Section 2 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
Definitions.
In this Act, unless the context otherwise requires,--
- (a)"appointed day" means the 14th day of February, 1970, being the day on which the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970 (Ord. 3 of 1970), was promulgated;
- (b)"banking company" does not include a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956);
- (c)"commencement of this Act" means the 19th day of July, 1969;
- (d)"corresponding new bank", in relation to an existing bank, means the body corporate specified against such bank in column 2 of the First Schedule;
- (e)"Custodian" means the person who becomes, or is appointed, a Custodian under section 7;
- (f)"existing bank" means a banking company specified in column 1 of the First Schedule, being a company the deposits of which, as shown in the return as on the last Friday of June, 1969, furnished to the Reserve Bank under section 27 of the Banking Regulation Act, 1949 (10 of 1949), were not less than rupees fifty crores; 1 [(fa) "prescribed" means prescribed by regulations made under this Act;]
- (g)"Schedule" means a Schedule to this Act;
- (h)words and expressions used herein and not defined but defined in the Banking Regulation Act, 1949 (10 of 1949), have the meanings respectively assigned to them in that Act; 1 [(i) words and expressions used herein and not defined either in this Act or in the Banking Regulation Act,1949 (10 of 1949) but defined in the Companies Act, 1956 (1 of 1956) shall have the meanings respectively assigned to them in the Companies Act, 1956.]
Summary
- The appointed day is defined as February 14, 1970.
- The commencement of this Act is defined as July 19, 1969.
- An existing bank is one listed in the First Schedule that had at least fifty crore rupees in deposits on the last Friday of June, 1969.
- A banking company does not include a foreign company under the Companies Act.
- A Custodian refers to the person appointed under Section 7 of the Act.
- Any terms not defined here use their definitions from the Banking Regulation Act, 1949, or the Companies Act, 1956.
Practical examples
FAQ
1. What exactly is the appointed day?
The appointed day is February 14, 1970.
2. How much money did a bank need to have to be considered an existing bank?
The bank needed to have deposits of at least fifty crore rupees as of the last Friday of June, 1969.
3. Are foreign banks included in the definition of a banking company?
No, foreign companies are specifically excluded from this definition.
4. Where do we look if a word is not defined in this Act?
You should first look in the Banking Regulation Act, 1949, and if it is not there, check the Companies Act, 1956.
Test yourself
1.Under Section 2 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, what specific date is defined as the appointed day?
2.Under Section 2 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which condition must a bank listed in the First Schedule meet to be defined as an existing bank?
3.Under Section 2 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, how is the term Custodian defined by referencing another section?
4.If a person is appointed as a Custodian under Section 2 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, how does Section 7 define their primary role before a Board of Directors is formed?