutions in respect of credit facilities granted by them.
(2) The Board may, for the purpose of guaranteeing credit facilities granted by credit institutions or indemnifying credit institutions, frame one or more schemes in such form and in such manner and containing such provisions as the Board may, from time to time, deem fit.
(3) The Board may levy, on every credit institution availing itself of the guarantees or indemnities provided by the Corporation, a fee at such rate or rates as may, with the previous approval of the Reserve Bank, be notified by the Corporation to the credit institution from time to time and different rates may be notified for different categories of credit institutions, for different types of cre
The Corporation may act as agent for the Central Government,--
(i) in guaranteeing the due performance by any small-scale industrial concern or other institution or undertaking or categories of institutions or undertakings approved by the Central Government in this behalf, of its, or their, obligations to any credit institution in respect of loans and advances made or other credit facilities provided to it, or them, by such credit institution, and
(ii) in making, as such agent, of payments in connection with such guarantee.]
1[22. Funds Of Corporation .--
The Corporation shall maintain three funds to be called respectively the Deposit Insurance Fund, the Credit Guarantee Fund and the General Fund.]
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1. Substituted by Act 21 of 1978, Section. 8(10) (w.e.f. 15-7-78).
(1) To the Deposit Insurance Fund shall be credited--
(a) all amounts received by the Corporation as premium;
(b) all amount received by the Corporation under section 21;
(c) the amount advanced by the Reserve Bank under section 26;
(d) all amounts transferred to that Fund from the General Fund 1 [or the Credit Guarantee Fund] under section 27; and
(e) all income arising from the investments made out of that Fund.
(2) The said Fund shall be applied--
(a) to make payments in respect of insured deposits;
(b) to meet liability in respect of an advance taken under sect
1 [23A. Credit Guarantee Fund.--
(1) To the Credit Guarantee Fund shall be credited,--
(a) all amounts in the Reserve for unexpired Clearance Right maintained by the Credit Guarantee Corporation of India Limited, a company formed and registered under the Companies Act, 1956, and having its registered office at Bombay;
(b) all amounts received by the Corporation as fees for guarantees and indemnities taken over or given by it;
(c) all amounts received by the Corporation in respect of guarantees and indemnities taken over or given by it;
(d) all amounts transferred to that Fund from the Deposit Insurance Fund or the General Fund under section 27; and
(e) all in
All receipts of the Corporation other than those referred to in sub-section (1) of section 231[or in sub-section (1) of section 23A] shall be credited to the General Fund and all payments by the Corporation other than those referred to in sub-section (2)2[of section 23, or as the case may be, sub-section (2) of section 23A] shall be made out of that Fund.
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1. Inserted by Act 21 of 1978, Section. 8(13) (w.e.f. 15-7-98).
2. Substituted for words "of that section", by Act 21 of 1978, Section. 8(13) (w.e.f. 15-7-98).
All moneys belonging to the Deposit Insurance Fund1[or the Credit Guarantee Fund] or the General Fund which may not for the time being be required by the Corporation shall be invested in promissory notes, stock or securities of the Central Government and all moneys shall be deposited with the Reserve Bank.
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1. Inserted by Act 21 of 1978, Section. 8(14) (w.e.f. 15-7-78).
1[25A. Amount In One Fund May Be Transferred To The Other Fund Or May Be Utilised For Other Purposes .--
Notwithstanding anything contained in this Act, the Board may--
(a) transfer any amount from the Deposit Insurance Fund to the Credit Guarantee Fund or from the Credit Guarantee fund to the Deposit Insurance Fund, or
(b) utilise any money standing to the credit of either of the said Funds for such purposes as it may think fit, if it is satisfied that the balance in the Fund, after such transfer or utilization, will be adequate to meet any probable claim on that Fund.]
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1. Inserted by Act 21 of 1978, Sectioin. 8(15) (w.e.f 15-7-78).
(1) The Reserve Bank shall, from time to time, advance to the Corporation on a request by it such sum or sums as may be required by the Corporation for the purposes of the Deposit Insurance Fund1[or the Credit Guarantee Fund]:
Provided that the total amount outstanding at any one time on account of such advances shall not exceed five crores of rupees.
(2) The terms and conditions of any advance under this section shall be such as may be determined by the Reserve Bank with the approval of the Central Government.
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1. Inserted by Act 21 of 1978, Section. 8(16) (w.e.f. 15-7-78).
1[27. Advances From General Fund To The Deposit Insurance Fund Or Credit Guarantee Fund .--
If, at any time, the amount available in the Deposit Insurance Fund or the Credit Guarantee Fund is insufficient to meet the requirements of that Fund, the Corporation may transfer, on such terms and for such period as may be determined by the Board with the approval of the Reserve Bank, from any of the other two Funds, referred to in section 22 such amount as may be necessary to meet the requirements of the Deposit Insurance Fund or the Credit Guarantee Fund, as the case may be.]
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1. Substituted by Act 21 of 1978, Section. 8(17) (w.e.f. 15-7-78).
