Rupee devalued 1991 board for financial supervision. Some of the important sections of banking regulation acts 1949 are as under. Regulation of paidup capital, subscribed capital and authorised capital and voting rights of shareholders. Government and rbis powers opening of new banks and branch licensing constitution of board of directors and their rights banks share holders and their rights crr and slr concepts cash. The union cabinet on wednesday cleared an ordinance proposing amendment in the banking regulation act, 1949 that empowers the reserve bank of india to license banks and work as a banking. 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. Hence, a business activity of a banking company should be in consonance with the guidelines. 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. 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. The industrial finance corporation of india act 1948.
Jun 01, 2014 indian banking structure origin and evolution of banking institutions types and functions of banks commercial banks commercial banks functions banking companies in india rbi constitution, management and functions banking regulation act, 1949 state bank of india uti, idbi, rrbs local banks. Banking regulation act 1949 and important sections pdf. The reserve bank of india rbi, indias central bank, issues. Banking regulation act 1949 section 20 citation 38680. Substantial interest i in relation to a company, means the holding of a beneficial interest by an individual or his spouse or minor child, whether singly or taken together, in the shares thereof, the amount. In this file you may find very simple hand written notes for banking regulation act 1949.
The banking regulation act, 1949 contents introduction. Confidence is the sine qua non for its organic and orderly growth. Study material for bank promotion banking regulation act. Banking law unit i llb class notes adv gr rajesh kumar. The industrial disputes banking and insurance companies act 1949. Banking regulation act, 1949 free download as powerpoint presentation. W an act to consolida e and amend the law rel ting to banking 2. Passed as the banking companies act 1949, it came into force wef 16 march 1949 and changed to banking regulations act 1949 wef 01.
Banking regulation act, 1949 financial services banks. Companies act 1956 defining company, negotiable instrument act defining public holiday. Jan 31, 2014 banking companies in india is governed by two main legislations. This penalty of rs 50 lakh was imposed by the rbi on the bank under various sections of the banking regulation act, 1949. In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. 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. The key statutes and regulations that govern the banking industry in india are. The banking regulation act 1949 has 56 sections in total. Ca final banking regulation act 1949 hand written notes in pdf format. Not applicable to primary agricultural credit society and cooerative land mortgage banks and agriculture primary credit. Banking regulation act, 1949 bare acts law library.
Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. The banking regulation act, 1949 came into force on march 16, 1949. The balance sheet and the profit and loss account of a banking company have to be audited as stipulated under section 30 of the banking regulation act, 1949. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. The other important provisions were pertaining to the suspension of business by and winding up of the business. Here we have listed the acts related to banking sector. Act to apply to cooperative societies in certain cases 4. Banking regulation act, 1949 hereby directs that yes bank ltd. Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. Important mcq of banking regulation act 1949 banking. Jan 19, 2008 buy banking regulation act, 1949 book online at best prices in india on. The banking companies legal practitioner clients accounts act 1949. In this act, unless there is anything repugnant in the subject or context, a approved securities means i securities in which a trustee may invest money under clause a, clause b, clause bb, clause c or clause d of section 20 of the indian trust act, 1882 2 of 1882.
The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Banking regulation act 1949 schedule iii citation 38791. At the first instance, it is important to note that rbi is the main body which issues guidelines relating to banking company. Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. The indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act.
The banking regulation companies rules, 1949 1 the banking regulation companies rules, 1949 11. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Buy banking regulation act, 1949 book online at low prices in. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. Rbi guidelines for business structuring of a bank ipleaders. An act to consolidate and amend the law relating to banking 2. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. The banking regulation act came into existence in 1949.
Whereas it is expedient to consolidate and amend the law relating to banking 2. But, 1965 it was amended to make it applicable to cooperative banks. 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. It became applicable to jammu and kashmir from 1956. Initially, the law was applicable only to banking companies. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Subsection 2 of the section 19 of the banking regulation act, 1949 provides that no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of any amount exceeding 30 per cent of the paid up share capital of that company or 30 per cent of its own paidup share capital and reserves. Discuss the salient features of the indian banking. The rbi act was enacted to establish and set out the. Initially applicable for banking companies but applicable to cooperative banks since 1965. Directive under section 35a of the banking regulation act. Reserve bank of india act 1934 we have studied in banking structure of india that rbi was formed under rbi act 1934 it was amended in 1936, this act gives the framework of banking structure in india and also states the definition of scheduled. Act to apply cooperative societies in certain cases.
Ca final banking regulation act 1949 hand written notes in pdf. Download as ppt, pdf, txt or read online from scribd. What are the important rules of banking regulation act, 1949. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. What is the difference between the rbi act and the banking. It contained various aspects related to banking in india. An act to consolidate and amend the law relating to banking 1. Special responsibility is cast on the bank auditor in certifying the bank s balance sheet and profit and loss account, since that reflects the sound financial position of the banking. Taxmanns banking regulation act 1949 incorporated banking ombudsman scheme, cooperative banks rules, period of preservation of records, acquisition and transfer of undertakings act and banking regulation rules. The banking regulation act 1949 extends to whole 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. An act to consolidate and amend the law relating to banking. 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.
Buy banking regulation act 1949 book online at low. Banking regulation act 1949 important sections in hindi. Short title, extent and commencement the banking regulation act, 19493 act no. Download banking regulation act 1949 in pdf format. No banking company shall carry on business in india, unless it satisfies the following conditions, namely. Jan 17, 2017 the banking regulation act, 1949 applicable to entire india. 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. Banking regulation act enacted 1949 1950 1966 cooperative banks come under rbi regulation rbi strengthens exchange controls by amending foreign exchange regulation act fera 1973 regional rural banks set up 1975 india faces balance of payment crisis. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Important mcq of banking regulation act 1949 banking awareness.
Negotiable instrument act 1881 the bankersbooks evidence act 1891 the reservebank of india act 1934 the industrial finance corporation of india act 1948 the banking companies legal practitioner clients accounts act 1949 the industrial disputes banking and insurance companies act 1949. Banking regulation act, 1949 banking company bankexamstoday. May 03, 2020 this penalty of rs 50 lakh was imposed by the rbi on the bank under various sections of the banking regulation act, 1949. To acquire specialized knowledge of law and practice relating to banking detailed contents. Buy banking regulation act 1949 book online at best prices in india on. Also, as per section 22 of banking regulation act, 1949 for carrying out a banking business it is required to hold a license issued in that behalf by the reserve bank of india.
Short title, extent and commencement 1 this act may be called. There was initially 55 sections but in 1965 the banking regulation act 1949 was amended to include cooperative banks in the 56th section. Banking regulation act 1949, indian bare acts, law library. Parti an overview of rbi act, 1934 and banking regulation act 1949 16 reserve bank of india act, 1934 16 banking regulation act, 1949 16 other important sections of banking regulation act, 1949 17 section 36ab.
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