Merger and acquisition of the undertaking of Banking Companies in India

• INTRODUCTION

1. Banking
   companies play a leading role in stimulating and stabilizing the growth of an
   economy of a country, hence failure of banks have a great impact than the failure
   of firms in other sectors. As a result, banks are subject to more intense
   regulations than in any other sectors and the state is more pro-active in
   intervening to prevent bank failures. According to Fidler[1],
   when a customer deposits money in a bank account, he does not deposit the
   money; but he lends it to the banker. The relationship between the banker and
   customer is therefore the contractual relationship of debtor and creditor.
2. A
   bank regulation can be said to have a single goal; the prevention of bank
   failure. Banking business is regulated in many ways. Regulation through
   licensing[2],
   prescribing the competency of management[3],
   determining capital adequacy[4],
   restrictions on the nature of business[5]
   and various other matters which aim to ensure that the interest of the
   depositors are protected and banks will ensure financial stability. Despite
   such regulatory control there are clear evidences of bank failure in India.
3. Mergers
   and Acquisitions are a significant process through which financial service industries
   accomplish the preferred economic growth. Motive for merger in the banking
   sector is for cost reduction, rationalization of branch networks, investment in
   new technologies and process, income increase, risk reduction, diversification,
   and strengthening of the strategic position. In India, originally the Banking
   Regulation Act, 1949 did not contain any provisions for mergers and acquisition
   among banking companies. Banking laws (Amendment) Act, 1950 for the first time
   recognized the right to voluntary amalgamation of banking companies by
   inserting Section 44A to the Banking Regulation Act, 1949. It conferred power
   to the Reserve Bank of India to sanction the scheme of amalgamation between
   banking companies. Mergers and acquisitions governing the banks are not uniform
   in nature. In some cases, RBI needs to sanction scheme, whereas in the
   compulsory merger under Section 45 of Banking Regulations Act, 1949, RBI needs
   to prepare the scheme and the same will be presented before the Central
   Government for its sanction. Amalgamations of two or more corporations either
   in the public interest or in order to secure proper management of any of the
   corporation is recognized by our Constitution[6]. As
   far as the merger of private banking Companies in India, the Banking Regulation
   Act plays an important role and it protects the rights guaranteed under Art.14
   and 19 of the constitution. Constitutional validity of the Banking Regulation
   Act was challenged in Shivkumar Tulsian and others v. Union of India[7]wherein
   the Bombay High court held that section 45 is in conformity with the
   constitutional provisions of Art 19 and 14. Until 1950 the amalgamation of
   banking companies were governed by the Companies Act, 1913. Section 44A of the
   Banking Regulation Act lays down the procedure for the amalgamation of private
   sector banking companies. The scheme containing the terms of amalgamation is to
   be approved by a majority in number representing two thirds in value of the
   shareholders in the general meeting. A dissenting shareholder is entitled to
   receive the value of his shares as may be determined by the Reserve Bank of
   India. The Reserve bank has to sanction the scheme after the shareholders’
   approval. On such sanction, the assets and liabilities of the bank are
   transferred to the transferee company. The major distinction between Merger
   under the Companies Act and Banking Regulation Act is that the scheme of
   amalgamation of companies under the companies Act has to be sanctioned by the
   tribunal. Whereas Under the Banking Regulation Act, voluntary amalgamation of
   bank mergers has to be approved only by the Reserve bank of India and it is the
   sole authority in all matters relating to the banking companies. As stated by
   the Supreme Court in Joseph Kuruvila Vellikunnel v. Reserve Bank of India[8],
   that the banking companies cannot be compared with the ordinary companies as in
   a banking company, depositor’s interest is paramount and in India RBI is an
   expert body in determining and protecting the best interest of banking
   companies.

