law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  3.Establishment of corresponding new banks and business
  
  thereof.-
  (1) On the commencement of this Act, there shall be constituted
  
  such corresponding new banks as are specified in the First Schedule. 
  (2) The Paid-up capital of every corresponding new bank
  
  constituted under sub-section (1) shall until any provision is made in this
  
  behalf in any scheme made under section 9, be equal to the paid-up capital of
  
  the existing bank in relation to which it is the corresponding new bank.
  (3) The entire capital of each corresponding new bank shall
  
  stand vested in, and allotted to, the Central Government.
  (4) Every corresponding new bank shall be a body corporate with
  
  perpetual succession and a common seal with power, subject to the provisions of
  
  this Act, to acquire, hold and dispose of property, and to contract, and may
  
  sue and be sued in its name.
  (5) Every corresponding new bank shall carry on and transact the
  
  business of banking as defined in clause (b) of section 5 of the Banking
  
  Regulation Act, 1949 (10 of 1949), and may engage in one or more forms of
  
  business specified in sub-section (1) of section 6 of that Act.
  (6) Every corresponding new bank shall establish a reserve fund
  
  to which shall be transferred the share premiums and the balance, if any,
  
  standing to the credit of the reserve of the reserve fund of the existing bank
  
  in relation to which it is the corresponding new bank, and such further sum, if
  
  any, as may be transferred in accordance with the provisions of section 17 of
  
  the Banking Regulation Act, 1949 (10 of 1949).