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:-
- 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. - 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.” - 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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