Directive under section 35a of the banking regulation act. Apr 02, 2018 banking companies in india were being governed by the indian companies act, 19. Act to apply to cooperative societies in certain cases. Be it enacted by parliament in the sixtyeighth year of the republic of india as. The banking regulation act, 1949 came into force on march 16, 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. It inserts provisions in the banking regulation act, 1949 to handle cases related to stressed assets. 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 19 of the banking regulation act, 1949 equity investments in. Cooperative banks now under rbis watch free pdf download. 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 22 in banking regulation act,1949 indian kanoon. Section 35a in banking regulation act,1949 indian kanoon. The banking regulation amendment bill, 2017 was introduced in lok sabha by the minister of finance, mr. Here you can find description about banking regulation act, 1949 in hindi. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i. The act was initially enacted to regulate the banking companies.
There are many provisions of banking regulation act 1949 and we are going to the topic about business of banking companies. The banking regulation act legislated in the year 1949 comprises a set of. Principal provisions of banking regulation act, 1949. Banking regulation act, 1949 banking company bankexamstoday.
But, 1965 it was amended to make it applicable to cooperative banks. Rbi to supersede the board under section 36aca of the br act 1949 recommend supersession of the board as applicable. The banking ombudsman scheme is introduced under section 35 a of the banking regulation act, 1949 by rbi with effect from 1995. Reserve bank of india logo reserve bank of india database. Section 24 and section 56 of the banking regulation act, 1949. The reserve bank of india had issued all inclusive directions to the mudhol cooperative bank limited, mudhol, dist. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a bill was introduced in parliament in march 1948. 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. Banking regulation act, 1949 reserve bank of india. Directive under section 35a of the banking regulation act, 1949. Important sections in banking regulation act 1949 related to rbi s pca rbi to remove managerial persons under section 36aa of the br act 1949 as applicable.
Banking companies in india were being governed by the indian companies act, 19. Loginsignup estore subscribe to the latest updates on. Banking regulation act 1949 and important sections pdf. As you are aware, the government of india, ministry of finance, notified the banking law amendments act, 2012, vide gazette notification dated january 17, 20, published in part ii section 3subsection ii of the gazette of india no. Banking regulation act, 1949 also provide powers of reserve bank of india such as. It is hereby notified for the information of the public that, the reserve bank of india, in exercise of powers vested in it under subsection 1 of section a read with 35 section 56 of the banking regulation act, 1949 as applicable to cooperative societies, hereby directs that thedirective dcbr. Section 23 of the banking regulation act, 1949 reserve bank of. The indian banking sector is regulated by the reserve bank of india act 1934 rbi act and the banking regulation act 1949 br act. The reserve bank of india rbi is indias central bank, which controls the issue and supply of the indian rupee. Recommendation of banking enquiry committee inadequate capital, dishonest management, speculative business a. Section 5b of the banking regulation act, 1949, provides that 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, and order or otherwise. Based on requests received from banks, it has been decided to allow banks to provide the facility of.
Section 23 of banking regulation act, 1949 third party transfer of. From 1 st march, 1966, it was renamed as banking regulation act, 1949. Stressed assets are loan accounts where the borrower has defaulted in debt repayment or where the repayment schedule has been restructured. Read the underlined words carefully as they are important part of definition on which questions may be based. Recommend to the central government for exempting any bank from the provisions of the banking regulation act 1949. In this series of study material for bank promotion, these are brief notes on banking regulation act. Jan 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. An order under subsection 4 whether made before or after the commencement of section 19 of the banking laws miscellaneous provisions act, 1963 55 of 1963 shall be conclusive evidence that all the requirements of this section relating to amalgamation have been complied with, and a copy of the said order certified in writing by an. Government and rbi s powers opening of new banks and branch licensing constitution of board of directors and their rights banks share holders and their rights crr and slr concepts cash. It contained various aspects related to banking 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. Most important sections and descriptions of banking regulation act 1949 are explained in this article which are very important in jaiib exam. It was passed in 1949 to consolidate and amend the laws relating to banking companies. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. The banking regulation act 1949 extends to the entire nation. Reserve bank of inola general regulations, 1949 in exercise of the powers conferred by section 58 of the reserve bank of india act, 1934 ii of 1934 and in supersession of the reserve bank of india general regulations, 1935, the central board of the reserve bank of india, with the previous sanction of the central. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Section 35a of the banking regulation act, 1949 aspirant. Rbi imposes rs 50 lakh fine on pnb for delay in reporting fraud in kingfisher airlines account 03 aug, 2019, 10. Issue of no objection certificate for the alteration of memorandum of a banking company.
