## Report on the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2021
**1. Executive Summary:**
This report analyzes the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2021, based solely on the provided Government of India notification. This amendment addresses a specific operational challenge within nationalized banks, allowing the Board to act in situations where a committee quorum cannot be met due to vacancies or recusals, ensuring the bank can still fulfill its legal obligations. This report provides an overview of the amendment, its rationale, key changes, affected stakeholders, and expected outcomes.
**2. Introduction:**
The purpose of this report is to provide information and analysis of the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2021, as detailed in the provided Government of India notification. The analysis is strictly limited to the information contained within the provided text.
**3. Policy Overview:**
* This document represents an *amendment* to two pre-existing policies: The Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970 and The Nationalised Banks Management and Miscellaneous Provisions Scheme, 1980.
* **Core Objective (Inferred):** Based on the amendment text, the core objective is to ensure the continued operational efficiency and legal compliance of nationalized banks by providing a mechanism for the Board to act when a committee quorum is unattainable.
**4. Background and Rationale:**
The amendment suggests a potential issue where nationalized banks are facing difficulties in achieving quorum for committees of the Board. This difficulty might be due to vacancies within the committee or recusals by existing members. The amendment aims to address this challenge by empowering the Board to act directly when such quorum issues arise, preventing operational paralysis and ensuring legal obligations are met.
**5. Key Provisions / Changes:**
This amendment introduces a new provision, paragraph 14A, into both the 1970 and 1980 Nationalised Banks Management and Miscellaneous Provisions Schemes. The key provision is as follows:
* **What is being changed:** The original Schemes are being supplemented with a special provision to address situations where a Committee of the Board lacks quorum.
* **New Rule/Provision:** A new paragraph 14A is added, titled "Special provision." This provision allows the Board of a nationalized bank to undertake any act or thing required by law, even if the recommendations, determination, or resolution of grievances by a Committee of the Board is needed, but the committee lacks quorum due to vacancies or recusals.
* **Effect of the Change:** This change empowers the Board to bypass the committee process in specific circumstances (lack of quorum), allowing the bank to fulfill its legal obligations without being hindered by committee inactivity. This is pertinent when the bank is required by law to do something that requires a determination of security holder grievances, or decisions related to appointments, approvals, or reviews.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Nationalized banks and their Boards of Directors.
* Security holders of nationalized banks.
* Committees of the Board of nationalized banks.
* The Reserve Bank of India (RBI).
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Board of Directors of each nationalized bank is responsible for implementing this amendment.
* **Procedures:** The Board must be "satisfied" that a quorum cannot be met due to vacancies or recusals before invoking the special provision. This implies a need for internal procedures to document and justify the Board's decision to act in lieu of the committee.
* **Timelines:** The amendment came into force on the date of its publication in the Official Gazette (January 25, 2021), indicating immediate effect.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is to:
* Prevent operational delays and ensure timely compliance with legal requirements by nationalized banks.
* Provide clarity and a mechanism for the Board to act in situations where committee quorum cannot be achieved.
* Improve the efficiency and effectiveness of decision-making within nationalized banks, particularly in circumstances requiring immediate action.
* Reduce the risk of non-compliance due to committee inactivity.
**9. Conclusion:**
The Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2021, addresses a specific operational challenge faced by nationalized banks related to committee quorum requirements. By empowering the Board to act in the absence of a quorum, the amendment aims to ensure the continued efficiency and legal compliance of these institutions. This amendment is a targeted adjustment designed to improve governance and operational effectiveness within the nationalized banking sector.
Key Entities Referenced
New Delhi: The city where the notification was issued, located in Delhi.
Ministry of Finance: The Indian government ministry that issued the notification.
Department of Financial Services: The department within the Ministry of Finance responsible for the notification.
Banking Companies Acquisition and Transfer of Undertakings Act, 1970: An Indian law that confers powers to the Central Government.
Reserve Bank: The central bank of India, consulted by the Central Government in making the scheme.
Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970: A scheme related to the management of nationalized banks, being amended by this notification.
Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2021: The name of the scheme introduced through this notification to amend the 1970 scheme.
Banking Companies Acquisition and Transfer of Undertakings Act, 1980: An Indian law that confers powers to the Central Government.
