Keyword(s):
Apex Society, Functional Directors, Co-operative Banks

AN
ACT
To AMEND THE BIHAR SELF- SUPPORTING CO-OPERATIVE SOCIETIES ACT, 1996(BIHAR Act
2, 1997)
Be it enacted by the Legislature of the State of Bihar in the Fifty Ninth Year of the Republic of India as
follows:-

  1. Short Title, Extent and Commencement:- (1) This Act may be called the Bihar Self-
    Supporting Co-operative Societies (Amendment) Act, 2008.
    (2) It shall extend to the whole of the State of Bihar.
    (3) It shall come into force at once.
  2. Addition of section.- 2(q) and (r) in the Bihar Self- Supporting Co-operative Societies
    Act, 1996 – The following shall be added after section -2(p) –
    “(q) “Co-operative Bank” means a co-operative bank as defined in the Banking Regulation
    Act, 1949.
    (r) “Insured Bank” means a co-operative bank as defined in the Deposit Insurance and Credit
    Guarantee Corporation Act, 1961.”
  3. Addition of a new chapter VII-A after chapter VII of the Bihar Self-Supporting Co-
    operative Societies Act, 1996.-
    In the Bihar Self-Supporting Co-operative Societies Act, 1996 the following Chapter VII-A
    shall be inserted after Chapter VII.
    “CHAPTER-VII-A
    Special Provision for Co-operative Banks
    38 A. Application of the chapter to co-operative Banks- (1) The provisions of this chapter shall
    apply to a Co-operative Bank registered under this Act. In addition to the provisions
    contained in other parts of this Act, where any question of apparent or implied
    inconsistency arises, the provisions of this chapter shall prevail over the provisions of the
    other parts of this Act.
    (2) For the purposes of this chapter Deposit Insurance Corporation means the Deposit
    Insurance and Credit Guarantee Corporation established under the Deposit Insurance and
    credit Guarantee Corporation Act, 1961 (47 of 1961) and Reserve Bank means the
    Reserve Bank of India established under the Reserve Bank of India Act, 1934 (2 of 1934)
    38 B. Certain orders to be passed by the Registrar if so required by the Reserve Bank-
    (1) In the case of a co-operative bank which is an insured bank, the Registrar shall have
    power-
    (i) if so required by the Reserve Bank, in the circumstances mentioned in section-13D
    of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, to make an
    order for winding up of a co-operative bank.
    (ii) where an order of moratorium has been made by the Central Government under sub
    section (2) of section-45 of the Banking Regulation Act, 1949 (10, 1949) to make an
    order sanctioning a scheme of compromise or arrangement or amalgamation or
    reconstruction including division or reorganisation of the co-operative bank.
    (iii) if so required by the Reserve Bank, in the public interest, or for preventing the affairs
    of the Co-operative bank being conducted in a manner detrimental to the interest of
    depositor or for securing the proper management of the bank an order for
    supersession and removal of the Committee of the Management or other Managing
    body, by whatever name called, of the Co-operative bank and the appointment of an
    Administrator thereof for such period or periods not exceeding five years in the
    aggregate as may form time to time be specified by the Reserve Bank and the
    Administrator so appointed, shall after the expiry of his term, continue in his office
    until the day proceeding the date of the first taking over by the new board of such
    bank. The Administrator will have all powers of the Managing Committee and will
    discharge its function under the general supervision and control of the Registrar.
    (2) In the case of co-operative bank which is an insured bank, the General Body of a co-
    operative bank shall not decide the sanctioning of a scheme of compromise or
    arrangement or amalgamation or reconstruction of such bank under section-11 of this
    Act, unless previous sanction in writing from the Reserve Bank is obtained. 5
    बहार गजट, (असाधारण)] 24 fnlEcj 2008
    (3) The co-operative bank on its own motion shall not authorise its own dissolution under
    section-43 of this Act or the Co-operative Tribunal constituted under this Act shall not
    order for dissolution or liquidation and dissolution of any co-operative bank under
    section-44 of this Act, unless previous sanction in writing from the Reserve Bank is
    obtained.
    (4) No appeal, revision or review shall lie against an order made under sub-section (1) (2)
    and (3) on the requisition or previous sanction granted by the Reserve Bank and such
    order or sanction shall not be liable to be called in question in any manner.
    38 C. Reimbursement to the Deposit Insurance Corporation by the Liquidators –
    Where a Co-operative Bank being an insured bank is wound up or taken into liquidation
    and the Deposit Insurance Corporation has become liable to pay the depositors of the
    insured bank under sub-section (1) of section-16 of that Act, the Deposit Insurance
    Corporation shall be reimbursed by the Liquidator or such other person in the
    circumstances, to the extent and in the manner provided in section-21 of the Deposit
    Insurance Corporation Act, 1961.”.

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