(1) The balance-sheet and accounts of the Corporation shall be prepared and maintained in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the Corporation to be balanced and closed as on the 31st day of December1[or such other date in each year as the Central Government may, by notification in the Official Gazette, specify"]
2[Provided that with a view to facilitating the transaction from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the Official Gazette, make such provision as it considers necessary or expedient for the balancing and closing of, or for other matters relating to the books or accounts in respect of the concerned years.]
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(1)The affairs of the Corporation shall be audited by an auditor duly qualified toact as an auditor under sub-section (1) of section 226 of the Companies Act,1956, who shall be appointed by the Board with the previous approval of the Reserve Bank and shall receive such remuneration from the Corporation as theReserve Bank may fix.
(2)The auditor shall be supplied with a copy of the annual balance-sheet of theCorporation and it shall be his duty to examine it together with the accountsand vouchers relating thereto and he shall have a list delivered to him of allbooks kept by the Corporation and shall at all reasonable times have to thebooks accounts and other documents of the Corporation and may, in relation tosuch accounts examine any director of the Board of any officer of employee ofthe Corporation.
(3)The auditor shall make a report to
1 [30. Income-Tax And Super-Tax.--
2 [(1) Notwithstanding anything contained in the Indian Income-tax Act, 1961, the Corporation shall not be liable to pay any tax under that Act on any of its incoming profits or gains for the accounting year during which the Corporation is established and for 3 [fourteen accounting years.]
2 [(2) Notwithstanding anything contained in the Income-tax Act, 1961, the Corporation shall not be liable to pay any tax under that Act on any of its income, profits or gains for the period commencing from the first day of January, 1977, and ending with the commencement of the accounting year during which Chapter II of the Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act, 1978, comes into force and for four accounting years following that years.]
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Aftermaking provisions for all its liabilities and for all other matters for whichprovision is necessary or expedient, including any contribution to the staff andsuper annuation funds, the Corporation shall transfer the balance, if any, ofits income in its General Fund to one or more reserve funds to be utilised insuch manner and for such purposes as the Corporation may deem fit.
(1) The Corporation shall furnish to the Reserve Bank within three months from the date on which its accounts are balanced and closed the balance-sheet and accounts together with the auditor's report and a report of the working of the Corporation during the year and copies of the said balance-sheet and accounts and reports shall be furnished by the Corporation to the Central Government.
(2) The Central Government shall cause every auditor's report and report of the working of the Corporation to be laid1[as soon as may be after they received before each House of Parliament2[* * *]].
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1. Substituted for the word "for not less tan thirty days before each House of Parliament as soon as may be after each such report is received by the Central Government" by Banking Laws
(1) The Corporation may appoint such number of officers and employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.
(2) Without prejudice to the provisions of sub-section (1), it shall be lawful for the Corporation to utilise, and for the Reserve Bank to make available, the services of such staff of the Reserve Bank on such terms and conditions as may be agreed upon between the Corporation and the Reserve Bank.
(1) Notwithstanding anything contained in1[the Banking Regulation Act, 1949] or any other law for the time being in force, the Corporation may at any time direct an insured bank2[or a credit institution] to furnish to it, within such time as may be specified by the Corporation, such statements and information relating to the deposits in that bank2[or the credit facilities granted by that credit institution, as the case may be,] as the Corporation may consider necessary or expedient to obtain for the purposes of this Act.
(2) The Corporation may, if it considers it expedient and after consulting the Reserve Bank, publish any information obtained by it under the section in such consolidated form as it may think fit.
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1. Substituted by Act 56 of 1958, Section 2.
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(1) The Corporation shall have free access to all such records of an insured bank1[or a credit institution] perusal where of may appear to the Corporation to the necessary for the discharge of its functions under this Act.
(2) The Corporation may require any insured bank1[or credit institution] to furnish to it copies of any of the records referred to in sub-section (1) and the bank1[or credit institution] shall be bound to comply with the requisition.
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1. Inserted by Act 21 of 1978, Section.8(20) (w.e.f. 15-7-78).
(1) The Corporation may for any of the purposes of this Act request the Reserve Bank to cause an inspection of the books and accounts or an investigation of the affairs of an insured bank1[or a credit institution] to be made and on such request the Reserve Bank shall cause such inspection or investigation to be made by one or more of its officers2[or through such other person or agency as the Reserve Bank may determine.]
(2) The provisions of sub-section (2) of section (3) of section 35 of3[the Banking Regulation Act, 1949] shall apply to an inspection or investigation under sub-section (1) as they apply to an inspection under that section.
(3) When an inspection or investigation has been made under this section, the Reserve Bank shall furnish a copy of its report to the Corporation and4[neither the bank nor the credit institution, as th
The Corporation shall, one a request in writing from the Reserve Bank, furnish to it within such time as may be specified by the Reserve Bank, such statement and information relating to the business or affairs of the Corporation or of an insured bank as the Reserve Bank may consider necessary or expedient.
The Reserve Bank shall, on a request in writing from the Corporation, furnish to it any report or information relating to an insured bank1[or a credit instituting] made or obtained by it under or in pursuance of the Reserve Bank of India Act, 1934 or2[the Banking Regulation Act; 1949.]
