COMPENSATION FOR THE TRANSFER OF SHARES OF THE IMPERIAL BANK TO THE RESERVE BANK
1. In this Schedule, “shareholder” means any person who immediately before the appointed day is
registered as the holder of a share in the Imperial Bank.
2. As compensation for the shares in the capital of the Imperial Bank which, by reason of this Act, are
transferred to and vested in the Reserve Bank, the Reserve Bank shall pay to every shareholder, in the
manner set out hereinafter, an amount calculated at the rate of one thousand seven hundred and sixty-five
rupees and ten annas per share in the case of a fully paid-up share and four hundred and thirty-one rupees,
twelve annas and four pies per share in the case of a partly paid-up share.
3. Notwithstanding the transfer of the shares in the capital of the Imperial Bank to the Reserve Bank,
any shareholder who immediately before the appointed day is entitled to payment of dividend on the
shares of the Imperial Bank held by him shall be entitled to receive from the State Bank—
(a) all dividends accruing due on his shares in respect of any half year which ended before the
appointed day and remaining unpaid;
(b) dividends calculated at a rate to be specified by the Central Government in respect of any
period immediately preceding the appointed day for which the Imperial Bank has not declared any
dividend.
4. (1) The compensation provided for in this Schedule shall be given in Central Government
securities and the form of such securities and the value thereof, computed with reference to their market
value, shall be such as the Central Government may, by notification in the Official Gazette, specify in this
behalf:
Provided that where the amount of such compensation is not an exact multiple of the value of the
Government security as so notified, the amount in excess of the nearest lower multiple of such value shall
be paid by cheque drawn on the Reserve Bank.
(2) Notwithstanding anything contained in sub-paragraph (1), any person who is registered as the
holder of a share in the Imperial Bank on the 19th day of December, 1954, and continues to be so until the
appointed day shall, if he applies in writing in this behalf to the Reserve Bank before the expiry of three
months from the appointed day, be entitled to be paid, by cheque drawn on the Reserve Bank, any
compensation payable to him upto the first ten thousand rupees.
5. (1) Any shareholder to whom compensation is payable under this Schedule may apply to the
Reserve Bank before the expiry of three months from the appointed day for the transfer to him of shares
in the State Bank in lieu of such compensation, and for the purposes of such transfer the value of each
share of the State Bank shall be such as may be determined by the Reserve Bank in this behalf.
(2) If on receipt of an application under sub-paragraph (1), the Reserve Bank, in its discretion, decides
to transfer any shares to the applicant, it shall issue to the State Bank a warrant in the prescribed form
directing it to transfer in favour of the person specified in the warrant such number of shares as may be
specified therein out of the shares standing allotted to it under sub-section (1) of section 5, and the State
Bank shall be bound to comply with such warrant.
(3) A warrant issued by the Reserve Bank under this paragraph shall not be liable to duty under the
Indian Stamp Act, 1899 (2 of 1899).
6. (1) The Reserve Bank may, if it decides to transfer, in pursuance of paragraph 5, more than two
lakhs, fifty-three thousand and one hundred and twenty-five shares, require the State Bank to issue to it
such further shares as may be necessary to secure that it holds not less than fifty-five per cent. of the
issued capital of the State Bank, and the State Bank shall, without prejudice to the provisions contained in
sub-section (3) of section 5, comply with such requirement on the Reserve Bank subscribing one hundred
rupees for each share.
(2) No share issued to the Reserve Bank at par under this paragraph shall carry dividend at a rate
higher than four per cent. per annum.