law: Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  
  16.Indemnity.-  
  (1) Every Custodian of a corresponding new bank and every
  
  officer of the Central Government or of the Reserve Bank and every officer or
  
  other employee of a corresponding new bank, shall be indemnified by such bank
  
  against all losses and expenses incurred by him in or in relation to the
  
  discharge of his duties except such as have been caused by his own willful act
  
  or default.
  (2) A director or member of a local board or committee of a
  
  corresponding new bank shall not be responsible for any loss or expense caused
  
  to such bank by the insufficiency or deficiency of the value of, or title to,
  
  any property or security acquired or taken on behalf of the corresponding new
  
  bank, or by the insolvency or wrongful act of any customer or debtor, or by
  
  anything done in or in relation to the execution of the duties of his office,
  
  unless such loss, expenses, insufficiency or deficiency was due to any willful
  
  act or default on the apart of such director or member.