Lawgist29Accounts and balance-sheet
(1) At the expiration of each calendar year 1[or at the expiration of a period of twelve months ending with such date as the Central Government may, by notification in the Official Gazette, specify in this behalf], every banking company incorporated 2[in India], in respect respect of all business transacted by it, and every banking company incorporated 3[outside India], in respect of all business transacted through its branches 4[in India], shall prepare with reference to 5[that year or period, as the case may be,] a balance-sheet and profit and loss account as on the last working day of 6[that year or the period, as the case may be,] in the Forms set out in the Third Schedule or as near thereto as circumstances admit:
7[Provided that with a view to facilitating the transition from one period, of accounting to another period of accounting under this sub-section the Central Government may, by order published in the Official Gazette, make such provisions as it considers necessary or expedient for the preparation of, or for other matters relating to, the balance-sheet or profit and loss account in respect of the concerned year or period, as the case may be.]
(2) The balance-sheet and profit and loss account shall be signed
(a) in the case of a banking company incorporated 4[in India], by the manager or the principal officer of the company and where there are more than three directors of the company, by at least three of those directors, or where there are not more than three directors, by all the directors, and
(b) in the case of a banking company incorporated 3[outside India] by the manager or agent of the principal office of the company 4[in India].
(3) Notwithstanding that the balance-sheet of a banking company is under sub-section (1) required to be prepared in a form other than the form 8[set out in Part I of Schedule VI to the Companies Act, 1956 (1 of 1956)], the requirements of that Act relating to the balance-sheet and profit and loss account of a company shall, in so far as they are not inconsistent with this Act, apply to the balance-sheet or profit and loss account, as the case may be, of a banking company.
1[(3A) Notwithstanding anything to the contrary contained in sub-section (3) of section 210 of the Companies Act, 1956 (1 of 1956), the period to which the profit and loss account relates shall, in the case of a banking company, be the period ending with the last working day of the year immediately preceding the year in which the annual general meeting is held.]
9[Explanation.--In sub-section (3A), "year" means the year or, as the case may be, the period referred to in sub-section (1).]
(4) The Central Government, after giving not less than three monthsnotice of its intention so to do by a notification in the Official Gazette, may from time to time by a like notification amend the Forms set out in the Third Schedule.
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1. Ins. by Act 66 of 1988, s. 8 (w.e.f. 30-12-1988).
2. Subs. by Act 20 of 1950, s. 3, for "in a State" (w.e.f.18-3-1950).
3. Subs. by s. 3, ibid., for "outside the State" (w.e.f.18-3-1950).
4. Subs. by s. 3, ibid., for "in the State" (w.e.f. 18-3-1950).
5. Subs. by Act 66 of 1988, s. 8, for "that year" (w.e.f. 30-12-1988).
6 Subs. by s. 8, ibid., for "the year" (w.e.f. 30-12-1988).
7. Subs. by s. 8, ibid., for the proviso (w.e.f. 30-12-1988).
8. Subs. by Act 95 of 1956, s. 14 and Sch. for "marked F in the Third Schedule to the Indian Companies Act, 1913 (7 of 1913)" (w.e.f. 14-1-1957).
9. Ins. by Act 66 of 1988, s. 8 (w.e.f. 30-12-1988).
- 6 Form of business in which banking companies may engage
- 7 Use of words "bank", "banker", "banking" or "banking company"
- 8 Prohibition of trading
- 9 Disposal of non-banking assets
- 10 Prohibition of employment of managing agents and restrictions on certain forms of employment
- 10A Board of directors to include persons with professional or other experience
- 10B Banking company to be managed by whole time chairman
- 10BB Power of Reserve Bank to appoint chairman of the Board of directors appointed on a whole-time basis or a managing director of a banking company
- 10C Chairman and certain directors not to be required to hold qualification shares
- 10D Provisions of sections 10A and 10B to override all other laws, contracts, etc
- 11 Requirement as to minimum paid-up capital and reserves
- 12 Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders
- 12A Election of new directors
- 12B Regulation of acquisition of shares or voting rights
- 13 Restriction on commission, brokerage, discount, etc., on sale of shares
- 14 Prohibition of charge on unpaid capital
- 14A Prohibition of floating charge on assets
- 15 Restrictions as to payment of dividend
- 16 Prohibition of common directors
- 17 Reserve Fund
- 18 Cash reserve
- 19 Restriction on nature of subsidiary companies
- 20 Restrictions on loans and advances
- 20A Restrictions on power to remit debts
- 21 Power of Reserve Bank to control advances by banking companies
- 21A Rates of interest charged by banking companies not to be subject to scrutiny by courts
- 22 Licensing of banking companies
- 23 Restrictions on opening of new, and transfer of existing, places of business
- 24 Maintenance of a percentage of assets
- 25 Assets in India
- 26 Return of unclaimed deposits
- 26A Establishment of Depositor Education and Awareness Fund
- 27 Monthly returns and power to call for other returns and information
- 28 Power to publish information
- 29 Accounts and balance-sheet
- 29A Power in respect of associate enterprises
- 30 Audit
- 31 Submission of returns
- 32 Copies of balance-sheets and accounts to be sent to registrar
- 33 Display of audited balance-sheet by companies incorporated outside India
- 34 Accounting provision of this Act not retrospective
- 34A Production of documents of confidential nature
- 35 Inspection
- 35A Power of the Reserve Bank to give directions
- 35AA Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process
- 35AB Power of Reserve Bank to issue directions in respect of stressed assets
- 35B Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank
- 36 Further powers and functions of Reserve Bank
- 36A Certain provisions of the Act not to apply to certain banking companies