• BANK
  MERGERS: REGULATORY REGIME IN INDIA

1. Regulatory
   frame work for Bank mergers in India:
   The commercial banks as a group form the preponderant part of the organized
   banking system and fall into four classes based on their method of
   establishment and pattern of ownership. These are banks in the public sector,
   banks in the private sector, foreign banks and regional rural banks. The
   mergers and acquisitions regulations in the Indian Banking sector can be
   broadly placed as per the nature of the entities involved and of the mergers,
   into several categories, viz., (a) Voluntary amalgamation between private
   sector banks (b) Compulsory amalgamation of a private sector banks (c )
   Acquisition of banking companies by the central government in Part IIC of the
   Banking Regulation Act,1949 (d) Merger between public sector banks (e) Merger
   of a Non –Banking Financial Company(NBFC) with a private sector bank (f) Merger
   among co-operative banks (g) Merger between Regional Rural Banks (h) Mergers of
   State Bank of India and its associates. There are four categories restructuring
   of Banking Companies under the Banking Regulation Act,1949 (a) Voluntary
   Amalgamation[9](b)
   Compulsory Amalgamation[10]
   (c) scheme of arrangement between banking company and its creditors[11]
   (d) Acquisition of banking companies by the Central Government under Part-IIC[12]
   of the Banking Regulation Act,1949.
2. Jurisprudential
   basis for the recognition of special provisions for the restructuring of
   banking Companies under the Banking Regulation Act,1949:
   Prior to 1960, the amalgamation of banks could be only in terms of section 44A
   of the Banking Regulation Act, 1949, on a voluntary basis. In order to
   accelerate the process of integration, additional statutory and regulatory
   powers for the reconstruction or compulsory amalgamation of banks were inserted
   by the amendment of the Act, 1960. Banking Companies (Second) Amendment
   Bill,1960 proposed for the introduction of Section 45 and Section 44A (7) to
   the Banking Regulation Act,1949.
3. Voluntary
   Amalgamation of Banking Companies: Merger between
   two private sector banking companies is governed by Section 44A of the Banking
   Regulation Act, 1949. In this regard the Madras High court in Bank of Madura,
   Shareholders Welfare Association v Governor, Reserve Bank of India and Others,
   has held that the provisions of the Banking Regulation Act constitute a
   complete code in themselves on the amalgamation of banking companies[13].
   S. 44A of the Banking Regulation Act, 1949 provides that no banking company shall
   be amalgamated with another banking company, notwithstanding anything contained
   in any law, unless the scheme for amalgamation has been placed in draft before
   the shareholders of both companies. Approval of the scheme is required by means
   of a resolution of two-thirds of the majority of the shareholders present in
   either company , in a meeting specifically called for the purpose of
   amalgamation[14].
   Once this scheme has been approved in due compliance with the requirements
   under Section 44A (2), it should be submitted to the Reserve Bank of India for
   sanction. Once sanctioned by the Reserve Bank, it is binding on all the
   shareholders and the companies. However, Section 44 A (3) protects the rights
   of the dissenting shareholders who have either voted against the scheme or have
   given notice of such dissent in writing. Reserve Bank of India determines the
   value of shares to be paid to dissenting shareholders[15].
   Section 44 A of the Banking Regulation Act, 1949 shows that it departs from the
   provisions of the Companies Act, 1956 in primarily two aspects, namely (1) the
   High court is not given the power to grant its approval to the scheme for
   merger of banking companies instead the Reserve Bank , which is the central
   bank of the country and supreme regulatory authority in banking supervision and
   ( 2) The Reserve Bank of India is also empowered to determine the market value
   of shares of the shareholders who has voted against the scheme of amalgamation
   . The banking Regulation Act enables the dissenting shareholder to obtain from
   the banking company concerned the market value of his shares as determined by
   the Reserve Bank of India under S. 44A (3 ). In Bank of Madura Shareholders
   Welfare Association v. Governor, Reserve Bank of India[16],
   it was held that if the shareholders were aggrieved that the market value of
   shares of both the companies had not been determined properly, it was always
   open to it to get the market value evaluated by the Reserve Bank of India and
   that the court would not go into the question whether the share exchange ratio
   adopted in the scheme was fair or not.
4. Scope
   of S. 44-A of the Banking Regulation Act, 1949:
   The provision of Section 44A of the Banking Regulation Act, 1949 comes into
   effect only if the transferor and transferee are both banking companies[17]
   within the meaning of The Banking Regulation Act, 1949. Since Nationalized
   banks, Co-operative banks, Regional Rural Banks and State Banks of India are
   governed by the separate statutes, the merger provisions of the Banking
   Regulation Act and the Companies Act, 1956 is not applicable to it. IndusInd
   Enterprises and Finance Ltd v. IndusInd Bank Ltd[18].,
   the issue was whether prior permission of Reserve Bank of India is necessary
   for amalgamation of a scheme under the Banking Regulation Act, 1949. The case
   concerned with the merger between a banking company and a non –banking Company.
   Bombay high court held that no prior sanction of RBI is necessary for the
   amalgamation of non-banking finance company with banking company.
5. Share valuation during
   merger under Section 44A: The difficulty in arriving at share valuation was discussed in
   detail in In Re: ICICI Ltd[19],
   where a scheme was prepared for the amalgamation between ICICI Capital Services
   Ltd. and ICICI Personal Financial Services Ltd. with ICICI Bank Ltd. The
   petitioner and two other companies are the transferor companies and they are to
   be amalgamated with the ICICI Bank Ltd., the transferee company. Petitioners
   two main objection were. 1) The approval of the RBI was not sought for a scheme
   of amalgamation as the transferee was a banking company 2) Valuation of shares
   was not arrived at properly. To the first question court held that the objection
   has no substance, in as much as, the provisions of section 44A come into play
   only in case the transferee and transferor, both the companies are Banking
   Companies. In the said case, though the transferee company is a banking
   company, none of the transferor companies are banking companies. The objection
   did not sustain. While deciding that case, the court referred Piramal Spg & Wvg. Mills Ltd[20],
   and cited what was there as that the valuation of shares is a
   technical matter which requires considerable skill and expertise. There are
   bound to be differences of opinion as to what the correct value of the shares
   of any given company is, simply because it is possible to value the shares in a
   manner different from the one which has been adopted in a given case, it cannot
   be said that the valuation which has been agreed upon is unfair. Court thus
   held that what is important is that all shareholders of both companies have
   unanimously accepted the valuation which has been arrived at by the auditors of
   the transferor and transferee companies, under these circumstances, the
   application cannot be rejected on the ground that the valuation of shares is
   unfair to the shareholders of the transferor-company.

