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Section 33 – The State Bank of India Act,1955

The State Bank of India Act,1955

Section 33. Other business which the State Bank may transact

Subject to the other provisions contained in this Act, the State Bank may carry on and transact any of the following kinds of business, namely:-

(i) The advancing and lending of money and the opening of cash credits upon the security of-

(a) Stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by any law for the time being in force in India or in any other country in which the State Bank has a branch;

(b) Debentures or other securities for money issued by or on behalf of a district board, municipal board, committee or other local authority under the authority of any Central Act, Provincial Act or State Act or of any law for the time being in force in any other country in which the State Bank has a branch;

(c) Subject to such directions as may be issued by the Central board, debentures of companies with limited liability registered either in India or in such other country as the Central Government may approve in this behalf;

(d) Subject to such directions as may be issued by the Central Board, shares and debentures of corporations established under any law for the time being in force in India;

(e) Goods which, or the documents of title to which, are deposited with or assigned to the State Bank as security for such advances, loans or credits;

(f) Goods which are hypothecated to the State Bank as security for such advances, loans or credits, if so authorised by special directions of the Central Board;

(g) Accepted bills of exchange and promissory notes endorsed by payees, and joint and several promissory notes of two or more persons or firms unconnected with each other in general partnership;

(h) Fully paid shares of companies with limited liability or immovable property or documents of title relating thereto as collateral security only where the original security is one of those specified in sub-clauses (a) to (e) and, subject to such directions as may be issued by the Central Board, where the original security is one of the kinds specified in sub-clauses (f) and (g);

Provided that where the Central Government or a State Government or any Government or authority outside India, which the Central Government may approve in this behalf, may accept from the State Bank any advances or loans under any law or the time being in force, the Central Board may, if it thinks fit, make such advances or loans without any specific security;

(ii) The selling and realisation of the proceeds of sale of any promissory notes, debentures, stock-receipts, bonds, annuities, stock, shares, securities or goods which, or the documents of title to which, have been deposited with, or pledged, hypothecated, assigned or transferred to the State Bank as security for such advances, loans or credits or which are held by the State Bank or over which the State Bank is entitled to any lien or charge in respect of any loan, advance, credit or claim of the State Bank, and which have not been redeemed in due time in accordance with the terms and conditions of such deposit, pledge, hypothecation, assignment or transfer;

(iii) The drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable securities;

(iv) The investing of the funds of the State Bank upon any of the securities specified in sub-clauses (a) to (d) of clause (i) and the conversion of the same into money whenever required, and the alteration, conversion or transposition of any such investment for or into any of the other investments above specified;

(v) The issuing of demand drafts, telegraphic transfers and other kinds of remittances made payable at its own offices, branches or agencies, the purchasing of drafts, telegraphic transfers and other remittance
s, and the making, issuing and circulating of letters of credit to order or otherwise than to the bearer on demand;

(vi) The buying and selling of gold and silver, whether coined or uncoined;

(vii) The receiving of deposits and keeping cash accounts on such terms as may be agreed upon;

(viii) The receiving of all kinds of bonds, Scripps, title deeds or valuables on deposit or for safe custody or otherwise on such terms as may be agreed upon;

(ix) The selling and realising of all property, whether movable or immovable, which may in any way come in to the possession of the State Bank in satisfaction or part satisfaction of any of its claims, and the acquisition and holding of, and generally the dealing with, any right, title or interest in any property, movable or immovable, which may be the State Bank’s security for any loan or advance or may be connected with any such security;

(x) The acting as agent of any co-operative bank which is registered or deemed to be registered under the Co-operative Societies Act,1912, or any other law for the time being in force in any part of India relating to co-operative societies in the transaction of such business, and on such terms as may be agreed upon;

(xi) The underwriting of the issues of any stocks, shares, debentures or other securities in which the State Bank is authorised to invest its funds under clause (iv);

(xii) The transacting of pecuniary agency business on commission and the entering into of contracts of indemnity, suretyship or guarantee with specific security or otherwise;

(xiii) The administration, whether alone or jointly with other persons, of estates for any purpose, whether as executo , trustee or otherwise, the acting, whether alone or jointly with other persons, as trustee under any settlement or debenture trust deed or as liquidator of any banking institution, or the acting as an agent on commission in the transaction of the following kinds of business, namely :-

(a) The buying, selling, transferring and taking charge of any securities or any shares in any pubic company;

(b) The receiving of the proceeds (whether principal, interest or dividends) of any securities or shares;

(c) The remittance of such proceeds by bills of exchange, payable either in India or elsewhere;

(xiv) The drawing of bills of exchange and the granting of letters of credit payable out of India;

(xv) The buying of bills of exchange payable out of India at any usance not exceeding fifteen months in the case of bills relating to the financing of seasonal agricultural operations or six months in other cases;

(xvi) The borrowing of money for the purposes of the business of the State Bank, and the giving of security for money so borrowed by pledging assets or otherwise;

(xvii) The advancing or lending of money to, or the opening of cash credit in favour of, any company having a share capital which is expressed in rupees in its memorandum of association or any society registered under the Co-operative Societies Act,1912 (2 of 1912), or any other law for the time being in force in India relating to co-operative societies, for the purpose of averting the winding up of the company or society or, where any such company or society is being wound up, for the purpose of facilitating such winding up, for any period upon the security of all or any of the assets whatsoever of such company or society and such advance, loan or cash credit may be made by the State Bank either alone or conjointly with other persons;

(xviii) The advancing and lending of money to courts of wards upon the security of estates in their charge or under their superintendence and the realisation of such advances or loans and any interest due thereon, provided that no such advance or loan shall be made without the previous sanction of the State Government concerned, and that the period for which any such advance or loan is made sh
all not exceed fifteen mo nths in the case of advances or loans relating to the financing of seasonal agricultural operations and six months in other cases;

(xix) With the approval of the Reserve Bank, the subscribing to, buying, acquiring or holding, and the selling of any shares in or the capital of any banking institution and the forming or conducting of any such banking institution as a subsidiary of the State Bank or in any other manner;

(xx) The subsidising from time to time of the pension funds referred to in section 8, if necessary;

(xxi) The doing of any other kind of business which the Central Government, in consultation with the Reserve Bank and on the recommendation of the Central Board, may authorise;

(xxii) The performance of the functions entrusted to, or required of, the State Bank by this Act or by any other law for the time being in force; and

(xxiii) Generally, the doing of all such matters and things as may be incidental or subsidiary to the transacting of the various kinds of business, including foreign exchange business, herein specified.

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