The Banking Regulation Act
An Act to consolidate and amend the law relating to banking.1949
List of Chapters & Sections
PRELIMINARY
BUSINESS OF BANKING COMPANIES
CONTROL OVER MANAGEMENT
SUPERSESSION OF BOARD OF DIRECTORS OF BANKING COMPANY
PROHIBITION OF CERTAIN ACTIVITIES IN RELATION TO BANKING COMPANIES
ACQUISITION OF THE UNDERTAKINGS OF BANKING COMPANIES IN CERTAIN CASES
SUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES
SPECIAL PROVISIONS FOR SPEEDY DISPOSAL OF WINDING UP PROCEEDINGS
PROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES
MISCELLANEOUS
APPLICATION OF THE ACT TO CO-OPERATIVE BANKS
PRELIMINARY
BUSINESS OF BANKING COMPANIES
6Form of business in which banking companies may engage7Use of words "bank", "banker", "banking" or "banking company"8Prohibition of trading9Disposal of non-banking assets10Prohibition of employment of managing agents and restrictions on certain forms of employment10ABoard of directors to include persons with professional or other experience10BBanking company to be managed by whole time chairman10BBPower of Reserve Bank to appoint chairman of the Board of directors appointed on a whole-time basis or a managing director of a banking company10CChairman and certain directors not to be required to hold qualification shares10DProvisions of sections 10A and 10B to override all other laws, contracts, etc11Requirement as to minimum paid-up capital and reserves12Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders12AElection of new directors12BRegulation of acquisition of shares or voting rights13Restriction on commission, brokerage, discount, etc., on sale of shares14Prohibition of charge on unpaid capital14AProhibition of floating charge on assets15Restrictions as to payment of dividend16Prohibition of common directors17Reserve Fund18Cash reserve19Restriction on nature of subsidiary companies20Restrictions on loans and advances20ARestrictions on power to remit debts21Power of Reserve Bank to control advances by banking companies21ARates of interest charged by banking companies not to be subject to scrutiny by courts22Licensing of banking companies23Restrictions on opening of new, and transfer of existing, places of business24Maintenance of a percentage of assets25Assets in India26Return of unclaimed deposits26AEstablishment of Depositor Education and Awareness Fund27Monthly returns and power to call for other returns and information28Power to publish information29Accounts and balance-sheet29APower in respect of associate enterprises30Audit31Submission of returns32Copies of balance-sheets and accounts to be sent to registrar33Display of audited balance-sheet by companies incorporated outside India34Accounting provision of this Act not retrospective34AProduction of documents of confidential nature35Inspection35APower of the Reserve Bank to give directions35AAPower of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process35ABPower of Reserve Bank to issue directions in respect of stressed assets35BAmendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank36Further powers and functions of Reserve Bank36ACertain provisions of the Act not to apply to certain banking companiesCONTROL OVER MANAGEMENT
SUPERSESSION OF BOARD OF DIRECTORS OF BANKING COMPANY
PROHIBITION OF CERTAIN ACTIVITIES IN RELATION TO BANKING COMPANIES
ACQUISITION OF THE UNDERTAKINGS OF BANKING COMPANIES IN CERTAIN CASES
36AEPower of Central Government to acquire undertakings of banking companies in certain cases36AFPower of the Central Government to make scheme36AGCompensation to be given to shareholders of the acquired bank36AHConstitution of the Tribunal36AITribunal to have powers of a civil court36AJProcedure of the TribunalSUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES
36BHigh Court defined37Suspension of business38Winding up by High Court38ACourt liquidator39Reserve Bank to be official liquidator39AApplication of Companies Act to liquidators40Stay of proceedings41Preliminary report by official liquidator41ANotice to preferential claimants and secured and unsecured creditors42Power to dispense with meetings of creditors, etc43Booked depositors' credits to be deemed proved43APreferential payments to depositors44Powers of High Court in voluntary winding up44AProcedure for amalgamation of banking companies44BRestriction on compromise or arrangement between banking company and creditors45Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamationSPECIAL PROVISIONS FOR SPEEDY DISPOSAL OF WINDING UP PROCEEDINGS
45APart IIIA to override other laws45BPower of High Court to decide all claims in respect of banking companies45CTransfer of pending proceedings45DSettlement of list of debtors45ESpecial provisions to make calls on contributories45FDocuments of banking company to be evidence45GPublic examination of directors and auditors45HSpecial provisions for assessing damages against delinquent directors, et45-IDuty of directors and officers of banking company to assist in the realisation of property45JSpecial provisions for punishing offences in relation to banking companies being wound up45KOmitted45LPublic examination of directors and auditors, etc., in respect of a banking company under schemes of arrangemen45MSpecial provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act45NAppeals45-OSpecial period of limitatio45PReserve Bank to tender advice in winding up proceeding45QPower to Inspec45RPower to call for returns and informatio45SChief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up45TEnforcement of orders and decisions of High Court45UPower of High Court to make rules45VReferences to directors, etc., shall be construed as including references to past directors, etc45WPart II not to apply to banking companies being wound u45XValidation of certain proceedingsPROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES
45YPower of Central Government to make rules for the preservation of records45ZReturn of paid instruments to customers45ZANomination for payment of depositors' money45ZBNotice of claims of other persons regarding deposits not receivable45ZCNomination for return of articles kept in safe custody with banking company45ZDNotice of claims of other persons regarding articles not receivable45ZERelease of contents of safety lockers45ZFNotice of claims of other persons regarding safety lockers not receivableMISCELLANEOUS
46Penaltie46AChairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code47Cognizance of offences47APower of Reserve Bank to impose penalt48Application of fines49Special provisions for private banking companies49ARestriction on acceptance of deposits withdrawable by cheque49BChange of name by a banking company49CAlteration of memorandum of a banking company50Certain claims for compensation barre51Application of certain provisions to the State Bank of India and other notified banks52Power of Central Government to make rules53Power to exempt in certain cases54Protection of action taken under Act55Amendment of Act 2 of 193455APower to remove difficultieAPPLICATION OF THE ACT TO CO-OPERATIVE BANKS