Subsection 2 of the section 19 of the banking regulation act, 1949 provides that no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of any amount exceeding 30 per cent of the paid up share capital of that company or 30 per cent of its own paidup share capital and reserves. Banking regulation act, 1949 origin of the act no separate legislation till 1949. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by cheque, draft, order. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks. The banking regulation act, 1949 came into force on march 16, 1949. Application of other laws not barred 3 act to apply to cooperative societies in certain cases. 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 it. Banking regulation act 1949 copy reserve bank of india.
Banking refers to performing several activities such as collection of cheques, drafts. Download banking regulation act 1949 file in pdf format. Website content managed by legislative department, ministry of law and justice, government of india designed, developed and hosted by national informatics centre nic last updated. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies.
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. 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. The act vested in the reserve bank the responsibility relating to licensing of banks, branch expansion, liquidity of their assets, management and. Important sections in banking regulation act 1949 aspirants zone. Jan 23, 2018 the banking ombudsman scheme was introduced under section 35 a of the banking regulation act, 1949 by rbi with effect from 1995. What if banking company want to use that asset for business use.
Penalties prescribed under the banking regulation act, 1949. The banking ombudsman is a senior officer appointed by the reserve bank of india to resolve the grievance of banking customers. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a. 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. Banks were under the control of indian companies act. Banking regulation c ompanies rules, 1949 in exercise of. The indian banking regulation act of 1949 defines banking as 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. Act to apply to cooperative societies in certain cases. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a bill was introduced in parliament in march 1948. Banking regulation act 1949 schedule iii citation 38791. In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. 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.
It contained various aspects related to banking in india. The provisions of this act, as in force for the time being, shall apply to, or in relation to, cooperative societies as they apply to, or in relation to banking companies subject to the following modifications, namely. A banking ombudsman can receive a complaint on grounds specified under the ombudsman scheme, 2006. What if banking company use it for commercial purpose like earning rent. 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.
Subsequently it was changed to banking regulations act 1949 wef 01. Any person may file a complaint with the banking ombudsman having. Provisions of sections 10a and 10b to override all other laws, contracts, etc. 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. Banking regulation act 1949 free download as powerpoint presentation. Banking regulation act, 1949 1 0 of 1949, and after consultation with the reserve bank, the central government is pleased to make the following rules. Amalgamation of two banking companies is under the provisions of section 44a of the banking regulation act, 1949. Current banking ombudsman scheme introduced in 2006. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. 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. Section 10d provisions of sections 10a and 10b to override all other laws, contracts, etc. The banking ombudsman scheme is introduced under section 35a of the banking regulation act, 1949.
Section 45f documents of banking company to be evidence. 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. A company desiring to have a licence under section 22 of the act shall apply to the principal office of the reserve bank in a form specified below, namely. Banking regulation act 1949 as applicable to co operative. In this act, unless there is anything repugnant in the subject or context, c banking company means any company which transacts the business of banking in india.
The reserve bank of india act, 1934 and the banking regulation act, 1949, govern the banking operations in india. It is therefore in the national interest that legislative safeguards be provided so that it gives a flavour of. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. The banking regulation act came into existence in 1949. Application of other laws not barred the provisions of this act shall be in addition to. The banking regulation act, 1949 as applicable to cooperative societies objectives of the banking regulation act broadly are. 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. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. However, with the enactment of the banking companies regulation act 1949, the position has changed considerably. Summary of some important sections is provided hereunder. In the era of globalization banking sector in india is rapidly changing since 1990s due to technological.
Jan 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. The banking regulation act 1949 extends to whole of india. 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. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. Start this article has been rated as startclass on the projects quality scale. The banking ombudsman scheme was introduced under section 35 a of the banking regulation act, 1949 by rbi with effect from 1995. Role of commercial banks in the economic development of india 3 7. According to sec 5c of the banking regulation act 1949, a banker is a person who undertakes business of banking. The provisions of this act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of the 6companies act, 1956 1 of 1956, and any. Principal provisions of banking regulation act, 1949. It regulates and supervises the functioning of the commercial banks in india. Due to mushrooming growth in banks with inadequate capital dishonest management speculative investment appointment of incompetent directors for long periods poor liquidity of funds. The banking regulation act, 1949legislative department. The banking ombudsman scheme was first introduced in india in 1995 and it was revised in 2002.
Aug 23, 2010 the banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Till 1949, controlled by indian companies act 1956. The banking regulation act 1949 extends to the entire nation. Power to suspend operation of act is a part of banking regulation act, 1949. Powers, history, functions of the reserve bank of india rbi. Discuss the salient features of the indian banking. App features complete the banking regulation act, 1949 in digital format. Deposits in savings account are used for saving money. Provisions of bankers book evidence act special features of recovery of debts due to banks and financial institutions act, 1993 tds banking cash transaction tax service tax, asset. 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 banking regulation companies rules, 1949 1 the banking regulation companies rules, 1949 11.
Confidence is the sine qua non for its organic and orderly growth. For job alters, study material, ebooks, pdf, and quick update join our tele. Scribd is the worlds largest social reading and publishing site. 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. Initially, the law was applicable only to banking companies. Companies act 1956 defining company, negotiable instrument act defining public holiday. Savings bank accountholder is required to maintain a minimum balance in his account to avail of cheque facilities. Study material for bank promotion banking regulation act. Get the banking regulation act 1949 microsoft store. Banking regulation act 1949 copy free download as powerpoint presentation. Banking structure in india a wellregulated banking system is a key comfort for local and foreign stakeholders in any country. Another important deficiency is the lack of integration of different segments or functionaries.
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 application to cooperative societies act, 1965, to the state cooperative banks, the central cooperative banks and primary nonagricultural banks. Passed as the banking companies act 1949, it came into force. 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. Act to apply to cooperative societies in certain cases 4. Whereas it is expedient to consolidate and amend the law relating to banking 2. Provisions of the banking regulation act, 1949 are not in substitution of other laws. Banking regulation act, 1949 banking company bankexamstoday. Summary of important sections of banking regulation act mba.
An important feature of this act is that it has classified companies into banking and. Banking regulation act, 1949 schedule iii bare act. Read the underlined words carefully as they are important part of definition on which questions may be based. 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. Banking regulation act, 1949 bare acts law library. Reserve bank of india was vested with extensive powers for the supervision of banking in india as a central banking authority. Bank of india act, 1934 16 banking regulation act, 1949 16.
Banking regulation act, 1949 also provide powers of reserve bank of india such as. Banking regulation act, 1949 financial services banks. It relates to various aspects visavis banking in india. Extended due date of all gstr 3b with notification no on. The other important provisions were pertaining to the.
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