Here we will see Section 5 of The Banking Regulation Act.

Interpretation. In this Act, unless there is anything repugnant in the subject or context,

(a) approved securitiesmeans the securities issued by the Central Government or any State Government or such other securities as may be specified by the Reserve Bank from time to time.

(b) bankingmeans the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise;

(c) banking companymeans any company which transacts the business of banking in India;

Explanation.Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause;

(ca) banking policymeans any policy which is specified from time to time by the Reserve Bank in the interest of the banking system or in the interest of monetary stability or sound economic growth, having due regard to the interests of the depositors, the volume of deposits and other resources of the bank and the need for equitable allocation and the efficient use of these deposits and resources;

(cc) branchor branch office, in relation to a banking company, means any branch or branch office, whether called a pay office or subpay office or by any other name, at which deposits are received, cheques cashed or moneys lent, and for the purposes of section 35 includes any place of business where any other form of business referred to in subsection (1) of section 6 is transacted;

(d) companymeans any company as defined in section 3 of the Companies Act, 1956 (1 of 1956); and includes foreign company within the meaning of section 591 of that Act;

(da) corresponding new bankmeans a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);

***** Clause (e) omitted by Act 52 of 1953, s. 2 (w.e.f. 30121953).

(f) demand liabilitiesmeans liabilities which must be met on demand, and time liabilitiesmeans liabilities which are not demand liabilities;

(ff) Deposit Insurance Corporationmeans the Deposit Insurance Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47of 1961);

***** Omitted byAct 53 of 2003, s. 12 and Schedule, Part II (w.e.f. 272004).

(ffb) Exim Bankmeans the ExportImport Bank of India established under section 3 of the ExportImport Bank of India Act, 1981 (28 of 1981);

(ffc) Reconstruction Bankmeans the Industrial Reconstruction Bank of India established under Section 3 of the Industrial Reconstruction Bank of India Act,1984(62 of 1984);

(ffd) National Housing Bankmeans the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987);

(g) goldincludes gold in the form of coin, whether legal tender or not, or in the form of bullion or ingot, whether refined or not;

(gg) managing agentincludes,

(i) secretaries and treasurers,

(ii) where the managing agent is a company, any director of such company, and any member thereof who holds substantial interest in such company,

(iii) where the managing agent is a firm, any partner of such firm;

(h) managing director, in relation to a banking company, means a director who, by virtue of an agreement with the banking company or of a resolution passed by the banking company in general meeting or by its Board of directors or, by virtue of its memorandum or articles of association, is entrusted with the management of the whole, or substantially the whole of the affairs of the company, and includes a director occupying the position of a managing director, by whatever name called:

Provided that the managing director shall exercise his powers subject to the superintendence, control and direction of the Board of directors.

(ha) National Bankmeans the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);

***** Omitted by Act 33 of 1959, s. 2 (w.e.f. 1101959).

(j) prescribedmeans prescribed by rules made under this Act;

(ja) regional rural bankmeans a regional rural bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);

***** Omitted by Act 33 of 1959, s. 2 (w.e.f. 1101959).

(l) Reserve Bankmeans the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934):

***** Omitted by Act 33 of 1959, s. 2 (w.e.f. 1101959).

(n) secured loan or advancemeans a loan or advance made on the security of assets the market value of which is not at any time less than the amount of such loan or advance; and unsecured loan or advancemeans a loan or advance not so secured;

(ni) Small Industries Bankmeans the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989 (39 of 1989);

(na) smallscale industrial concernmean an industrial concern in which the investment in plant and machinery is not in excess of seven and a half lakhs of rupees or such higher amount, not exceeding twenty lakhs of rupees, as the Central Government may, by notification in the Official Gazette, specify in this behalf, having regard tothe trends in industrial development and other relevant factors;

(nb) Sponsor Bankhas the meaning assigned to it in the Regional Rural Banks Act, 1976 (21 of 1976) :

(nc) State Bank of Indiameans the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);

(nd) subsidiary bankhas the meaning assigned to it in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);

(ne) substantial interest,

(i) in relation to a company, means the holding of a beneficial interest by an individual or his spouse or minor child, whether singly or taken together in the shares thereof, the amount paidup on which exceeds five lakhs of rupees or ten per cent. of the paidup capital of the company, whichever is less;

(ii) in relation to a firm, means the beneficial interest held therein by an individual or his spouse or minor child, whether singly or taken together, which represents more than ten per cent. of the total capital subscribed by all the partners of the said firm;

(o) all other words and expressions used herein but not defined and defined in the Companies Act, 1956 (1 of 1956), shall have the meanings respectively assigned to them in that Act.

***** Omitted by the A.O. 1950.

5A. Act to override memorandum, articles, etc. Save as otherwise expressly provided in this Act,

(a) the provisions of this Act shall have effect notwithstanding anything to the contrary contained in the memorandum or articles of a banking company, or in any agreement executed by it, or in any resolution passed by the banking company in general meeting or by its Board of Directors, whether the same be registered, executed or passed, as the case may be, before or after the commencement of the Banking Companies (Amendment) Act, 1959 (33 of 1959); and

(b) any provision contained in the memorandum, articles, agreement or resolution aforesaid shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be.

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