Nationalised Banks Management and Miscellaneous Provisions Scheme, 1980: A scheme related to the management of nationalized banks, being amended by this notification.
PANKAJ JAIN: Addl. Secy. who is an additional secretary
Mayapuri, New Delhi: Location where the document was uploaded, situated in Delhi.
Delhi: Location where the document was published, situated in Delhi.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअID.-E2x7x0x 12021-224708
CG-DL-E-27012021-224708
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 335] नई ददल्ली, बधु िार, िनिरी 27, 2021/माघ 7, 1942
No. 335] NEW DELHI, WEDNESDAY, JANUARY 27, 2021/MAGHA 7, 1942
जित्त मंत्रालय
(जित्तीय सेिाएं जिभाग)
अजधसचू ना
नई ददल्ली, 25 िनिरी, 2021
का.आ. 366(अ).—केन्द्रीय सरकार, बैंककारी कंपनी (उपक्रमों का अिनज और अतं रण) अजधजनयम, 1970 (1970
का 5) की धारा 9 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ररििज बैंक से परामिज करन े के पश्चात्, राष्ट्रीयकृत बैंक (प्रबंध
और प्रकीणज उपबधं ) स्ट्कीम, 1970 का और संिोधन करने के जलए, जनम् नजलजखत स्ट्कीम बनाती ह,ै अथाजत ् :—
1. संजिप्त नाम और प्रारंभ.—(1) इस स्ट्कीम का संजिप्त नाम राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) संिोधन
स्ट्कीम, 2021 ह।ै
(2) यह रािपत्र में प्रकािन की तारीख से प्रिृत्त होगी।
2. राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) स्ट्कीम, 1970 में पैरा 14 के पश्चात ् जनम्नजलजखत परै ा को अंत:स्ट्थाजपत
दकया िाएगा, अथाजत ् :—
“14क. जििषे उपबधं .—िहां दकसी राष्ट्रीयकृत बैंक से जिजध द्वारा कोई कारजिाई या बात करने की अपेिा ह ै और
ऐसा करन े के जलए बैंक के बोड जकी दकसी सजमजत की जसफाररिों या अिधारण, या उसके द्वारा प्रजतभूजतधारकों की
जिकायतों का समाधान, या दकसी जनयुजि, उसके के संबंध में उसके अनुमोदन या पुनर्विलोकन की अपेिा ह,ै और
यदद बोडज का यह समाधान हो िाता ह ै दक ऐसी सजमजत का, ऐसी सजमजत में कोई ररजि जिद्यमान होने अथिा
500 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
उसके दकसी सदस्ट्य के इससे अलग होने के कारण बैठक के जलए गणपूर्वत परू ी नही हो सकती ह ै तो बोडज उि
कारजिाई अथिा बात को कर सकेगा।”
[फा. स.ं 16/22/2019-बीओ-I(पार्ज)]
पंकि िैन, अपर सजचि
रर्प्पण : मलू स्ट्कीम भारत के रािपत्र, भाग- II, खंड 3, उप-खंड (ii) में संख्या का.आ. 3793 तारीख 16 निम्बर, 1970
द्वारा प्रकाजित की गई थी और अंजतम बार संख्या का.आ. 1200(अ) तारीख 23 माच,ज 2020 द्वारा संिोजधत की गई थी।
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 25th January, 2021
S.O. 366(E).—In exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970), the Central Government, after consultation with the Reserve Bank,
hereby makes the following Scheme further to amend the Nationalised Banks (Management and Miscellaneous
Provisions) Scheme, 1970, namely:—
1. Short title and commencement.—(1) This Scheme may be called the Nationalised Banks (Management and
Miscellaneous Provisions) Amendment Scheme, 2021.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, after paragraph 14, the
following paragraph shall be inserted, namely:—
“14A. Special provision.—Where a nationalised bank is required by law to do any act or thing and in order
to do so the recommendations or determination of, or resolution of grievances of security holders by, or in
respect of any appointment, approval or review by any Committee of the Board of the bank is required, and if
the Board is satisfied that quorum for meeting of such Committee cannot be met on account of either
existence of any vacancy in such Committee or recusal by member thereof, the Board may do that act or
thing.”.
