Section 37
Other business which a subsidiary bank may transact. Repealed
The State Bank of India (Subsidiary Banks) Act, 1959
About this Act
An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.
1
[(1) Subject to the other
provisions contained in this Act, a subsidiary bank may carry on and transact the business of banking
as defined in clause (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), and may
engage in one or more of the other forms of business specified in sub-section (1) of section 6 of that
Act.]
(2) The Central Government may, after consultation with the Reserve Bank and the State Bank, by order in writing--
(a) authorise a subsidiary bank to do such other forms of business as the Central Government may consider necessary or expedient;
(b) direct that any form of business as is mentioned in the order, shall be carried on subject to such restrictions, conditions and safeguards as may be specified therein; or
(c) Prohibit a subsidiary bank from carrying on or transacting any form of business which, but for this clause, it is lawful for the subsidiary bank to engage in.
(3) Save as otherwise provided in sub-section (2), a subsidiary bank shall not engage in any form of business other than that referred to in sub-section (1).
(2) The Central Government may, after consultation with the Reserve Bank and the State Bank, by order in writing--
(a) authorise a subsidiary bank to do such other forms of business as the Central Government may consider necessary or expedient;
(b) direct that any form of business as is mentioned in the order, shall be carried on subject to such restrictions, conditions and safeguards as may be specified therein; or
(c) Prohibit a subsidiary bank from carrying on or transacting any form of business which, but for this clause, it is lawful for the subsidiary bank to engage in.
(3) Save as otherwise provided in sub-section (2), a subsidiary bank shall not engage in any form of business other than that referred to in sub-section (1).
Notes
1. Subs. by Act 48 of 1973, s. 29, for sub-section (1) (w.e.f. 31-12-1973).