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Applicability of the provisions of sub-clause (i) of clause (c) of sub-section (1) of Section 10 of Banking Regulation Act, 1949 to Kotak Mahindra Bank Limited- (Ministry of Finance ) (23 Sep 2020)

MANU/FNSV/0045/2020

Banking

Whereas, sub-clause (i) of clause (c) of sub-section (1) of section 10 of the Banking Regulation Act, 1949 (10 of 1949) (hereinafter referred to as the said Act), prohibits a banking company to be managed by any person who is a director of any other company not being (a) a subsidiary of the banking company, or (b) a company registered under section 25 of the Companies Act, 1956 (1 of 1956);

And whereas, the proviso to the said sub-clause (i) of clause (c) of sub-section (1) of section 10 of the said Act provides that the prohibition in the said sub-clause shall not apply in respect of any such director for a temporary period not exceeding three months or such further period not exceeding nine months as the Reserve Bank of India may allow;

And whereas, the Reserve Bank of India allowed Shri Uday Kotak, Managing Director and Chief Executive Officer of Kotak Mahindra Bank Limited to be on the Board of Infrastructure Leasing and Financial Services Limited as its Non-executive Director, initially for a period of three months and subsequently for a further period of nine months, under the above provisions of the said Act, till 2nd day of October, 2019;

And whereas, section 53 of the said Act empowers the Central Government, on the recommendation of the Reserve Bank of India, to declare, by notification in the Official Gazette, that any or all of the provisions of the said Act shall not apply to any banking company or institution or to any class of banking companies either generally or for such period as may be specified;

And whereas, the Central Government, on the recommendations of the Reserve Bank of India, had considered it necessary to grant exemption to Kotak Mahindra Bank Limited from application of sub-clause (i) of clause (c) of sub-section (1) of section 10 of the Banking Regulation Act, 1949 in so far as it relates to Shri Uday Kotak, Managing Director and Chief Executive Officer of Kotak Mahindra Bank Limited being on the Board of Infrastructure Leasing and Financial Services Limited as its Non-executive Director, for a further period of one year with effect from the 3rd day of October, 2019 and issued a notification number S.O. 3584 (E), dated the 1st October, 2019, Published in the Gazette of India, Part II, Section 3, sub - section (ii), dated the 1st October, 2019, to that effect and the exemption so granted is expiring on 2nd October, 2020;

And whereas, the Central Government, on the recommendations of the Reserve Bank of India, has considered it necessary to grant the said exemption to Kotak Mahindra Bank Limited for a further period of one year with effect from the 3rd day of October, 2020.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 53 of the Banking Regulation Act, 1949, the Central Government, on the recommendation of the Reserve Bank of India, hereby declare that the provisions of sub-clause (i) of clause (c) of sub-section (1) of section 10 of the said Act shall not apply to Kotak Mahindra Bank Limited in so far as it relates to its Managing Director and Chief Executive Officer Shri Uday Kotak being on Board of Infrastructure Leasing and Financial Services Limited as its Non-executive Director for a period up to the 2nd day of October, 2021.

Tags : APPLICABILITY   PROVISIONS   KOTAK MAHINDRA BANK LIMITED  

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