3. Amendment of section 2.-In section 2 of the principal Act;--
(i) after clause (d), the following clause be inserted, namely;-
'(dd) "co-operative bank", means a State co-operative bank, a Central co-operative bank and primary co-operative bank';
(ii) after clause, (f0, the following clause shall be inserted, namely;--
'(ff) "defunct co-operative bank" means a co-operative bank--
(i) which has been prohibited from receiving fresh deposits; or
(ii) which has been ordered or directed to be wound up; or
(iii) which has transferred all its deposit liabilities in India to any other institution
(iv) which has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A of the Banking Regulations Act, 1949 (10 of 1949); or
(v) which has converted itself into a non-banking co-operative society; or
(vi) in respect of which any scheme of compromise or arrangement or of reconstruction has been sanctioned under any law for the time being in force and such scheme does not permit the acceptance of fresh deposit; or
(vii) which has been granted a moratorium which is in operation; or
(viii) in respect of which an application for winding up is pending before the Registrar of Co-operative Societies or other competent authority under any law relating to co-operative societies for the time being in force in a State;
(iii) in clause (g);--
(a) for the words "or a banking company", the words "a banking company or a co-operative bank" shall be substituted;
(b) for the words "with a banking company", the words "with a banking company or a co-operative bank" shall be substituted;
(c) in sub-clause (I) after the words "where a banking company at the commencement of this Act", the words "or where an eligible co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968)" shall be inserted;
(iv) after clause (g), the following clause shall be inserted, namely;--
'(gg) "eligible co-operative bank" means a co-operative bank the law for the time being governing which provides that;--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction, of the bank may be made only with the previous sanction in writing of the Reserve Bank;-
(ii) an order for the winding up of the bank shall be made if so required by the Reserve Bank in the circumstances referred to in section 13D.
(iii) if so required by the Reserve Bank in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for the suppression of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor for such period or periods not exceeding five years in the aggregate as may from time to time be specified by the Reserve Bank;
(iv) an order for the winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the suppression of the committee of management or other managing body (by whatever name called ) of the bank and the appointment of an administrator therefor made with the previous sanction in writing or on the requisition of the Reserve Bank shall not be liable to be called in question in any manner; and
(v) the liquidator or the insured bank or the transferee bank, as the case may be, shall be under on obligation to repay the Corporation in the circumstances to the extent and in the manner referred to in section 21.
(v) after clause (h), the following clause shall be inserted, namely :-
'(hh) "existing co-operative bank" means a co-operative bank carrying on the business of banking at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968(56 of 1968), which either holds a licence at such commencement under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or having applied for such licence has not been informed by notice in writing by the Reserve Bank that a licence cannot be granted to it but does not include a defunct co-operative bank;
(vi) for clause (I) the following clause shall be substituted, namely;
'(i) "insured bank" means a banking company or an eligible co-operative bank for the time being registered under the provisions of this Act and includes for the purposes of sections 16,17,18 and 21-
(i) a banking company referred to in clause (a) or clause (b) of section 13, or
(ii) a co-operative bank referred to in clause (a) or clause (b) of section 13C;
the registration whereof has been cancelled under section 13 or as the case may be, under section 13C
(vii) after clause (k) the following clause shall be inserted, namely;--
'(kk) "new co-operative bank" means a co-operative bank which begins to transact the business of banking after the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968 ), under a licence granted to it under section 22 of the Banking Regulation Act 1949, and includes a primary credit society becoming a primary co-operative bank after such commencement;
(viii) after clause (p), the following clause shall be inserted, namely;-
'(q) the expressions "central co-operative bank", "co-operative society", "primary co-operative bank", "primary credit society" and "State co-operative bank" shall have the meanings respectively assigned to them in the Reserve Bank of India Act, 1934 ( 2 of 1934)
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