Chapter VI-B Chapter VI-B

Cooperative Bank

44 AJ. Application of the Chapter to cooperative Bank. –

1. (1) The provisions of this chapter shall apply to a Cooperative Bank as defined in the Deposit Insurance Corporation Act, 1961 (47 of 1961) 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. (2) For the purposes of this chapter,” Deposit insurance corporation means the Deposit insurance corporation established under the Deposit Insurance Corporation Act, 1961) and “Reserve Bank’ means the Reserve Bank of India established under the Reserve Bank of India Act, 1934 (2 of 1934)

44 AK. Division, amalgamation, compromise, etc. –

1. (1) No order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or of division or transfer of assets and liabilities of a Cooperative Bank shall be made without the pervious sanction in writhing of the Reserve Bank.
2. (2) Where an order of moratorium has been made by the Central Government under sub- section
3. (2) of section 45 of the Banking Regulation Act, 1949(10 of 1949) in respect of a Cooperative Bank, the Registrar, with the previous approval of the Reserve Bank in writing nay during the period of moratorium, prepare a scheme,-
   • (i) for the re-construction of the Cooperative Bank; or
   • (ii) for its amalgamation with any other Cooperative Bank (herein referred to as the transferee Bank).
4. (3) Notwithstanding anything to the contrary to the contrary contained in this Act where a Cooperative Bank being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961(47 of 1961) is amalgamated or in respect of which a scheme of compromise or arrangement or of reconstruction has been sanctioned and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank, under sub-section
5. (2) of section 16 of the Act, the bank with which such insured bank is amalgamated or, the mew Cooperative Bank formed after such amalgamation or, as the case may be, the insured bank or the transferee bank shall be under an obligation to repay the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of that Act.

44 AL. Supersession of Managing Committee of Cooperative Bank. – Notwithstanding anything contrary contained in this Act Registrar Shall if so required in writhing by the Reserve Bank in public interest or for preventing the affairs of the Cooperative Bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the Cooperative Bank; pass an order for the supersession of the managing committee or other managing body (by whatever name called) of that Cooperative Bank and appointment of an administrator therefore, upon such terms and for such periods not exceeding five years in the aggregate, as may from time to time be specified by the

Reserve Bank’s sanction or requisition for winding up order 44 AM. Reserve Bank’s sanction or requisition for winding up order. –

1. (1) Notwithstanding anything to the contrary contained in this Act, no Cooperative Bank shall be wound up except with the previous sanction in writing of the Reserve Bank.
2. (2) Notwithstanding anything to the contrary contained in this Act, the Registrar shall make an order for the winding up of a Cooperative Bank if so required by the Reserve Bank in the circumstances mentioned in section 13 D of the Deposit insurance Corporation Act, 1961 (47 of 1961)

44 AN. Reimbursement to Deposit Insurance Corporation. – Where a Cooperative Bank, being an insured bank within the meaning of Deposit Insurance Corporation Act, 1961 (47 of 1961) is wound up or is taken into liquidation and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section

1. (1) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed in the circumstances to the extent and in the manner provided in section 21 of that Act.

44 AO. Finality of the Reserve Bank’s sanction or requisition. – Notwithstanding anything to the contrary contained in this Act where with the previous sanction in writing or on the requisition of the Reserve Bank-

1. (i) an order for the winding up of the cooperative bank is made, or
2. (ii) in respect of which a scheme of compromise or arrangement or of reconstruction or amalgamation is made, or
3. (iii) in respect of which an order for the supersession of its managing committee or other managing body (by whatever name called) and the appointment of an administrator therefore has been made. no appeal or revision on review there against shall lie or be permissible and such sanction or requisition of the Reserve Bank shall not be liable to be called in question in any manner.]