Banking law unit i llb class notes adv gr rajesh kumar. In this file you may find very simple hand written notes for banking regulation act 1949. An act to consolidate and amend the law relating to banking 1. Principal provisions of banking regulation act, 1949. Initially applicable for banking companies but applicable to cooperative banks since 1965. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. Discuss the salient features of the indian banking. This penalty of rs 50 lakh was imposed by the rbi on the bank under various sections of the banking regulation act, 1949. Companies act 1956 defining company, negotiable instrument act defining public holiday. 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. 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. The reserve bank of india rbi, indias central bank, issues. An act to consolidate and amend the law relating to banking.
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. Banking regulation act, 1949 free download as powerpoint presentation. Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. Banking regulation act 1949 the reserve bank of india act 1934 3. The banking regulation act 1949 extends to whole of india. To acquire specialized knowledge of law and practice relating to banking detailed contents. Banking regulation act, 1949 hereby directs that yes bank ltd. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. No banking company shall carry on business in india, unless it satisfies the following conditions, namely. Confidence is the sine qua non for its organic and orderly growth. A company desiring to have a licence under section 22 of the act shall apply to the principal office of the reserve bank in a form specified below, namely. Study material for bank promotion banking regulation act. Download banking regulation act 1949 in pdf format.
Banking regulation act 1949 section 20 citation 38680. 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. At the first instance, it is important to note that rbi is the main body which issues guidelines relating to banking company. 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. Short title, extent and commencement the banking regulation act, 19493 act no. Buy banking regulation act 1949 book online at low. 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. What is the difference between the rbi act and the banking. The banking regulation act, 1949 came into force on march 16, 1949. Regulation of paidup capital, subscribed capital and authorised capital and voting rights of shareholders.
Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. Here we have listed the acts related to banking sector. Some of the important sections of banking regulation acts 1949 are as under. Directive under section 35a of the banking regulation act. Buy banking regulation act, 1949 book online at low prices in. Ca final banking regulation act 1949 hand written notes in pdf. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Not applicable to primary agricultural credit society and cooerative land mortgage banks and agriculture primary credit. The banking regulation act is a central legislation enacted on march 10, 1949 and came into effect on march 16, 1949 when the government of india publicized in the gazette of india for the purpose of altering and uniting the legal documents on banking. Banking regulation act 1949 schedule iii citation 38791. Ca final banking regulation act 1949 hand written notes in pdf format. 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.
The industrial finance corporation of india act 1948. 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. 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. 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. 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 industrial disputes banking and insurance companies act 1949. Banking regulation act, 1949 bare acts law library. Banking regulation act 1949, indian bare acts, law library.
Rupee devalued 1991 board for financial supervision. It contained various aspects related to banking in india. Hence, a business activity of a banking company should be in consonance with the guidelines. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002.
Important mcq of banking regulation act 1949 banking. Jan 17, 2017 the banking regulation act, 1949 applicable to entire india. The key statutes and regulations that govern the banking industry in india are. 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. Important mcq of banking regulation act 1949 banking awareness. 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. The banking regulation act came into existence in 1949. 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.
The banking regulation act, 1949 contents introduction. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Act to apply to cooperative societies in certain cases 4. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Jan 31, 2014 banking companies in india is governed by two main legislations. In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. What are the important rules of banking regulation act, 1949. Banking regulation act, 1949 financial services banks. There was initially 55 sections but in 1965 the banking regulation act 1949 was amended to include cooperative banks in the 56th section. Short title, extent and commencement 1 this act may be called.
Until the court orders for the liquidation of a banking company, it continues to exist in its original form, even though the proceedings for its liquidation are started under section 194 of the companies act. 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. 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. Buy banking regulation act 1949 book online at best prices in india on. The rbi act was enacted to establish and set out the. The indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act. 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.
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. 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. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. Initially, the law was applicable only to banking companies. Banking regulation act 1949 and important sections pdf. But, 1965 it was amended to make it applicable to cooperative banks. The banking regulation act 1949 has 56 sections in total. 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. Download as ppt, pdf, txt or read online from scribd. 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. It became applicable to jammu and kashmir from 1956. Whereas it is expedient to consolidate and amend the law relating to banking 2. Banking regulation act 1949 important sections in hindi. 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.
Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. An act to consolidate and amend the law relating to banking 2. The banking regulation companies rules, 1949 1 the banking regulation companies rules, 1949 11. W an act to consolida e and amend the law rel ting to banking 2. March, 1949 an act to consolidate and amend the law relating to banking 1 whereas it is expedient to consolidate and amend the law relating to banking 1. 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. Rbi guidelines for business structuring of a bank ipleaders. 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. Banking regulation act, 1949 banking company bankexamstoday. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The other important provisions were pertaining to the suspension of business by and winding up of the business. Jun 07, 2019 posted by ibc laws on june 11, 2018 april 15, 2019 in banking regulation act, 1949 leave a comment the banking regulation amendment act, 2017 no. Act to apply cooperative societies in certain cases. Passed as the banking companies act 1949, it came into force wef 16 march 1949 and changed to banking regulations act 1949 wef 01.