Central

Schedule 1 of The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003

THE SCHEDULE (See section 12) AMENDMENTS TO CERTAIN ENACTMENTS PART I AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934 (2 OF 1934) AMENDMENTS 1. In section 2, clause (bvii) shall be omitted. 2. In section 17,—

(a)in sub-sections (4G) and (4H), the words “the Development Bank or” shall be omitted;
(b)in sub-sections (4-I), (8A) and (12B), the words “the Development Bank” shall be omitted. 3. In section 42, in sub-section (1), in the Explanation, in clause (c), in sub-clause (ii), the words “or from the Development Bank” shall be omitted. 4. In section 45-I, in clause (bb), in sub-clause (iv), the item (a) shall be omitted. 5. In section 46C, in sub-section (2), clauses (a) and (b) shall be omitted. PART II AMENDMENTS TO THE BANKING REGULATION ACT, 1949 (10 OF 1949) AMENDMENTS 1. In section 5, clause (ffa) shall be omitted. 2. In section 34A, in sub-section (3), the words “the Development Bank” shall be omitted. 3. In section 36AD, in sub-section (3), the words “the Development Bank,” shall be omitted. PART III AMENDMENT TO THE INDUSTRIAL DISPUTES ACT, 1947 (14 OF 1947) AMENDMENT In section 2, in clause (bb), the words “the Industrial Development Bank of India” shall be omitted. PART IV AMENDMENTS TO THE SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA ACT, 1989 (39 OF 1989) AMENDMENTS In section 2,—
(a)for clause (h), the following clause shall be substituted, namely:— „(h) “industrial concern in the small scale sector” means any concern engaged or to be engaged in,—
1. (i)the manufacture, preservation or processing of goods;
2. (ii)shipping;
3. (iii)mining including development of mines;
4. (iv)the hotel industry;
5. (v)the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
6. (vi)the generation, storage or distribution of electricity or any other form of energy;
7. (vii)the maintenance, repair, testing or servicing of machinery or equipment of any description or vehicles or vessels or motor boats or trailers or tractors;
8. (viii)assembling, repairing or packing any article with the aid of machinery or power;
9. (ix)the setting up of, or development of, an industrial area or an industrial estate;
10. (x)fishing or providing shore facilities for fishing or maintenance thereof;
11. (xi)providing special or technical knowledge or other services for the promotion of industrial growth;
12. (xii)providing engineering, technical, financial, management, marketing or other services or facilities for industry;
13. (xiii)service industry such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;
14. (xiv)providing medical, health or other allied services;
15. (xv)providing services relating to information technology, telecommunication or electronics;
16. (xvi)leasing, sub-leasing or giving on hire-purchase of industrial plants, equipments, machinery or other assets including vehicles, ships and aircraft;
17. (xvii)such other activity as the Central Government may, having regard to the objects of this Act, by notification, specify in this behalf; or (xviii) the research and development of any concept, technology, design, process or product whether in relation to any of the matters aforesaid, including any activities specified under sub-clause (xvii), or any other matter and which is regarded as a small-scale undertaking under section 11B of the Industries (Development and Regulation) Act,1951 (65 of 1951). Explanation.—The expression “processing of goods” includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation.‟;
(b)after clause (la), the following clauses shall be inserted, namely:— „(lb) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);
(lc)“scheduled bank” means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);‟;
(c)clause (q) shall be omitted.

Summary

The Schedule lists specific amendments to several important financial and labor laws.
It removes references to the old Development Bank from the Reserve Bank of India Act, 1934, including sections 2, 17, 42, 45-I, and 46C.
It deletes references to the old bank in the Banking Regulation Act, 1949, covering sections 5, 34A, and 36AD.
It removes the old bank from the Industrial Disputes Act, 1947, in section 2, clause (bb).
It amends the Small Industries Development Bank of India Act, 1989, by substituting the definition of a small-scale industrial concern, inserting definitions for "Reserve Bank" and "scheduled bank", and omitting clause (q).

Practical examples

1In October 2004, a labor officer named Rajesh is reviewing an employee dispute under the Industrial Disputes Act, 1947. Thanks to Schedule 1, he sees that the old Industrial Development Bank of India is no longer listed in section 2, clause (bb), confirming they are now governed by the rules for standard commercial banks instead.

2A financial analyst named Meera is verifying the eligibility of a hotel business in Jaipur for a small-scale loan under the 1989 Act. She uses the updated definition of "industrial concern" in Part IV of the Schedule, which explicitly covers hotel operations, to approve a loan of 50,00,000 rupees.

FAQ

1. Which section of the main Act directs us to the Schedule?

Section 12 directs us to the Schedule.

2. What major banking law is amended in Part I of the Schedule?

The Reserve Bank of India Act, 1934 (2 of 1934) is amended.

3. What labor-related law is amended in Part III?

The Industrial Disputes Act, 1947 (14 of 1947) is amended.

4. What definition is substituted in the Small Industries Development Bank of India Act, 1989?

The definition of "industrial concern in the small scale sector" is substituted.

Test yourself

Q1.Which section of the main Act mentions the amendments specified in the Schedule?

Q2.What is deleted from Section 2, clause (bb) of the Industrial Disputes Act, 1947?

Q3.Which of the following Acts is NOT listed as amended in the Schedule?

Q4.Under the amended definition in the 1989 Act, which of the following is considered an industrial concern?

Q5.What new definition is inserted as clause (lb) in the Small Industries Development Bank of India Act, 1989?

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