Directive under section 35a of the banking regulation act. Banking regulation act, 1949 banking company bankexamstoday. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Banking regulation act, 1949 reserve bank of india. Section 19 of the banking regulation act, 1949 equity investments in. Section 35a in banking regulation act,1949 indian kanoon.
From april 1, 2017, entire slr as prescribed by rbi as on that date in assets as mentioned in a to c above. In this series of study material for bank promotion, these are brief notes on banking regulation act. What are the main provisions of 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 act was initially enacted to regulate the banking companies. What are the important rules of banking regulation act, 1949. The banking ombudsman scheme is introduced under section 35 a of the banking regulation act, 1949 by rbi. Section 5b of the banking regulation act, 1949, provides that 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, and order or otherwise.
Section 23 of the banking regulation act, 1949 relaxations in branch authorisation policy. The reserve bank of india rbi, indias central bank, issues. Subsequently it was changed to banking regulations act 1949 wef 01. Rbi to supersede the board under section 36aca of the br act 1949 recommend supersession of the board as applicable. The banking ombudsman scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks. The union cabinet on wednesday approved amendments to banking regulation act, 1949. Reserve bank of india logo reserve bank of india database. The banking regulation act 1949 supreme court struck down the circular of reserve bank of india dated february 2, 2018 as it is ultra vires to sec. This act was originally enacted as banking companies act, 1949 on 16 march 1949.
State cooperative bank, nor rbi could grant a licence to it to function as a co. Cooperative banks now under rbis watch free pdf download. Banking regulation act 1949 and important sections pdf. Study material for bank promotion banking regulation act. An act further to amend the banking regulation act, 1949. Power to suspend operation of act is a part of banking regulation act, 1949. Banking regulation act, 1949 bare acts law library advocatekhoj. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Summary of some important sections is provided hereunder. Cooperative banks now under rbi s watch free pdf download. Section 23 of the banking regulation act, 1949 reserve bank of. Banking regulation act 1949 copy reserve bank of india.
Government and rbi s 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. Whereas the reserve bank of india is satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to yes bank ltd. Banking companies in india were being governed by the indian companies act, 19. The banking regulation amendment bill, 2017 was introduced in lok sabha by the minister of finance, mr. Section 10bb provides power to reserve bank to appoint chairman of the board of directors appointed on a whole time basis or managing director of any banking company. Banking company bound to comply with any direction issued by r. This law contained only a few special provisions applicable to banking companies. The banking regulation act, 1949 came into force on march 16, 1949. Till 1949, controlled by indian companies act 1956. The banking companies legal practitioner clients accounts act1949. 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 imposition was invoked by the central bank under section 35 a of indias banking regulation act, 1949. Apr 02, 2018 banking companies in india were being governed by the indian companies act, 19. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
From 1st march, 1966, it was renamed as 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. Thus, amendments to the banking regulation act, 1949 brought cooperative banks and regional rural banks under the reserve bank s jurisdiction, while amendments to the reserve bank of india act. Establishment of depositor education and awareness fund. The banking ombudsman scheme is introduced under section 35 a of the banking regulation act, 1949 by rbi with effect from 1995. Issue of no objection certificate for the alteration of memorandum of a banking company.
So if you want to clear jaiib exam then from that point of view banking regulation act is very important. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. Jan 10, 2017 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. No banking company shall carry on business in india, unless it satisfies the following conditions, namely. Regulation of paidup capital, subscribed capital and authorised capital and voting rights of shareholders.
Banking business and related financial services are governed primarily by the banking regulation act, 1949 banking regulation act. Principal provisions of banking regulation act, 1949. Based on requests received from banks, it has been decided to allow banks to provide the facility of. Important sections in banking regulation act 1949 related to rbi s pca rbi to remove managerial persons under section 36aa of the br act 1949 as applicable. Most important sections and descriptions of banking regulation act 1949 are explained in this article which are very important in jaiib exam. Contains all enforced central and state acts linked with subordinate data like rules,regulations,notifications,orders,circulars,ordinances,statutes. Act to apply to cooperative societies in certain cases. Powers, history, functions of the reserve bank of india rbi.
