Order for winding up of insured Co-operative Bank etc, and not to be made without sanction of Reserve Bank of India

Notwithstanding anything contained in this Act, - (i) an order for the winding up or an order sanctioning a scheme of compromise or arrangement or amalgamation or reconstruction of an insured Co-operative Bank cannot be made save with the previous sanction in writing of the Reserve Bank of India ; (ii) an order for the winding up of an insured Co-operative Bank shall be made if so required by the Reserve Bank of India in the circumstances referred to in section 13 D of the Deposit Insurance Corporation Act,1961 ; (iii) if so required by the Reserved Bank of India in the public interest or for preventing the affairs of an insured Co-operative Bank from being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of such Bank, an order shall be made for the supersession of the managing body by whatever name called, of such Bank and for the appointment of an administrator for five years in the aggregate as may from time to time be specified by the Reserve Bank of India. (iv) an order for winding up of an insured Co-operative Bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the managing body, by whatever name called, of such Bank and appointment of an administrator therefore, made with the previous sanction in writing or on requisition of the Reserve Bank of India shall not be liable to be called in question in any manner ; and (v) the Liquidator or the insured Co-operative Bank or the transferee Bank, as the case may be, shall be under an obligation to repay to the Deposit Insurance Corporation established under section 3 (1) of the Deposit Insurance Corporation Act 1961 in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance Corporation Act, 1961. Explanation : - For the purpose of this section, an “Insured Co-operative Bank” means a society which is an Insured Bank as defined under the provisions of the Deposit insurance Corporation Act, 1961.