The Deposit Insurance and Credit Guarantee Corporation Act, 1961

Act No. 47

7-Dec-1961

Section 1 — Short title, extent and commencement

1. Short title, extent and commencement .

(1)This Act may be called 3[the Deposit Insurance and Credit Guarantee Corporation] Act, 1961.

(2)It extend to the whole of India.

(3)It shall come into force on such date4 as the Central Government may, by notification in the Official Gazette, appoint.

Section 2 — Definition s

2. Definition s.-In this Act, unless t he context otherwise requires, -

(a)“banking ” means the accepting for the purpose of len ding or investment , of deposits of money from the public repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise;

(b)“banking company ” means any company which transacts the business of banking in India and includes the State Bank 5[and a subsidiary bank] , but does not include the 6[Tamil Nadu Industrial Investment Corporation Limited]. Explanation .-Any company whic h 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 b anking within the meaning of this clause;

(c)“Board ” means the Board of directors constituted under section 6;

(d)“company ” means any c ompany as defined in sect ion 3 of the Companies Act, (1 of 1956) and includes a foreign company within the meaning of section 5 91 of that Act; 7[(dd) “co-operative bank ” means a State co -operative bank, a Central co -operative bank and a primary co -operative bank;]

(e)“Corporation ” means 2[the Deposit Insurance and Credit Guarantee Corporation] established under section 3;

Section 1 — The Act has been extended to Goa, Daman and Diu (with modifications) by Reg. 12 of 1962, s. 3 and Schedule

1.The Act has been extended to Goa, Daman and Diu (with modifications) by Reg. 12 of 1962, s. 3 and Schedule (w.e.f. 1 -2-1965) and to Pondicherry by Reg. 7 of 19 63, s. 3 and First Schedule.

Section 4 — 1st January, 1962, vide notification No. G.S.R. 18, dated 28th December, 1961, see Gazette of India, Part II, sec. 3( i).

4. 1st January, 1962, vide notification No. G.S.R. 18, dated 28th December, 1961, see Gazette of India, Part II, sec. 3( i).