The reserve bank of india has imposed caps on withdrawals made by customers of punjab and maharashtra cooperative banks for 6 months. Negotiable instrument act1881 the bankersbooks evidence act1891 the reservebank of india act1934 the industrial finance corporation of india act1948 the banking companies legal practitioner clients accounts act1949 the industrial disputes banking and insurance companies act1949 the banking regulationcompanies rules1949 the banking regulation act1949. Recommend to the central government for exempting any bank from the provisions of the banking regulation act 1949. Banking regulation act 1949 copy free download as powerpoint presentation. 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. Central government to consult the rbi for making rules regarding banking companies. It contained various aspects related to banking in india. Rbi in the compendium of best practices in a computerised environment and guidelines. Reserve bank of india was vested with extensive powers for the supervision of banking in india as a central banking authority. Section 23 of banking regulation act, 1949 third party transfer of.
The act was changed to banking regulation act, 1949 from 1 st march, 1966. The reserve bank of india act, 1934 rbi act empowers the reserve bank of india rbi to issue rules, regulations, directions and guidelines on a wide range of issues relating to banking and the financial sector. Banking regulation act 1949 objectives paper tyari. The law was found to be inadequate, and therefore, in 1936, the indian companies a. Banking regulation act, 1949 bare acts law library.
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. Gk, general studies, optional notes for upsc, ias, banking, civil services. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a bill was introduced in parliament in march 1948. Initially, the law was applicable only to banking companies. Whereas the reserve bank of india is satisfied that in order to protect the interest of the depositors and in. Further, while considering shiftingmergerclosure of branches, banks should ensure that they. Section 36a certain provisions of the act not to apply to certain banking companies. Here you can find description about banking regulation act, 1949 in hindi. Section 24 and section 56 of the banking regulation act, 1949 maintenance of. Permitting the reserve bank of india rbi to maintain greater control over cooperative banks. Summary of important sections of banking regulation act. Directions under section 35 a read with section 56 of the banking regulation act, 1949 aacs the city cooperative bank ltd.
Sep 25, 2019 the reserve bank of india has imposed caps on withdrawals made by customers of punjab and maharashtra cooperative banks for 6 months. The indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act. Banking regulation act, 1949 also provide powers of reserve bank of india such as. Nov 20, 2018 this act was originally enacted as banking companies act, 1949 on 16 march 1949. 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. Be it enacted by parliament in the sixtyeighth year of the republic of india as. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. Discuss the salient features of the indian banking. Aug 27, 2019 the banking regulation act 1949 contains various provisions governing the commercial banks in india. Whereas it is expedient to consolidate and amend the law relating to banking 2. It seeks to amend the banking regulation act, 1949 to insert provisions for.
Banking regulation act 1949 important sections in hindi jaiib. Banking regulation act 1949 important sections in hindi. 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. Nov 02, 2017 the banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. The banking regulation act empowers rbi to regulate the operations of banks. Reserve bank of india has now further extended the directions for a period of two months up to june 14. It seeks to amend the banking regulation act, 1949 to insert provisions for handling cases related to stressed assets.
The act was initially known as banking companies act, 1949. Rbi in the compendium of best practices in a computerised environment and guidelines outlined. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a. Latur, maharashtra in exercise of powers vested in it under subsection 1 of section 35 a of the banking regulation act, 1949 aacs read with section 56 of the banking regulation act, 1949 from the close of business on february 16, 2019. Where a deposit is held by a banking company to the credit of one or more persons, the depositor or. Section 24 and section 56 of the banking regulation act, 1949. The banking regulation amendment bill, 2017 prsindia. Directive under section 35a of the banking regulation act, 1949. Banking regulation act most important sections br, act 1949.
One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. It is hereby notified for the information of the public that, the reserve bank of india, in exercise of powers vested in it under subsection 1 of section a read with 35 section 56 of the banking regulation act, 1949 as applicable to cooperative societies, hereby directs that thedirective dcbr. The banking regulation act 1949 extends to the entire nation. But, 1965 it was amended to make it applicable to cooperative banks.
The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Read the underlined words carefully as they are important part of definition on which questions may be based. Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. The banking regulation act, 1949 reserve bank of india. It was passed in 1949 to consolidate and amend the laws relating to 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. From 1 st march, 1966, it was renamed as banking regulation act, 1949. The banking regulation act, 1949 national bank for. Where a deposit is held by a banking company to the credit of one or more persons, the depositor or, as the case may be, all the depositors together, may nominate. Some of the important sections of banking regulation acts 1949 are as under.
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