Icici bank bank of rajasthan merger is the seventh voluntary merger in indian banking sector, us 44a of. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in. 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 salient features of the banking regulation bill are list not exhaustive rbi can inspect books of associate business arms of a bank. Thus it is clear from these sections the banking regulation act sticks to its objectives. Banking regulation act blogs, comments and archive news on.
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. Master direction amalgamation of private sector bank rbi. Salient features anf significance of banking regulation. Summary of important sections of banking regulation act mba. Aug 23, 2010 the banking regulation act was passed as the banking companies act 1949 and came into force wef 16. An analysis of strategic features and valuation sony kuriakose, m s senam raju and g s gireesh kumar abstract. Sep 11, 2019 amalgamation of two banking companies is under the provisions of section 44 of the banking regulation act, 1949. 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. Banking regulation act 1949 copy free download as powerpoint presentation. With the enactment of the banking regulation act, 1949, all banks in the country have been given equal treatment by the reserve bank as regards licensing, opening of. 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. 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.
Check the full list of government banks in india 2018 and their head office details, background, history, objectives and much more from oneindia. The following are the important provisions under banking regulation act, 1949 regarding control and regulation of banking sector in india. Jul 02, 2015 they do not want the bank to indulge in any other business and take risks. Icici bank bank of rajasthan merger is the seventh voluntary merger in indian banking sector, us 44a of the banking regulation act, 1949. 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. 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. With the enactment of the banking regulation act, 1949, all banks in the country have been given equal treatment by the reserve bank as regards licensing, opening of branches, share capital, the type of loans to be given, etc. Amalgamation of two banking companies is under the provisions of section 44 of the banking regulation act,1949.
An important feature of this act is that it has classified companies into banking and. The banking regulation act 1949 extends to whole of india. Buy banking regulation act 1949 book online at best prices in india on. Principal provisions of banking regulation act, 1949. Read the underlined words carefully as they are important part of definition on which questions may be based. The banking regulation act was passed as the banking companies act 1949 and came into force wef 16. Power to suspend operation of act is a part of banking regulation act, 1949. The banking regulation act came into existence in 1949. The other important provisions were pertaining to the. In this series of study material for bank promotion, these are brief notes on banking regulation act. 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.
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 regulation act, 1949 origin of the act no separate legislation till 1949. It also lays down directions for audits to be managed by rbi, and control merging and liquidation. Icici bankbank of rajasthan merger is the seventh voluntary merger in indian banking sector, us 44a of the banking regulation act, 1949. App features complete the banking regulation act, 1949 in digital format. The background of the merger can be traced to the regulatory intervention of sebi and rbi on bank of rajasthan. The following points highlight the eleven provisions of banking regulation act. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949.
Get the banking regulation act 1949 microsoft store. Penalties prescribed under the banking regulation act, 1949. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. This percentage may be changed by the rbi from time to time according to economic circumstances of the country. Study material for bank promotion banking regulation act. Jul 21, 2012 icici bankbank of rajasthan merger is the seventh voluntary merger in indian banking sector, us 44a of the banking regulation act, 1949. The banking regulation bill, 2011 was passed in the winter session of parliament in dec. The bankin g regulat i on act, 1949 is a legislation in india that reg ula tes all banking firms in india. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Banking regulation act, 1949, precluding the court from scrutinising the rate.
It regulates and supervises the functioning of the commercial banks in india. Banking regulation act, 1949 financial services banks. The requirements regarding the minimum paidup capital and reserves for commence mint of banking business. Amalgamation of a banking company with a non banking company is governed by sections 391 to 394 of the companies act, 1956. Banking regulation act 1949 copy reserve bank of india. Initially, the law was applicable only to banking companies. 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.
Act to apply to cooperative societies in certain cases. Buy banking regulation act 1949 book online at low. Due to mushrooming growth in banks with inadequate capital dishonest management speculative investment appointment of incompetent directors. It also states that the bank shall not hold shares of another bank of an amount exceeding 30% of the capital.
Pass ed as the banking companies act 1949, it came into forc e from 16 march 194 9 and changed to banking r egul ation act 1 949 from 1 march 1966. The provisions of this act shall be in addition to, and not, save as hereunder expressly. 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. They do not want the bank to indulge in any other business and take risks. Provided, in derogation of the 7 companies act, 1956 1 of 1956, and. Text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. 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 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 schedule iii bare act. 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. Banking regulation act 1949 schedule iii citation 38791. 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. Jan 17, 2017 in this series of study material for bank promotion, these are brief notes on banking regulation act. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i.
Amalgamation of a banking company with a nonbanking company is governed by sections 391 to 394 of the companies act, 1956. Banking regulation act, 1949 bare acts law library. Rbi can supercede entire board of directors of a bank. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Regulation act 1949 also empowers the reserve bank of india to the extent that it has the power to apply to central government. The background of the merger can be traced to the regulatory intervention of. 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 wants the depositors to be safeguarded. Merger and acquisition of the undertaking of banking companies in. In this backdrop, in march 1949, a special legislation, called the banking companies act, 1949, applicable exclusively to the banking companies, was passed. 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.
Subsequently it was changed to banking regulations act 1949 wef 01. Confidence is the sine qua non for its organic and orderly growth. Summary of some important sections is provided hereunder. This is the icici banks fourth acquisition after sangli bank. Discuss the salient features of the indian banking. The bill will replace the banking regulation amendment ordinance, 2017 promulgated by president in may 2017. It contained various aspects related to banking in india. Parliament passes banking regulation amendment bill, 2017. In india, originally the banking regulation act, 1949 did not contain any provisions for mergers and acquisition among banking companies. This is in addition to the average daily balance maintained by a bank. 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. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. Banking regulation act 1949 schedule iii third schedule.
It relates to various aspects visavis banking in india. Banking regulation act latest breaking news, pictures, videos, and special reports from the economic times. Oct 10, 2012 the banking regulation act 1949 extends to whole of india. Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. Rbi can conduct special audits of cooperative banks.
An act to consolidate and amend the law relating to banking 2. 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. 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 co. Companies act 1956 defining company, negotiable instrument act defining public holiday. 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. Whereas it is expedient to consolidate and amend the law relating to banking 2. Banking regulation c ompanies rules, 1949 in exercise of. 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. What are the main provisions of banking regulation act, 1949.
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