The banking regulation act 1949 extends to the entire nation. Banking regulation act 1949 brainkart lecture notes study. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Full text containing the act, banking regulation act 1949 notes with the latest amendments, footnotes. Rbi act,1934 is the founding legislation for rbi notified on 01041935. Banking regulation act 1949 brainkart lecture notes. Banking means accepting the deposits of money from public, for the purpose of lending and investing and repayable on demand or otherwise. Banking regulation act, 1949 schedule iii bare act. Banking means the acceptance of deposit for the purpose of lending or investment, the deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise. Section 28 allows the rbi to form rules regarding the exchange of damaged and imperfect notes. The other important provisions were pertaining to the. However, this act is not applicable where the institutions are classified according to their financial status or according to their.
But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. Till 1949, controlled by indian companies act 1956. The requirements regarding the minimum paidup capital and reserves for commence mint of banking business. Reserve fund section 17 of the banking regulation act,1949. Today we are providing banking awareness handwritten notes in pdf format. Powers of rbi under banking regulation act, 1949 banking regulation act, 1949 also provide powers of reserve bank of india such as.
In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. The regulations that govern banking in india investopedia. Contains all enforced central and state acts linked with subordinate data like rules,regulations,notifications,orders,circulars,ordinances,statutes. 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. Special provisions for assessing damages against delinquent directors, etc.
Principal provisions of banking regulation act, 1949. The act was initially known as banking companies act, 1949. However, by the enactment of the banking laws application to cooperative societies act, 1965, certain provisions of the banking regulation act, regarding the matters relating to banking. Banking regulation act most important sections br, act 1949. The provisions of this act shall be in addition to, and not, save as hereunder expressly. Banking law unit i llb class notes adv gr rajesh kumar. The act also puts restrictions on the shareholding, directorship, voting rights and other aspects of banking companies. History of state bank of india and types of banks in hindi 10. Section 2 of the said act reads that the provisions of the act shall be in addition to and not, in derogation of the companies act, and another law for the time being in force.
Audit section 30 under the banking regulation act 1949 every banking company has to obtain the previous approval of the reserve bank before appointing or reappointing and removing any auditors. The provision of reserve fund is substituted by amendment of 1949 w. Ca final banking regulation act 1949 hand written notes in pdf. The banking regulation act, 1949 came into force on march 16, 1949. The banking regulation act 1949 indian bare acts at, a website for indian laws and bareacts, legal advice and law documents in india. So if you want to clear jaiib exam then from that point of view banking regulation act is very important. March, 1949 an act to consolidate and amend the law relating to banking whereas it is expedient to consolidate and amend the law relating to banking. Banking regulation act 1949 is legislation created to supervise all the commercial banks in india. Note on banking regulation act, 1949 white paper white. The banking regulation act, 1949 applicable to entire india. Jan 12, 2020 banking regulation act 1949 amendment 2017. Banking regulation act, 1949 banking company bankexamstoday. Read the underlined words carefully as they are important part of definition on which questions may be based. Most important sections and descriptions of banking regulation act 1949 are explained in this article which are very important in jaiib exam.
Dec 21, 2019 the banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Jan 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. Banking regulation act, 1949, precluding the court from scrutinizing the rate of interest under. Mar 19, 2019 ca final banking regulation act 1949 hand written notes in pdf format. The following are the important provisions under banking regulation act, 1949 regarding control and regulation of banking sector in india. In a series of sharing useful study material for upcoming banking exams. 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. Penalties prescribed under the banking regulation act, 1949. According banking regulation act, 1949, banking means the accepting deposit of money from public, for the purpose of lending or investment, repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise. Audit section 30 under the banking regulation act 1949. The act, as amended uptodate, is a comprehensive piece of legislation aimed at the development of sound and balanced growth of banking business in the country. Study material, lecturing notes, assignment, reference, wiki.
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. Summary of important sections of banking regulation act. Banking regulation act, 1949 bare acts law library. Aug 27, 2019 the banking regulation act 1949 contains various provisions governing the commercial banks in india. Initially, the law was applicable only to banking companies. Summary of important sections of banking regulation act mba. In india only the rbi or the central government can issue and accept promissory notes. Duty of directors and officers of banking company to assist in the realization of property. Download banking regulation act 1949 in pdf format. The other important provisions were pertaining to the suspension of business by and winding up of the business. In this file you may find very simple hand written notes for banking regulation act 1949. Ca finalbanking regulation act,1949 under allied laws.
