Section 1 : Preamble
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This Act is to convert deposits of nationalized banks into Citizens' Legal Tender, and recover the loans.
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| Section 2 : Format of the act 2.1
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Many of the clauses of this law are procedures or instructions, which may be an order or a request. The clause has list of persons for whom that procedure/instruction is meant for.
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| Section 3 : Conversion of bank depoists into Legal Tender 3.1
| [Procedure for RBI Governor]
The RBIG will direct the managers of all the branches of ALL nationalized banks to convert the current and savings accounts into "Legal Tender Accounts" as described in "The Legal Tender Act" (*). The RBI Manager of zonal branch, in which the branch is, will issue the credit to that branch, equal to balances in the LT-accounts, in the account of that branch.
| 3.2
| [Procedure for RBI Governor]
The RBIG will direct the managers of all the branches of ALL nationalized banks to refund ALL the FDs with all the interest due on a date decided by the RBI-Governor, and deposit the funds in LT-accounts. The RBI Manager of zonal branch, in which the branch is, will issue the credit to that branch, equal to balances in the LT-accounts, in the account of that branch.
| 3.3
| [Procedure for RBI Governor]
The RBIG will issue credit to ALL GoI-owned institutions, namely UTI, LIC and all PSUs, as approved by the Parliament, equal to deposits/bonds they have taken from the public. Upon issuance of the deposits, these institutes will re-fund all the deposits with due interest.
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| Section 4 : Recovering loans 4.1
| [Procedure for RBI Governor ; Purpose : to recover the loans] The RBI Governor will take over ALL the loans issued by all the nationalized banks.
| 4.2
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[Procedure for RBI Governor]
RBIG will NOT charge any interest from the day the loans are taken over.
| 4.3
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[Procedure for RBI Governor]
RBIG will ask ALL the borrowers to repay the loans by 50 equal monthly installments. The borrowers must pay each installment ONLY by an LTA-check into RBI's account in the SBI branch designated for that borrower by the RBI Manager of that District. | 4.4
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[Procedure for RBI Governor]
If an installment fails to arrive by 5th of the month, the RBI Manager will auction ENTIRE collateral within 90 days. If the debt is not fully repaid from the collateral, the RBI Manager will request to Grand Jurors of that District to decide if other assets of the borrower should be confiscated as well. The Grand Jurors will ask 12 Jurors to decide and if over 8 out 12 Jurors demand confiscation of the borrower's assets, the RBI Manager will confiscate upto 75% of the assets of the borrower, as dedcided by the Jurors, and auction them within 90 days. | 4.5
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[Procedure for RBI Governor and RBI Zonal Manager]
If the defaulter is a company, then the Zonal Manager of RBI will summon all the individuals who has been the directors of the company since the first unpaid loan was taken. The RBI Managers will ask the directors and ex-directors to submit affidavit about their assets. The RBI Manager will submit the details of unpaid loans, and timing when the loans were taken and paid partially to the Grand Jurors along with information on assets. The Grand Jurors will ask a Jury of 12 to decide the individual liability of each director. The Jurors will decide liability of each director. The RBI Manager will confiscate the assets, as directed by the Jurors, to repay the loans.
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| Section 5 : Other Details 5.1
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If the officer does not execute a procedure or ignores an instruction stated in this Resolution/Act, a citizen can file a complaint before the Grand Jurors. In case there are is no Grand Jury, the citizens can appeal to the PM to setup a Grand Jury. But under this law, a citizen cannot complaint before PM, Corporators, PM, MLAs, PM, or MPs.
| 5.2
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The Jurors will judge this Act, guidelines, intentions as well as the facts related to the case
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