Banking Regulation Act, 1949
- The Banking Regulation Act, 1949 came into force on March 16, 1949. It contained various aspects related to Banking Companies in India.
- This is regulatory act
- Its purpose is to:
- Provide safety in the interest of depositors
- Prevent misuse of powers by managers of banks
- Act does not supersede but supplement to Companies Act, 1956
- Initially named Banking Companies Act, 1949 but from March 1, 1966, the name of the Act was changed to Banking Regulation Act, 1949.
Parts and Sections of the Act
- Part I - Preliminary
- Section 2 to 5A
- Section 5B: Defines 'Banking'
- Section 5C: Defines 'Banking Company' as 'a company which transacts the business of banking in India
- Section 6: Forms of business in which banking Companies may engage
- Section 7: Use of words "bank", "banker", "banking" or "banking company"
- Section 10BB: Power of Reserve Bank to appoint chairman of a banking company
- Section 11: Requirement as to minimum paid up capital and reserves
- Section 18: Cash Reserve
- Section 21: Power of Reserve Bank to control advances by banking companies. Rate of interest
- Section 21A: Rate of interest charged by banking companies cannot be subject to scrutiny of courts.
- Section 22: Licensing of banking companies
- Section 23: Restrictions on opening new and transfer of existing branches etc.
- Section 27: Monthly returns to Reserve Bank
- Section 28: Reserve Bank's power to make public certain information in the interest of the public
- Sections 29, 30, 31: Audit
- Section 35: Authority to inspect every banking company and its branches
- Section 35A: Power of RBI to issue directions which every banking company in India has to follow
- Section 36AA: RBIs power to remove managerial power from persons of office..
- Section 36AB: RBIs power to appoint additional directors
- Section 37: Suspension of business
- Section 47A: RBIs power to impose penalty
- Section 58A of Companies Act, 1956 empowers companies to accept deposits from the public
- Negotiable Instruments Act, 1881
- Reserve Bank of India Act, 1934
- Banking Companies (Acquisition and Transfer of Understandings) Act, 1970
- State Bank of India (Subsidiary Banks) Amendment Act, 2011
- Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson and Members of Adjudicating Authority) Amendment Rules, 2011
- Banking Laws (Amendment) Bill, 2010
- [[Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Third Amendment Rules, 2010]]
- State Bank of India (Subsidiary Banks) Amendment Bill, 2010
- Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010
- Foreign Exchange Management (Guarantees) (Amendment) Regulations, 2010
- Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2010
- December 21, 2012: Salient Features of Banking Laws (Amendment) Bill 2012