The Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019

Sep 23, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Finance on September 17, 2019, has published the Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2019 to further amend the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970. 

The amendments made in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970:

 In the Paragraph 13(2) related to “Management Committee”, the provisos have been substituted, namely:

“Provided that the Directors nominated by the Board shall hold office for not more than one year: 

Provided further that in case the Board is of the opinion that circumstances exist which necessitate in the interest of proper management of the bank, continuation of a Director so nominated beyond the period of one year, the Board may permit such Director to continue to hold office for such further period or periods not exceeding six months at a time, as it may specify; so, however, that the total duration of such further period shall not exceed one year.”

 In Paragraph 13A related to “Credit Approval Committee”, sub-paragraph (3A) has been inserted, namely:

“The banks with net non-performing assets of less than 6% of risk-weighted assets, the Credit Approval Committee shall exercise the powers of the Board with regard to credit proposals— 

a)up to eight hundred crore rupees, in case of banks having total business of more than ten lakh crore rupees; or 

b)up to six hundred crore rupees, in case of banks having total business of more than five lakh crore rupees and up to ten lakh crore rupees; or 

c)up to five hundred crore rupees, in case of banks having total business of more than three lakh crore rupees and up to five lakh crore rupees; or 

d)up to two hundred fifty crore rupees, in case of other nationalised banks.

Explanation.—For the purposes of this sub-paragraph, net non-performing assets, risk weighted assets and total business shall be reckoned as per the last declared results of the bank, and the expression "total business" means the summation of the gross loans and advances and the total deposits of the bank.”

This Notification will come into force on the date of its publication in the Official Gazette that is September 18, 2019.

[Notification No. S.O. 3350(E)]


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