The Banking Regulation Act, 1949

This document presents the various provisions of the Banking Regulations Act. The Act has various sections that discusses:

• Its application to cooperative societies, situations in which it can be suspended, its interpretation, etc;
• The business of banking companies, including:
  • Forms of business in which they can engage;
  • The prohibition of trading.
• The control of the Reserve Bank over the management of banks, including its power to:
  • Remove officers;
  • Appoint additional directors;
  • Override other laws.
• The prohibition of certain activities in relation to banking companies, including:
  • Punishment;
• The acquisition of banking companies in certain cases, including:
  • The power of the Central Government to acquire the undertakings of banking companies;
  • Compensation to shareholders;
  • Constitution and powers of the tribunal.
• The suspension of business and winding up of banking companies, including:
  • The roles of the High Court and The Reserve Bank;
  • Application of the Companies Act to liquidators;
  • The amalgamation of banking companies.
• The provisions relating to certain operations of banking companies, including:
  • Rules for the preservation of records;
  • Return of paid instruments to the customer;
  • Release of the contents of safety lockers.
• Miscellaneous items such as:
  • Offences;
  • Penalties;
  • Change of name, etc.
• The application of the Act to cooperative banks, including:
  • The modifications necessary to the Act.
• The five schedules of the Act.