It contained various aspects related to banking in india. Banking regulation act 1949 copy reserve bank of india banks. Banking regulation act 1949 objectives paper tyari. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. The banking regulation act came into existence in 1949. 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. The banking companies legal practitioner clients accounts act1949.
Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a bill was introduced in parliament in march 1948. Powers, history, functions of the reserve bank of india rbi. Aug 23, 2010 the banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Important sections in banking regulation act 1949 aspirants. From 1st march, 1966, it was renamed as banking regulation act, 1949.
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. It was passed in 1949 to consolidate and amend the laws relating to banking companies. 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. There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. The rbi under the banking regulation act, 1949 act can also impose restrictions on banks to ensure better governance and control. Banking regulation act, 1949 this act regulates all banking firms in india i. Reserve bank of india act, 1934 16 banking regulation act, 1949 16 setting up of a new bank 18 branch licensing 19 branch authorisation policy for commercial banks 19 new bank licensing policy, 20 20 banks share holders and their rights 23 cash reserve ratio 24 statutory liquidity ratio slr 26 currency chests 28 currency printing and.
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. Summary of some important sections is provided hereunder. Primary agricultural credit society and cooperative land mortgage banks are not included under this act. What is the difference between the rbi act and the banking. Banking regulation act 1949 and important sections pdf. Banking regulation act 1949 law relating to banking and for regulating the banking companies and cooperative banks. An act to consolidate and amend the law relating to banking 1.
Audit section 30 1 the balancesheet and profit and loss account prepared in accordance with section 29 shall be audited by a person duly qualified under any law for the time being in force to be an auditor of companies. Gk, general studies, optional notes for upsc, ias, banking, civil services. 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. The industrial finance corporation of india act1948. The banking regulation act 1949 extends to whole of india. Banking regulation act 1949 copy free download as powerpoint presentation. A regulations and compliance legal framework of regulation of banks.
Subsequently it was changed to banking regulations act 1949 wef 01. Banking regulation act 1949 schedule iii citation 38791. The industrial disputes banking and insurance companies act1949. Banking regulation act, 1949 also provide powers of reserve bank of india such as. 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 act was changed to banking regulation act, 1949 from 1 st march, 1966. An act to consolidate and amend the law relating to banking 2. Describes the legal tender character of indian bank notes. Legal framework of regulation of banks what is banking. Reserve bank of indiarbi is empowered to direct the auditor of a banking company to audit account of a banking company in relation to any.
The banking regulation act 1949 is a legislation in india, that states all. It was passed in parliament in february 1949 and the banking regulation act 1949 came to exist from 16 th march 1949. This act was originally enacted as banking companies act, 1949 on 16 march 1949. Study material for bank promotion banking regulation act. 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. The main functions are as follows acting as agents for any government or local authority or any other person carrying the agencys business of any description but excluding of the managing agent or secretary and treasurer of a company. 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. History of banking regulation act 1949 banking banking24seven. Passed as the banking companies act 1949, it came into force. Power to suspend operation of act is a part of banking regulation 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. In this series of study material for bank promotion, these are brief notes on banking regulation act. Section 17 of the banking regulation act, 1949 deals with the reserve fund of banking company and provide for the transfer, out of the profit of a banking company for a sum not less than 20% of such that it is reserve fund subject to certain conditions.
Broad classification of banking structure in india with examples in hindi 8. Banking regulation act 1949, indian bare acts, law library. The banking regulation act, 1949 reserve bank of india. Comments as provided in part v of the banking regulation act, 1949 this act is applicable to the cooperative societies.
Amalgamation of two banking companies is under the provisions of section 44a of the banking regulation act, 1949. Whereas it is expedient to consolidate and amend the law relating to banking 2. The full ecourse package along with the required software is delivered on a 16 gb pen drive or sdcard. Ca final banking regulation act 1949 hand written notes in pdf format. Companies act 1956 defining company, negotiable instrument act defining public holiday. Get a detailed description of all the sections of the indian kanoon banking regulation act 1949. Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. The act regulates entry into banking business by licensing. Discuss the salient features of the indian banking. 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. Important sections in banking regulation act 1949 aspirants zone. 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. App features complete the banking regulation act, 1949 in digital format.
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