Section 65: interpretation for purposes of Section 64

Key terms defined

• "Amalgamation" - the merger of an amalgamating co-operative bank with an amalgamated co-operative bank, where all assets/liabilities (other than those sold/distributed on winding up) become those of the amalgamated bank, at least 75% of the members (by voting rights) become members of the amalgamated bank, and at least 75% (by value of shares) of the shareholders become shareholders of the amalgamated bank.
• "Amalgamating co-operative bank" - a co-operative bank that merges with another, or any co-operative bank merging to form a new co-operative bank.
• "Amalgamated co-operative bank" - the bank with which one or more amalgamating banks merge, or the new bank formed by the merger.
• "Business reorganisation" - reorganisation involving the amalgamation or demerger of a co-operative bank, or conversion of a primary co-operative bank.
• "Conversion" - transition of a primary co-operative bank into a banking company under the Reserve Bank of India's notified scheme (RBI circular DCBR.CO.LS.PCB.Cir.No.5/07.01.000/2018-19, dated 27 September 2018).
• "Converted banking company" - a banking company formed as a result of such conversion.
• "Demerger" - the transfer by a demerged co-operative bank of one or more undertakings to a resulting co-operative bank, on a going-concern basis, at book values, with proportionate membership issued to the demerged bank's members, at least 75% (by value of shares) of shareholders continuing as shareholders of the resulting bank, and subject to conditions the Central Government notifies to ensure the transfer is for genuine business purposes.
• "Demerged co-operative bank" - the bank whose undertaking is transferred in a demerger.
• "Predecessor co-operative bank" - the amalgamating bank, the demerged bank, or the primary co-operative bank succeeded through conversion.
• "Primary co-operative bank" - has the meaning assigned in Section 56(ccv) of the Banking Regulation Act, 1949.
• "Resulting co-operative bank" - the bank(s) to which the demerged bank's undertaking is transferred, or the bank formed as a result of demerger.
• "Successor co-operative bank" - the amalgamated bank or the resulting bank.

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