Initially, the law was applicable only to banking companies. Keep bank ac standard, clear inventories, improve perception. The following are the major steps taken by the government of india to regulate banking institutions in the country. In this act, unless there is anything repugnant in the subject or context, c banking company means any company which transacts the business of banking in india. Confidence is the sine qua non for its organic and orderly growth. Reserve bank of india act, 1934 16 banking regulation act, 1949 16 setting up of a new bank 18 branch licensing 19 branch authorisation policy for commercial banks 19 new bank licensing policy, 20 20 banks share holders and their rights 23 cash reserve ratio 24 statutory liquidity ratio slr 26 currency chests 28 currency printing and. Banking regulation act 1949 copy free download as powerpoint presentation.
Subsequently it was changed to banking regulations act 1949 wef 01. Subsituted by act 55 of 1963, section 7, for the former section 7w. There was initially 55 sections but in 1965 the banking regulation act 1949 was amended to include cooperative banks in the 56th section. The banking regulation act came into existence in 1949.
Companies act 1956 defining company, negotiable instrument act defining public holiday. Jan 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The banking regulation act, 1949 as modified upto january 7, 20 contents part i preliminary section 1 short title, extent and commencement section 2 application of other laws not barred section 3 act to apply to cooperative societies in certain cases section 4 power to suspend operation of act section 5 interpretation.
Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. Read the underlined words carefully as they are important part of definition on which questions may be based. Act to apply cooperative societies in certain cases. An act to consolidate and amend the law relating to banking 1.
This article is within the scope of wikiproject law, an attempt at providing a comprehensive, standardised, panjurisdictional and uptodate resource for the legal field and the subjects encompassed by it. App features complete the banking regulation act, 1949 in digital format. Banking company means any company which transacts the business of banking in india. This penalty of rs 50 lakh was imposed by the rbi on the bank under various sections of the banking regulation act, 1949. Securities documents of title to goods land and buildings book debts life policies. The banking regulation act 1949 extends to whole of india. It contained various aspects related to banking companies in india. Accordingly, reserve bank, considering the public interest and on being satisfied that it was necessary so to do, in exercise of the powers conferred by clause a of subsection 1 of section 36 of the banking regulation act, 1949 act 10 of 1949 and of all the powers enabling it in this behalf, issued a guidance on foreign contribution. An act to consolidate and amend the law relating to banking. Banking regulation act blogs, comments and archive news on.
The definition of the business of banking and a large number of activities permissible for banks are given in the banking regulation act 1949. In this file you may find very simple hand written notes for banking regulation act 1949. It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country. The act vested in the reserve bank the responsibility relating to licensing of banks, branch expansion, liquidity of their assets, management and. Act to apply to cooperative societies in certain cases 4. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in.
April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Drawing, making, accepting, discounting, buying, selling, collecting, and dealing in bills of exchange, hundies, promissory notes, coupons etc. Start this article has been rated as startclass on the projects quality scale. Rbi can conduct special audits of cooperative banks. May 12, 2020 banking regulation act latest breaking news, pictures, videos, and special reports from the economic times. Here you can find description about banking regulation act, 1949 in hindi. The provisions of this act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of the 6companies act, 1956 1 of 1956, and any. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. The reserve bank of india was established in the year 1935 in accordance with the reserve bank of india act, 1934. Banking regulation act, 1949 project report submission on banking. Section 45f documents of banking company to be evidence. The banking regulation act, 1949 reserve bank of india.
The following are the important provisions under banking regulation act, 1949 regarding control and regulation of banking sector in india. Chapter 1 addresses the question of why banks are regulated in order to establish the basic purposes, rationale, and goals for banking regulation, and to provide a framework for evaluating bank regulations. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. The banking regulation act, 1949 contents introduction. Parliament passes banking regulation amendment bill, 2017.
Government and rbis powers opening of new banks and branch licensing constitution of board of. Banking regulation act, 1949 financial services banks. Another important deficiency is the lack of integration of different segments or functionaries. The banking regulation act, 1949legislative department ministry. On the suggestions of narsimhan committee, the banking regulation act was amended in 1993 and thus the gates for the new private sector banks were opened. Provisions of the banking regulation act, 1949 are not in substitution of other laws applicable, unless otherwise expressly said section 2 sub 56 b act is not applicable to 1 primary agricultural society 2 cooperative land mortgage bank 3 any other cooperative society except as provided by sec. Principal provisions of banking regulation act, 1949. The provisions of this act shall be in addition to, and not, save as hereunder expressly. The banking regulation act 1949 has 56 sections in total. Ca final banking regulation act 1949 hand written notes in pdf.
The banking regulation act, 1949 microfinance gateway. However, with the enactment of the banking companies regulation act 1949, the position has changed considerably. What are the important rules of banking regulation act, 1949. Let us make indepth study of the meaning, licensing, cancellation and area of business of banking company. The records can be maintained in any form such manual records.