The union cabinet on wednesday approved amendments to banking regulation act, 1949. An act further to amend the banking regulation act, 1949. Let us now discuss some important regulatory bodies. The banking regulation act 1949 is a legislation in india that regulates all banking firms in india. Further, while considering shiftingmergerclosure of branches, banks should ensure that they. State cooperative bank, nor rbi could grant a licence to it to function as a co. Section 23 of the banking regulation act, 1949 relaxations in branch authorisation policy. The reserve bank of india was founded on 1 april 1935 to respond to economic troubles after the first world war. The banking regulation amendment bill, 2017 prsindia. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002.
The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. Aug 27, 2019 the banking regulation act 1949 contains various provisions governing the commercial banks in india. Nov 02, 2017 the banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. Gk, general studies, optional notes for upsc, ias, banking, civil services. Important sections in banking regulation act 1949 aspirants zone. Cooperative banks now under rbi s watch free pdf download.
Power to suspend operation of act is a part of banking regulation act, 1949. What are the main provisions of banking regulation act, 1949. What are the important rules 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. 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.
Central government to consult the rbi for making rules regarding banking companies. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. Bagalkot, karnataka under section 35 a read with section 56 of the banking regulation act, 1949 vide directive dcbs. Whereas the reserve bank of india is satisfied that in order to protect the interest of the depositors and in public interest, it is necessary to issue certain directions to yes bank ltd. Powers, history, functions of the reserve bank of india rbi. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. The law was found to be inadequate, and therefore, in 1936, the indian companies a. The banking regulation act 1949 supreme court struck down the circular of reserve bank of india dated february 2, 2018 as it is ultra vires to sec. Rbi plays an important part in the development strategy of the government of india rbi regulates commercial banks and nonbanking finance companies working in india. Some of the important sections of banking regulation acts 1949 are as under.
Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. 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 the banking regulationcompanies rules1949 the banking regulation act1949. State bank of india act, 1955 and the banking regulation act, 1949. Banking regulation act 1949 copy reserve bank of india. Discuss the salient features of the indian banking. From 1st march, 1966, it was renamed as banking regulation act, 1949.
Banking regulation act 1949 copy free download as powerpoint presentation. The banking companies legal practitioner clients accounts act1949. Apr 07, 2020 rbi imposes rs 50 lakh fine on pnb for delay in reporting fraud in kingfisher airlines account 03 aug, 2019, 10. Thus, for the first time in 1966, the urban cooperative banks too came within the regulatory purview of the rbi. The act was initially known as banking companies act, 1949. 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. Establishment of depositor education and awareness fund.
Section 24 and section 56 of the banking regulation act, 1949 maintenance of. Nov 20, 2018 this act was originally enacted as banking companies act, 1949 on 16 march 1949. Section 36a certain provisions of the act not to apply to certain banking companies. The amendments to the br act 1949, introduced through the ordinance, and the notification issued thereafter by the central government empower rbi to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the insolvency and bankruptcy code, 2016 ibc. Banking regulation act 1949 important sections in hindi. Subscribers of 2020 pdfs can now download march 2020 pdf from their account. From april 1, 2017, entire slr as prescribed by rbi as on that date in assets as mentioned in a to c above.
The banking regulation amendment ordinance, 2017 prsindia. Banking regulation act 1949 important sections in hindi jaiib. The reserve bank of india rbi established under the rbi act, 1934, rbi is the central bank of india. The banking regulation act empowers rbi to regulate the operations of banks. This act was originally enacted as banking companies act, 1949 on 16 march 1949. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Study material for bank promotion banking regulation act. The banking regulation act 1949 contains various provisions governing the commercial banks in india. Whereas it is expedient to consolidate and amend the law relating to banking 2. Banking regulation act most important sections br, act 1949. Initially, the law was applicable only to banking companies.
The reserve bank of india was conceptualised based on the guidelines presented by the central legislative assembly which passed these guidelines as the rbi act 1934. Permitting the reserve bank of india rbi to maintain greater control over cooperative banks. The act was changed to banking regulation act, 1949 from 1 st march, 1966. This law contained only a few special provisions applicable to banking companies. Rbi in the compendium of best practices in a computerised environment and guidelines. So if you want to clear jaiib exam then from that point of view banking regulation act is very important. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Rbi has imposed the directions under subsection 1 of section 35a read with section 56 of the banking regulation act, 1949. The banking regulation amendment ordinance, 2017 was promulgated on may 4, 2017. Banking regulation act, 1949 bare acts law library. It seeks to amend the banking regulation act, 1949 to insert provisions for handling cases related to stressed assets. Till 1949, controlled by indian companies act 1956. 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. Banking regulation act 1949 objectives paper tyari.
The banking ombudsman scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks. Banking regulation act, 1949 bare acts law library advocatekhoj. Regulations of bank and financial institutions rbi grade. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. The industrial disputes banking and insurance companies act1949.
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