Directive under section 35a of the banking regulation act. Form and business in which banking companies may engage 1 in addition to the business of banking, a banking company may engage in any one or more of the following forms of business, namely. The banking ombudsman scheme is introduced undersection 35 a of the banking regulation act, 1949. Name of the act year of promulgation societies registration act 1860 negotiable instruments act 1881 cooperative societies act 1912 provident funds act 1925 reserve bank of india act 1934 insurance act 1938. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. Nationalization of reserve bank of india in january, 1949.
Scrutiny by rbi under section 351 a of banking regulation act, 1949. Banking regulation act 1949 copy reserve bank of india. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Industrial credit and investment corporation of india icici established in 1955 as public limited company under indian company act, for developing medium and small industries of private sector. Further, all communication to the department of regulation should be through corporate email to the extent possible i. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Companies act 1956 defining company, negotiable instrument act defining public holiday. It acts as an instruction manual, guiding the banks what to do and what not. Br act 1949 provides a legal framework to regulate and supervise the banking activities. Explanation under subsection 4 of section 20 of the banking regulation act, 1949 10 of 1949, that for the purpose of aforesaid section, the term loans or advances shall not include line of credit overdraft facility extended by settlement bankers to national securities clearing corporation ltd.
Directive under section 35a of the banking regulation act, 1949. The banking regulation act, 1949 reserve bank of india. 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. Since then, banking related functions are regulated by the rbi and management related functions are regulated by respective state governments. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Legal framework for regulation of banks in india trotal.
A non banking financial company nbfc is a company registered under the companies act, 1956 of india, engaged in the business of loans and advances, acquisition of shares, stock, bonds hirepurchase, insurance business or chit business but does not include any institution whose principal business includes agriculture, industrial activity or the sale, purchase or. Nonbanking financial companies have been advised to adopt the banking companies nomination rules, 1985 made under section 45za of the banking regulation act, 1949. Section 20 of the banking regulation act, 1949 line of. The definition of banking is given in the banking regulation act, 1949. 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. The reserve bank of india is indias central bank and is wholly owned by the government of india.
Principal provisions of banking regulation act, 1949. Whereas it is expedient to consolidate and amend the law relating to banking 2. Banking in india types of banks banking classification. Reserve bank of india reserve bank of india was established in 1935, after the enactment of the reserve bank of india act 1934 rbi act. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the 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. Jun 15, 2018 in this video we have discussed banking regulation act 1949 in hindi helpful in various banking examination ibps, rbi sbi etc if found our video helpful to you anyway, then dont forget to like the. The reserve bank of india rbi, indias central bank, issues. Accordingly, depositors of nbfcs are permitted to nominate one person to whom the nbfc can return the deposit in the event of the death of the depositors.
The administration nationalised commercial banks and established, based on the banking companies act, 1949 later called the banking regulation act, a central bank regulation as part of the rbi. Negotiable instrument act1881 the bankersbooks evidence act1891 the reservebank of india act1934 the industrial finance corporation of india act1948. 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. Rbi act 1934 empowers rbi to be a guardian of all the banks, issue currency notes and maintain the. Short title, extent and commencement the banking regulation act, 19493 act no. 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. 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 banking regulation act 1949 extends to whole of india. 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.
Deshmukh raghuram rajan urjit patel quiz 1st governor of rbi. In 1949, the banking regulation act was enacted which empowered the reserve bank of india rbi to regulate, control, and inspect the banks. Banking regulation act, 1949 banking company rbi grade b. Oct 10, 2012 the banking regulation act 1949 extends to whole of india. Important sections in banking regulation act 1949 aspirants. Powers, history, functions of the reserve bank of india rbi. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Banking laws were made applicable to cooperative societies in 1966 through an amendment to the banking regulation act, 1949. In terms of section 45 of the banking regulation act, 1949 10 of 1949, d uring the period of moratorium the reserve bank of india may, if so considered necessary in public interestor. Banking regulation act,1949 br act gave wide powers to rbi as regards to establishment of new banksmergers and amalgamation of banks, opening of new branches, etc br act,1949 gave rbi. What is the role of rbi in the indian banking system. Act to apply to cooperative societies in certain cases 4.
Click on the green button to login in to partsmart web. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. Quiz in which was banking regulation act passed in parliament. Mumbai, maharashtra hereinafter referred to as the banking compan y, the reserve bank of india, in exercise of the powers vested under subsection 1 of section 35a of the banking regulation act, 1949 hereby directs that yes bank ltd. Important parliamentary acts related to banking sector in. Banking regulation act 1949 copy free download as powerpoint presentation. Whereas the reserve bank of india is satisfied that in order to protect the interest of the. Apr 04, 2019 the indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act. Jan 10, 2017 non banking financial companies have been advised to adopt the banking companies nomination rules, 1985 made under section 45za of the banking regulation act, 1949.
The banking regulation act was implemented on march 10, 1949. Here we have listed the acts related to banking sector. Return in this form is to be submitted to the reserve bank of india under section 24 of the banking regulation act, 1949 as application to cooperative societies by scheduled state cooperative banks and sections 18 and 24 of the act ibid. Banking ombudsman scheme, 2006, clause 142 appellate authority had not issued any notice to the petitioner before deciding the appeal order set aside. An act to consolidate and amend the law relating to banking 2. The indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act. Every banking company incorporated in india shall create a reserve fund and 99 shall, out of the balance of profit of each year as disclosed in the profit and loss account prepared under section 29 and before any dividend is declared. Banking regulation act, 1949 bare acts law library. The rbi act, 1934 is a legislative act under which the reserve bank of india was established.
Banking regulation act, 1949 also provide powers of reserve bank of india such as. March 1948 february 1949 march1934 when did banking regulation act came into force. Every banking company incorporated in india shall create a reserve fund and 99. Auditors report on the financial statements of westpac. Established on april 1, 1935, the rbis central office is located in indias commercial capital of mumbai.
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. Incorporation of banking companies under various acts. On the silver jubilee of the delhi metro rail corporation, former chief e sreedharan looks at its. Along with the companies act, it was amended in 1936 to provide a framework for the supervision of banking firms in india.