CHANGES IN DEFINITION OF CLOSE RELATIVES-{‘Close relative’ Defined under the Companies Act, 1956/2013}

The term ‘Close relative’ means a relative as defined under the Companies Act, 1956/2013:

A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely:- 

1. Father: 

Provided that the term “Father” includes step-father.

 

2. Mother: 

Provided that the term “Mother” includes step-mother.

3. Son: 

Provided that the term “Son” includes step-son. 

4. Son’s Wife. 

5. Daughter. 

6. Daughter’s husband. 

7. Brother: 

Provided that the term “Brother” includes step-brother. 

8. Sister: 

Provided that the term “Sister” includes step-sister.

The list given as above is very crystal clear. However, following needs to be understood. 

Father, mother, son, brother and sister include the step-counterparts but there is no specific mention about step-daughter.  Plain interpretation of the section indicates that step daughter is not a relative. 

We get one more surprising thing here. In one case, a person can be relative of another in one way, but the reverse way, the person is not a relative. 

For example, Mr. A has a step daughter Ms. B. So for Ms. B, Mr. A, being a step-father, is a relative. However, for Mr. A, Ms. B is not a relative as step-daughter is not a relative. 

It is worth considering that son’s wife includes step son’s wife. However, daughter’s husband does not include step daughter’s husband. 

On division of a Hindu Undivided Family, the members of the family, except included in the above list of relatives, cease to be relatives. Also, if we compare with Companies Act, 1956, the list of relatives is drastically cut short. The following table will show the comparison of respective acts.

Act of 1956	Act of 2013
U/s 6: MEANING OF "RELATIVE" A person shall be deemed to be a relative of another, if, and only if, (a) they are members of a Hindu undivided family ; or (b) they are husband and wife ; or (c) the one is related to the other in the manner indicated in Schedule IA.	U/s 2(77) ‘‘relative’’, with reference to any person, means anyone who is related to another, if— (i) they are members of a Hindu Undivided Family; (ii) they are husband and wife; or (iii) one person is related to the other in such manner as may be prescribed.
Schedule IA	As prescribed
Father	Father (including step-father)
Mother (including step-mother)	Mother (including step-mother)
Son (including step-son)	Son (including step-son)
Son's wife	Son's wife
Daughter (including step-daughter)	Daughter
Father's father	Daughter's husband
Father's mother	Brother (including step-brothers)
Mother's mother	Sister (including step-sister)
Mother's father	-x-
Son's son	-x-
Son's son's wife	-x-
Son's daughter	-x-
Son's daughter's husband	-x-
Daughter's husband	-x-
Daughter's son	-x-
Daughter's son's wife	-x-
Daughter's daughter	-x-
Daughter's daughter's husband	-x-
Brother (including step-brothers)	-x-
Brother's wife	-x-
Sister (including step-sister)	-x-
Sister's husband	-x-

To conclude on a lighter note, the Companies Act, 1956 considered the joint family size concept, whereas, the Companies Act, 2013 as taken into account the modern family size, i.e. the nuclear family and has reduced the list of relatives from the long list to a small list.

Master Circular on Penalties for bank branches including currency chests based on performance in rendering customer service.

Master Circular on the Scheme of Penalties for bank branches including currency chests based on performance in rendering customer service to members of public

1. The scheme of Penalties for bank branches including currency chests has been formulated in order to ensure that all bank branches provide better customer service to members of public with regard to exchange of notes and coins, in keeping with the objectives of Clean Note Policy.

2. Penalties

Penalties to be imposed on banks for deficiencies in exchange of notes and coins/remittances sent to RBI/operations of currency chests etc. are as follows:

Sr.No.	Nature of Irregularity	Penalty
i.	Shortages in soiled note remittances and currency chest balances	For notes in denomination upto ₹.50  ₹.50/- per piece in addition to the loss For notes in denomination of ₹.100 & above Equal to the value of the denomination per piece in addition to the loss. Shortages of 100 pieces and above per remittance shall be debited immediately. Penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.
ii.	Counterfeit notes detected in soiled note remittances and currency chest balances.	Penalty on account of detection of counterfeit notes by RBI from soiled note remittance of banks and in currency chest balances shall be levied in terms of the instructions issued by DCM (FNVD) No.G-4/16.01.05/2017-18 dated July 20, 2017.
iii.	Mutilated notes detected in soiled note remittances and currency chest balances	₹ 50/- per piece irrespective of the denomination Mutilated notes of 100 pieces and above per remittance shall be debited immediately. Penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.
iv.	Non-compliance with operational guidelines by currency chests detected by RBI officials a) Non-functioning of CCTV b) Branch cash/documents kept in strong room c) Non-utilization of NSMs for sorting of notes (NSMs not used for sorting of high denomination notes received over the counter or not used for sorting notes remitted to chest/RBI)	Penalty of ₹ 5000 for each irregularity. Penalty will be enhanced to ₹.10,000 in case of repetition. Penalty will be levied immediately.
v.	Violation of any term of agreement with RBI (for opening and maintaining currency chests) or deficiency in service in providing exchange facilities, as detected by RBI officials e.g.. a) Non-issue of coins over the counter to any member of public despite having stock. b) Refusal by any bank branch to exchange soiled notes / refusal by any currency chest branch to adjudicate mutilated notes tendered by any member of public c) Non conduct of surprise verification of chest balances, at least at bimonthly intervals, by officials unconnected with the custody thereof and by the officials from the Controlling Office once in six months. d) Denial of facilities/services to linked branches of other banks. e) Non acceptance of lower denomination notes (i.e. denomination of ₹ 50 and below) tendered by members of public and linked bank branches. f) Detection of mutilated /counterfeit notes in re-issuable packets prepared by the currency chest branches.	₹ 10,000 for any violation of agreement or deficiency of service. ₹ 5 lakh in case there are more than 5 instances of violation of agreement/deficiency in service by the branch. The levy of such penalty will be placed in public domain. Penalty will be levied immediately.