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THE STATE BANK OF INDIA ACT, 1955

Title : THE STATE BANK OF INDIA ACT, 1955

Year : 1955



(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 maintain as its branches or agencies all branches or agencies of the Imperial Bank which were in existence 3*[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 to in sub-section (3).

(5) 2* 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.

----------------------------------------------------------------------

1. Omitted by Act 3 of 1994, s. 14 s. 6 (w.e.f. 15-10-1993).

2. Subs. by s. 7, for s. 15 ibid. (w.e.f. 15-10-1993).

3. Ins. by Act 33 of 1955, s. 4 (with retrospective effect).

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(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.


 
(1) In the discharge of its functions 1*[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.

1. Ins. by Act 38 of 1959, s. 64 and Sch. III (w.e.f. 10-9-1959).



1*** 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 2***;

(b) not more than two managing directors, if any, appointed 3*[by the Central Government in consultation with the Reserve Bank];

4*[(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 share holders, other than the Reserve Bank, whose names are on the

5*[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 percent but not more than twenty-five per cent. of such capital, three directors, and

(iii) More than twenty-five percent of such capital, four directors,  to be elected in the prescribed manner by such shareholders;

6*[(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 finance;]

(e) One director to be nominated by the Central Government: and

(f) One director to be nominated by the Reserve Bank.

7* * * * * *

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1. Omitted by Act 3 of 1994, s. 8 (w.e.f. 15-10-1993).

2. Certain words omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-1976).

3. Subs. by s. 4, ibid., for certain words (w.e.f. 11-6-1976).

4. Subs. by Act 35 of 1964, for cls. (c) and (d) (w.e.f. 1-12-1964).

5. Subs. by Act 3 of 1994, s. 8 (w.e.f. 15-10-1993).

6. Ins. by Act 48 of 1973, s. 3 (w.e.f. 1-7-1974).

7. Sub-sections (2) and (3) omitted by Act 35 of 1964, s. 3 (w.e.f.1-12-1964).

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(1) 1*[The chairman, vice-chairman and 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.

2*[(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.]

3* * * * *

(3) Subject to the provisions contained in section 19 4***, a director elected under clause (c) 5*** 6*[that section] shall hold office for 7*[three years] and thereafter until his successor shall have been duly elected 8*** and shall be eligible for re-election 9***:

9*[Provided that no such director shall hold office continuously for a period exceeding six years.]

10*[(3A) 8*[Subject to the provisions contained in sub-section (4), a director] appointed under clause (ca) or clause (cb) 7*[of section on nominated under clause (d) of that section] shall hold office for such hold office for such term, not exceeding three years, as the Central Government may specify and thereafter until his successor shall have been 8*[duly appointed or nominated], and shall be eligible 8*[for re-appointment or re-nomination, as the case may be]:]

5*[Provided that no such director shall hold office continuously for a period exceeding six years.]

8*[(4) A director appointed under clause (ca) or clause (cb) 7*[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 appointing or nominating him, as the case may be].

9* * * * *

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1. Sub-section (2) omitted by Act 73 of 1976, s. 4 (w.e.f. 11-6-
1976).

2. Certain words omitted by Act 66 of 1988, s. 12 (w.e.f. 8-7-1992).

3. Certain words omitted by Act 3 of 1994, s. 9 (w.e.f. 15-10-1993)

4. Subs. by Act 66 of 1988, s. 12, for certain words (w.e.f.
8-7-1992).

5. Ins. by s. 12, ibid. (w.e.f. 8-7-1992).

6. Ins. by Act 48 of 1973, s. 4 (w.e.f. 1-7-1974).

7. Subs. by Act 3 of 1994, s. 9, for certain words (w.e.f.
15-10-1993).

8. Subs. by Act 66 of 1988 s. 12 for sub-section (4) (w.e.f 8-7-1992).

9. Sub-section (5) omitted s. 12, ibid. (w.e.f. 8-7-1992).

10. Subs. by Act 35 of 1964, s. 5, for s. 21 (w.e.f. 1-12-1964).

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(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;

1*[(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;

2* * * * *

(e) 3*[The chief general manager] of the local head office, appointed by the State Bank, ex-officio.

4*[(2) Where as a 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) for 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 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. 

