BANKING
SERVICE COMMISSION ACT, 1975 THE BANKING SERVICE COMMISSION ACT, 1975 [Act No. 42 of 1975] [7th August, 1975] An Act to provide for the establishment of a
Commission for the selection of personnel for appointment to services and posts
in certain banking institutions and for matters connected therewith or
incidental thereto. Be
it enacted by Parliament in the Twenty-sixth Year of the Republic of India as
follows:-- (1) This Act may be called the Banking Service
Commission Act, 1975. (2)
It
shall come into force on such date as the Central Government may, by
notification, appoint. In
this Act, unless the context otherwise requires,-- (a) "banking company" has the meaning
assigned to it in the Banking Regulation Act, 1949((10 of 1949)); (b) "Chairman" means the Chairman of the
Commission; (c) "Commission" means the Banking Service
Commission, established under sub-section (1) of section 3; (d) "junior officers' cadre", in relation to
a public sector bank, means such cadre of junior officers as the Central
Government may, by notification, specify in relation to that bank; (e) "member" means a member of the
Commission, but does not include the Chairman; (f) "notification" means a notification
published in the Official Gazette; (g) "prescribed" means prescribed by rules
made under this Act; (h) "public sector bank" means? (i) a corresponding new bank specified in the First
Schedule to the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970(5 of 1970); (ii) the State Bank of India constituted under the State
Bank of India Act, 1955(23 of 1955); (iii) a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959(38 of 1959); (i)
"regulation"
means regulation made under this Act; (j)
"Reserve
Bank" means the Reserve Bank of India, constituted under the Reserve Bank
of India Act, 1934(2 of 1934); (k)
"Secretary"
means the Secretary of the Commission (1) With effect from such date as the Central
Government may, by notification specify in this behalf, there shall be
established a Commission, to be called the Banking Service Commission. (2) The Commission shall be a body corporate having
perpetual succession and a common seal with power to acquire, hold and dispose
of property and to contract, and may by the said name sue and be sued. (3) Unless otherwise provided by the Central Government
by notification, the Central Office of the Commission shall be at New Delhi. (4) The Commission shall have regional offices in such
State or group of States as the Commission may, with the previous approval of
the Central Government, determine and no such regional office shall be
abolished without the previous approval of the Central Government. (1) The Central Government shall, by notification,
appoint a person to be the Chairman of the Commission and not more than eight
other persons to be members of the Commission. (2) The Chairman and members shall be persons who, in
the opinion of the Central Government, are men of ability, integrity and
standing and have special knowledge of, or practical experience in, financial
economic or business administration or in the administration of Government or
in any other matter which would render such person suitable for appointment as
Chairman or member: Provided
that as nearly as may be one-half of the members shall be persons who, on the
date of their respective appointments, have had such experience for not less
than ten years in a banking company or in any public sector bank or Reserve Bank or in an
institution wholly or substantially owned by the Reserve Bank or a public
financial institution. Explanation
I.--For the purposes of this section and of section 5, each of the following
institutions shall be deemed to be a public financial institution, namely:-- (i) the Industrial Credit and Investment Corporation of
India Limited, a company formed and registered under the Companies Act, 1956(1
of 1956); (ii) the Industrial Finance Corporation of India,
established under section
3
Preamble - THE BANKING SERVICE
COMMISSION ACT, 1975PREAMBLE
(iii) the Industrial Development Bank of India,
established under section
3 of the Industrial Development
Bank of India Act, 1964(18 of 1964);
(iv) the Life Insurance Corporation of India, established
under section
3 of the Life Insurance Corporation
Act, 1956(31 of 1956);
(v) the Unit Trust of India, established under section 3 of
the Unit Trust of India Act, 1963(52 of 1963);
(vi) any other financial institution which is declared
by the Central Government, by notification, to be a public financial
institution.
Explanation
II.--For the purposes of this section and of section 5, an institution shall be
deemed to be substantially owned by the Reserve Bank if, in the capital of such
institution, that Bank has not less than forty per cent. share.
(3) The Chairman or any member shall hold office for a
term of five years from the date on which he enters upon his office or until he
attains the age of sixty-five years, whichever is earlier:
Provided
that--
(a) the Chairman or any member may, by writing under
his hand addressed to the Central Government, resign his office;
(b) the Chairman or any member may be removed from his
office in the manner provided by this Act.
(4)
The
other terms and conditions of service of the Chairman and members shall be such
as may be prescribed.
