MANU/FNSV/0034/2019

Ministry : Ministry of Finance

Department/Board : Financial Services

Notification No. : SO3584(E)

Date of Notification : 01.10.2019

Date of Publication : 01.10.2019

Subject: Finance

Central Government hereby declare that the provisions of sub-clause (i) of clause (c) of sub-section (1) of Section 10 of Banking Regulation Act, 1949 shall not apply to Kotak Mahindra Bank Limited

S.O.3584(E).--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 and the said further period of nine months shall expire on the 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, has 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