The state bank of Saurashtra act 1950 is repealed by the act of, the state of Saurashtra repeal and the state bank of India subsidiary banks amendment act 2009. An earlier amendment in 2007 had substituted certain sections in the act of 1950. Section 5 and 6 in the act 1950 was with drawn by virtue of the amendment of 2007. According to the insertion of the new section the authorized capital of the bank is fixed to five hundred crores. Section 6 empowers the bank to divide the capital into fully paid up shares after obtaining approval from Reserve bank of India.
According to the bill number 113 of 2009, the state bank of Saurashtra (repeal) and the state bank of India (subsidiary banks) amendment act 2009 enacted. In chapter 2 section 2 states that the state bank of Saurashtra act 1950 is repealed. But it also provides a clause that says any agreement or act done in accordance with the provision of the 1950 act before the amendment shall be continued as if the amendment is not come in to existence. Earlier the shares of the bank of Saurashtra were vested in the state bank of India. For the improved and better functioning of the bank in the international banking scenario with the approval from reserve bank of India and central government notification in the gazette the state bank of India acquired the state bank of Saurashtra along with the assets and liabilities. As the assets and liabilities of the bank is now vested in state bank of India the old was repealed as it confirms the non existence of the old act. After the acquisition of the Saurashtra bank by the state bank of India the provisions in the state bank of subsidiary bank act 1959 which were applicable to the bank of Saurashtra ceased. State bank of India is empowered to make amendment in regulations for the previous employees and their dependants who are subject to those regulations.
In chapter 3 of the Act, Amendment to the State Bank of India (subsidiary banks) act is inserted. By virtue of section 3 clause (k) of the act the word Saurashtra is omitted. Section 4 put forth the omission clauses. Section 5 deals with the substitution clause. In section 6 the substitution for the word Saurashtra bank or the Hyderabad bank is substituted by the word “Hyderabad bank” as stated in the subsidiary bank act section 42. Section 7 states that the omission cause in section 46 of the subsidiary bank the word Saurashtra is omitted. According to section 8 the substitution clause is again specified as in section 47 of the subsidiary bank act. It says the Hyderabad bank can be substituted for the words Hyderabad or Saurashtra bank. Section 9 again says about the omission clause in the subsidiary bank act. The omission of the words Saurashtra bank has been made in the section 49 of the subsidiary bank act. In section 10 of the amendment act 2009 again specifies the omission clause in section 56 of the subsidiary bank act 1959. In the annex of subsidiary bank act chapter 5 deals with management of the bank and in the first schedule section 13 and 14 deals with principles of compensation. Any act done according to the repealed act of state bank of Saurashtra 1950 before the acquisition of state bank of India subsidiary banks amendment act 2009 is still considered to be in force. After the commencement of the act of 2009 all the functions of the bank is subject to the provisions of the act of 2009.