Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019

Govt notifies Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019 on 17th September, 2019.

MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 17th September, 2019

S.O. 3350(E).—In exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Central Government hereby makes the following Scheme further to amend the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, namely:—

1. (1) This scheme may be called the Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970,—

(i) in paragraph 13,—

(A) in sub-paragraph (2), for the proviso, the following provisos shall be substituted, namely:—

“Provided that the Directors nominated by the Board shall hold office for not more than one year:

Provided further that in case the Board is of the opinion that circumstances exist which necessitate in the interest of proper management of the bank, continuation of a Director so nominated beyond the period of one year, the Board may permit such Director to continue to hold office for such further period or periods not exceeding six months at a time, as it may specify; so, however, that the total duration of such further period shall not exceed one year.”;

(B) for the explanation, the following explanation shall be substituted, namely:—

“Explanation.— For the purposes of sub-paragraph (2), “Executive Director” means the whole-time Director, not being the Managing Director and Chief Executive Officer appointed under clause (a) of sub-section (3) of section 9 of the Act and designated as such.”;

(ii) in paragraph 13A,—

(A) in sub-paragraph (2), for the word, brackets and figure “sub-clause (1)”, the following shall be substituted, namely:—

“sub-paragraph (1)”;

(B) after sub-paragraph (3), the following sub-paragraph shall be inserted, namely:—

“(3A) Notwithstanding anything contained in sub-paragraph (3), in banks with net non-performing assets of less than six per cent. of risk-weighted assets, the Credit Approval Committee shall exercise the powers of the Board with regard to credit proposals—

(a) up to eight hundred crore rupees, in case of banks having total business of more than ten lakh crore rupees; or

(b) up to six hundred crore rupees, in case of banks having total business of more than five lakh crore rupees and up to ten lakh crore rupees; or

(c) up to five hundred crore rupees, in case of banks having total business of more than three lakh crore rupees and up to five lakh crore rupees; or

(d) up to two hundred fifty crore rupees, in case of other nationalised banks.

Explanation.—For the purposes of this sub-paragraph, net non-performing assets, risk weighted assets and total business shall be reckoned as per the last declared results of the bank, and the expression “total business” means the summation of the gross loans and advances and the total deposits of the bank.”;

(C) in sub-paragraph (4), for the word, brackets and figure “sub-clause (3)”, the following shall be substituted, namely:—

“sub-paragraph (3)”;

(D) in sub-paragraph (8), for the word “clause” at both places where they occur, the word “paragraph” shall be substituted.”.

[F. No. 16/22/2019-BO.I]
MADNESH KUMAR MISHRA, Jt. Secy.

Note : The principal scheme was published vide notification number S.O. 3793(E), dated the 16^th November, 1970 and subsequently amended vide following notifications:—

NOTIFICATION
New Delhi, the 17th September, 2019

S.O. 3351(E).—In exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40of 1980), the Central Government hereby makes the following Scheme further to amend the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980, namely:—

1. (1) This Scheme may be called the Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980,—

(i) in paragraph 13,—

(A) in sub-paragraph (2), for the proviso, the following provisos shall be substituted, namely:—

“Provided that the Directors nominated by the Board shall hold office for not more than one year:

Provided further that in case the Board is of the opinion that circumstances exist which necessitate in the interest of proper management of the bank, continuation of a Director so nominated beyond the period of one year, the Board may permit such Director to continue to hold office for such further period or periods not exceeding six months at a time, as it may specify; so, however, that the total duration of such further period shall not exceed one year.”;

(B) for the explanation, the following explanation shall be substituted, namely:—

“Explanation.— For the purposes of sub-paragraph (2), “Executive Director” means the whole-time Director, not being the Managing Director and Chief Executive Officer appointed under clause (a) of sub-section (3) of section 9 of the Act and designated as such.”;

(ii) in paragraph 13A,—

(A) in sub-paragraph (2), for the word, brackets and figure “sub-clause (1)”, the following shall be substituted, namely:—

“sub-paragraph (1)”;

(B) after sub-paragraph (3), the following sub-paragraph shall be inserted, namely:—

“(3A) Notwithstanding anything contained in sub-paragraph (3), in banks with net non-performing assets of less than six per cent. of risk-weighted assets, the Credit Approval Committee shall exercise the powers of the Board with regard to credit proposals—

(a) up to eight hundred crore rupees, in case of banks having total business of more than ten lakh crore rupees; or

(b) up to six hundred crore rupees, in case of banks having total business of more than five lakh crore rupees and up to ten lakh crore rupees; or

(c) up to five hundred crore rupees, in case of banks having total business of more than three lakh crore rupees and up to five lakh crore rupees; or

(d) up to two hundred fifty crore rupees, in case of other nationalised banks.

Explanation.—Forthe purposes of this sub-paragraph, net non-performing assets, risk weighted assets and total business shall be reckoned as per the last declared results of the bank, and the expression “total business” means the summation of the gross loans and advances and the total deposits of the bank.”;

(C) in sub-paragraph (4), for the word, brackets and figure “sub-clause (3)”, the following shall be substituted, namely:—

“sub-paragraph (3)”;

(D) in sub-paragraph (8), for the word “clause” at both places where they occur, the word “paragraph” shall be substituted.”.

[F. No. 16/22/2019-BO.I]
MADNESH KUMAR MISHRA, Jt. Secy.

Note : The principal scheme was published vide notification number S.O. 875(E), dated the 4^th November, 1980 and subsequently amended vide following notifications:—