Section 10. The word and letter "Part B" omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956)

10. The word and letter "Part B" omitted by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956). 11. The words "(including the autonomous State of Meghalaya)" omitted by Act 81 of 1971, s. 72 (w.e.f. 21-1-1972) which was earlier inserted by Act 55 of 1969, s. 75 (w.e.f. 2-4-1970). 12. Ins. by Act 37 of 1956, s. 104 (w.e.f. 1-11-1956). (b) in relation to the agreement between the Bank and any other Part A State as it existed before the 1st day of November, 1956, the State with the same name; and (c) in relation to the agreement between the Bank and the Part B State of Mysore or TravancoreCochin as it existed before the 1st day of November, 1956, the State of Mysore of Kerala respectively. (2) Any agreement made under section 21A between the Bank and the Government of the Part B State of Hyderabad, Madhya Bharat or Saurashtra shall be deemed to have terminated on the 31st day of October, 1956.] 10. Disqualifications of Directors and members of Local Boards.— (1) No person may be a Director or a member of a Local Board who— (a) isa salaried Government official[12] *[13] *, or (b) is, or at any time has been, adjudicated an insolvent, or has suspended payment or has compounded with his creditors, or (c) is fund lunatic or becomes of unsound mind, or (d) is an officer or employee of any bank, or 1. Subs. by Act 54 of 1953, s. 2, for the proviso (w.e.f. 30-12-1953). 2. Subs. by the M.O. 1937, for "G.G. in C.". 3. Subs. by Act 62 of 1948, s. 7 and the Schedule, for second paragraph (w.e.f. 1-1-1949). 4. The words, brackets and figure "subject to the provisions of sub-section (6)" omitted by Act 18 of 1964, s. 38 and the Second Schedule (w.e.f. 1-7-1964). 5. Ins. by Act 51 of 1974, s. 4 (w.e.f. 13-12-1974). 6. Subs. by Act 4 of 2013, s. 17 and the Schedule, for "thereafter until his successor shall have been nominated" (w.e.f. 18-1-2013). 7. Added by Act 62 of 1948, s. 7 and the Schedule (w.e.f. 1-1-1949). 8. Sub-section (6) omitted by Act 18 of 1964, s. 38 and the Second Schedule (w.e.f. 1-7-1964). 9. Subs. by Act 62 of 1948, s. 7 and the Schedule, for section 9 (w.e.f. 1-1-1949). 10. Subs. by Act 51 of 1974, s. 5, for sub-section (3) (w.e.f. 13-12-1974). 10. The Explanation omitted by Act 23 of 1965, s. 4 (w.e.f. 1-3-1966). Earlier added by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953). 11. Ins. by Act 54 of 1953, s. 3 (w.e.f. 30-12-1953). 12. Subs. by Act 11 of 1947, s. 11, for "either in India or Burma and payable either in India or in Burma" (w.e.f. 1-4-1947). 13. The words "or a Burma scheduled bank" omitted by s. 11, ibid . (w.e.f. 1-4-1947). 14. Subs. by the M.O. 1937, for "the Government of India or a L.G.". 15. Subs. by Act 11 of 1947, s. 11, for "or a Provincial Government" (w.e.f. 1-4-1947). 16. The words "or such securities of Part B States as may be specified in this behalf by the Central Government on the recommendation of the Central Board" omitted by Act 32 of 1951, s. 7 (w.e.f. 1-11-1951). 17. The words "and Burma scheduled banks" omitted by Act 11 of 1947, s. 11 (w.e.f. 1-4-1947) which was earlier inserted by M.O. 1937. 18. Subs. by Act 62 of 1948, s. 7 and the Schedule, for "sterling" (w.e.f. 1-1-1949). 19. The words "in amounts of not less than the equivalent of one lakh of rupees" omitted by Act 24 of 1978, s. 4 (w.e.f. 21-7-1978). 1[(b) the purchase sale and rediscount of bills of exchange (including treasury bills) drawn in or on any place in any country outside India which is a member of the International Monetary Fund and — maturing, 11. Subs. by Act 4 of 2013, s. 17 and the Schedule, for "thereafter until his successor shall have been appointed and shall be eligible for reappointment" (w.e.f. 18-1-2013). 12. The words "or a salaried official of a State in India" omitted by the A.O. 1950. 13. The words "or Burma" omitted by Act 11 of 1947, s. 8 (w.e.f. 1-4-1947). Earlier inserted by the M.O. 1937. 1 [(e) is a Director of banking company within the meaning of clause (c) of section 5 of the[2] [Banking Regulation Act, 1949 (10 of 1949)], or of a co-operative bank.] (2) No two persons who are partners of the same mercantile firm, or are Directors of the same private company, or one of whom is the general agent of or holds a power of procuration from the other, or from a mercantile firm of which the other is a partner, may be Directors or members of the same Local Board at the same time. (3) Nothing in clause (a), clause (d) or clause (e) of sub-section (1) shall apply to the Governor, or to a Deputy Governor or to the Director nominated under clause (d) of sub-section (1) of section 8. 