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Bar News Acts League

The Deposit Insurance and Credit Guarantee Corporation Act, 1961

Act ID: 1961

The Deposit Insurance and Credit Guarantee Corporation Act, 1961

"An Act to provide for the establishment of a Corporation for the purpose of insurance of deposits and guaranteeing of credit facilities."

Table of Contents

61 Sections

Ch. 1

PRELIMINARY

S.1Short title, extent and commencement.S.2Definition.

Ch. 2

ESTABLISHMENT AND MANGEMENT OF THE DEPOSIT INSURANCE CORPORATION

S.3Establishment and incorporation of Deposit Insurance Corporation.S.4Capital of Corporation.S.5Management of Corporation.S.6Board of directors.S.7Meetings of Board.S.8Committees of Corporation.S.9Fees and allowances of directors.

Ch. 3

REGISTRATION OF BANKING COMPANIES AND CO-OPERATIVE BANKS AS INSURED BANKS AND LIABILITY OF CORPORATION TO DEPOITORS

S.10Registration of existing banking companies.S.11Registration of new banking companies.S.11ARegistration of Regional Rural Banks.S.12Registration of defunct banking companies.S.13Cancellation of registration.S.13ARegistration of co-operative banks.S.13BRegistration of defunct co-operative banks.S.13CCancellation of registration of co-operative banks.S.13DCircumstances in which Reserve Bank may require winding up of co-operative banks.S.14Intimation of registration.S.15Premium.S.15ACancellation of registration of an insured bank for non-payment of premium.S.16Liability of Corporation in respect of insured deposits.S.17Manner of payment by Corporation in case of winding up of insured banks.S.18Manner of payment by corporation in case of scheme of compromise or arrangement or of reconstruction or amalgamation in respect of an insured bank.S.19Discharge of the liability of Corporation.S.20Provision for unpaid amounts.S.21Repayment of the amount to corporation.

Ch. 4

CREDIT GUARANTEE FUNCTIONS

S.21AGuaranteeing of credit facilities and indemnifying credit institutions.S.21BCorporation to act as agent of Central Government.

Ch. 5

FUNDS, ACCOUNTS AND AUDIT

S.22Funds of Corporation.S.23Deposit Insurance Fund.S.23ACredit Guarantee Fund.S.24General Fund.S.25Investment.S.25AAmount in one fund may be transferred to the other fund or may be utilised for other purposes.S.26Advances by Reserve Bank.S.27Advances from General Fund to the Deposit Insurance Fund or Credit Guarantee Fund.S.28Preparation of balance-sheet, etc., by corporation.S.29Audit.S.30Income-tax.S.31Reserve Fund.S.32Annual accounts and reports.

Ch. 6

MISCELLANEOUS

S.33Staff of Corporation.S.34Returns from insured banks.S.35Corporation to have access to records.S.36Inspection of insured banks by Reserve Bank.S.37Corporation to furnish information to Reserve Bank.S.38Reserve Bank to furnish information to Corporation.S.39Declaration of fidelity and secrecy.S.40Indemnity of directors.S.41Defects in appointment not to invalidate acts, etc.S.42Protection of action taken under this act.S.43Companies Act, 1956 and insurance act, 1938 not to apply.S.44Liquidation of Corporation.S.45Power of Central Government to give directions.S.46Dispute as to amount of premium.S.47Penalties.S.48Offences by companies.S.49Cognizance and trial of offences.S.50Regulation.S.51Repealed.