Section 1360 in The State Bank Of Hyderabad Act, 1956
1360.
The Hyderabad State Bank is constituted under the Hyderabad State Bank Act (No. XIX of 1930 Fasli). Fifty-one per cent. of the bank's share capital is held by the Government of Hyderabad and the rest by private shareholders. The State Government enjoys certain powers in regard to its management. The bank is functioning at present as the agent of the Reserve Bank for conducting Government business in the Hyderabad State. With reorganisation of the States, the offices of the Hyderabad State Bank conducting Government Treasury work will be distributed over three States, namely, Andhra Pradesh, Bombay and Mysore. It is necessary to provide (i) for the devolution on one single authority of the functions of the State Government of Hyderabad in relation to the Bank, (ii) for the more effective performance but the functions of the State Government business as agent of the Reserve Bank, and (iii) for unified control and management of the bank in order to enable it to implement a programme of subsidised extension of banking facilities to the public. It is accordingly proposed that the shares of the Hyderabad State Bank should be vested in the Reserve Bank of India and compensation be paid to the existing shareholders at Rs. 94-4-6 for each share (of the face value of Rs. 100 O.S. in the now obsolete Hyderabad currency equivalent to Rs. 85-11-5 in Indian currency).2. The corporate character of the existing Hyderabad State Bank is being retained but all the other provisions of the Hyderabad State Bank Act 1350F, are being repealed and replaced by more suitable provisions contained in the Bill.3. The Bill makes certain consequential and incidental amendments in Reserve Bank of India Act, 1934 and in the Banking Companies Act, 1949." - Gazette of India, 1956, Extra., Pt. II, Section 2, p. 799.[22nd December, 1956]An Act to transfer the share capital of the Hyderabad State Bank to the Reserve Bank of India and to provide for its proper management and other matters connected therewith or incidental thereto.
