Section 3 in Banking Companies (Acquisition And Transfer of Undertaking) Act, 1969
3. Establishment of corresponding new banks and business thereof.-
(1)On the commencement of this Act, there shall be constituted such corresponding new banks as are specified in the First Schedule.(2)The paid-up capital of every corresponding new bank constituted under sub-section (1) shall, until any provision is made in this behalf in any scheme made under section 13, be equal to the paid-up capital of the existing bank in relation to which it is the corresponding new bank.(3)The entire capital of each corresponding new bank shall stand vested in and allotted to the Central Government.(4)Every corresponding new bank shall be a body corporate with perpetual succession and a common seal and shall sue and be sued in its name.(5)Every corresponding new bank shall carry on and transact the business of banking as defined in clause (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949.), and may engage in one or more forms of business specified in sub-section (1) of section 6 of that Act, and shall have power to acquire and hold property, whether movable or immovable, for the purposes of its business and to dispose of the same.(6)Every corresponding new bank shall establish a reserve fund to which shall be transferred the share premiums and the balance, if any, standing to the credit of the existing bank in relation to which it is the corresponding new bank, and such further sums, if any, as may be transferred in accordance with the provisions of section 17 of the Banking Regulation Act, 1949 (10 of 1949)
