Banking Regulation Act No. 10 of 1949


(amended through 2004)

The Banking Regulation Act No. 10 of 1949 forms the core banking law in India.

The act’s various sections discuss:

  • 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; and
  • The five schedules of the act.