Primary law, Tamil Nadu land law
The Reserve Bank (Transfer to Public Ownership) Act, 1948
The Reserve Bank (Transfer to Public Ownership) Act, 1948, enacted as Act No. 62 of 1948 and dated 23 September 1948, is primary legislation that transfers all shares in the Reserve Bank of India to the Central Government on an appointed day and provides compensation to registered shareholders. The source records that the amendment provision and Schedule were repealed with effect from 10 April 1950, while the requirement for rules to be placed before Parliament was added with effect from 11 January 2005.
What the Act does
The Reserve Bank (Transfer to Public Ownership) Act, 1948 governs the transfer of the Reserve Bank of India’s share capital into public ownership. It also addresses the relationship between the Central Government and the Reserve Bank of India and consequential changes to the Reserve Bank of India Act, 1934.
The appointed day is a day selected by the Central Government through a notification in the Official Gazette.
Transfer and compensation
On the appointed day:
- All shares in the capital of the Reserve Bank of India transfer to the Central Government free from trusts, liabilities and encumbrances.
- Each person registered as a shareholder immediately before that day becomes entitled to compensation.
- Compensation is calculated at one hundred and eighteen rupees and ten annas per share and is generally issued through Central Government promissory notes bearing interest at three per cent per year.
- Any balance above the nearest lower multiple of one hundred rupees is paid by cheque drawn on the Reserve Bank of India.
- A share obtained at par from the Central Government by a Director under the specified provision of the Reserve Bank of India Act, 1934 is compensated at one hundred rupees per share.
Former shareholders remain entitled to unpaid dividends for the year ending 30 June 1948 or an earlier year. They are also entitled to dividends calculated at four rupees per share per year for the period from 1 July 1948 until the appointed day.
Governance changes
On the appointed day, existing Directors of the Central Board, other than the Governor or Deputy Governor, and members of Local Boards vacate office. The Central Board and Local Boards are then to be constituted under the Reserve Bank of India Act, 1934 as amended.
Until the Central Board is constituted, the Governor, or a nominated Deputy Governor in the Governor’s absence, may exercise the Bank’s powers subject to Central Government restrictions and conditions.
Who this affects
The Reserve Bank (Transfer to Public Ownership) Act, 1948 directly concerns the Central Government, the Reserve Bank of India, its former shareholders and its office bearers. It does not contain provisions governing land ownership, property registration, planning permission or private land transactions in Tamil Nadu.
Rules and later changes
The Central Government may make rules through the Official Gazette about implementing the Act, including the payment of compensation and identifying eligible recipients. Such rules must be placed before both Houses of Parliament. The source records that the amendment provision and Schedule were repealed with effect from 10 April 1950.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this Act affect buying or selling land in Tamil Nadu?
No land transaction provisions appear in the Act. It concerns public ownership of Reserve Bank of India shares, shareholder compensation and the Bank’s governance.
Who received compensation when the Reserve Bank of India shares transferred?
Compensation was payable to each person registered as the holder of Reserve Bank of India shares immediately before the appointed day.
Who chooses the appointed day for the share transfer?
The Central Government chooses the appointed day by notification in the Official Gazette.
Were parts of the Act later repealed or changed?
Yes. The source records that the amendment provision and Schedule were repealed with effect from 10 April 1950. It also records that the provision requiring rules to be placed before Parliament was added with effect from 11 January 2005.
