The banking regulation act came into existence in 1949. To acquire specialized knowledge of law and practice relating to banking detailed contents. Banking regulation act, 1949 schedule iii bare act. 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. Banking regulation c ompanies rules, 1949 in exercise of. Home bare act central acts and rules banking laws banking regulation act, 1949. In india, originally the banking regulation act, 1949 did not contain any. 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. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. Jan 31, 2014 banking companies in india is governed by two main legislations. Ca final banking regulation act 1949 hand written notes in pdf format. Indian banking structure origin and evolution of banking institutions types and functions of banks commercial banks commercial banks functions banking companies in india rbi constitution, management and functions banking regulation act, 1949 state bank of. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i.
In this file you may find very simple hand written notes for banking regulation act 1949. Banking regulation act 1949 schedule iii citation 38791. March, 1949 an act to consolidate and amend the law relating to banking 1. Amalgamation of a banking company with a non banking company is governed by sections 391 to 394 of the companies act, 1956. A the territories merged in the former part a states, or. Buy banking regulation act 1949 book online at best prices in india on. Indias guidelines for mergeramalgamation of private sector banks dated may.
One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The banking regulation act 1949 is a legislation in india, that states all. The other important provisions were pertaining to the. 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. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Banking regulation act, 1949 origin of the act no separate legislation till 1949. It apprises students with history of banking regulation act, 1949 along with present banking structure and its related issues. Jun 01, 2014 indian banking structure origin and evolution of banking institutions types and functions of banks commercial banks commercial banks functions banking companies in india rbi constitution, management and functions banking regulation act, 1949 state bank of india uti, idbi, rrbs local banks. Penalties prescribed under the banking regulation act, 1949. The act regulates entry into banking business by licensing.
April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. May 25, 2017 the banking regulation act enacted in 1949. Summary of important sections of banking regulation act mba. 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.
It regulates and supervises the functioning of the commercial banks in india. 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. Any economy needs these banking institutions to facilitate the normal conduct of the day to day industry, trade and commerce activity of the country. Banking regulation companies rules, 1949 latest laws. 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.
Subsequently it was changed to banking regulations act 1949 wef 01. Unit five also helps in knowing the provisions of banking regulation act, 1949 which informs about the forms of business in which banking companies may engage and power of reserve bank to control advances by banking companies. Download banking regulation act 1949 in pdf format. Aug 23, 2010 the banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Negotiable instrument act 1881 the bankersbooks evidence act 1891 the reservebank of india act 1934 the industrial finance corporation of india act 1948 the banking companies legal practitioner clients accounts act 1949 the industrial disputes banking and insurance companies act 1949. 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 other important provisions were pertaining to the suspension of business by and winding up of the business. Banking regulation act, 1949 financial services banks. Save judgments add notes store search result sets organizer. An act to consolidate and amend the law relating to banking 2.
Power to suspend operation of act is a part of banking regulation act, 1949. Confidence is the sine qua non for its organic and orderly growth. Application of other laws not barred 3 act to apply to cooperative societies in certain cases. Download banking regulation act 1949 file in pdf format. The act also puts restrictions on the shareholding, directorship, voting rights and other aspects of banking companies. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in. Study material for bank promotion banking regulation act. 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. Save judgments add notes store search result sets organizer client files start your free trial today. Rate of interest charged by banking companies not to be subject to scrutiny by courts 22. Banking regulation act 1949 section 35a citation 38699. They regulate the flow of money throughout the economy. Jul 02, 2015 they do not want the bank to indulge in any other business and take risks.
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. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Banking regulation act wants the depositors to be safeguarded. Taxmanns banking regulation act 1949 incorporated banking ombudsman scheme, cooperative banks rules, period of preservation of records, acquisition and transfer of undertakings act and banking regulation rules. Unit 1 history of banking law 7 unit 2 the rbi act, 1934i 35 unit 3 the rbi act, 1934ii 62. 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.
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. It is interesting here to note that merger of banks and consolidation in the indian banking. The effect of nonbank activities on the riskiness of banking organizations is an important issue in capital regulation and deciding whether banking firms should be allowed to perform additional. Amalgamation of a banking company with a nonbanking company is governed by sections 391 to 394 of the companies act, 1956. Notes on international banking regulation request pdf. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. Banking regulation act 1949 and important sections pdf. Amalgamation of two banking companies is under the provisions of section 44 of the banking regulation act,1949. Denomination bank notes demonetisation act, 1978 the incometax act, 1961. Companies act 1956 defining company, negotiable instrument act defining public holiday. Here we have listed the acts related to banking sector. The banking regulation act 1949 extends to the entire nation. The banking regulation act 1949 extends to whole of india.
It is therefore in the national interest that legislative safeguards be provided so that it gives a flavour of. 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. The bank merged with icici bank limited, under section 44a of the banking regulation act, 1949. Unit six will explain students about the other provisions of banking regulation act, 1949. Banking regulation act 1949 the reserve bank of india act 1934 3. Principal provisions of banking regulation act, 1949. The act vested in the reserve bank the responsibility relating to licensing of banks, branch expansion, liquidity of their assets, management and. Banking law unit i llb class notes adv gr rajesh kumar. Sep 11, 2019 amalgamation of two banking companies is under the provisions of section 44 of the banking regulation act, 1949. Nationalisation period 1969 to 1991 in 1969, government of india nationalised 14 major banks. Restrictions on opening of new, and transfer of existing, places of business foot notes act no.
Jan 17, 2017 study material for bank promotion banking regulation act published by jai on january 17, 2017 january 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. Banks were under the control of indian companies act. Study material for bank promotion banking regulation act published by jai on january 17, 2017 january 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. Summary of some important sections is provided hereunder. Procedure for amalgamation of banking companies no banking company under the force of any law, shall be amalgamated with another banking company, unless a scheme containing the terms of such. 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. It also states that the bank shall not hold shares of another bank of an amount exceeding 30% of the capital. Summary of important sections of banking regulation act. Power of the reserve bank togive directions 1 wherethe reserve bank is satisfied that a in the 2 publicinterest. Ajai johnson 1216305 in any country the major portion of monetary resources lies with banking institutions.
Ca final banking regulation act 1949 hand written notes in pdf. Merger and acquisition of the undertaking of banking companies in. The banking regulation act, 1949 reserve bank 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. Banking regulation act 1949 law relating to banking and for regulating the banking companies and cooperative banks. Mar 19, 2019 ca final banking regulation act 1949 hand written notes in pdf format. Whereas it is expedient to consolidate and amend the law relating to banking 2.
Due to mushrooming growth in banks with inadequate capital dishonest management speculative investment appointment of incompetent directors for long periods poor liquidity of funds. Nationalisation period 1969 to 1991 in 1969, government of india nationalised 14 major banks whose national deposits were more than 50 crores. In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. Section 44a of banking regulation act 1949 section 44a of the banking regulation act, 1949 lays down the norms for voluntary mergers.
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