Section 6. (1) The Reserve Bank may, if it decides to transfer, in pursuance of paragraph 5, more than two

6. (1) The Reserve Bank may, if it decides to transfer, in pursuance of paragraph 5, more than two lakhs, fifty-three thousand and one hundred and twenty-five shares, require the State Bank to issue to it such further shares as may be necessary to secure that it holds not less than fifty-five per cent. of the issued capital of the State Bank, and the State Bank shall, without prejudice to the provisions contained in subsection (3) of section 5, comply with such requirement on the Reserve Bank subscribing one hundred rupees for each share. (2) No share issued to the Reserve Bank at par under this paragraph shall carry dividend at a rate higher than four per cent. per annum. THE SECOND SCHEDULE ( See section 44) DECLARATION OF FIDELITY AND SECRECY I ....................................................... do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as Director, member of Local Board, member of Local Committee, auditor, adviser, officer or other employee (as the case may be) of the State Bank and which properly relate to the office or position in the said State Bank held by me. 6. The word "vice-chairman" omitted by s. 16, ibid . (w.e.f. 15-9-2010). 7. Subs. by Act 26 of 1959, s. 2, for "or managing director" (w.e.f. 11-6-1976). 8. Ins. by Act 35 of 1964, s. 7 (w.e.f. 1-12-1964). 9. Subs. by Act 48 of 1973, s. 7, for "secretary and treasurer" (w.e.f. 26-6-1974). 1[(da) in the case of a director appointed under clause (ca) or clause (cb) 2* of section 19,— (i) he is not serving in the State Bank or has not been serving in it for a continuous period of at least five years; and (ii) he is of such age that there is a likelihood of his attaining the age of superannuation during his term of office as a director; or] (e) he is or at any time has been adjudicated an insolvent or has suspended payment of his debts or has compounded with his creditors; or (f) he is declared lunatic or becomes of unsound mind; or - (g) he is or has been convicted of any offence involving moral turpitude; or 3[(h) in the case of an elected director, he is not registered as a holder in his own right of unencumbered shares in the State Bank, either as sole holder or as first named holder when jointly held, of a nominal value of at least five thousand rupees.] I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the State Bank or to the affairs of any person having any dealing with the State Bank; nor will I allow any such person to inspect or have access to any books or documents belonging to or in the possession of the State Bank and relating to the business of the State Bank or to the business of any person having any dealing with the State Bank. THE THIRD SCHEDULE .— [ Amendments to the Reserve Bank of India Act, 1934.] Rep. by the Repealing and Amending Act, 1960 (58 of 1960), s . 2, and the First Sch. ( w.e.f. 26-12-1960). THE FOURTH SCHEDULE .—[ Amendments to the Banking Companies Act , 1949.] Rep. by s . 2 and the First Sch. ibid. ( w.e.f. 26-12-1960). THE FIFTH SCHEDULE .—[ Amendment to the Imperial Bank of India Act, 1920.] Ins. by the State Bank of India (Amendment) Act , 1955 (33 of 1955), by s . 7 (with retrospective effect). Rep. by the Repealing and Amending Act, 1960 (58 of 1960), s . 2 and the First Sch. ( w.e.f. 26-12-1960). STATEMENT OF OBJECTS AND REASONS (2) No two persons who are partners of the same firm or are directors of the same private company or one of whom is an agent of the other or holds a power of attorney from a firm of which the other is a partner may be directors of the Central Board or members of the same Local Board or Local Committee at the same time. (3) The appointment, nomination or election as director or member of a Local Board or of a Local Committee of any person who is a member of Parliament or the Legislature, of any State shall be void unless within two months of the date of his appointment, nomination or election he ceases to be a member of Parliament or the State Legislature, and if any director or member of a Local Board or of a Local Committee is elected or nominated as a member of Parliament or any State Legislature, he shall cease to be a director or member of the Local Board or of Local Committee as from the date of such election or nomination, as the case may be. - 4[(4) In this section,— (a) "banking company" has the same meaning as in the[5] [Banking Regulation Act, 1949 (10 of 1949)]; (b) "manager" means the chief executive officer, by whatever name called, of a Banking company; (c) "private company" has the same meaning as in the Companies Act, 1956 (1 of 1956)]. "The Scheme of the State Bank of India Act, 1955, envisaged the State Bank of India coming into existence and the Imperial Bank of India going out of existence simultaneously on the 'appointed day' (being 'the day notified in this behalf by the Central Government) and provided for the automatic transfer of all the assets and liabilities of the undertaking of the Imperial Bank of India from that institution to the State Bank of India. While there was no difficulty about such transfer so far as the assets and liabilities of the imperial Bank situated in India were concerned Government were advised that it was doubtful whether such an automatic transfer of assets and liabilities made by virtue of an Indian law from one corporate body to another would be recognised and given effect to in foreign countries in respect of the assets and liabilities of the foreign branches of the Imperial Bank of India. In the light of the advice obtained on this legal issue from counsel in the different foreign countries concerned. It was decided that it would be advisable to amend the scheme of the Act and to provide for the continued existence of the Imperial Bank of India as a corporate entity beyond the 'appointed day' to enable it to make over its business in its foreign branches by execution of documentary transfers, if necessary to the corresponding branches of the State Bank of India to be opened there. It was, therefore, necessary to amend the State Bank of India Act, 1955, and as this had to be done prior to the 1st of July, 1955, which had been notified as the 'appointed day' under the State Bank of India Act, the State Bank of India (Amendment) Ordinance, 1955 was promulgated on the 23rd June, 1955. The present Bill seeks to convert that Ordinance into an Act." NEW DELHI; The 23 rd July , 1955. A. C. GUHA. any authority administering the fund, unless the Central Government has, by general or special order, confirmed the appointment, promotion or increment or has directed the continued grant of the pension allowance or other benefit as the case may be. (4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employees of the Imperial Bank from that Bank to the State Bank shall not entitle such officer or other employees to any compensation under that Act or other law, and no such claim shall be entertained by any court tribunal or other authority. (5) Any person holding office as managing director, deputy managing director, director or member of any Local Board of the Imperial Bank immediately before the appointed day shall be deemed to have vacated his office as such on the appointed day, and notwithstanding anything contained in this Act or in any other law for the time being in force or in any agreement or contract, he shall not be entitled to any compensation from the Imperial Bank or the State Bank for the loss of office or for the premature termination of any agreement or contract relating to his employment, except such pension, compensation or other benefit which the State Bank may grant to him, having regard to what that person would have received as an officer of the Imperial Bank if this Act had not been passed and if he had retired from his employment in the ordinary course. (6) Where any managing director, deputy managing director, director, officer or other employee of the Imperial Bank has, after the 19th day of December, 1954, and before the appointed day, been paid any sum by way of compensation or gratuity, the State Bank shall be entitled to claim refund of any sum so paid if the payment is not confirmed by the Central Government by general or special order.