(5) If the office of the Chairman becomes vacant or if
the Chairman is unable to discharge his functions owing to absence, illness or
any other cause, such member of the Commission as the Central Government may,
by order, specify, shall discharge the functions of the Chairman up to the date
on which a new Chairman is appointed or, as the case may be, the Chairman
resumes his duties.
Section 5 - Prohibition as to holding offices by Chairman or member on ceasing to be such Chairman or member
A
person who holds office as Chairman or member shall, on his ceasing to hold
such office by reason of the expiration of his term or otherwise, be ineligible
for re-appointment in the Commission or for employment under the Government of
India or of any State or in the Reserve Bank or in any institution wholly or
substantially owned by the Reserve Bank or in any public sector Bank or any
banking company or in a public financial institution:
Provided
that a member to whom this section applies, shall be eligible for appointment
as Chairman, but shall not be eligible for any other employment.
Section 6 - Removal and suspension of Chairman or the members from office in certain circumstances
(1) The Central Government may remove from office the
Chairman or any member, who?
(a) is adjudged an insolvent, or
(b) is convicted of an offence involving moral
turpitude, or
(c) is, in the opinion of the Central Government, unfit
to continue in office by reason of infirmity of mind or body, or
(d) engages during the term of office in any paid employment
outside the duties of his office, or
(e) has acquired such financial or other interest as is
likely to affect prejudicially his functioning as the Chairman or a member, or
(f) has so abused his position as to render his
continuance in office undesirable.
(2)
Notwithstanding
anything contained in sub-section (1), the Chairman or any member shall not be
removed from office on the ground specified in clause (d) or clause (e) or
clause (f) of that sub-section unless the matter has been referred to an
Inquiry Officer appointed under sub-section (3) and such officer has, after an
inquiry, held in accordance with such procedure as the Central Government may
specify in this behalf, reported that the member ought, on such grounds, to be
removed.
(3)
For
the purpose of holding an inquiry under sub-section (2), the Central Government
may, by order, appoint, as an Inquiry Officer, a person who is holding or has
held the office of a Judge of the Supreme Court or of any High Court.
(4)
The
Central Government may suspend from office the Chairman or any member in
respect of whom a reference has been made to an Inquiry Officer under
sub-section (2), pending such inquiry.
(5) The terms and conditions of service of any Inquiry
Officer appointed under sub-section (3) shall be such as the Central Government
may, by order, specify.
Section 7 - Power of Commission to constitute committees
(1) The Commission may, in such manner and subject to
such conditions and restrictions as may be prescribed, constitute one or more
committees consisting wholly of its members or partly of its members and partly
of other persons and delegate to any committee so constituted such of the
functions and powers of the Commission as may be specified in the rules made by
the Central Government:
Provided
that the Commission may constitute any committee either with, or without, the
Chairman as one of the members of such committee.
(2) The sitting fee and travelling allowance payable to
persons, other than the Chairman and members, for attending any meeting of the
committee, shall be such as may be prescribed.
Section 8 - Secretary and other staff of the Commission
(1) The Commission may, with the previous sanction of
the Central Government, appoint a Secretary for the efficient discharge of its
functions under this Act.
(2) The terms and conditions of service of the
Secretary shall be such as may be prescribed.
(3) Subject to such regulations as may be made in this
behalf, the Commission may appoint such other employees as it may think
necessary for the efficient discharge of its functions under this Act on such
terms and conditions as the Commission may, having regard to the terms and
conditions of service of the comparable posts in the Central Government,
determine with the previous sanction of the Central Government.
Section 9 - Authentication of orders and other instruments of the Commission
(1) All orders and instruments issued by the Commission
shall be authenticated by the signature of the Secretary or any other officer
of the Commission authorised by the Chairman in this behalf.
(2) Orders or instruments issued by the Commission and
authenticated in accordance with the provisions of sub-section (1) shall be
evidence of the matters recorded therein and shall be admissible in evidence
notwithstanding anything contained in the Indian Evidence Act, 1872(1 of 1872),
or in any other law for the time being in force.
Section 10 - Duty of Commission to hold competitive examinations for appointment to posts in public sector banks
(1) It shall be the duty of the Commission to conduct
examinations for appointments in each public sector bank to?
(a) posts in the clerical and allied cadres and the
junior officers' cadre, and
(b) such other posts of, or posts in the cadres of,
officers as the Central Government may, by notification, specify.
