DBOD No. Dir.BC. 34 /13.03.00/2000-01

October 17, 2000
Aswina 25, 1922(S)

In exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and in modification of its Directive DBOD.No.Dir.BC.151/C.347-85 dated December 27, 1985, as amended from time to time, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that clause (ii) of paragraph 3 of the aforesaid Directive shall be substituted by the following revised clause (ii) with immediate effect.

"(ii) The above prohibition will not apply in the case of the following organisations/agencies:

1. Primary Co-operative Credit Society which is being financed by the bank.
2. Khadi and Village Industries Boards.
3. Agriculture Produce Market Committees.
4. Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory.
5. Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the word "Limited" or the words "Private Limited".
6. Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income tax under Income-Tax Act, 1961.
7. Government departments/bodies/agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government subject to production of an authorisation from the respective Government departments to open savings bank account.
8. Development of Women and Children in Rural Areas (DWCRA).
9. Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members.
10. Farmers’ Clubs - Vikas Volunteer Vahini - VVV.

2. All the other provisions of Directive DBOD.No.Dir.BC.151/C347-85 dated December 27, 1985 shall remain unchanged.

Slip 5

(Chapter 9 of Manual of Instructions,
DBOD,DBS, IECD
Dir.BC. 34 of 2000)

9.I.3

ii) The above prohibition will not apply in the case of following organisations/ agencies:

1. Primary Co-operative Credit Society which is being financed by the bank.
2. Khadi and Village Industries Boards.
3. Agriculture Produce Market Committees.
4. Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory.
5. Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the word "Limited" or the words "Private Limited".
6. Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income tax under Income-Tax Act, 1961.
7. Government departments/bodies/agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government subject to production of an authorisation from the respective Government departments to open savings bank account.
8. Development of Women and Children in Rural Areas (DWCRA).
9. Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members.
10. Farmers’ Clubs - Vikas Volunteer Vahini - VVV.