[F. No. 16/22/2019-BO.I(Pt)]
PANKAJ JAIN, Addl. Secy.
Note: The principal Scheme was published in the Gazette of India, Part II, Section 3, Sub-Section (ii) vide number
S.O. 3793, dated 16th November, 1970 and was last amended vide number S.O. 1200(E), dated 23rd March, 2020.
अजधसचू ना
नई ददल्ली, 25 िनिरी, 2021
का.आ. 367(अ).—केन्द्रीय सरकार, बैंककारी कंपनी (उपक्रमों का अिजन और अंतरण) अजधजनयम, 1980 (1980
का 40) की धारा 9 द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, ररििज बैंक से परामि ज करन े के पश्चात्, राष्ट्रीयकृत बैंक (प्रबंध
और प्रकीणज उपबधं ) स्ट्कीम, 1980 का और संिोधन करने के जलए, जनम् नजलजखत स्ट्कीम बनाती ह,ै अथाजत ् :—
1. संजिप्त नाम और प्रारंभ.—(1) इस स्ट्कीम का संजिप्त नाम राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) संिोधन
स्ट्कीम, 2021 ह।ै
(2) यह रािपत्र में प्रकािन की तारीख से प्रिृत्त होगी।
2. राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) स्ट्कीम, 1980 में पैरा 14 के पश्चात् जनम्नजलजखत परै ा अतं :स्ट्थाजपत दकया
िाएगा, अथाजत ् :—
“14क. जििषे उपबधं .—िहां दकसी राष्ट्रीयकृत बैंक से जिजध द्वारा कोई कारजिाई या बात करने की अपेिा ह ै और
ऐसा करन े के जलए बैंक के बोड जकी दकसी सजमजत की जसफाररिों या अिधारण, या उसके द्वारा प्रजतभूजतधारकों की
जिकायतों का समाधान, या दकसी जनयुजि, उसके के संबंध में उसके अनुमोदन या पुनर्विलोकन की अपेिा ह,ै और[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
यदद बोडज का यह समाधान हो िाता ह ै दक ऐसी सजमजत का, ऐसी सजमजत में कोई ररजि जिद्यमान होने अथिा
उसके दकसी सदस्ट्य के इससे अलग होने के कारण बैठक के जलए गणपूर्वत परू ी नही हो सकती ह ै तो बोडज उि
कारजिाई अथिा बात को कर सकेगा।”
[फा.सं. 16/22/2019-बीओ-I(पार्ज)]
पंकि िैन, अपर सजचि
रर्प्पण : मूल स्ट्कीम भारत के रािपत्र, असाधारण, भाग- II, खंड 3, उप-खंड (ii) म ें संख्या का.आ. 875(अ) तारीख
4 निम्बर, 1980 द्वारा प्रकाजित की गई थी और अंजतम बार संख्या का.आ. 1201(अ) तारीख 23 माचज, 2020 द्वारा
संिोजधत की गई थी।
NOTIFICATION
New Delhi, the 25th January, 2021
S.O. 367(E).—In exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government, after consultation with the Reserve Bank,
hereby makes the following Scheme further to amend the Nationalised Banks (Management and Miscellaneous
Provisions) Scheme, 1980, namely:—
1. Short title and commencement.—(1) This Scheme may be called the Nationalised Banks (Management and
Miscellaneous Provisions) Amendment Scheme, 2021.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980, after paragraph 14, the
following paragraph shall be inserted, namely:—
“14A. Special provision.—Where a nationalised bank is required by law to do any act or thing and in order
to do so the recommendations or determination of, or resolution of grievances of security holders by, or in
respect of any appointment, approval or review by any Committee of the Board of the bank is required, and if
the Board is satisfied that quorum for meeting of such Committee cannot be met on account of either
existence of any vacancy in such Committee or recusal by member thereof, the Board may do that act or
thing.”.
[F. No. 16/22/2019-BO.I(Part)]
PANKAJ JAIN, Addl. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part- II, Section 3, Sub-Section (ii)
vide number S.O. 875(E), dated 4th November, 1980, and was last amended vide number S.O. 1201(E), dated 23rd
March, 2020.
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.