(2) If any question arises as to whether any post or
class of posts falls in any clerical and allied cadre or junior officers'
cadre, such question shall be referred to the Central Government and that
Government shall decide the same.
Section 11 - Calling for applications and conduct of examinations
The
Commission shall call for applications from such category of persons and in
such manner as may be specified by it in the regulations and conduct
examinations in such State or group of States as may be necessary having regard
to the requirements of section 17 and the vacancies communicated to it under
section 12.
Section 12 - Duty of public sector banks to communicate to the Commission of number of vacancies
(1) It shall be the duty of every public sector bank to
communicate to the Commission--
(a) all the vacancies in the clerical and allied
cadres, or in such other post or cadre as may be specified by the Central
Government under section 10, and
(b) twenty-five per cent. of the estimated total number
of vacancies in the junior officers' cadre, which are likely to occur during
the unexpired portion of the calendar year in which this Act comes into force
and thereafter, as soon as may be, after the commencement of each calendar
year:
Provided
that, in relation to the junior officers' cadre, the Central Government may, if
it is of opinion that it is necessary so to do in the interests of the public
sector banks, by notification, raise the percentage of vacancies to be
communicated to the Commission to thirty-three and one-third per cent.
(2) Communication of vacancies referred to in
sub-section (1) shall be made in such form and in such manner as may be
specified in the regulations made by the Commission and every such
communication, in relation to the vacancies in the clerical and allied cadre,
shall also indicate the number of vacancies which exist or are likely to occur
in a State or group of States.
Explanation.--In
this Act, the expression "vacancy" includes a newly created post
which has not been filled in.
Section 13 - Cases in which Commission shall not be consulted
It
shall not be necessary to consult the Commission in regard to the selection of
a person--
(a) for appointment to a post in the clerical or allied
cadre, on compassionate grounds (in pursuance of the scheme framed by a public
sector bank in consultation with the Commission and with the previous sanction
of the Central Government), of a dependant of an employee who had died while in
the service of the public sector bank;
(b) if the person appointed is not likely to hold the
post for a period of more than one year, and it is necessary in the interests
of the public sector bank to make the appointment immediately and reference to
the Commission will cause undue delay:
Provided that--
(i) such appointment is made in the manner specified by
the Commission by regulations and is reported to the Commission as soon as it
is made;
(ii) if the appointment continues beyond a period of six
months, a fresh estimate as to the period for which the person appointed is
likely to hold the post shall be made and reported to the Commission; and
(iii) if such estimate indicates that the person
appointed is likely to hold the post for a period of more than one year from
the date of appointment, the Commission shall immediately be consulted in
regard to the filling of the post.
Section 14 - Duty of Commission to make recommendation
It
shall be the duty of the Commission to make, on the basis of the results of
examinations conducted by it in accordance with the provisions of sub-section
(1) of section 10, recommendations to each public sector bank for appointments
to fill the vacancies communicated to it by such bank under section 12.
Section 15 - Communicated vacancies to be filled only on the recommendation of the Commission
(1) Notwithstanding anything to the contrary contained
in any award, settlement or agreement, or in any judgment, decree or order of
any court or tribunal or other authority or in any other law in force for the
time being, appointment to all the vacancies required to be communicated to the
Commission under section 12 shall, on or from such date as the Commission may
notify in respect of each public sector bank, be made by such public sector
bank only on the recommendation of the Commission, except where consultation
with the Commission is not necessary under this Act.
(2) If, in any calendar year, the Commission is unable
to make recommendation for appointment to all the vacancies communicated to it
by a public sector bank under section 12, or if the public sector bank is
unable, in any calendar year, to make appointments on the basis of
recommendations made by the Commission, the vacancies may be carried forward to
the subsequent calendar year, to be filled in the said manner:
Provided
that the public sector bank may, in consultation with the Commission, fill such
vacancies temporarily in such manner and for such period as the Commission may
by regulations specify.
Section 16 - Power of Central Government to entrust other advisory function, to the Commission
The
Commission shall discharge such functions of an advisory nature as the Central
Government may, by notification, entrust to it.
Section 17 - Reservation of posts for candidates belonging to Scheduled Castes and Scheduled Tribes and other categories of persons
The
Central Government may, by order, direct that in relation to every public
sector bank, reservations in favour of the Scheduled Castes, Scheduled Tribes
and other categories of persons shall be made in such manner and to such extent
as it may specify:
Provided
that in giving any direction as aforesaid, the Central Government shall have
due regard to the reservation of posts made for the Scheduled Castes, Scheduled
Tribes and other categories of persons in relation to recruitments to the services
of the Government and to the general need, and special requirements, of such
public sector bank.