10. "American Express Bank Ltd." excluded by RBI Notification No. DBOD.IBD. No. 2095/ 23.13.019/2007-08, dated 5th March, 2008. (i) in the case of bills of exchange arising out of any bona fide transaction relating to the export of goods from India, within one hundred and eighty days, and (ii) in any other case, within ninety days, from the date of such purchase or rediscount: Provided that no such purchase, sale or rediscount shall be made in India except with a scheduled bank or a State co-operative bank;] 2* * * * * 3[(3A) the making to any scheduled bank or State co-operative bank, or loans and advances, against promissory notes or such bank, repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days: — Provided that the borrowing bank furnishes a declaration in writing, to the effect that (i) it holds bills of exchange arising out of any transaction relating to the export of goods — from India of a value not less than the amount of such loans or advances, (a) drawn in India and no any place in any country outside India which is a member of the International Monetary Fund or in any other country notified in this behalf by the Bank in the Gazette of India, and 4[(b) maturing not later than one hundred and eighty days from the date of the loan or advance, and it will, so long as any part of such loans and advances remains unpaid, continue to hold such bills of exchange of a value not less than the amount of such loans or advances outstanding for the time being; or] 5[(ii) it has granted a pre-shipment loan or advance to an exporter or any other person in India in order to enable him to export goods from India, the amount of the loan or advance drawn and outstanding at any time being not less than the outstanding amount of the loan or advance obtained by the borrowing bank from the Bank.]] 6[(3B) the making to any scheduled bank or State co-operative bank or loans and advances repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days against promissory notes of such bank: Provided that the borrowing bank furnishes a declaration in writing to the effect that it has made loans and advances for bona fide commercial or trade transactions or for financing agricultural operations or the marketing of crops or for other agricultural purposes as set out in the declaration and the said declaration includes such other particulars as may be required by the Bank;] (4) the making to[7] * local authorities, scheduled banks[8] [,[9] *[10] [State] co-operative banks[11] [and State Financial Corporations[12] *]] or loans and advances, repayable on demand or on — the expiry of fixed periods not exceeding ninety days, against the security of 1. Subs. by Act 35 of 1962, s. 3, for sub-clause (b) (w.e.f. 15-9-1962). 10. "Ballia-EtawahGramin Bank, Uttar Pradesh" excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 1137[7] /3.5.100/2010-11, dated 31st March, 2011. 10. Included by RBI Notification No. RPCD.CO. RRB. No. 7430/03.05.100/2008-09, dated 27th January, 2009. 10. "Bihar KshetriyaGramin Bank, Munger, Bihar" excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/201314, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RR''. No. 7812A/03.05.100/2009-10, dated 21st January, 2010. 10. "Chambal KshetriyaGramin Bank, Morena (Madhya Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/03-05.100/2009-10, dated 21st January, 2010. 10. "EtawahKshetriyaGramin Bank, Etawah (Uttar Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 11379/3.5.100/2010-11, dated 31st March, 2011. 10. "GopalganjKshetriyaGramin Bank, Gopalganj (Bihar)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/0305.100/2009-10, dated 21st January, 2010. 10. "Howrah Gramin Bank, Howrah (West Bengal)" excluded by RBI Notification No. RPCD.CO. RRB. BC. No. 95/03.05.100/2013-14, dated 9th April, 2014. 11. Subs. by RBI Notification No. DBOD.IBD. No. 4591/23.13.030/2012-13, dated 26th September, 2012, for "Oman International Bank S.A.O.G.". 12. Subs. by Notification DBOD.BP.BC.No. 21.01.002/2007-08, dated 16th May, 2008, for "Industrial Development Bank of India Limited" (w.r.e.f. 7-5-2008). 10. Included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/2009-10, dated 21st January, 2010. 11. Subs. by Notification No. Ret. BC. 70/12.06.090/2004-05, dated 4th February, 2005, for "JP Morgan Chase Bank". 10. Included by RBI Notification No. RPCD.CO. RRB. BC No. 98/03.05.100/2013-14, dated 8th May, 2014. 10. "MadhubaniKshetriyaGramin Bank, Madhubani (Bihar)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812B/03-05.100/2009-10, dated 21st January, 2010. 10. "MarudharKshetriyaGramin Bank, Churu (Rajasthan)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/0305.100/2009-10, dated 21st January, 2010. 10. "Narmada MalwaGramin Bank, Indore, Madhya Pradesh" excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/2013-14, dated 14th November, 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 3231/03.05.100/2008-09, dated 22nd September, 2008. 10. "RaebareliKshetriyaGramin Bank, Raebareli, Uttar Pradesh" excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/2008-09, dated 27th January, 2009. 10. "SagarGramin Bank, Amtala (West Bengal)" excluded by RBI Notification No. RPCD.CO. RRB. No. 7812-B/0305.100/2009-10, dated 21st January, 2010. 10. "ShardaGramin Bank, Satna, Madhya Pradesh" excluded by RBI Notification No. RPCD.CO. RRB. No. 56/03.05.100/201314, dated 14th November, 2013. 10. "Sri SaraswatiGrameena Bank, Adilabad (Andhra Pradesh)" excluded by RBI Notification No. RPCD.CO. RRB. No. 3230/03.05.100/2008-09, dated 22nd September, 2008. 10. "Thane Gramin Bank, Thane, Maharashtra" excluded by RBI Notification No. RPCD.CO. RRB. No. 7431/03.05.100/200809, dated 27th January, 2009. 10. Included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/2009-10, dated 21st January, 2010. 10. "Wainganga Krishna Gramin Bank, Solapur (Maharashtra)" excluded by RBI Notification No. RPCD.CO. RRB. No. 47/03.05.100/2013-14, dated 22nd October 2013. Earlier it was included by RBI Notification No. RPCD.CO. RRB. No. 7812-A/03-05.100/2009-10, dated 21st January, 2010.