5* * * * *

6*[(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, or (b) nominated under clause (c) of that sub-section to be the vice-president thereof.]

7*[ Term of office of members of Local Board

8*[(1) 9*Subject to the provisions contained in this section and in sub-section (2) of section 21, a member of a Local Board:

(a) Nominated under clause (c) of sub-section (1) of section 21 shall hold office for such term, not exceeding three years, as the Central Government may specify in this behalf and thereafter until his successor has been duly nominated;

(b) Elected under clause (d) of sub-section (1) of section 21 shall hold office for three years and thereafter until his successor has been duly elected, and shall be eligible for re-nomination or re-election, as the case may be:

Provided that no such director shall hold office continuously for a period exceeding six years.]

(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 (1) of 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 the Local Board, whichever is shorter, and shall be eligible for reappointment so long as he is a member of the Local Board.

10*[(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 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 11*[falling within the jurisdicition] shall 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 12*[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 (10 of 1949), and such other forms of business referred to in sub-section (1) of 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:

13*[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.]

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1. Subs. by Act 3 of 1994, s. 10, for cl. (b) (w.e.f. 15-10-1993).

2. Cl. (d) omitted by s. 10, ibid. (w.e.f. 15-10-1993).

3. Subs. by Act 48 of 1973, s. 5, for "the secretary and treasurer"
(w.e.f. 1-7-1974).

4. Subs. by Act 3 of 1994, s. 10, for sub-section (2) (w.e.f.
15-10-1993).

5. Sub-section (4) omitted by s. 11, ibid. (w.e.f. 15-10-1993).

6. Subs. by s. 10, ibid., for sub-section (5) (w.e.f. 15-10-1993).

7. Ins. by Act 35 of 1964, s. 6 (w.e.f. 1-12-1964).

8. Subs. by Act 66 of 1988 s. 13, for sub-section (1) (w.e.f.).

9. Sub-section (2) omitted by Act 3 of 1994 s. 11 (w.e.f. 15-10-1993).

10. Ins. by Act 66 of 1988, s. 13 (w.e.f. .......).

11. Subs. by Act 3 of 1994, s. 12, for certain words (w.e.f.
15-10-1993).

12. Subs. by Act 48 of 1973, s. 6, for certain words (w.e.f. 1-3-1977).

13. Ins. by s. 6, ibid. (w.e.f. 1-3-1977).

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(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 manager of any banking company already established or advertised as about to be established; or

(b) He is a salaried officer of Government not specially authorised 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, 1*[managing director,2*[3*[chief general manager],] or legal or technical adviser]; or

4*[(da) In the case of a director appointed under clause (ca) or clause (cb) 7**** 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

6*[(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 a director appointed under clause (ca) or clause (cb) of section 19, the disqualification mentioned in clause (d) shall not operate.]

(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) 7* 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.

(4) In this section,(a) "banking company" has the same meaning as in the 8*[Banking Regulation, Act, 1949 (10 of 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, 1956. (1 of 1956)]

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1. Subs. by Act 26 of 1959, s. 2, for "or managing director".

2. Ins. by Act 35 of 1964, s. 7 (w.e.f. 1-12-1964).

3. Subs. by Act 48 of 1973, s. 7, for "secretary and treasurer"
(w.e.f. 1-7-1974).

4. Ins. by s. 7, ibid. (w.e.f. 1-7-1974).

5. Certain words omitted by Act 3 of 1994 s. 13 (w.e.f. 15-10-1993).

6. Subs. by s. 12, ibid., for cls. (h) (w.e.f. 15-10-1995).

7. Ins. by Act 26 of 1959, s. 2.

8. Subs. by Act 3 of 1994, s. 13, for certain words (w.e.f. 15-10-1993).

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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 the 1*[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.

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1. Subs. by Act 73 of 1976, s. 4, for "chairman and vice-chairman".

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(1) The Central Government may, after consulting the Reserve Bank, remove from office

2*[The chairman, vice-chairman or a managing director].

(3) The Central Government, after consulting the Reserve Bank, may remove from office any director 4*[appointed under clause (ca) or clause (cb) or nominated under clause (d)]

5*[of section 19] 6*[or any member of a Local Board nominated under clause (c) of sub-section (1) of section 21] and 7*[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 3*** of section 19 and elect in his stead another person to fill the vacancy.

