The banking regulation act, 1949 reserve bank of india. In view of large deposits and working funds of cooperative banks, certain provisions of the banking regulation act, 1949 were made applicable, by the banking laws. Banking regulation act 1949 schedule iii citation 38791. This article is aimed to scan through the scope of the securitization act in relation to the recovery of dues, issues with the act and impact on banking. With the securitization act it would authorize the financial institutions and banks to move ahead on their own against a borrower, whose has made default in repayment and whose assets are secured. Banking regulation act latest breaking news, pictures, videos, and special reports from the economic times. Jun 15, 2018 banking regulation act 1949 amendment 2017. Salient features anf significance of banking regulation.
Use of words bank, banker, banking or banking company 8. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. To prevent any systemic crisis through preventive and corrective measures. Salient features of banking laws amendment bill 2012. Latest stories on features of banking regulation act 1949. Never miss an important news, articles, videos and blogs on features of banking. It allows banks and other financial institution to auction residential or commercial properties to recover loans. Business of banking companies this act may be called the banking regulation act. Jul 02, 2015 they do not want the bank to indulge in any other business and take risks. Bank banking meaning, characteristics, types of banks. Banking regulation act, 1949 banking company bankexamstoday. The provisions of this act shall be in addition to, and not, save as hereunder expressly. Dos divided into dbs and dnbs salient features of the regulatory norms licensing of banks.
The requirements regarding the minimum paidup capital and reserves for commence mint of banking business. Government and rbis powers opening of new banks and branch licensing constitution of board of. Banking regulation act wants the depositors to be safeguarded. Section 36 further powers and functions of reserve bank. 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. Memorandum or articles of a banking company any agreement executed by it any resolution passed by the banking company in general meeting or by its board of directors, whether the same be registered, executed or passed, as the case may be. They regulate the flow of money throughout the economy. It contained various aspects related to banking in india. Whereas it is expedient to consolidate and amend the law relating to banking 2. Short title, extent and commencement the banking regulation act, 19493 act no.
Section 5 b of banking regulation act defines banking as accepting, for the purpose of investing or lending, deposits of money from the public, repayable on demand or otherwise the term bank is derived from an italian word banca and from a french word banque both meaning a bench or money exchange tables. The banking regulation act came into existence in 1949. Examine the salient features of banking regulation act. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. The act provides for the constitution of the medical council of india mci. 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. 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. Banking regulation act blogs, comments and archive news on. The following are the important provisions under banking regulation act, 1949 regarding control and regulation of banking sector in india. Form and business in which banking companies may engage. The banking regulation act, 1949 came into force on march 16, 1949. Discuss the banking regulation act ppt within the law laws governing banking and insurance forums, part of the upload download banking and insurance projects and notes category.
One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Principal provisions of banking regulation act, 1949. An act to consolidate and amend the law relating to banking 2. We recommed you to study further and write more elaborately. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india.
The banking regulation act 1949 extends to the entire nation. Guidelines issued under section 361a of the b r act, 1949 implementation of provisions of fcra, 2010. Confidence is the sine qua non for its organic and orderly growth. Short title, extent and commencement 1 this act may be called. 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. Section 5b of banking regulation act defines banking as accepting, for the purpose of investing or lending, deposits of money from the public, repayable on demand or otherwise. The said bill has been passed by both the houses of parliament during its just concluded winter session. It is therefore in the national interest that legislative safeguards be provided so that it gives a flavour of. Banking regulation act, 1949 bare acts law library. The banking and regulations act was enacted to safeguard the interest of the. Power to suspend operation of act is a part of banking regulation act, 1949. 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.
An act to consolidate and amend the law relating to banking. 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. Regulatory functions legal framework rbi act, 1934 br act, 1949 state bank of india sbi act, 1955, sbi subsidiary banks act, 1959 and banking companies acquisition and transfer of undertakings act 19701980. Business of banking companies this act may be called the banking regulation act, 1949. Application of the banking ombudsman schemes, 1995 and 2002. Act to apply to cooperative societies in certain cases. Banks to display salient features of the scheme for common knowledge of public. Sec 5 b of the act defines banking as, accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or other wise, and withdrawable by cheque, draft, order or otherwise. The term bank is derived from an italian word banca and from a french word banque. 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. Companies act 1956 defining company, negotiable instrument act defining public holiday. 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.
Ajai johnson 1216305 in any country the major portion of monetary resources lies with banking institutions. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. The securitisation and reconstruction of financial assets and enforcement of security interest act, 2002 also known as the sarfaesi act is an indian law. The mci regulates standards of medical education, permission to start colleges, courses or increase the number of seats, registration of doctors, standards of professional conduct of medical practitioners. Banking regulation act 1949 deposit account banks free. There are many provisions of banking regulation act 1949 and we are going to the. Act to have overriding effect section 5a of the banking regulation act, 1949 provides that the provisions of this act shall have effect notwithstanding anything to the contrary contained in. 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. Oct 10, 2012 the banking regulation act 1949 extends to whole of india. The other important provisions were pertaining to the. Passed as the banking companies act 1949, it came into force. Any economy needs these banking institutions to facilitate the normal conduct of the day to day industry, trade and commerce activity of the country. Online reporting of receipt of foreign contribution by banks. May 06, 2020 banking regulation act latest breaking news, pictures, videos, and special reports from the economic times.
Indian medical council act, 1956 is an indian legislation. 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. Section 5 c further defines, banking company means any. The banking laws amendment bill 2011 was introduced in order to amend the banking regulation act, 1949, the banking companies acquisition and transfer of undertakings act, 19701980. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. What are the main provisions of banking regulation act, 1949.
Hi friends as banking regulation act is quite big and it is very tedious to read thats why here im. Discuss the salient features of the indian banking. It also states that the bank shall not hold shares of another bank of an amount exceeding 30% of the capital. Notwithstanding that the balancesheet of a banking company is under subsection 1 required to be prepared in a form other than the form 3set out in part i of schedule vi to the companies act, 1956 1 of 1956, the requirements of that relating to the balancesheet and profit and loss account of a company shall, in so far as they are not.
Law of limitation provisions of bankers book evidence act special features of recovery of debts due. It under went some change to become the banking regulations act 1949 wef 01. Thus it is clear from these sections the banking regulation act sticks to its objectives. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. It relates to various aspects visavis banking in india. The banking regulation act ppt management paradise. 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. 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.
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