• PROCEDURE OF COMPULSORY
  AMALGAMATION OF PRIVATE SECTOR BANKS:

1. Under section 45 of the Banking
   Regulation Act, RBI has the power to force the merger of a weaker bank with a
   stronger Bank. The scheme is in public interest or in the interest of the
   depositors of the distress bank or to secure proper management of a banking
   company, or in the interest of the banking system[21].
   In case of a banking company in financial distress, which has been placed under
   the order of moratorium, under sec45 (2) of the Act, on an application made by
   the Reserve bank to the central government, the Reserve bank can, for the
   foregoing reasons, frame a scheme of amalgamation for transferring the assets
   and liabilities of such distressed bank to a much better and stronger Bank.
   Such a scheme framed by the RBI is required to be sent to the banking companies
   concerned, for their suggestions or objections, including those from the
   depositors, shareholders and others. After considering the same, RBI sends the
   final scheme of amalgamation to the central government for sanction and
   notification in the official gazette. The notification issued for compulsory
   amalgamation also under section 45 of the Act is also required to be placed
   before the two houses of parliament. Most of the amalgamations of the private
   sector banks in the post-nationalization era were induced by the Reserve Bank
   in the larger public interest, under Section 45 of the Act. In all these cases,
   the weak or financially distressed banks were amalgamated with the healthy
   public sector banks. The over-riding principles governing the consideration of
   the amalgamation proposals were: (a) protection of the depositors’ interest;
   (b) expeditious resolution; and (c) avoidance of regulatory forbearance.
2. Judicial Review under
   Section 45: Scope of Judicial Review under section
   45 of the banking Regulation was discussed in Davis Kuriape v. Union of India[22].
   wherein Court held that when a scheme is framed under Section 45 for
   amalgamation, judicial review thereof is permissible only to a very narrow
   extent. Particularly when a dispute or difference arising with regard to the
   equivalence of experience has been decided by the Reserve Bank in exercise of
   its powers under the second proviso to Section 45(5)(i), the High Court in writ
   jurisdiction cannot sit in appeal over such Judgment. It can only interfere in
   extreme cases of arbitrariness or unreasonableness. As to the criteria adopted
   for judging the equivalence of experience in two different banks which are
   being amalgamated, the Reserve Bank being an expert body in banking operations
   would the best judge. The High Court is neither equipped, nor capable of
   handling such a delicate task which requires expertise and deep knowledge of
   banking operations.
3. Acquisition of Banking
   Companies by the Central Government under Part IIC of the Banking Regulation
   Act, 1949: Part-II C of the Banking Regulation Act,
   1949 deal with the acquisition of the undertakings of banking companies by the
   Central government. Part IIC of the Banking Regulation Act was added at a time,
   when government decided to acquire the control of privately operated banking
   companies. It was in the year 1968 the Banking companies (Acquisition and
   transfer of undertaking) ordinance was issued and which became the Bank
   Nationalization Act in the year 1969. It is to be noted that for the government
   to exercise the power to acquire the private banking companies Part -IIC was
   added. Section 36AE does not confer suo-moto power to the Central government to
   acquire the business of a banking company. A report by RBI is essential and RBI
   is entitled to submit the report only if the banking company has failed to
   conform to its directions under section 21 or under Section 35A or if it was
   managed in a manner detrimental to the interest of its depositors.
4. Restrictions on Acquisition
   of shares or voting rights in Banking Companies:
   Banking Laws (Amendment) Act, 2012 inserted section 12B to the Banking
   Regulation Act, 1949. It imposes cap on acquisition of shares or voting rights
   in the banking companies. If an individual or company acquires more than five
   percentage of the total paid up share capital or voting rights, without the
   permission of the central government, it would be detrimental to the interest
