From American Banker By TAMAR FRANKEL July 10, 2014 Many contributors helped bring about the most...
Regional Rural Banks Act No. 21 of 1976
(amended through 1988)
The Regional Rural Banks Act No. 21 of 1976 provides for the incorporation, regulation and dissolution of regional rural banks (RRBs) in India.
The act is divided into the following chapters:
- Chapter I the preliminary section:
- Explains the title of the Act; and
- Defines terms like: Board, Chairman, Director, etc.
- Chapter II explains the incorporation and capital of RRBs and discusses:
- The establishment and incorporation of RRBs;
- Their offices and agencies; and
- Their authorized capital, etc.
- Chapter III discusses the management of RRBs and explains:
- The constitution of the Board of Directors;
- The appointment of the Chairman; and
- Disqualifications, etc.
- Chapter IV sets out the business of a RRB;
- Chapter V explains the accounts and audit of an RRB, including:
- The closure of accounts;
- The furnishing of its annual report; and
- Disposal of its profits, etc.
- Chapter VA sets out provisions for the amalgamation of RRBs, including:
- Notification to concerned parties;
- Cessation of business of RRBs; and
- Chapter VI explains miscellaneous items, such as:
- The power of the “Central Government”;
- Inspection by the “Sponsor Bank”; and
- Indemnity of directors, etc.