Application of other laws not barred 3 act to apply to cooperative societies in certain cases. Banking regulation act 1949 section 35 citation 38698. Some of the important sections of banking regulation acts 1949 are as under. Whereas it is expedient to consolidate and amend the law relating to banking 2. The banking regulation act, 1949 was passed by the parliament in the year 1949 with the aim to regulate all banks along with consolidating and amending the banking laws in india. The granting and issuing of letters of credit or various kinds, travelers cheque etc. Banking laws application to cooperative societies act, 1965, certain provisions of the banking regulation act, regarding the matters relating to banking business, were extended to the urban cooperative banks also. Get the banking regulation act 1949 microsoft store. Aug 26, 2011 provisions of the banking regulation act, 1949 are not in substitution of other laws applicable, unless otherwise expressly said section 2 sub 56 b act is not applicable to 1 primary agricultural society 2 cooperative land mortgage bank 3 any other cooperative society except as provided by sec.
The relationship between a banker and his customer depends upon the nature of service provided by a banker. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks. Application of certain provisions to thestate bank of india and other notified banks. Control and regulations of banks under the banking regulations act, 1949 banking is a unique industry in the sense that the bulk of its working funds are derived fiom demand and time deposits. Banking regulation act 1949 section 7 citation 38660 bare. Penalties prescribed under the banking regulation act, 1949. It was passed in parliament in february 1949 and the banking regulation act 1949 came to exist from 16 th march 1949. Banking regulation act, 1949 bare acts law library. The paid up amount is neither secured nor covered by a guarantee of the issuer or related entity nor subject to any other arrangement that legally or economically enhances the seniority of the claim. Summary of some important sections is provided hereunder. The banking and regulations act was enacted to safeguard the interest of the depositors and to control the abuse of powers by controlling the banks by any means necessary and to the interest of indian economy in general. Passed as the banking companies act 1949, it came into force wef 16 march 1949 and changed to banking regulations act 1949 wef 01. Section 10d provisions of sections 10a and 10b to override all other laws, contracts, etc.
Chapter 1 addresses the question of why banks are regulated in order to establish the basic purposes, rationale, and goals for bank ing regulation, and to provide a framework for evaluating bank regulations. Passed as the banking companies act 1949, it came into force from 16 march 1949 and changed to banking regulation act 1949 from 1 march 1966. Banking regulation act 1949 copy reserve bank of india. This act contains two categories of provisions a built in safeguards and b power and consequential functions and responsibilities of the reserve bank of india. What links here related changes upload file special pages permanent link page. Show all sections the banking regulation act, 1949. Banking regulation c ompanies rules, 1949 in exercise of. Download banking regulation act 1949 in pdf format. Summary of important sections of banking regulation act mba.
An act to consolidate and amend the law relating to banking 2. Study material for bank promotion banking regulation act. The rbi is now almost fully effective in this area under various provisions of the rbi act and the banking companies regulation act. Issues, lessons and preventive measures banking regulation act, 1949. Salient features anf significance of banking regulation. Banking statistics 1972 2002 pdf files banking statistics 1972 1995 summary tables book on external debt management. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. It regulates and supervises the functioning of the commercial banks in india. Form and business in which banking companies may engage 1 in addition to the business of banking, a banking company may engage in any one or more of the following forms of business, namely. Act to apply to cooperative societies in certain cases. The bill seeks to amend the banking regulation act, 1949 to insert provisions for handling cases related to stressed assets or nonperforming assets npas of banks. Banking regulation act 1949 section 51 citation 38781. The reserve bank of india is the central bank of india entrusted with the multidimensional role. But, 1965 it was amended to make it applicable to cooperative banks.
There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. The salient features of the banking regulation bill are list not exhaustive rbi can inspect books of associate business arms of a bank. Punishments for certain activities in relation to banking companies. Discuss the salient features of the indian banking. It contained various aspects related to banking in india. Page division one banking regulation act, 1949 arrangement of sections 1. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. What are the main provisions of banking regulation act, 1949. Ca final banking regulation act 1949 hand written notes in pdf format.
Download banking regulation act 1949 file in pdf format. The bill will replace the banking regulation amendment ordinance, 2017 promulgated by president in may 2017. Rbi can supercede entire board of directors of a bank. Banking regulation act, 1949 1 0 of 1949, and after consultation with the reserve bank, the central government is pleased to make the following rules. Banking regulation act, 1949 free download as powerpoint presentation. The requirements regarding the minimum paidup capital and reserves for commence mint of banking business. Provisions of rbi act 1935, banking regulation act 1949, prevention of money. Introduction banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. The reserve bank shall make an annual report to the central government on the trend and progress of banking in the country, with particular reference to its activities under clause 2 of section 17 of the reserve bank of india act, 1934 2 of 1934, including in such report its suggestions, if any, for the strengthening of banking business.