   of the banking company and in turn prejudice the public interest. Section 3
   (2D) of the Banking companies (Acquisition and Transfer of Undertakings) Act,
   1970, states that the ―shares of every corresponding new bank not held by
   central government shall be freely transferable. A proviso to the section 3(2D)
   states that if at any time an individual or company shall not hold more than
   twenty percent of the total paid up share capital of the company.
5. Amalgamation of NBFCs with
   Banking Companies: Chapter –III B of the Reserve
   Bank of India Act, 1934 confers powers to the Reserve bank to regulate the Non-
   banking companies and financial institution ‘s deposit taking business. In
   addition to the same, there are number of guidelines issued by RBI to regulate
   the working of Non-Banking Financial Companies. The latest among the same is
   the Revised Regulatory Guidelines for NBFCs issued in Nov 10, 2014[23].
   In India, merger between banks and non-banking companies are sanctioned by High
   court under Ss. 232-234 of the Companies Act, 2013. There is no provision in
   the Banking Regulation Act that states that the banks need to get prior approval
   of RBI before approaching the court. Reserve bank of India has issued guide
   line and directions to be followed by banking companies in case of merger[24]
   or acquisition[25]
   between a bank and non-banking financial institutions. RBI direction on
   Acquisition of NBFCs states that Prior written approval of the Reserve Bank
   would also be required before approaching the Court or Tribunal under Section
   391-394 of the Companies Act, 1956 or Section 230-233 of Companies Act, 2013
   seeking order for mergers or amalgamations with other companies or NBFCs.
6. Amalgamation of Public
   sector Banks: In the case of public sector banks,
   i.e., nationalized banks, the statutory frame work differs wherein the
   provisions of the Banking Regulation Act do not apply. The amalgamation of
   public sector bank is governed by section 9(1)(c) of the Banking Companies
   (Acquisition and Transfer of Undertakings) Act, 1970 & 1980, which is known
   as the Bank Nationalization Act. It authorizes the central government to
   prepare a scheme of amalgamation in consultation with RBI for the transfer of
   one bank to another corresponding new bank. The scheme framed under there will
   be placed before both the houses of parliament for approval.
7. Merger of co-operative
   banks: Law and Procedure: Most of the States[26]
   in India have enacted Co-operative Societies Act and it deals with provisions
   governing merger. Registrar of the co-operative societies supervises the merger
   scheme of co-operative banks. Even though mergers/amalgamations of Co-operative
   banks come within the purview of concerned State Government, prior approval
   from the Reserve Bank is required for obtaining No Objection Certificate.
   Reserve bank of India has issued two guidelines[27]
   on the issue of merger to the Co-operative banks in the year 2005 and 2009.  RBI ‘s 2005 guideline allow co-operative
   banks to merge with any other co-operative banks or banks registered under the
   Multi-state co-operative societies Act. It also states the procedures of such
   merger as An application for merger giving the proposed scheme will have to be
   submitted by the banks concerned to the Registrar of Cooperative
   Societies/Central Registrar of Cooperative Societies. The acquirer bank will
   also forward a copy of the scheme to the Reserve Bank along with the draft
   scheme, valuation report and other information relevant for consideration of
   the scheme of merger. the Reserve Bank issued another set of guidelines in
   January 2009 for merger/acquisition of UCBs having negative net worth as on End-March
   2007. According to the new guidelines, the Reserve Bank would also consider
   scheme of amalgamation that provides for (i) payment to the depositors under
   section 16(2) of the Deposit Insurance and Credit Guarantee Corporation Act,
   1961; (ii) financial contribution by the transferee bank; and (iii) sacrifice
   by large depositors. The process of merger/amalgamation requires the acquirer
   bank to submit the proposal along with some specified information to Registrar
   of Cooperative Societies/Central Registrar of Cooperative Societies and the Reserve
   Bank.

