The Banking Regulation Act `1949

An Act to consolidate and amend the law relating to banking.
1949
  • BUSINESS OF BANKING COMPANIES

  • 6
     Form of business in which banking companies may engage
  • 7
     Use of words "bank", "banker", "banking" or "banking company"
  • 8
     Prohibition of trading
  • 9
     Disposal of non-banking assets
  • 10
     Prohibition of employment of managing agents and restrictions on certain forms of employment
  • 10A
     Board of directors to include persons with professional or other experience
  • 10B
     Banking company to be managed by whole time chairman
  • 10BB
     Power of Reserve Bank to appoint chairman of the Board of directors appointed on a whole-time basis or a managing director of a banking company
  • 10C
     Chairman and certain directors not to be required to hold qualification shares
  • 10D
     Provisions of sections 10A and 10B to override all other laws, contracts, etc
  • 11
     Requirement as to minimum paid-up capital and reserves
  • 12
     Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders
  • 12A
     Election of new directors
  • 12B
     Regulation of acquisition of shares or voting rights
  • 13
     Restriction on commission, brokerage, discount, etc., on sale of shares
  • 14
     Prohibition of charge on unpaid capital
  • 14A
     Prohibition of floating charge on assets
  • 15
     Restrictions as to payment of dividend
  • 16
     Prohibition of common directors
  • 17
     Reserve Fund
  • 18
     Cash reserve
  • 19
     Restriction on nature of subsidiary companies
  • 20
     Restrictions on loans and advances
  • 20A
     Restrictions on power to remit debts
  • 21
     Power of Reserve Bank to control advances by banking companies
  • 21A
     Rates of interest charged by banking companies not to be subject to scrutiny by courts
  • 22
     Licensing of banking companies
  • 23
     Restrictions on opening of new, and transfer of existing, places of business
  • 24
     Maintenance of a percentage of assets
  • 25
     Assets in India
  • 26
     Return of unclaimed deposits
  • 26A
     Establishment of Depositor Education and Awareness Fund
  • 27
     Monthly returns and power to call for other returns and information
  • 28
     Power to publish information
  • 29
     Accounts and balance-sheet
  • 29A
     Power in respect of associate enterprises
  • 30
     Audit
  • 31
     Submission of returns
  • 32
     Copies of balance-sheets and accounts to be sent to registrar
  • 33
     Display of audited balance-sheet by companies incorporated outside India
  • 34
     Accounting provision of this Act not retrospective
  • 34A
     Production of documents of confidential nature
  • 35
     Inspection
  • 35A
     Power of the Reserve Bank to give directions
  • 35AA
     Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process
  • 35AB
     Power of Reserve Bank to issue directions in respect of stressed assets
  • 35B
     Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank
  • 36
     Further powers and functions of Reserve Bank
  • 36A
     Certain provisions of the Act not to apply to certain banking companies
  • CONTROL OVER MANAGEMENT

  • 36AA
     Power of Reserve Bank to remove managerial and other persons from office
  • 36AB
     Power of Reserve Bank to appoint additional directors
  • 36AC
     Part IIA to override other laws
  • SUPERSESSION OF BOARD OF DIRECTORS OF BANKING COMPANY

  • 36ACA
     Supersession of Board of Directors in certain cases
  • PROHIBITION OF CERTAIN ACTIVITIES IN RELATION TO BANKING COMPANIES

  • 36AD
     Punishments for certain activities in relation to banking companies
  • ACQUISITION OF THE UNDERTAKINGS OF BANKING COMPANIES IN CERTAIN CASES

  • 36AE
     Power of Central Government to acquire undertakings of banking companies in certain cases
  • 36AF
     Power of the Central Government to make scheme
  • 36AG
     Compensation to be given to shareholders of the acquired bank
  • 36AH
     Constitution of the Tribunal
  • 36AI
     Tribunal to have powers of a civil court
  • 36AJ
     Procedure of the Tribunal
  • SUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES

  • 36B
     High Court defined
  • 37
     Suspension of business
  • 38
     Winding up by High Court
  • 38A
     Court liquidator
  • 39
     Reserve Bank to be official liquidator
  • 39A
     Application of Companies Act to liquidators
  • 40
     Stay of proceedings
  • 41
     Preliminary report by official liquidator
  • 41A
     Notice to preferential claimants and secured and unsecured creditors
  • 42
     Power to dispense with meetings of creditors, etc
  • 43
     Booked depositors' credits to be deemed proved
  • 43A
     Preferential payments to depositors
  • 44
     Powers of High Court in voluntary winding up
  • 44A
     Procedure for amalgamation of banking companies
  • 44B
     Restriction on compromise or arrangement between banking company and creditors
  • 45
     Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation
  • SPECIAL PROVISIONS FOR SPEEDY DISPOSAL OF WINDING UP PROCEEDINGS

  • 45A
     Part IIIA to override other laws
  • 45B
     Power of High Court to decide all claims in respect of banking companies
  • 45C
     Transfer of pending proceedings
  • 45D
     Settlement of list of debtors
  • 45E
     Special provisions to make calls on contributories
  • 45F
     Documents of banking company to be evidence
  • 45G
     Public examination of directors and auditors
  • 45H
     Special provisions for assessing damages against delinquent directors, et
  • 45-I
     Duty of directors and officers of banking company to assist in the realisation of property
  • 45J
     Special provisions for punishing offences in relation to banking companies being wound up
  • 45K
     Omitted
  • 45L
     Public examination of directors and auditors, etc., in respect of a banking company under schemes of arrangemen
  • 45M
     Special provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act
  • 45N
     Appeals
  • 45-O
     Special period of limitatio
  • 45P
     Reserve Bank to tender advice in winding up proceeding
  • 45Q
     Power to Inspec
  • 45R
     Power to call for returns and informatio
  • 45S
     Chief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up
  • 45T
     Enforcement of orders and decisions of High Court
  • 45U
     Power of High Court to make rules
  • 45V
     References to directors, etc., shall be construed as including references to past directors, etc
  • 45W
     Part II not to apply to banking companies being wound u
  • 45X
     Validation of certain proceedings
  • PROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES

  • 45Y
     Power of Central Government to make rules for the preservation of records
  • 45Z
     Return of paid instruments to customers
  • 45ZA
     Nomination for payment of depositors' money
  • 45ZB
     Notice of claims of other persons regarding deposits not receivable
  • 45ZC
     Nomination for return of articles kept in safe custody with banking company
  • 45ZD
     Notice of claims of other persons regarding articles not receivable
  • 45ZE
     Release of contents of safety lockers
  • 45ZF
     Notice of claims of other persons regarding safety lockers not receivable
  • MISCELLANEOUS

  • 46
     Penaltie
  • 46A
     Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code
  • 47
     Cognizance of offences
  • 47A
     Power of Reserve Bank to impose penalt
  • 48
     Application of fines
  • 49
     Special provisions for private banking companies
  • 49A
     Restriction on acceptance of deposits withdrawable by cheque
  • 49B
     Change of name by a banking company
  • 49C
     Alteration of memorandum of a banking company
  • 50
     Certain claims for compensation barre
  • 51
     Application of certain provisions to the State Bank of India and other notified banks
  • 52
     Power of Central Government to make rules
  • 53
     Power to exempt in certain cases
  • 54
     Protection of action taken under Act
  • 55
     Amendment of Act 2 of 1934
  • 55A
     Power to remove difficultie
  • APPLICATION OF THE ACT TO CO-OPERATIVE BANKS

  • 56
     Act to apply to co-operative societies subject to modifications