Amendment status not verified — confirm the current text below against the official source.
Ins. by s. 11, ibid. (w.e.f. 13-12-1974). 31 1 [(iiia) a corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);] (iv) a banking company as defined in clause (c) section 5 of the Banking Regulation Act, 1949 (10 of 1949); (v) a co-operative bank; or (vi) any other financial institution notified by the Central Government in this behalf, shall be reduced by the aggregate of the liabilities of all such banks and institutions to the scheduled bank; (e) the aggregate of the “liabilities” of a scheduled bank which is a State co-operative bank, to,— (i) the State Bank; (ii) a subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (iii) a corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); 1[(iiia) a corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);] (iv) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); or (v) any other financial institution notified by the Central Government in, this behalf, shall be reduced by the aggregate of the liabilities of all such banks and institutions to the State co-operative bank.] (1A) Notwithstanding anything contained in sub-section (1), the Bank may, by notification in the Gazette of India, direct that every scheduled bank shall, with effect from such date as may be specified in the notification, maintain with the Bank, in addition to the balance prescribed by or under sub-section (1), an additional average daily balance the amount of which shall not be less than the 2[rate specified in the notification, such additional balance being calculated with reference to the excess of the total of the demand and time liabilities of the bank as shown in the return referred to in sub-section (2) over the total of its demand and time liabilities] at the close of business on the date specified in the notification as shown by such return so however, that the additional balance shall, in no case, be more than such excess: 3[Provided that the Bank may, by a separate notification in the Gazette of India, specify different dates in respect of a Bank subsequently included in the Second Schedule]. 4* * * * * 1[1C) The Bank may, for the purposes of this section, specify from time to time with reference to any transaction or class of transactions that such transaction or transactions shall be regarded as liability in India of a scheduled bank, and if any question arises as to whether any transaction or class of transactions shall be regarded, for the purposes of this section, as liability in India of a scheduled bank, the decision of the Bank thereon shall be final.] 5[(2) Every scheduled bank shall send to the Bank a return signed by two responsible officers of such bank showing— (a) the amount of its demand and time liabilities and the amount of its borrowings from banks in India, 6[classifying them into demand and time liabilities],