• RBI’S
  POLICY ON MERGER OF BANKING COMPANIES

1. RBI as an expert body in
   regulating banks in India has been recognized by the courts through various
   judgments. In Peerless General Finance and Investment co. Ltd v. R.B.I[28]
   ,the Supreme court held that the Reserve Bank plays an important role in the
   economy and financial affairs of the country and its main role is to regulate
   the banking industry .The supervisory functions of the RBI have helped a great
   deal in improving the standard of banking in India to develop on sound lines
   and to improve the methods of their operation. As mentioned before, the Banking
   Regulation Act, 1949 provide for two types of mergers Forced[29]
   and Voluntary mergers[30].
   The Forced mergers are initiated by the RBI. The main objective is to protect
   the interest of the depositors of the weak bank. When a bank has shown symptoms
   of sickness such as huge NPAs and substantial erosion of net worth, RBI has
   intervened and merged the weak bank with the strong bank. The Procedures of
   both voluntary and compulsory mergers under the Banking Regulation Act is
   applicable only to the Private Sector Banking Companies. Merger of Public
   Sector banks viz., the Nationalized Banks and State Bank of India and its
   associates are being governed by the separate statutes. Consolidation of
   Regional Rural banks are governed by the Regional Rural Banks Act, 1976.
2. Role of RBI in Compulsory
   Merger of Private Sector Banking Companies: Under
   S. 45 of the Banking Regulation Act, 1949, Reserve Bank of India is empowered
   to apply to the central Government for suspension of business by a banking
   company and to prepare a scheme of reconstruction or amalgamation. It provides
   for a compulsory amalgamation of a banking company with any other banking
   company, without the consent of creditors or members. A moratorium has to be
   declared by the central government prior to a scheme prepared by the RBI.
   During the period of Moratorium RBI for the interest of the various
   stakeholders and to secure proper management of the banking company may prepare
   a scheme of amalgamation or merger. The scheme prepared by the RBI shall be
   sent in draft to the banking company and also to the transferee bank and any
   other banking company concerned in the amalgamation. It further provides that
   the scheme so finalized by the Reserve Bank of India should be filed before the
   Central Government which may sanction the scheme with or without modifications.
3. Jurisdiction of High Court
   in Bank Mergers: An interesting conflict arose
   before the High Court of Allahabad671[31]
   in this respect where the petitioner challenged an order of moratorium passed
   by the Central Government under section 45(2) of the Banking Regulation
   Act,1949, and a scheme prepared under Section 45(4) by RBI , on the grounds
   that there had previously been a High Court order under Section 153 of the
   Companies Act which sanctioned an arrangement by the shareholders and creditors
   of the bank for the continuance of the bank and satisfaction of the
   liabilities. The Contention of the appellant was that Section 45 cannot operate
   to nullify the orders passed by the high court under the jurisdiction conferred
   on it by the Companies Act. The court ruled that such reading went against the
   wording ofs.45 which expressly stated that it operated notwithstanding all
   other laws, and dismissed the appeal. Jurisdiction of the High Court and the
   power of judicial review with regard to RBI ‘s decision on schemes of
   amalgamation are severely limited in many aspects. The maintenance of a
   distinction between the jurisdiction of the High court and RBI under Banking
   Regulation Act, 1949 was clarified by the Supreme Court in the decision of
   Himalayan Bank Ltd v. Roshan Brothers[32]
   . In this case it was held that a petition presented to the High court by a
   bank currently under a sanctioned scheme of amalgamation under Ss.45M and 45B
   of the Banking Regulation Act, could be entertained, as the High court retained
   jurisdiction to pass orders under section 392 read with section 391 of the
   Companies Act. In such cases, the court pointed out that the scheme of
   amalgamation was not a substitute or an alternative mode of liquidation, but
   rather was an alternative to liquidation itself.
4. Bank Mergers: CCI v. RBI: Reserve Bank of India sought an exemption from CCI scrutiny of bank
   mergers through the Banking Laws (Amendment) Bill, 2011. Section 2A of the Bill
   provided that ―Notwithstanding anything contrary contained in Section 2 of the
   Banking Regulation Act, 1949, nothing contained in Competition Act, 2002, shall
   apply to any banking company, the State Bank of India, any subsidiary bank, any
   corresponding new bank or any regional rural bank or cooperative bank or
   multi-state cooperative bank in respect of the matters relating to
   amalgamation, merger, reconstruction, transfer, reconstitution or acquisition
   under respective Acts[33].
   Through this amendment, though the Reserve Bank of India (RBI) tried to remove
   the scrutiny of competition commission of India over bank mergers it could not
   succeed. Ministry of corporate affairs issued a notification on 8th January
   2013, by which Central Government exempted mergers under section 45(forced
   mergers) of the Banking regulation Act, 1949 from the applicability of section
   5 and 6 of the Competition Act, 2002 in public interest for a period of five
   years[34],
   but the voluntary mergers among the banking sector requires the prior approval
   of CCI.

