Order for winding up, reconstruction, supersession of Committee etc., of insured co-operative bank not to be made without sanction or requisition of Reserve Bank

Notwithstanding anything contained in this Regulation, in the case of an insured co-operative bank,—

1. (a) an order for winding up or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation) of the bank may be made only with the prior approval in writing of the Reserve Bank;
2. (b) an order for winding up the bank shall be made by the Registrar if so required by the Reserve Bank in the circumstances referred to in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 or any other law for the time being in force in the Union territory;
3. (c) notwithstanding anything contained in this Regulation or the rules made thereunder, the Registrar shall ensure the implementation of regulatory prescription given by the Reserve Bank including supersession and winding up of the co-operative bank and shall appoint a special officer or a Liquidator as the case may be within a period of one month of being so advised by the Reserve Bank;
4. (d) if so required by the Reserve Bank in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made by the Registrar for supersession of the Committee and the appointment of a special officer in place thereof for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank, and the special officer so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new Committee of such bank;
5. (e) an order for winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation) or an order for the supersession of the Committee of the bank and the appointment of a special officer in place thereof made with the previous sanction in writing or on the requisition of the Reserve Bank shall be final and shall not be liable to be called in question in any court; and
6. (f) the Liquidator or such bank or the transferee bank, as the case may be, shall be under an obligation to pay the Deposit Insurance Corporation established under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 or any other law for time being in force in the Union territory, in the circumstances, to the extent and in the manner referred to in section 21 of that Act. Explanation.—For the purposes of this section, the expressions—
   • (i) “insured co-operative bank” means a society which is an insured bank under the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 or any other law for the time being in force in the Union territory;
   • (ii) “transferee bank” in relation to an insured co-operative bank means a co-operative bank—
   • (I) with which such insured co-operative bank is amalgamated;
   • (II) to which the assets and liabilities of such insured co-operative bank are transferred; or
   • (III) into which such insured co-operative bank is divided or converted under sub-section (1) of section 17.