Section Section 3
) (w.e.f: 6-10-1956). 8. Subs by Act of 1984, s. 6, for " week" (w.e.f: 29-3-198
section 3) (w.e.f: 6-10-1956). 8. Subs by Act of 1984, s. 6, for " week" (w.e.f: 29-3-1985)-
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'[(3A) When under the provisions of sub-section (3) penal interest at the increased rate of five per cent; above the bank rate has become payable by scheduled bank, 2[if thereafter the average daily balance held at the Bank during the next succeeding '[fortnight] is still below the prescribed minimum; every director; manager O secretary of the scheduled bank; who is knowingly and wilfully party to the default; shall be punishable with fine which may extend to five hundred rupees and with a further fine which may extend to five hundred rupees for each subsequent ?[fortnight] during which the default continues, and (b) the Bank may prohibit the scheduled bank from receiving after the said ?[fortnight] any fresh deposit;] and, if default is made by the scheduled bank in complying with the prohibition referred to in clause (b), every director and officer of the scheduled bank who is knowingly and wilfully a party to such default O who through negligence or otherwise contributes to such default shall in respect of each such default be punishable with fine which may extend to five hundred rupees and with further fine which may extend to five hundred rupees for each day after the first on which deposit received in contravention of such prohibition is retained by the scheduled bank: Explanation.-~In this sub-section *officer" includes a 4*** manager; secretary, branch manager, and branch secretary:] Any scheduled bank failing to comply with the provisions of sub-section (2) S[shall be liable to pay to the Bank] a penalty of one hundred rupees for each day during which the failure continues [(5) (a) The penalties imposed by sub-sections (3) and (4) shall be payable within period of fourteen days from the date o which a notice issued by the Bank demanding the payment of the same is served on the scheduled bank, and in the event of failure of the scheduled bank to pay the same within such period, may be levied by a direction of the principal civil court having jurisdiction in the area where an office of the defaulting bank is situated, such direction to be mode oly upon an application made in this behalf to the court by the Bank; b when the court makes a direction under clause (a), it shall issue a certificate specifying the sum payable by the scheduled bank and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a suit; notwithstanding anything contained in this section; if the Bank is satisfied that the defaulting bank and sufficient cause for its failure to comply with the provisions of sub-section (1), (IA) o (2), it may not demand the payment of the penal interest of the penalty, as the case may be.] 7[(6) The Bank shall, save as hereinafter provided, by notification in the Gazette of India; direct the inclusion in the Second Schedule of any bank not already so included which carries on the business of banking S[in India] and which has paid-up capital and reserve of an aggregate value of not less than five lakhs o rupees, and (ii) satisfies and Bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors, and
1. Ins. by Act 38 of 1940, 2 (w.e.f: 27-22-1940). 2. Subs by Act 38 of 1956, $. 5, for certain words (W.e.f. 6-10-1956)_ 3 . Subs: by Act 1 of 1984, s. 6, for " week" (w.e.f: 29-3-1985)_ The words "managing agent" omitted by Act 32 of 1951 16 (w.e.f: 1-11-1951). 5. Subs. by $_ 16, ibid, for *shall be liable to pay to the Central Government or to the Bank; as the case may be, or to each; (w.e.f: 1-11-1951). 6. Subs. by Act 35 of 1962, s. 4, for sub-section (5) (w.e.f: 15-9-1962). 7 . Subs. by Act 10 of 1949, s. 55 and the First Schedule, for sub-section (6) (W.e.f: 16-3-1949)_ 8 Subs by Act 32 of 1951_ 16, for "in any State of India" (W.e.f: 1-11-1951).
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(iii) '[is a State cO-operative bank O company] as defined 2[section 3of the Companies Act; 1956 (1 of 1956), or an institution notified by the Central Government in this behalf] or corporation or a company incorporated by Or under any law in force in any place [outside India]; b) direct the exclusion from that Schedule of any scheduled bank; the aggregate value of whose paid-up capital and reserves becomes at any time less than five lakhs of rupees, Or (ii) which is, in the opinion of the Bank after making an inspection under
Roop's Law Assist