Explanation.--The
expressions "Scheduled Castes" and "Scheduled Tribes" shall
have the meanings respectively assigned to them in article 366 of
the Constitution.
Section 18 - Fund of the Commission
(1) The Commission shall have its own Fund and all the
receipts of the Commission shall be credited to the Fund and all payments by
the Commission shall be made therefrom.
(2) All moneys belonging to the Fund shall be deposited
in such banks or invested in such manner as the Commission may, subject to any
general or special order made by the Central Government in this behalf, decide.
(3) The Commission may spend such sums as it thinks fit
for performing its functions under this Act and such sums shall be treated as
expenditure payable out of the Fund of the Commission.
Section 19 - Payment to the Commission
(1) The Central Government may, by general or special
order and subject to any rules that may be made in this behalf, direct every
public sector bank to pay to the Commission such fee as it may determine and
the aggregate amount of the fee so determined shall not exceed the expenses
incurred by the Commission.
(2) The aggregate amount of fees payable under
sub-section (1) shall be apportioned by the Central Government between
different public sector banks and in making such apportionment in relation to a
public sector bank, the Central Government shall have due regard to the demand
and time liabilities of that public sector bank.
(3) For the purpose of meeting the initial expenditure
of the Commission, the Central Government may, by general or special order,
direct the payment by every public sector bank of an advance of such amount as
it may specify and the advance so made shall be appropriated or adjusted in
such manner as may be prescribed.
Explanation.--The
expression "demand liabilities" and "time liabilities"
shall have the meanings respectively assigned to them in the Banking Regulation
Act, 1949(10 of 1949).
Section 20 - Budget of the Commission
The
Commission shall prepare, in such form and at such time each year as may be
prescribed, a budget in respect of the financial year next ensuing showing the
estimated receipts and expenditure, and submit the same to the Central Government
for approval.
Section 21 - Accounts and audit
(1) The Commission shall maintain proper accounts and
other relevant records and prepare an annual statement of accounts in such form
and in such manner as may be prescribed.
(2) The accounts of the Commission shall be audited by
a person who is qualified to act as an auditor of a company under section 226
of the Companies Act, 1956(1 of 1956), and the auditor shall receive such
remuneration as the Commission may, in consultation with the Central
Government, fix.
(3) In conducting the audit, the auditor shall have the
same rights and duties as are possessed by an auditor of a company as if the
Commission were a company within the meaning of the Companies Act, 1956(1 of
1956).
Section 22 - Annual report
The
Commission shall prepare once every calendar year, in such form and at such
time as may be prescribed, an annual report giving a full account of its
activities during the previous year, and copies thereof shall be forwarded to
the Central Government and that Government shall cause the same to be laid
before both Houses of Parliament.
Section 23 - Obligation as to secrecy
The
Chairman and members and every officer or other employee of the Commission, and
every member of any committee constituted under sub-section (1) of section 7,
shall maintain strictest secrecy regarding the affairs of the Commission and
shall not divulge, directly or indirectly, any information of a confidential
nature to a member of the public unless compelled to do so by any judicial or
other authority or unless instructed to do so by a superior officer in the
discharge of his duties.
Section 24 - Chairman, members, etc., to be public servants
The
Chairman and members of the Commission and every officer or other employee of
the Commission, and every member of any committee constituted under sub-section
(1) of section 7 shall be deemed to be a public servant within the meaning
of section
21 of the Indian Penal Code(45 of
1860).
Section 25 - Certain defects not to invalidates acts or proceedings
(1)
All acts done by the Chairman and members and the members of any committee
constituted under sub-section (I) of section 7, acting in good faith, shall,
notwithstanding any defect in their appointment or procedure, be valid.
(2)
No act or proceeding of the Commission or of any committee thereof shall be
invalid merely on the ground of the existence of any vacancy therein or defect
in the constitution of the Commission or the committee, as the case may be.
Section 26 - Protection of action taken in good faith
No
suit or other legal proceedings shall lie against the Commission, the Central
Government or the Chairman or member or Secretary or officer or other employee
of the Commission for anything which is in good faith done or intended to be
done in pursuance of this Act or any rule made thereunder.
