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. Dated government securities dated government securities are long term securities and carry a fixed or floating coupon interest rate which is paid on the face value, payable at fixed time periods usually halfyearly. Download banking regulation act 1949 file in pdf format. The reserve bank of india has powers to take above actions under banking regulation act, 1949. Discuss the salient features of the indian banking.
Banking regulation act 1949 copy free download as powerpoint presentation. W an act to consolida e and amend the law rel ting to banking 2. Full text containing the act, banking regulation act, 1949, with all the sections. 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. The banking ombudsman scheme is introduced under section 35a of the banking regulation act, 1949.
Companies act 1956 defining company, negotiable instrument act defining public holiday. 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 banking regulation act 1949 extends to whole of india. Initially, the law was applicable only to banking companies. Power to suspend operation of act is a part of banking regulation act, 1949. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. Important sections in banking regulation act 1949 aspirants zone. It contained various aspects related to banking in india.
Generally, an ebook can be downloaded in five minutes or less. The banking regulation act 1949 extends to the entire nation. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. 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. It was passed in 1949 to consolidate and amend the laws relating to banking companies. Act to apply to cooperative societies in certain cases. Provisions of the banking regulation act, 1949 are not in substitution of. Banking regulation act, 1949 bare acts law library. The act was initially known as banking companies act, 1949. Confidence is the sine qua non for its organic and orderly growth. Banking regulation act 1949 copy reserve bank of india. Summary of important sections of banking regulation act mba. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies.
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. Salient features anf significance of banking regulation act. Amalgamation of two banking companies is under the provisions of section 44a of the banking. The provisions of this act shall be in addition to, and not, save as hereunder expressly. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i.
The banking regulation act 1949 is a legislation in india, that states all. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. Bank financial management additional reading material. Aug 23, 2010 the banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Bank financial management additional reading material module c.
An act to consolidate and amend the law relating to banking 1. Jun 15, 2018 banking regulation act 1949 amendment 2017. Principal provisions of banking regulation act, 1949. 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. Oct 10, 2012 the banking regulation act 1949 extends to whole of india. These are licensed under section 22 of the banking regulation act, 1949 and are governed by the provisions of rbi act, 1934 and fema. The granting and issuing of letters of credit or various kinds, travelers cheque etc. Summary of some important sections is provided hereunder. Important sections in banking regulation act 1949 aspirants. Aug 27, 2019 the banking regulation act 1949 contains various provisions governing the commercial banks 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. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Section 35a of the act provides powers to put withdrawal restrictions on any bank in india. Amendments to the banking regulation act, 1949 part il 10 of 1949.
Liability in chit frail transaction whether saved by the provisions of sec. Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. Legal framework of regulation of banks what is banking. A regulations and compliance legal framework of regulation of banks. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. The banking regulation act, 1949 came into force on march 16, 1949. Use of words bank, banker, banking or banking company 8. Banking regulation act 1949 schedule iii citation 38791. 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. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Provisions of sections 10a and 10b to override all other laws, contracts, etc. The banking regulation act, 1949 reserve bank of india.
An act to consolidate and amend the law relating to banking. Indias banking industry is the largest in the world and is expanding rapidly. Get the banking regulation act 1949 microsoft store. Banking in india types of banks banking classification. The banking regulation act 1949 contains various provisions governing the commercial banks in india. The banking regulation act 1949 is a legislation in india that regulates all banking firms in india. 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 main customers of small finance banks include micro industries, small and marginal farmers, unorganized sector entities and small business units. Drawing, making, accepting, discounting, buying, selling, collecting, and dealing in bills of exchange, hundies, promissory notes, coupons etc. Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. Thus, amendments to the banking regulation act, 1949 brought cooperative banks and regional rural banks under the reserve banks jurisdiction, while amendments to the reserve bank of india act. 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. The banking ombudsman is a senior officer appointed by the reserve bank of india to resolve the grievance of banking customers. Every banking company, not being a scheduled bank, shall maintain in india by way of cash reserve with itself or by way of balance in a current account with the reserve bank, or by way of net balance in current accounts or in one or more of the aforesaid ways, a sum equivalent to at least three per cent of the total of its demand and time liabilities in india as on the last friday of the.
Banking regulation act 1949 and important sections pdf. Subsequently it was changed to banking regulations act 1949 wef 01. App features complete the banking regulation act, 1949 in digital format. Whereas it is expedient to consolidate and amend the law relating to banking 2. Government and rbis powers opening of new banks and branch licensing constitution of board of. Banking regulation act, 1949 banking company bankexamstoday. Banking regulation act 1949 deposit account banks free.
Buy a2z current affairs septemberdecember 2019 qa pdf. 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. Requirement as to minimum paidup capital and reserves. Banking regulation act 1949 objectives paper tyari. 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. It regulates and supervises the functioning of the commercial banks in india.
Provided, in derogation of the 7 companies act, 1956 1 of 1956, and. It relates to various aspects visavis banking in india. Today, the banking industry in our country is stronger and capable. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Keep your financial cognizance up to date with indianmoney app. An act to consolidate and amend the law relating to banking 2.
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