The Reserve Bank (Transfer to Public Ownership) Act, 1948

This Act may be called the Reserve Bank (Transfer to Public Ownership) Act, 1948.

In this Act,-- (a) "appointed day" means such day as the Central Government may, by notification in theOfficial Gazette, appoint; (b) "Bank" means the Reserve Bank of India as constituted by the principal Act; and (c) "principal Act" means the Reserve Bank of India Act, 1934.

(1) On the appointed day-- (a) all shares in the capital of the Bank shall by virtue of this Act be deemed to be transferred freeof all trusts, liabilities and encumbrances to the Central Government, and (b) as full compensation there for, the Central Government shall issue to every person who,immediately before the appointed day, is registered as the holder of any such shares, an amountcalculated at the rate of one hundred and eighteen rupees and ten annas per share, in promissory notesof the Central Government bearing interest at the rate of three per centum per annum repayable at paron such date as may be specified in this behalf by the Central Government: Provided that where the amount so calculated is not an exact multiple of one hundred rupees theamount in excess of the nearest lower multiple of one hundred rupees shall be paid by cheque drawnon the Bank: Provided further hat in respect of any share obtained at par from the Central Government by anyDirector of the Bank in pursuance of sub-section (8) of section 4 of the principal Act as in forceimmediately before the appointed day, the said amount shall be calculated at the rate of one hundredrupees per share. (2) Notwithstanding the transfer of shares effected by this section any shareholder who, immediatelybefore the appointed day, is entitled to payment of dividend on the shares held by him shall be entitled toreceive from the Bank-- (a) all dividends accruing due on his shares in respect of the year ending on the 30th day of June,1948, or any preceding year remaining unpaid on the appointed day; (b) dividends calculated at the rate of four rupees per annum per share in respect of the periodfrom the 1st day of July, 1948, to the appointed day.

On the appointed day any person whoimmediately before that day was holding office as a Director of the Central Board otherwise than asGovernor or Deputy Governor or as a member of a Local Board of the Bank shall vacate his office, andthe Central Board and the Local Boards of the Bank shall thereafter be constituted in the mannerprescribed by sections 8 and 9 of the principal Act as amended by this Act.

Pending the constitution of the Central Board under section 8 of theprincipal Act as amended by this Act, the Governor of the Bank, or in his absence a Deputy Governor ofthe Bank duly nominated by him in this behalf, may, subject to such restrictions and conditions as mayfrom time to time be imposed by the Central Government, exercise all powers, and do all acts and thingswhich may be exercised or done by the Bank.