The Age Of Stars

suspended · 21 June 1938

Travancore National and Quilon Bank suspends payment

Deposits Rs 3.5 crore; 75 branches

Suspended payment after an unprecedented run that began in April 1938

VerifiedOfficial record. Source: RBIH1 ch. 6

Travancore National and Quilon Bank · scandal · 1 July 1938

Travancore National and Quilon Bank: RBI Special Officer's preliminary report: nearly all easily realisable securities had been realised during the…

Rs 26.5 lakh of insider lending

RBI Special Officer's preliminary report: nearly all easily realisable securities had been realised during the April–May run; the 31 Dec 1937 balance sheet was incorrect; the bank was buying its own shares; it was speculating in stocks and shares; directors and interested parties had borrowed Rs 26½ lakh on inadequate or clean security

VerifiedOfficial record. Source: RBIH1 ch. 6

Indian Companies Act · regulation · 1 February 1938

At the Reserve Bank's instance the Central Government amended the Indian Companies Act to require…

At the Reserve Bank's instance the Central Government amended the Indian Companies Act to require non-scheduled banks to submit an additional copy of their returns (cash reserve returns, balance sheets) to the Registrars of Joint-Stock Companies for transmission to the RBI

VerifiedOfficial record. Source: RBIH1 ch. 5

Non-scheduled banks · 1 November 1938

RBI circular to non-scheduled banks with paid-up capital and reserves of Rs 50,000 and over, asking whether…

RBI circular to non-scheduled banks with paid-up capital and reserves of Rs 50,000 and over, asking whether they would voluntarily place information before the Bank

VerifiedOfficial record. Source: RBIH1 ch. 5

Travancore National and Quilon Bank · scandal · 1 July 1938

Travancore National and Quilon Bank: RBI Special Officer's preliminary report (third week of July 1938): nearly all easily realisable securities…

Rs 26.5 lakh of insider lending

RBI Special Officer's preliminary report (third week of July 1938): nearly all easily realisable securities had been realised during the April–May run; the balance sheet as on 31 December 1937 was incorrect; the bank was buying its own shares presumably to keep up their market value; it was speculating in stocks and shares; and directors and interested parties had borrowed Rs 26½ lakh on inadequate or clean security.

VerifiedOfficial record. Source: Reserve Bank of India, History of the Reserve Bank of India, Vol. I (Bombay, 1970), pp. 184–187 (archive.org)

Non-scheduled banks

Indian Companies Act amendment

Non-scheduled banks required to submit an additional copy of their returns (cash reserve returns, balance sheets, etc.) to the Registrars of Joint-Stock Companies for transmission to the Reserve Bank

VerifiedOfficial record. Source: RBIH1 ch. 5