(a) the capital structure of the corresponding new bank 1*** 1. The words “, so however that the paid-up capital of any such bank shall not be in excess of rupees one thousand five hundred crores” omitted by Act 37 of 1994, s. 14 (w.e.f. 15-7-1994). 8

(b) the constitution of the Board of Directors, by whatever name called, of the corresponding new bank and all such matters in connection therewith or incidental thereto as the Central Government may consider to be necessary or expedient;

(c) the reconstitution of any corresponding new bank into two or more corporations, the amalgamation of any corresponding new bank with any other corresponding new bank or with another banking institution, the transfer of the whole or any part of the undertaking of a 1 [corresponding new bank to any other corresponding new bank or banking institution] or the transfer of the whole or any part of the undertaking of any other banking institution to a corresponding new bank; 2 [(ca) the manner in which the excess number of directors shall retire under the second proviso to clause

(i) of sub-section

(d) such incidental, consequential and supplemental matters as may be necessary to carry out the provisions of this Act. 3 [

(a) not more than five whole-time directors to be appointed by the Central Government after consultation with the Reserve Bank: Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank. Explanation.—For the purposes of this clause , the expression “corresponding new bank” shall include a “corresponding new bank” as defined in clause

(d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;]

(b) one director who is an official of the Central Government to be nominated by the Central Government: Provided that no such director shall be a director of any other corresponding new bank. Explanation.—For the purposes of this clause, the expression “corresponding new bank” shall include a corresponding new bank within the meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); 5 [

(c) one director, possessing necessary expertise and experience in matters relating to regulation or supervision of commercial banks, to be nominated by the Central Government on the recommendation of the Reserve Bank;] Explanation.—For the purpose of this clause, “an officer of the Reserve Bank” includes an officer of the Reserve Bank who is deputed by that Bank under section 54AA of the Reserve Bank of India Act, 1934 (2 of 1934) to any institution referred to therein; 6 * * * * *

(e) one director, from among such of the employees of the corresponding new bank who are workmen under clause

(s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), to be nominated by the Central Government in such manner as may be specified in a scheme made under this section;

(f) one director, from among the employees of the corresponding new bank who are not workmen under clause

(s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), to be nominated by the Central Government after consultation with the Reserve Bank;

(g) one director who has been a Chartered Accountant for not less than fifteen years to be nominated by the Central Government after consultation with the Reserve Bank;

(h) subject to the provisions of clause

(i) not more than six directors to be nominated by Central Government; 1. Subs. by Act 66 of 1988, s. 36, for “corresponding new bank to any other banking institution” (w.e.f. 30-12-1988). 2. Ins. by Act 45 of 2006, s. 9 (w.e.f. 16-10-2006). 3. Subs. by Act 37 of 1994, s. 14, for sub-section

(a) (w.e.f. 09-08-2019). 5. Subs. by Act 45 of 2006, s. 9, for clause

(c) (w.e.f 16-10-2006). 6. Clause

(d) omitted by s. 9, ibid. (w.e.f. 16-10-2006). 9 1 [

(i) where the capital issued under clause

(c) of sub-section (2B) of section 3 is— (I) not more than sixteen per cent. of the total paid-up capital, one director; (II) more than sixteen per cent. but not more than thirty-two per cent. of the total paid-up capital, two directors; (III) more than thirty-two per cent. of the total paid-up capital, three directors, to be elected by the shareholders, other than the Central Government, from amongst themselves: Provided that on the assumption of charge after election of any such director under this clause, equal number of directors nominated under clause

(h) shall retire in such manner as may be specified in the scheme: Provided further that in case the number of directors elected, on or before the commencement of the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Act, 2006, in a corresponding new bank exceed the number of directors specified in sub-clause (I) or sub-clause (II) or sub-clause (III), as the case may be, such excess number of directors elected before such commencement shall retire in such manner as may be specified in the scheme and such directors shall not be entitled to claim any compensation for the premature retirement of their term of office.] (3A) The directors to be nominated under clause

(h) or to be elected under clause

(i) of sub-section (3A) shall— (A) have special knowledge or practical experience in respect of one or more of the following matters, namely:—

(i) agricultural and rural economy, (ii) banking, (iii) co-operation, (iv) economics,

(v) finance, (vi) law, (vii) small-scale industry, (viii) any other matter the special knowledge of, and practical experience in, which would, in the opinion of the Reserve Bank, be useful to the corresponding new bank; (B) represent the interests of depositors; or (C) represent the interests of farmers, workers and artisans. 2 [(3AA) Without prejudice to the provisions of sub-section (3A) and notwithstanding anything to the contrary contained in this Act or in any other law for the time being in force, no person shall be eligible to be elected as director under clause

(i) of sub-section

(i) of sub-section

(i) (w.e.f. 16-10-2006). 2. Ins. by s. 9, ibid. (w.e.f. 16-10-2006). 3. Subs. by s. 9, ibid., for “sub-section (3A)” (w.e.f. 16-10-2006), 10 next annual general meeting and the person so co-opted shall be deemed to have been duly elected by the shareholders of the corresponding new bank as a director.]

(c) of sub-section

(a) the scheme shall be binding on the corresponding new bank or corporations or banking institutions, and also on the members, if any, the depositors, and other creditors and employees of each of them and on any other persons having any right or liability in relation to any of them including the trustees or other persons, managing or in any other manner connected with, any provident fund or other fund maintained by any of them;

(b) the properties and assets of the corresponding new bank or, as the case may be, of the banking institution shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vested in, and the liabilities of the corresponding new bank or, as the case may be, of the banking institution shall, by virtue of, and to the extent provided in the scheme, stand transferred to, and become the liabilities of, the corporation or corporations brought into existence by reconstitution of the banking institution or the corresponding new bank, as the case may be.] [Explanation I].—In this section, “banking institution” means a banking company and includes 2 the State Bank of India or a subsidiary bank. [Explanation II.—For the purposes of this section, the expression “corresponding new bank” 3 shall include a corresponding new bank within the meaning of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).] 4 [