Section 27 - Commission not liable to be taxed
Notwithstanding
anything contained in the Income-tax Act, 1961(43 of 1961), or any other
enactment for the time being in force relating to income-tax, surtax or any
other tax on income, profits or gains, the Commission shall not be liable to
pay any tax or surtax in respect of--
(a) any income, profits or gains accruing or arising of
the Fund of the Commission or any amount received in that Fund; and
(b) any income, profits or gains, derived, or any
amount received, by the Commission.
Section 28 - Delegation of powers
The
Commission may by general or special order, delegate to the Chairman, any,
member or officer of the Commission, subject to such conditions and
limitations, if any, as may be specified, therein, such of its powers and
duties under this Act as it may deem fit.
Section 29 - Amendment of Act 14 of 1947
In
the Industrial Disputes Act, 1947, in section
2, in sub-clause (i) of clause (a);
after the words and figures "of the Food Corporations Act, 1964, or",
the words and figures "the Banking Service Commission established
under section
3 of the Banking Service Commission
Act, 1975, or" shall be inserted.
Section 30 - Returns and information
(1) The Commission shall furnish to the Central
Government such returns or other information with respect to its properties or
activities as the Central Government may, from time to time, require.
(2) The Commission may, for the purpose of enabling' it
to discharge its functions under this Act, call upon any public sector bank to
give such statements or furnish such particulars as the Commission may deem fit
and every such bank shall comply with the same.
Section 31 - Power to make rules
(1) The Central Government may, by notification, make
rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such rules may provide for all or any of the
following matters, namely:--
(a) the terms and conditions of service of the Chairman
and members;
(b) the sitting fee and travellings allowance payable
to persons, other than the Chairman and members, for attending any meeting of
the committee, under sub-section (2) of section 7;
(c) the terms and conditions of service of the
Secretary under sub-section (2) of section 8;
(d) the category of persons for whom any vacancy or
percentage of' vacancies in a public" sector bank may be reserved by the
Central Government;
(e) the procedure" for determination of the fee to
be paid by every public sector bank to the Commission under section 19;
(f) the form in which and the time within which the
Commission shall prepare and submit its budget to the Central Government under
section 20;
(g) the form in which and the time within which the
Commission shall prepare its annual statement of accounts under sub-section (1)
of section 21;
(h) the form and manner in which and the date by which
the Commission shall prepare an annual report giving a full account of its
activities during the previous year and submitting the same to the Central
Government under section 22;
(i) any other matter which is to be, or may be,
prescribed.
(3) Every rule made under this section shall be laid,
as soon as may be after it is made, before each House of Parliament while it is
in session for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session, or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or both
Houses agree that the rule should not be made, the rule shall thereafter have effect
only in such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
Section 32 - Power to make regulations
(1) The Commission may, with the previous approval of
the Central Government, by notification, make regulations, not inconsistent
with the provisions of this Act or the rules made thereunder, to provide for
all matters for which provision is necessary or expedient for the purpose of
giving effect to the provisions of this Act.
(2) Without prejudice to the generality of the
foregoing power, such regulations may provide for all or any of the following
matters, namely:--
(a) the matters referred to in sub-section (3) of section
8;
(b) the duties and conduct of employees of the
Commission, other than the Secretary;
(c) the manner in which, and the category of persons
from whom, applications may be called for appearing at examinations or tests
held by the Commission;
(d) the manner in which appointments may be made to
fill any vacancy without consulting the Commission;
(e) the manner in which and period for which
appointments may be made to fill vacancies in relation to which the Commission
is unable to make a recommendation;
(f) the number of times and places at which the
Commission shall conduct examinations or tests for recruitment to different
posts;
(g) the principles in accordance with which candidates
shall be selected for different posts;
(h) the fees payable by candidates intending to appear
at examinations or tests conducted by the Commission;
(i) generally for the efficient conduct of the affairs
of the Commission.
Section 33 - Power of Central Government to extend the provisions of the Act to other banking institutions
The
Central Government may, if it is satisfied that it is necessary or expedient so
to do, by notification, specify that all or such of the provisions of this Act
as may be specified in the notification (hereinafter referred to as the
"specified provisions") shall also apply to, or in relation to, a
banking company and thereupon the specified provisions shall apply to such
banking company in the same manner as they apply to a public sector bank and
references in the specified provisions to a public sector bank shall be
construed as references to the banking company:
Provided
that no such notification shall be issued in relation to the appointment to any
service or post in a banking company unless a request in that behalf has been
received by the Central Government from that banking company.