(a) such amounts as the Board of Directors of the corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, transfer from the reserve fund established by such bank to such paid-up capital;

(b) such amounts as the Central Government may, after consultation with the Reserve Bank, contribute to such paid-up capital; 3 [

(c) such amounts as the Board of Directors of the corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, raise by public issue 4[or rights issue or by issue of bonus shares] or preferential allotment or private placement, of equity shares or preference shares in accordance with the procedure as may be prescribed, so, however, that the Central Government shall, at all times hold not less than fifty-one per cent. of the paid-up capital consisting of equity shares of each corresponding new bank: Provided that the issue of preference shares shall be in accordance with the guidelines framed by the Reserve Bank specifying the class of preference shares, the extent of issue of each class of such preference shares (whether perpetual or irredeemable or redeemable) and the terms and conditions subject to which, each class of preference shares may be issued. 5 [(2BB) Notwithstanding anything contained in sub-section

(c) of sub-section (2B), be reduced by—

(a) the Central Government, after consultation with the Reserve Bank, by cancelling any paid-up capital which is lost, or is unrepresented by available assets;

(b) the Board of Directors, after consultation with the Reserve Bank and with the previous sanction of the Central Government, by paying off any paid-up capital which is in excess of the wants of the corresponding new banks: Provided that in a case where such capital is lost, or is unrepresented by available assets because of amalgamation of another corresponding new bank or a corresponding new bank as defined in clause

(d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) with the corresponding new bank, such reduction may be done, either prospectively or retrospectively, but not from a date earlier than the date of such amalgamation. (2BBA)

(a) A corresponding new bank may, from time to time and after any paid-up capital has been 6 [raised by public issue 4[or rights issue or by issue of bonus shares] or preferential allotment or private placement] under clause

(c) of sub-section (2B), by resolution passed at an annual general meeting of the shareholders entitled to vote, voting in person, or, where proxies are allowed, by proxy, and the votes cast 1. Subs. by Act 37 of 1994, s. 12, for sub-sections (2A) and 3 (w.e.f. 15-7-1994). 2. Subs. by Act 4 of 2013, s. 16, for sub-section (2A) (w.e.f. 18-1-2013). 3. Subs. by Act 45 of 2006, s. 8, for clause

(c) (w.e.f. 16-10-2006). 4. Ins. by Act 4 of 2013, s. 16 (w.e.f. 18-1-2013). 5. Ins. by Act 8 of 1995, s. 3 (w.e.f. 21-1-1995). 6. Subs. by Act 45 of 2006, s. 8, for “raised by public issue” (w.e.f. 16-10-2006). 3 in favour of the resolution are not less than three times the number of the votes, if any, cast against the resolution by the shareholders so entitled and voting reduce its paid-up capital in any way.

(b) Without prejudice to the generality of the foregoing power, the paid-up capital may be reduced by—

(i) extinguishing or reducing the liability on any of its shares in respect of share capital not paid-up; (ii) either with or without extinguishing or reducing liability on any of its paid-up shares, cancelling any paid-up capital which is lost, or is unrepresented by available assets; or (iii) either with or without extinguishing or reducing liability on any of its paid-up shares, paying off any paid-up share capital which is in excess of the wants of the corresponding new bank. (2BBB) Notwithstanding anything contained in sub-section (2BB) or sub-section (2BBA), the paid-up capital of a corresponding new bank shall not be reduced at any time so as to render it below twenty-five per cent. of the paid-up capital of that bank as on the date of commencement of the Banking Companies (Acquisition and Transfer of Undertakings) Amendment Act, 1995 (8 of 1995).] (2C) The entire paid-up capital of a corresponding new bank, except the paid-up capital 1[raised from public by public issue 2[or rights issue or by issue of bonus shares] or preferential allotment or private placement] under clause

(c) of sub-section (2B), shall stand vested in, and allotted to, the Central Government. (2D) The shares of every corresponding new bank not held by the Central Government shall be freely transferable: Provided that no individual or company resident outside India or any company incorporated under any law not in force in India or any branch of such company, whether resident outside India or not, shall at any time hold or acquire by transfer or otherwise shares of the corresponding new bank so that such investment in aggregate exceeds the percentage, not being more than twenty per cent. of the paid-up capital, as may be specified by the Central Government by notification in the Official Gazette. Explanation.—For the purposes of this clause, “company” means any body corporate and includes a firm or other association of individuals. (2E) No shareholder of the corresponding new bank, other than the Central Government, shall be entitled to exercise voting rights in respect of any shares held by him in excess of 3[ten per cent.] of the total voting rights of all the shareholders of the corresponding new bank. 4 [Provided that the shareholder holding any preference share capital in the corresponding new bank shall, in respect of such capital, have a right to vote only on resolutions placed before such corresponding new bank which directly affects the rights attached to his preference shares: Provided further that 5[no preference shareholder, other than the Central Government, shall be entitled to exercise voting rights in respect of preference shares held by him in excess of ten per cent.] of the total voting rights of all the shareholders holding preference share capital only.] (2F) Every corresponding new bank shall keep at its head office a register, in one or more books, of the shareholders (in this Act referred to as the register) and shall enter therein the following particulars:—

(i) the names, addresses and occupations, if any, of the shareholders and a statement of the shares held by each share-holder, distinguishing each share by its denoting number; (ii) the date on which each person is so entered as a share holder; (iii) the date on which any person ceases to be a share-holder; and 1. Subs. by Act 45 of 2006, s. 8, for “raised by public issue” (w.e.f. 16-10-2006). 2. Ins. by Act 4 of 2013, s. 16 (w.e.f. 18-1-2013). 3. Subs. by s. 16, ibid., for “one per cent.” (w.e.f. 18-1-2013). 4. Ins. by Act 45 of 2006, s. 8 (w.e.f. 16-10-2006). 5. Subs. by Act 4 of 2013, s. 16, for certain words (w.e.f. 18-1-2013). 4 (iv) such other particulars as may be prescribed. 1 [Provided that nothing in this sub-section shall apply to shares held with a depository.] (2G) Notwithstanding anything contained in sub-section (2F), it shall be lawful for every corresponding new bank to keep the register in computer floppies or diskettes subject to such safeguards as may be prescribed.

(b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), and may engage in 2[one or more of the other forms of business] specified in sub-section

(i) The corresponding new bank shall, if so required by the Reserve Bank, act as agent of the Reserve Bank at all places in India where it has a branch, for—

(a) paying, receiving, collecting and remitting money, bullion and securities on behalf of any Government in India; and

(b) undertaking and transacting any other business which the Reserve Bank may from time to time entrust to it. (ii) The terms and conditions on which any such agency business shall be carried on by the corresponding new bank on behalf of the Reserve Bank shall be such as may be agreed upon. (iii) If no agreement can be reached on any matter referred to in clause (ii), or if a dispute arises between the corresponding new bank and the Reserve Bank as to the interpretation of any agreement between them, the matter shall be referred to the Central Government and the decision of the Central Government thereon shall be final. (iv) The corresponding new bank may transact any business or perform any functions entrusted to it under clause

(i), by itself or through any agent approved by the Reserve Bank.] 4