SECTION 3 TO 5 SBI ACT 1955 incorporation of sbi

Summary

The video script discusses the Statement of India Act 1955, focusing on the establishment and functions of the State Bank of India. It covers the bank's transition from the Imperial Bank, the authorized capital, issued capital, and the role of the RBI. The script also touches on the corporate body status of the bank, the power to acquire assets, and the central government's control over the issued capital.

Takeaways

• 📚 The video discusses the Statement of India Act 1955, highlighting its importance for local actors and the lack of videos on YouTube about it.
• 🏦 The script explains the transition from the Imperial Bank to the State Bank of India, emphasizing the merger process and the establishment of the new bank.
• 📖 It provides an overview of the Act, starting with the basic introduction and moving towards the detailed sections, aiming to cover up to section 35.
• 🛡️ The video mentions the role of the government securities and the World Bank in the context of the Imperial Bank's functions before its merger.
• 📜 Section 345 is highlighted as crucial for understanding the operational aspects of the establishment of the State Bank.
• 🏢 The script details the establishment of the State Bank, including the acquisition of all banking activities and the liabilities of the Imperial Bank.
• 💼 The role of the central government and the creation of a corporate body with perpetual succession and a common seal are discussed in relation to the State Bank.
• 📈 The authorized capital is discussed, with the script mentioning an initial amount of ₹5000 crores, divided into shares of various denominations.
• 📊 The script explains the issued capital in the context of the State Bank's establishment, detailing the distribution of shares and the potential for future increases.
• 📝 The video outlines the rights and permissions of the central board and the RBI, including the ability to reduce or increase the number of shares with the necessary approvals.
• 🏛️ The final sections of the script touch upon the issued capital of the State Bank, the composition of equity and preference shares, and the guidelines set by the RBI.

Q & A

What is the main topic of the video script?

The main topic of the video script is the discussion of the Statement of India Act 1955, which is an important act for local actors, and its implications on banking activities.

What does the video script discuss about the Imperial Bank in the context of the State Bank of India Act 1955?

The script discusses the transition of the Imperial Bank's activities and liabilities to the newly established State Bank of India (SBI) under the State Bank of India Act 1955.

What is the significance of Section 345 mentioned in the script?

Section 345 is significant as it outlines the operational aspects of the State Bank of India Act 1955, detailing how the functions of the Imperial Bank are carried out by the State Bank of India.

What is the role of the Central Board as mentioned in the script?

The Central Board is responsible for the management of the State Bank of India, and it has the power to acquire immovable or movable land for the bank's purposes.

What does the term 'Authorized Capital' refer to in the context of the video script?

In the context of the video script, 'Authorized Capital' refers to the maximum amount of capital that the State Bank of India is permitted to raise, which is mentioned as ₹5000 crores.

How is the Authorized Capital divided in the script?

The Authorized Capital is divided into shares of various denominations, such as 10, 10, and 5000, with a full-paid value as specified by the Reserve Bank of India.

What is the role of the Central Government in the reduction or division of shares as per the script?

The Central Government has the power to reduce or divide the shares of the State Bank of India, but it requires the prior approval of the Reserve Bank of India.

What does Section 5 of the Act discuss according to the script?

Section 5 of the Act discusses the issued capital of the State Bank of India, which is specified as 5 crores, 62 lakhs, and 6250 thousand.

What is the significance of the shares that the Imperial Bank held before the establishment of the State Bank of India?

The shares that the Imperial Bank held are transferred to the Reserve Bank of India upon the establishment of the State Bank of India, as per the script.

What are the types of shares issued by the State Bank of India as mentioned in the script?

The script mentions that the State Bank of India issues both equity shares and preference shares, with the terms and conditions specified by the Reserve Bank of India.

What is the minimum percentage of issued capital that the Central Government must hold according to the script?

According to the script, the Central Government must hold at least 51% of the issued capital of the State Bank of India.