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1. Inserted by Act 21 of 1978, Section. 8(22) (w.e.f. 15-7-78).
2. Substituted by Act 56 of 1968, Section. 2.
1[(1) Every director, auditor, officer or other employee of the Corporation or an employee of the Reserve Bank whose services are utilized by the Corporation under sub-section (2) of section 33 shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the First Schedule to this Act.
1[(2) The Corporation shall observe, except as otherwise required by law, the practices and usages customary among the bankers, and, in particular, it shall not divulge any information relating to an insured bank or its customers or a credit institution or its customers except in circumstances in which it is, in accordance with law or practices or usages customary among bankers, necessary or appropriate for the Corporation to divulge such information.
2"(3) Nothing contained in this section shall apply to the cr
(1) Every director of the Board shall be indemnified by the Corporation against all losses and expenses incurred by him in, or in relation to, the discharge of his duties except such as are caused by his own wilful act or default.
(2) A director of the Board shall not be responsible for any other director or for any other officer or other employee of the Corporation, or for any loss or expenses resulting to the Corporation from the insufficiency or deficiency of value of or title to any property or security acquired or taken on behalf of the Corporation or the insolvency or wrongful act of any debtor or any person under obligation to the Corporation or anything done in good faith in the execution of the duties of his office or in relation thereto.
(1) No act or proceedings of the Board or of any committee of the Corporation shall be questioned on the ground merely of the existence of any vacancy or defect in the constitution of the Board or committee.
(2) No act done by any person acting in good faith as a director of the Board shall be deemed to be invalid merely on the ground that he was disqualified to be director or that there was any other defect in his appointment.
No suit other legal proceeding shall lie against the Corporation or the Reserve Bank or any director of the Board or any officer of the Corporation or the Reserve Bank or1[or any other person or agency authorised by the Corporation or the Reserve Bank] to discharge any functions under this Act for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act.
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1. Substituted for the words "or any other person authorised by the Corporation" by Act 56 of 1968, Section 13.
Nothing in the Companies Act, 1956 or the Insurance Act, 1938, shall apply to the Corporation.
(1) The Corporation shall not be placed in liquidation save by order of the Central Government and in such manner as that Government may direct.
(2) On the liquidation of the Corporation--
(a) the outstanding assets of the Corporation in so far as they relate to the Deposit Insurance Fund shall be distributed among the insured banks in such manner and in such proportion as may be determined by the Central Government having regard to the amounts of premium paid by them during any prescribed period or the deposits of the said banks as on the date of liquidation of the Corporation or other relevant circumstances;
(b) the remaining outstanding assets of the Corporation shall be transferred to the Reserve Bank.
In the discharge of its functions under this Act, the Corporation shall be guided by such directions in matters of policy involving public interest as the Central Government may after consulting the Reserve Bank give to it in writing, and if any question arises whether the directions relate to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
Any dispute as to the amount of premium due from any insured bank shall be decided by the Central Government and the decision of that Government shall final.
(1) Whoever in any return, balance-sheet or other document or in any information required or furnished by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.
(2) If any person fails to produce any book, account or other document or to furnish any statement or information which, under the provisions of this Act, it is his duty to produce or furnish, he shall be punishable with a fine which may extend to two thousand rupees in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to one hundred rupees for every day during which the failure continues after conviction for the
(1) Where an offence has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attribut
1[49. Cognizance And Trial Of Offences.--
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, no Court shall take cognizance of any offence punishable under this Act except upon a complain, in writing, made by an officer of the Corporation, generally or specially authorised in writing in this behalf by the Board, and no Court, inferior to the Court of a Metropolitan Magistrate or a Judicial Magistrate of the first class, shall try any such offence.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a Magistrate may, if he sees reason so to d, dispense with the personal attendance of the officer of the Corporation filing the complaint, but the Magistrate may, in his discretion, at any stage of the proceeding, direct the personal attendance of the complainant.]
&
(1) The Board may, with the previous approval of the Reserve Bank,1[by notification in the Official Gazette,] make regulations not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for--
(a) the times and places of the meetings of the Board or of any committee constituted under this Act and the procedure to be followed at such meeting including the quorum necessary for the transaction of business;
(b) the number of directors constituting an Executive Committee, and the functions that such committees shall discharge;
(c) the func
Repealed by the Repealing and Amending Act, 1964 (52 of 1964), Section 2 and Schedule I.
THE FIRST SCHEDULE
(See Section 39)
Declaration of Fidelity and Secrecy
I do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as director, auditor, officer or other employee (as the case may be) of the1eposit Insurance and credit guarantee Corporation] and which properly relate to the office or position filed by me in the said Corporation.
I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the 1[Deposit Insurance and credit guarantee Corporation] or to the affairs of any person having any dealing with the said Corporation; nor will I allow any such person to in
THE SECOND SCHEDULE
(See section 51)
Amendment of Certain Enactments
[Repealed by the Repealing and Amending Act, 1964 (52 of 1964), Section 2 and Schedule.]
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