Maintenance of slr and holdings of slr in htm category. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. The act gives the reserve bank of india rbi the power to license banks, have regulation. On approval of the consolidated proposal, individual proposals for opening new branches at specific centres, for which prior permission is required from rbi, must be submitted in the prescribed form vi in terms of rule 12 of the banking regulation companies rules, 1949, to the department of banking operations and development dbod, reserve. Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949.
Here we have listed the acts related to banking sector. The union cabinet on wednesday approved amendments to banking regulation act, 1949. 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. Banking regulation act 1949 objectives paper tyari. The act was initially known as banking companies act, 1949. Banking regulation act 1949 important sections in hindi jaiib. Reserve bank of india general regulations, 1949 contents chapter i introductory regulations 1. 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 law was found to be inadequate, and therefore, in 1936, the indian companies a. Banking company bound to comply with any direction issued by r. The act was initially enacted to regulate the banking companies. What are the main provisions of banking regulation act, 1949. No director or member to deal with matters with which he is personally concerned 5.
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. Subsequently it was changed to banking regulations act 1949 wef 01. Establishment of depositor education and awareness fund. Do not respond to mails asking for your internet banking. So if you want to clear jaiib exam then from that point of view banking regulation act is very important. Comments as provided in part v of the banking regulation act, 1949 this act is applicable to the cooperative societies.
An act further to amend the banking regulation act, 1949. Be it enacted by parliament in the sixtyeighth year of the republic of india as. The industrial disputes banking and insurance companies act1949. Banking regulation act, 1949 bare acts law library advocatekhoj. Apr 02, 2018 banking companies in india were being governed by the indian companies act, 19. 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. The banking regulation act, 1949 reserve bank of india.
The banking regulation act 1949 extends to the entire nation. Summary of important sections of banking regulation act. Nov 20, 2018 this act was originally enacted as banking companies act, 1949 on 16 march 1949. Apart from the balance sheet audit, reserve bank of india is empowered by the provisions of the banking regulation act, 1949 to conductorder a special audit of the accounts of any banking company.
Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. Banking regulation act 1949 copy reserve bank of india. Most important sections and descriptions of banking regulation act 1949 are explained in this article which are very important in jaiib exam. Previous instructions this master circular is a compilation of the instructions contained in the circulars issued by the reserve bank of india listed in the appendix, which are operational as on the date of this circular. 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. Rbi act,1934 is the founding legislation for rbi notified on 01041935. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. With effect from june 24, 2017, every commercial bank, primary urban cooperative bank, state cooperative bank and central cooperative bank shall maintain in india assets referred to as slr assets in the above notification the value of which shall not, at the close of business on any day, be less than 20.
But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. Nov 02, 2017 the banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Principal provisions of banking regulation act, 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. 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. 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. Accordingly it has issued following directions to scheduled commercial banks on statutory and other restrictions on loans and advances. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. From 1st march, 1966, it was renamed as banking regulation act, 1949. View essay banking regulation act from finance 2 at university of pune.
Banking regulation act, 1949 bare acts law library. 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. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Directive under section 35a of the banking regulation act. The special audit may be conducted or ordered to be conducted, in the opinion of the reserve bank of india that the special audit is necessary. The banking regulation amendment bill, 2017 was introduced in lok sabha by the minister of finance, mr.
The banking regulation amendment bill, 2017 prsindia. Issue of no objection certificate for the alteration of memorandum of a banking company. 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 reserve bank of india was conceptualised based on the guidelines presented by the central legislative assembly which passed these guidelines as the rbi act 1934. Section 61 in banking regulation act, 1949 1 in addition to the business of banking, a banking company may engage in any one or more of the. The banking regulation act 1949 is a legislation in india that regulates all banking firms in india. It was passed in 1949 to consolidate and amend the laws relating to banking companies. This act was originally enacted as banking companies act, 1949 on 16 march 1949. Gk, general studies, optional notes for upsc, ias, banking, civil services. The reserve bank of india amendment act, 1949 44 of 1949. Banking regulation act 1949 and important sections updated. Initially, the law was applicable only to banking companies. Banking regulation act, 1949 also provide powers of reserve bank of india such as. The reserve bank of india was founded on 1 april 1935 to respond to economic troubles after the first world war.
