Section 2 states that the provisions of the act shall be in addition to. Oct 15, 2014 text of remaining provisions of allied acts referred to in incometax act section 5 c of banking regulation act, 1949 interpretation. Banking regulation act 1949 as applicable to co operative. It became applicable to jammu and kashmir from 1956. Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. In this file you may find very simple hand written notes for banking regulation act 1949. Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. Banking regulation act 1949 section 20 citation 38680. A person who willfully misrepresents facts or omits material facts in the balance sheet or while filing any return or while furnishing any other document, or presents such facts which is known to be false by the concerned person, is. Form and business in which banking companies may engage. Reserve bank of india under section 22 of the banking regulation act, 1949 are not vested with any other officer of the reserve bank. Parti an overview of rbi act, 1934 and banking regulation act 1949 16 reserve bank of india act, 1934 16 banking regulation act, 1949 16 other important sections of banking regulation act, 1949 17 section 36ab. Save as provided in subsection 1, no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent. Nov 02, 2017 the banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
Section 5b of the banking regulation act, 1949 defines banking as the accepting, for the purpose of lending or investment, of deposits of. Section 23 of banking regulation act, 1949 mobile branches. Provided that any banking company which is on the date of the commencement of this act. The banking regulation act 1949 extends to the entire nation. Section 19 of the federal deposit insurance act fdi act, prohibits, except with the prior written consent of the fdic, any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering. Section 19 3 in banking regulation act, 1949 3 save as provided in sub section 1 and notwithstanding anything contained in sub section 2, a banking company shall not, after the expiry of one year from the date of the commencement of this act, hold shares, whether as pledgee, mortagagee or absolute owner, in any company in the management.
Act to apply to cooperative societies in certain cases. Banking regulation act 1949 came into force on 16 march 1949. This form distinguishes between applications that are bank sponsored and applications that are for individual waivers. Section 24 and section 56 of the banking regulation act. The banking regulation act 1949 has 56 sections in total. Use of words bank, banker, banking or banking company 8. An act to consolidate and amend the law relating to banking 1. The reserve bank of india issued directions under section 35a read with section 56 of the banking regulation act, 1949 to the mapusa urban cooperative bank of goa ltd. In terms of subsection 1 of section 19 of the banking regulation act, 1949, a banking company shall not form any subsidiary company except i for undertaking any business specified in clause a to o of the subsection 1. 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. But, 1965 it was amended to make it applicable to cooperative banks. Banking regulation act 1949 the reserve bank of india act 1934 3. Section 23 of banking regulation act, 1949 third party transfer of funds through atms dbod. The complex legal arrangement has been formulated to avoid the compliance required under section 19 1 of the banking regulation act as the holding of shares in an arrangement of pledge has a possibility of the bank becoming a.
Section 19 of the banking regulation act, 1949 equity investments in subsidiaries and other companies draft guidelines. In terms of subsection 1 of section 19 of the banking regulation act, 1949, a banking company shall not form any subsidiary company except i for undertaking any business specified in clause a to o of the subsection 1 of section 6, i. Subsituted by act 58 of 1968, section 5, forsection 20 w. Act to apply to cooperative societies in certain cases 4. Section 19 of the banking regulation act, 1949 section 19 of. The deposit insurance and credit guarantee corporation act, 1961 ii which has been ordered or directed to be wound up. Shravana 01,1925saka all scheduled commercial banks excluding rrbs and labs dear sir section 23 of banking regulation act, 1949 third party transfer of funds through atms. Important sections in banking regulation act 1949 aspirants.
Section 19 in banking regulation act,1949 indian kanoon. Initially, the law was applicable only to banking companies. Banking regulation act, 1949 bare acts law library. Procedure for amalgamation of banking companies 1 notwithstanding anything contained in any law for the time being in force, no banking company shall be amalgamated with another banking company, unless a scheme containing the terms of such amalgamation has been placed in draft before the shareholders of each of the banking companies.
Banking regulation act 1949 schedule iii citation 38791. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. Section 17 banking company to transfer 20% of profits to reserve fund before declaring dividend. The banking regulation act, 1949 as applicable to cooperative societies objectives of the banking regulation act broadly are. Whereas it is expedient to consolidate and amend the law relating to banking 2.
