{"id":7200,"date":"2015-05-21T10:05:00","date_gmt":"2015-05-21T10:05:00","guid":{"rendered":"http:\/\/localhost\/sccblog\/?p=7200"},"modified":"2015-10-29T11:00:52","modified_gmt":"2015-10-29T05:30:52","slug":"regional-rural-banks-amendment-act-20151","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2015\/05\/21\/regional-rural-banks-amendment-act-20151\/","title":{"rendered":"Regional Rural Banks (Amendment) Act, 2015"},"content":{"rendered":"<p style=\"text-align: justify;\">On 12.05.2015, the Regional Rural Banks (Amendment) Act, 2015 received the assent of the President. The objective of the Act is to amend the provisions of Regional Rural Banks Act, 1976, and provides for following amendments:<\/p>\n<ul style=\"text-align: justify;\" type=\"disc\">\n<li>Omits the words \u2018\u2018during the first five years of its functioning\u2019\u2019 in Section 3 (3)(c) and omits the proviso provided thereto<\/li>\n<li>Substitutes the words \u2018\u2018five crores of rupees, divided into five lakhs of fully paid-up shares of one hundred rupees each\u2019\u2019 with \u2018\u2018two thousand crore of rupees, divided into two hundred crore of fully paid-up shares of ten rupees each\u2019\u2019 \u00a0in Section 5 of Act, 1976 and substitutes the words \u2018\u2018twenty-five lakhs of rupees, and the shares shall be, in all cases, fully paid-up shares of one hundred rupees each\u2019\u2019 with \u2018\u2018one crore of rupees, and the shares shall be, in all cases, fully paid-up shares of ten rupees each\u2019\u2019 in the proviso provided thereto<\/li>\n<li>Substitutes the words \u2018\u2018twenty-five lakhs of rupees or exceed one crore of rupees\u2019\u2019 with \u2018\u2018one crore of rupees\u2019\u2019 in Section 6, and inserts following proviso after Section 6 (2) \u2013<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">\u2018\u2018Provided that in case the Regional Rural Bank raises its capital from sources other than the Central Government or the State Government or the Sponsor Bank, the shareholding of the Central Government and the Sponsor Bank shall not be less than fifty-one per cent<\/p>\n<p style=\"text-align: justify;\">Provided further that the Central Government shall consult the concerned State Government if the level of shareholding in the Regional Rural Bank of such State Government is reduced below fifteen per cent\u201d<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Inserts sub-section 2(A) after Section 6(2) which provides power to the Central Government to raise or reduce the limit of shareholding of the Central Government, State Government or the Sponsor Bank, provided that it shall consult the concerned State Government before reducing the limit of shareholding<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Inserts following proviso after Section 9 (a) which provides that \u201cno person shall be nominated as a director, if he is already a director on the Board of any other Regional Rural Bank\u201d<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Inserts Section 9 (f) which provides for election of the directors other than the directors nominated by the Central Government, the State Government, the Sponsor Bank and other institutions owned or controlled by the Central Government or the State Government<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Inserts Section 9 (3) which provides for appointment of an officer on the Board of Regional Rural Banks by the Central Government for effective functioning of the Regional Rural Banks<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Substitutes Section 10 as \u201ca director nominated under Section 9 (1); (a) shall hold office during the pleasure of the Central Government and for such term, not exceeding three years, from the date on which he assumes his office, as the Central Government may specify at the time of his nomination and shall be eligible for renomination:<\/p>\n<p style=\"text-align: justify;\">\u00a0\u00a0\u00a0\u00a0\u00a0 Provided that no such director shall hold office either continuously or intermittently for a period exceeding six years.&#8221;<\/p>\n<p style=\"text-align: justify;\"><!--if !supportLists-->\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <!--endif-->Substitutes the words \u201c31st day of December\u201d with \u201c31st day of March\u201d in Section 19 (1).<\/p>\n<p style=\"text-align: justify;\" align=\"right\"><b>-Ministry of Law &amp; Justice<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 12.05.2015, the Regional Rural Banks (Amendment) Act, 2015 received the assent of the President. The objective of the Act is to <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,4],"tags":[],"class_list":["post-7200","post","type-post","status-publish","format-standard","hentry","category-foreign","category-legislationupdates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Regional Rural Banks (Amendment) Act, 2015 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2015\/05\/21\/regional-rural-banks-amendment-act-20151\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regional Rural Banks (Amendment) Act, 2015\" \/>\n<meta property=\"og:description\" content=\"On 12.05.2015, the Regional Rural Banks (Amendment) Act, 2015 received the assent of the President. 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