Home India Ministry of Corporate Affairs Exemption of RRBs from the certain provisions of Competition...
Date: 19-Jul-2023 Category: Extra Ordinary State: Union Government Country: India

Exemption of RRBs from the certain provisions of Competition Act

Issued by Ministry of Corporate Affairs · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification exempts Regional Rural Banks (RRBs) from certain provisions of the Competition Act, 2002 for a period of five years.
  • This exemption applies to RRBs notified under sub-section (1) of section 23A of the Regional Rural Banks Act, 1976.

Key Changes

  • Regional Rural Banks are exempted from the application of Section 5 and Section 6 of the Competition Act, 2002.
  • The exemption is valid for five years from July 19, 2023, the date of publication of the notification in the Official Gazette.
  • The Central Government is exercising powers conferred by clause (a) of section 54 of the Competition Act, 2002 to grant this exemption in public interest.

Impact Analysis

Regional Rural Banks (RRBs)

  • Action Item: RRBs should be aware of the specific period of exemption and ensure compliance with the Competition Act after the exemption period expires.

Central Government

  • Action Item: The Ministry of Corporate Affairs should monitor the impact of this exemption on the competitive landscape in the rural banking sector.

Customers of RRBs

  • Action Item: Regulators should monitor service levels and customer satisfaction at RRBs to ensure that customers are not adversely affected by any changes resulting from the exemption.

Other Banks and Financial Institutions

  • Action Item: Other banks and financial institutions may seek clarification on the rationale behind the exemption and its potential impact on competition.

Key Entities Referenced

Central Government: The entity issuing the notification through the Ministry of Corporate Affairs. Regional Rural Banks (RRBs): Banks established under the Regional Rural Banks Act, 1976, and notified under section 23A(1) of the same act. These are the entities receiving the exemption. Competition Act, 2002: The Act (12 of 2003) that governs competition in India. Sections 5 and 6 deal with combinations (mergers, acquisitions, etc.) that could have an appreciable adverse effect on competition. Regional Rural Banks Act, 1976: The Act (21 of 1976) that provides for the establishment and regulation of Regional Rural Banks.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-डी.एल.-अ.-19072023-247458 xxxGIDExxx CG-DL-E-19072023-247458 असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 3105] नई दिल्ली, बुधवार, िुलाई 19, 2023/आर्षाढ़ 28, 1945 No. 3105] NEW DELHI, WEDNESDAY, JULY 19, 2023/ASHADHA 28, 1945 कारपोरेट कार् यमत्रं ालर् अजधसचू ना नई दिल्ली, 14 िुलाई, 2023 का.आ. 3238(अ).—केन्द्रीर् सरकार, प्रजतस्ट्पधाय अजधजनर्म, 2002 (2003 का 12) की धारा 54 के खंड (क) द्वारा प्रित्त िजिर्ों का प्रर्ोग करते हुए, प्रािजे िक ग्रामीण बैंक अजधजनर्म, 1976 (1976 का 21) की धारा 23क की उपधारा (1) के अधीन अजधसूजचत प्रािजे िक ग्रामीण बैंक को लोकजित में, रािपत्र में इस अजधसूचना के प्रकािन की तारीख से पांच वर्षों की अवजध के जलए प्रजतस्ट्पधाय अजधजनर्म, 2002 की धारा 5 और 6 के उपबंधों के लाग ूिोने से छूट प्रिान करती ि ै। [फा. सं. 5/31/2015-सीएस] मनोि पाण्डेर्, संर्ुि सजचव MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 14th July, 2023 S.O. 3238(E).—In exercise of the powers conferred by clause (a) of section 54 of the Competition Act, 2002 (12 of 2003), the Central Government, in public interest, hereby exempts the Regional Rural Bank notified under sub-section (1) of section 23A of the Regional Rural Banks Act, 1976 (21 of 1976), from the application of provisions of section 5 and 6 of the Competition Act, 2002 for a period of five years from the date of publication of this notification in the Official Gazette. [F. No. 5/31/2015-CS] MANOJ PANDEY, Jt. Secy. 4658 GI/2023 Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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