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. Penalties prescribed under the banking regulation act, 1949. Banking regulation act 1949 16 th march 1949 ramees k abdul aziz roll no. Rate of interest charged by banking companies not to be subject to scrutiny by courts. For the purposes of section 8, a banking company shall not be deemed, by reason of its forming or having a subsidiary company, to be engaged indirectly in the business carried on by such subsidiary company.
The rbi will consider grant full licenses for payment banks under which section of the banking regulation act, 1949. Short title, extent and commencement 1 this act may be called the banking 2 regulation act, 1949. Section 19 restriction on nature of subsidiary companies. Penalties provided under section 46 of the banking regulation act, 1949 for any irregularity are as follows. 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. Some of the important sections of banking regulation acts 1949 are as under. All scheduled commercial banks excluding rrbs dear sir, section 19 of the banking regulation act, 1949 investments in subsidiaries and other companies guidelinesplease refer to the instructions contained in paragraphs 2 and 3 of our master circular dbod. Guarantees given on behalf of constituents a in india b outside india. 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. What are the important rules of banking regulation act, 1949. 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. Form of business in which banking companies may engage.
Regulation act, 1949 10 of 1949, but defined in the companies act, 1956 1 of 1956 shall have the. There was initially 55 sections but in 1965 the banking regulation act 1949 was amended to include cooperative banks in the 56th section. 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. Mar 19, 2019 download banking regulation act 1949 in pdf format. Directions under section 35 a read with section 56 of the. In exercise of the powers conferred by section 52 of the 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. Subsidiary companies under the provisions of section 19 1 of the banking regulation act, 1949, banks may form. Nondisposal undertaking and its reporting in the indian. Banking regulation c ompanies rules, 1949 in exercise of.
Subsituted by act 58 of 1968, section 5, for section 20 w. 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. Power of reserve bank to control advances by banking companies. Banking regulation act, 1949 10 of 1949, the central government, after considering an application made by the reserve bank of india under sub section 1 of that section, hereby makes an order of moratorium in respect of the yes bank limited, mumbai, maharashtra for the period from 18. Section 23 of banking regulation act, 1949 third party. The banking regulation act, 1949 reserve bank of india. Comments i clause c of section 5 of the banking regulation act, 1949, defines the expression banking company as follows. Further powers and functions of reserve bank 1 the reserve bank may. Application of other laws not barred 3 act to apply to cooperative societies in certain cases.
Substantial interest i in relation to a company, means the holding of a beneficial interest by an individual or his spouse or minor child, whether singly or taken together, in the shares thereof, the amount. 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. An act to consolidate and amend the law relating to banking. Study material for bank promotion banking regulation act. Reserve bank of india logo reserve bank of india database. The banking companies period of preservation of records rules, 19851 in exercise of the powers conferred by section 45y of the banking regulation act, 1949 10 of 1949, the central government, after consultation with the reserve bank of india, hereby makes the following rules, namely. Save as provided in sub section 1, no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent. Principal provisions of banking regulation act, 1949. Banking regulation act 1949 section 7 citation 38660 bare. Provided that any banking company which is on the date of the commencement of this act holding.
Banking regulation act 1949 important sections in hindi jaiib. Show all sections the banking regulation act, 1949. An act to consolidate and amend the law relating to banking 2. Individuals or banks can seek the fdics written consent by filing section 19 application form 671007, application pursuant to section 19 of the federal deposit insurance act. Section 19 of the banking regulation act, 1949 section 19. Section 23 of banking regulation act, 1949 mobile branches and mobile atms page 1 of 2 file. In the era of globalization banking sector in india is rapidly changing since 1990s due to technological. Dear sir, section 23 of the banking regulation act, 1949 relaxations in branch licensing policy. In terms of sub section 1 of section 19 of the banking regulation act, 1949, a banking company shall not form any subsidiary company except i for undertaking any business specified in clause a to o of the sub section 1 of section 6, i. 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.
Ca final banking regulation act 1949 hand written notes in pdf. Section 5c of the banking regulation act, 1949 defines banking company as any company which transacts the business of banking in india. 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. Full text containing the act, banking regulation act, 1949, with all the sections, schedules, short title, enactment date, and footnotes. Prohibition under section 19 of the federal deposit insurance fdi act.