• CONCLUSION

The basic reason for the regulation of banking company is that it is
an institution wielding enormous responsibilities to the depositor ‘s money and
to mitigate the risk of failure of a banking institution is the responsibility
of the regulators. Bank mergers are no exception to it. Competition commission
is responsible for preventing abuse of dominance position of any company or
enterprise in the market so as to avoid the practices having adverse effect on
the competition. Competition commission ‘s role is not confined to any specific
sector of business or service in India, but it is the regulator of all kinds of
services and business where it is likely to have an effect on free competition
in the market. Thus, it is appropriate to confer power to the CCI to regulate
the bank mergers. CCI is concerned about the anti-competitive agreements and
abuse of dominant position in the market. It can look into all types of
business activities. Its power is not confined to any specific sector. However,
considering the numerous types of banking companies in India and RBI, being the
regulator of bank merger, it is suitable to appoint a committee of persons
under the chairmanship of RBI governor to study the competition law aspects of
bank mergers. The usual method of assessing the completion aspects of other
industries should not be applied to banking companies. Public interest and
depositor ‘s interest must be given an overriding effect over the market
requirement of competition in bank mergers. Further, it is appropriate to amend
the existing provisions of the bank mergers under the Banking Regulation
Act,1949, so as to include the specific powers of CCI in respect of bank
mergers of different nature of banking companies .Though, there are difference
in the nature of banking companies , total number of banks are in each sector
is few, hence the consolidation in banking business should be viewed very
seriously, as it may shrink the market for banking and the interest of the
customers of banking companies will be affected.

Contributed by – Kulin Dave

[1] P.J.M. Fidler,
“Sheldon and Fidler’s Practice and Law of Banking” 11^th Edition
(1982)

[2] Section 22 of the
Banking Regulation Act, 1949

[3] Section 10A-10D of the
Banking Regulation Act, 1949

[4] Section 12 of the
Banking Regulation Act, 1949

[5] Section 6 of the
Banking Regulations Act, 1949

[6] Article 31A(c) of the Constitution
Of India 1949

[7] [1990] 68 Com Cas 720(Bom)

[8] AIR 1962 SC 1371

[9] Section 44A of the Banking Regulation Act, 1949

[10] Section 45 of the Banking Regulation Act, 1949

[11] Section 44B of the Banking Regulation Act,1949

[12] Section 36AE to 36AJ of the Banking Regulation Act,1949

[13] (2001)105 ComCas. 663(Mad).

[14] Section 44A( 2) of the Banking Regulations Act, 1949

[15] Section 44 A( 3 ) of the Banking Regulation Act, 1949

[16] (2001)105ComCas.663 (Mad)

[17] S. 5(c ) ― Banking company means any company which transacts the
business of banking in India

[18] 2003 ( 4 ) BomCR 482

[19] 2002(4)Bom CR450

[20] [1980] 50 Comp
Cas.514

[21] Section 45(2) to (15)of the Banking Regulation Act,1949

[22] ILR 2002(1) Kerala 311

[23] http://rbidocs.rbi.org.in/rdocs/notification/PDFs/RRFNC101114F.pdf

[24] http://rbidocs.rbi.org.in/rdocs/notification/PDFs/62947.pdf

[25] http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CM376260514F.pdf

[26] The Maharashtra State (co-operative) societies Act, 1960 Section 17

[27] http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/60680.pdf

[28] ( 1999) 2 SCC 343

[29] Section 45 of the
Banking Regulation Act, 1949

[30] Section 44A of the Banking Regulation Act, 1949

[31] Chawla Bank Ltd v.Reserve Bank of India and Ors.,(1970) 40ComCas 15(All)

[32] (1961)31ComCas 33

[33] http://www.prsindia.org/administrator/uploads/media/Banking%20Laws/Banking%20Laws%20_A_%20Bill%20-%20SCR%20Summary.pdf

[34] S.O.E (93)08012013 also in http://www.mca.gov.in/Ministry/pdf/Lok_sabha_ques_W_2013_1295.pdf

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