The bill will replace the banking regulation amendment ordinance, 2017 promulgated by president in may 2017. The bill seeks to amend the banking regulation act, 1949 to insert provisions for handling cases related to stressed assets or nonperforming assets npas of banks. An act to consolidate and amend the law relating to banking 2. Introduction section 18c of the federal deposit insurance act 12 u. Fdic statement of policy on bank merger transactions i. Buy banking regulation act 1949 book online at best prices in india on. Banking regulation act 1949 section 35a citation 38699. This penalty of rs 50 lakh was imposed by the rbi on the bank under various sections of the banking regulation act, 1949. Power of the reserve bank togive directions 1 wherethe reserve bank is satisfied that a in the 2 publicinterest. Among other things, the bank merger act requires the. Till 1949, there was no separate act for banking in india.
Section 24 of the banking regulation act, 1949 maintenance. It is therefore in the national interest that legislative safeguards be provided so that it gives a flavour of. Glossarybank merger actthe popular name of section 18c of the federal deposit insurance act. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
Banking regulation act 1949 free download as powerpoint presentation. Companies act 1956 defining company, negotiable instrument act defining public holiday. Banking regulation act 1949 blogs, comments and archive news on. Banking regulation act 1949 latest breaking news, pictures, videos, and special reports from the economic times. Banking regulation act 1949 indian bare acts india bare.
Banking regulation act blogs, comments and archive news on. Banking regulation act, 1949 bare acts law library. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks. Study material for bank promotion banking regulation act published by jai on january 17, 2017 january 17. 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. Banking regulation act 1949 the reserve bank of india act 1934 3. Posted by ibc laws on june 11, 2018 april 15, 2019 in banking regulation act, 1949 leave a comment the banking regulation amendment act, 2017 no. 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. The central banking enquiry committee recommended the need of a separate legislation to control banks due to mushroom growth of banks with inadequate capital, dishonest management, speculative business etc etc. Banking regulation c ompanies rules, 1949 in exercise of. Legal framework of regulation of banks what is banking. Fdic law, regulations, related acts statements of policy. Banking regulation act, 1949 origin of the act no separate legislation till 1949. Banking regulation act 1949 and important sections pdf.
Any two psbs can initiate merger discussions, however, the merger scheme should be finalized by the government in consultation with rbi and it must be placed in parliament for approval. Banking regulation act 1949 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, banking regulation act 1949 national security, others, procedural and administration, property related, public utilities, shipping laws, tax. Principal provisions of banking regulation act, 1949. 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. Banks were under the control of indian companies act. The third schedule see section 29 1 form a form of balance sheet. Banking regulation act, 1949 schedule iii bare act. Section 23 of banking regulation act, 1949 aacs extending valueadded services through atms. 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. 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. Provisions of rbi act 1935, banking regulation act 1949, prevention of money laundering act, 2002. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise.
Whereas it is expedient to consolidate and amend the law relating to banking 2. A regulations and compliance legal framework of regulation of banks. Banking regulation act 1949 schedule iii citation 38791. 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. In terms of subsection 2 of section 22 of the banking regulation act, 1949 as applicable to cooperative societies, the primary urban cooperative banks existing in the country as on march 1, 1966, when some banking laws were applied to ucbs, were required to. The bank merger act requires that mergers between depository institutions be subject to the prior approval of the primary federal regulator of the resulting institution 12 usc 1828c. Confidence is the sine qua non for its organic and orderly growth.
Study material for bank promotion banking regulation act. The other important provisions were pertaining to the. Start this article has been rated as startclass on the projects quality scale. Chapter3 mergers and amalgamations in the banking sector. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. The banking regulation act came into existence in 1949. Buy banking regulation act, 1949 book online at low prices. In terms of these provisions, banks cannot, without the prior approval of the reserve bank of india rbi, open a new place of business in india or outside india or change, otherwise than within the same city, town or village, the location of the existing place of business.
Banking regulation act 1949 guarantee balance sheet. Regulation of paidup capital, subscribed capital and authorised capital and voting rights of shareholders. Due to mushrooming growth in banks with inadequate capital dishonest management speculative investment appointment of incompetent directors for long periods poor liquidity of funds. Banking regulation act, 1949 financial services banks. Government and rbis 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. Banking regulation act latest breaking news, pictures, videos, and special reports from the economic times. Parliament passes banking regulation amendment bill. 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 1966.738 107 981 761 1462 318 868 255 677 798 715 1190 1103 1397 1451 289 39 410 346 551 438 929 1463 56 931 585 497 1331 1151 1078 1095 98 631 866 1017 640 529 761