(6) No person shall be removed from his office under sub-section (1) 1*** or sub-section (3) unless he has been given an opportunity of showing cause against his removal.

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1. Proviso added by Act 21 of 1957, s. 3, omitted by Act 26 of 1959, s. 3.

2. Subs. by Act 73 of 1976, s. 4, for "the chairman or the vicechairman" (w.e.f. 11-6-1976).

3. Sub-section (2) omitted by s. 4, ibid., (w.e.f. 11-6-1976).

4. Subs. by Act 43 of 1973, s. 8, for "nominated under clause (d)" (w.e.f. 1-7-1974).

5. Subs. by Act 3 of 1994 s. 14 (w.e.f. 15-10-1993).

6. Ins. by Act 35 of 1964, s. 8 (w.e.f. 1-12-1964).

7. Subs. by Act 48 of 1973, s. 8, for "nominate" (w.e.f. 1-7-1974).

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1*[(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 in 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.]

2*[(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 3*[a director appointed under clause (ca) or

4*[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 a 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-opting a person not disqualified under section 22.

(3) A person elected or nominated or co-opted, as the case may be 5*[under sub-section (2)] shall hold office for the unexpired portion of the term of his predecessor.

6*[(4) Where any vacancy occurs before the expiry of the term of office of a director appointed under clause (ca) or clause (cb) 7*** of section 19, 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.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Certain words omitted by Act 3 of 1994 s. 14 (w.e.f. 15-10-1993).

2. Subs. by Act 35 of 1964, s. 9, for sub-section (2) (w.e.f. 1-12-1964).

3. Subs. by Act 48 of 1973, s. 9. for certain words (w.e.f. 1-7-1974).

4. Subs. by Act 3 of 1994, s. 15, for certain words (w.e.f.15-10-1993).

5. Subs. by s. 9. ibid. for "under this section" (w.e.f. 1-7-1974).

6. Ins. by s. 9, ibid., (w.e.f. 1-7-1974).

7. Certain words omitted by Act 3 of 1994, s. 15 (w.e.f. 15-10-1993).

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(1) Without prejudice to the provisions contained in sections 27 28 and 29 the directors shall be paid such fees and allowances for attending the meetings 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.



(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 1*[as may be determined by the Central Government].

2* * * * *

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1. Subs. by Act 73 of 1976, s. 4, for certain words (w.e.f. 11-6-
1976).

2. Proviso omitted by s. 4, ibid. (w.e.f. 11-6-1976).125.

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(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 pre-requisities 1*[as may be determined by the Central Government].

(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.

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1. Ins. by Act 56 of 1962, s. 2.

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(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 1*[as may be determined by the Central Government].

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1. Ins. by Act 48 of 1973, s. 10 (w.e.f. 1-7-1974).

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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.



(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 questions at the meeting shall be decided by a majority of the votes of 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 not 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:

1*[Provided that nothing contained in this sub-section shall apply to such director 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 (1 of 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;]

2*[or] 1*[(iii) An officer or other employee of the State Bank, if he is a director appointed under clause (ca) or clause (cb) of 5* of section 19.]

(4) If for any reason neither the chairman nor the vice-chairman is able to be present at a meeting of the Central Board, any director,3*** authorised by the chairman in writing in this behalf, and in the absence of such authorization, 4*[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 Local Boards

(1) A Local 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 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 per cent. of the paid-up capital in any public company as defined in the Companies Act, 1956 (1 of 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 exofficio of the State Bank or a director of a subsidiary bank.

(4) If for any reason neither the president nor the vice-president is able to be present at a meeting of the Local Board, any member, 1*[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 vice-chairman, if he is a member of the Local Board, shall, whenever he is present, preside at such meeting.

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1. Ins. by Act 48 of 1973, s. 10 (w.e.f. 1-7-1974).

2. Certain words omitted by Act 3 of 1994, s. 16 (w.e.f. 15-10-1993).

3. The words "other than a managing director", omitted by s. 10, ibid. (w.e.f. 1-7-1974).

4. Subs. by s. 10, ibid., for "any such director" (w.e.f. 1-7-1974).

5. Ins. by Act 35 of 1964, s. 10 (w.e.f. 1-12-1964).

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Last updated on September, 2016

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