Section 65 — Interpretation for purposes of section 64

For the purposes of section 64,—
( a) “amalgamation” means the merger of an amalgamating co-operative
bank with an amalgamated co-operative bank, if—
( i) all the assets and liabilities of the amalgamating co-operative bank
or banks immediately before the merger (other than the assets
transferred, by sale or distribution on winding up, to the amalga -
mated co-operative bank) become the assets and liabilities of the
amalgamated co-operative bank;
( ii) the members holding 75% or more voting rights in the amalgam -
ating co-operative bank become members of the amalgamated
co-operative bank; and
( iii) the shareholders holding 75% or more in value of the shares in the
amalgamating co-operative bank (other than the shares held by the
amalgamated co-operative bank or its nominee or its subsidiary,
immediately before the merger) become shareholders of the amal-
gamated co-operative bank;
( b) “amalgamating co-operative bank” means—
( i) a co-operative bank which merges with another co-operative bank;
or
( ii) every co-operative bank merging to form a new co-operative bank;
( c) “amalgamated co-operative bank” means—
( i) a co-operative bank with which one or more amalgamating co-op-
erative banks merge; or
( ii) a co-operative bank formed as a result of merger of two or more
amalgamating co-operative banks;
( d) “business reorganisation” means reorganisation of business involving
the amalgamation or demerger of a co-operative bank or conversion of
a primary co-operative bank;
( e) “conversion” means transition of a primary co-operative bank to a
banking company under the scheme of the Reserve Bank of India as
may be notified vide its circular number DCBR. CO. LS. PCB. Cir. No.
5/07.01.000/2018-19, dated 27th September, 2018;
( f) “converted banking company” means a banking company formed as a
result of conversion from primary co-operative bank;
( g) “demerger” means the transfer by a demerged co-operative bank of one
or more of its undertakings to any resulting co-operative bank, in such
manner that—
( i) all the assets and liabilities of the undertaking or undertakings
immediately before the transfer become the assets and liabilities
of the resulting co-operative bank;
( ii) the assets and the liabilities are transferred to the resulting co-op-
erative bank at values (other than change in the value of assets
consequent to their revaluation) appearing in its books of account
immediately before the transfer;
( iii) the resulting co-operative bank issues, in consideration of the trans-
fer, its membership to the members of the demerged co-operative
bank on a proportionate basis;
( iv) the shareholders holding 75% or more in value of the shares in the
demerged co-operative bank (other than shares already held by the
resulting bank or its nominee or its subsidiary immediately before
the transfer), become shareholders of the resulting co-operative
bank, otherwise than as a result of the acquisition of the assets of
the demerged co-operative bank or any undertaking thereof by the
resulting co-operative bank;
( v) the transfer of the undertaking is on a going concern basis; and
( vi) the transfer is as per the conditions specified by the Central Gov -
ernment, by notification, having regard to the necessity to ensure
that the transfer is for genuine business purposes;
( h) “demerged co-operative bank” means the co-operative bank whose
undertaking is transferred, pursuant to a demerger, to a resulting bank;
( i) “predecessor co-operative bank” means the amalgamating co-operative
bank or the demerged co-operative bank, or the primary co-operative
bank, which has been succeeded as a result of conversion;
( j) “primary co-operative bank” shall have the meaning assigned to it in
clause (ccv) of section 56 of the Banking Regulation Act, 1949 (10 of
1949);
( k) “resulting co-operative bank” means—
( i) one or more co-operative banks to which the undertaking of the
demerged co-operative bank is transferred in a demerger; or
( ii) any co-operative bank formed as a result of demerger;
( l) “successor co-operative bank” means the amalgamated co-operative bank
or the resulting bank.