Banking Regulation Act No. 10 of 1949

India

(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.