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. The banking regulation act, 1949 came into force on march 16, 1949. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. 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. Classification a statutory guideline issued by the rbi under section 35a of the banking regulation act, 1949. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in. In terms banking regulation act, 1949, rbi provides a framework of the rules, regulations, and instructions with regard to bank lending. Central government to consult the rbi for making rules regarding banking companies. Rbi to supersede the board under section 36aca of the br act 1949 recommend supersession of the board as applicable. Cooperative banks now under rbis watch free pdf download.
Section 24 and section 56 of the banking regulation act, 1949 rbi. Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning. Section 19 of the banking regulation act, 1949 equity investments in subsidiaries and other companies draft guidelines. Important sections in banking regulation act 1949 aspirants zone. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. Banking regulation act 1949 passed as banking companies act 1949 came into effect from 16th march 1949 changed to banking reg. Since 1956, selective controls of credit are increasingly being used by the reserve bank.
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. 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 regulation act, 1949 reserve bank of india. The mail has referred to provisions of banking regulation act, 1949 and prevention of money laundering rules, 2005 and informs bank account holders about the reserve bank setting up a new 24x7 centralised monitoring centre to monitor financial transaction flow from the internet banking accounts. Further powers and functions of reserve bank 1 the reserve bank may. The banking regulation act empowers rbi to regulate the operations of banks. 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. Banking companies in india were being governed by the indian companies act, 19. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i. Aug 31, 2009 section 6 of the banking regulation act, 1949 as applicable to cooperative societies forms of business in which banking companies may engage a reference is invited to section 6 1f of the banking regulation act b. Act to apply to cooperative societies in certain cases.
Section 36a certain provisions of the act not to apply to certain banking companies. The banking regulation act 1949 contains various provisions governing the commercial banks in india. The imposition was invoked by the central bank under section 35 a of indias banking regulation act, 1949. Till 1949, controlled by indian companies act 1956. Recommend to the central government for exempting any bank from the provisions of the banking regulation act 1949. Power to suspend operation of act is a part of banking regulation act, 1949. What is the difference between the rbi act and the banking. An act to consolidate and amend the law relating to banking 2. Rbi circular on section 6 of the banking regulation act, 1949. From 1 st march, 1966, it was renamed as 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. Directions under section 35 a read with section 56 of the banking regulation act, 1949 aacs the karad janata sahakari bank ltd.
The act was changed to banking regulation act, 1949 from 1 st march, 1966. Cooperative banks now under rbi s watch free pdf download. The banking ombudsman scheme is introduced under section 35 a of the banking regulation act, 1949 by rbi with effect from 1995. Banking regulation act most important sections br, act 1949. Banking regulation act, 1949 banking company bankexamstoday. Directive under section 35a of the banking regulation act, 1949. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
Permitting the reserve bank of india rbi to maintain greater control over cooperative banks. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Whereas it is expedient to consolidate and amend the law relating to banking 2. Definitions chapter ii obligations and immunities of directors and members of local boards 3. Banking regulation act 1949 important sections in hindi. Reserve bank of india logo reserve bank of india database rbi.
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. This law contained only a few special provisions applicable to banking companies. Section 24 and section 56 of the banking regulation act, 1949. It contained various aspects related to banking in india. Powers, history, functions of the reserve bank of india rbi. 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. Summary of some important sections is provided hereunder. Section 24 and section 56 of the banking regulation act, 1949 maintenance of.
It seeks to amend the banking regulation act, 1949 to insert provisions for handling cases related to stressed assets. The banking companies legal practitioner clients accounts act1949. Banking regulation act 1949 and important sections pdf. Banking regulation act 1949 copy free download as powerpoint presentation.
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