23A. Amalgamation of Regional Rural Banks.—(1) Notwithstanding anything contained in this
Act, if the Central Government, after consultation with the National Bank, the concerned State
Government and the Sponsor Bank, is of the opinion that it is necessary in the public interest or in the
interest of the development of the area served by any Regional Rural Bank or in the interest of the
Regional Rural Banks themselves, that two or more Regional Rural Banks should be amalgamated, that
Government may, by notification in the Official Gazette, provide for the amalgamation of such Regional
Rural Banks (hereafter in this Chapter referred to as the transferor Regional Rural Banks) into a single
Regional Rural Bank (hereafter in this Chapter referred to as the transferee Regional Rural Bank) with
such constitution, property, powers, rights, interests, authorities and privileges; and with such liabilities,
duties and obligations, as may be specified in the notification.
(2) Every notification issued under sub-section (1) shall indicate the date with effect from which the
amalgamation shall become effective.
1. S. 20 renumbered as sub-section (1) thereof by Act 81 of 1985, s. 11 (w.e.f. 1-5-1986).
2. Subs. by Act 1 of 1988, s. 12, for “sixty days from the date of closure of its accounting year” (w.e.f. 28-9-1988).
3. Ins. by Act 81 of 1985, s. 11 (w.e.f. 1-5-1986).
4. Ins. by Act 1 of 1988, s. 13 (w.e.f. 28-9-1988).
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(3) Every notification issued under sub-section (1) may also provide for all or any of the following
matters, namely:—
(a) the continuance in service of all the employees of the transferor Regional Rural Banks
(excepting such of them as not being workmen with the meaning of the Industrial Disputes Act, 1947
(14 of 1947) are specifically mentioned in the notification) in the transferee Regional Rural Bank at
the same remuneration and on the same terms and conditions of service, which they were getting or,
as the case may be, by which they were being governed, immediately before the date on which the
amalgamation takes effect;
(b) notwithstanding anything contained in clause (a), where any of the employees of the
transferor Regional Rural Banks, not being workmen within the meaning of the Industrial Disputes
Act, 1947 (14 of 1947) are specifically mentioned in the notification, or where any employee of the
transferor Regional Rural Banks has by notice in writing given to the transferee Regional Rural Bank
at any time before the expiry of a period of three months next following the date on which the
amalgamation takes effect, intimated his intention of not becoming an employee of the transferee
Regional Rural Bank, the payment to such employee of compensation, if any, to which he is entitled
under the Industrial Disputes Act, 1947, and such gratuity, provident fund and other retirement
benefits ordinarily admissible to him under the rules or authorisations of the concerned transferor
Regional Rural Banks immediately before that date;
(c) the other terms and conditions for the amalgamation of Regional Rural Banks; and
(d) the continuance by or against the transferee Regional Rural Bank of any pending legal
proceeding by or against any transferor Regional Rural Banks and such consequential, incidental and
supplemental provisions, as may, in the opinion of the Central Government, be necessary to give
effect to the amalgamation.
(4) Every notification issued under sub-section (1) shall, as soon as may be after it has been made, be
laid before each House of Parliament.
23B. Notification under section 23A to be sufficient notice to concerned parties.—(1) A
notification issued under sub-section (1) of section 23A, shall constitute sufficient notice of the provisions
thereof to all the parties concerned and shall be binding on the transferor Regional Rural Banks and the
transferee Regional Rural Bank and to the depositors, creditors, employees and all other persons having
dealings with such banks.
(2) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882) or the
Registration Act, 1908 (16 of 1908), any notification issued under sub-section (1) of section 23A shall be
sufficient conveyance, in accordance with the provisions of the notification, of the business, properties,
assets and liabilities, rights, interests, powers, privileges, benefits and obligations of whatever nature of
the transferor Regional Rural Banks to the transferee Regional Rural Bank.
(3) On and from the date on which the amalgamation takes effect under section 23A, any reference to
the transferor Regional Rural Banks in any agreement, conveyance, assurance, power of attorney or any
other document of whatsoever nature, shall be deemed to be a reference to the transferee Regional Rural
Bank and the rights and obligations of the transferor Regional Rural Banks shall be deemed to be the
rights and obligations of the transferee Regional Rural Bank to the extent specified in the said
amalgamation.
23C. Cessation of business of transferor Regional Rural Banks.—On and from the date on which
the amalgamation takes effect under section 23A, the transferor Regional Rural Banks shall cease to carry
on business, including that of making of any payment to any depositors or discharge any liability or
obligation to the creditors except to the extent as may be necessary for the implementation of the
provisions of the said amalgamation.
23D. Liquidation of Regional Rural Banks.—Where a notification is issued for the amalgamation
of Regional Rural Banks under sub-section (1) of section 23A, the Central Government may, by a further
notification in the Official Gazette, direct that on such date, as may be specified therein, the transferor
Regional Rural Banks, which by reason of amalgamation will cease to function, shall stand dissolved and
such direction shall take effect notwithstanding anything to the contrary contained in section 26.]