Exemption for transactions pursuant to rules 504, 505 and 506 of regulation d. The banking regulation act, 1949 as modified upto january 7, 20 contents part i preliminary section 1 short title, extent and commencement section 2 application of other laws not barred section 3 act to apply to cooperative societies in certain cases section 4 power to suspend operation of act section 5 interpretation. Reserve bank of india act 1934 is the legislative act under which the reserve bank of india was formed. Important sections in reserve bank of india act 1934. Form and business in which banking companies may engage.
Some of the important sections of banking regulation acts 1949 are as under. The reserve bank of india amendment act, 1978 24 of 1978 65. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. As such, the application of section 21a of the banking regulation act to these cases can be examined. Omitted by the competition amendment act, 2007 23 25. What are the important rules of banking regulation act. Application of certain provisions to thestate bank of india and other notified banks. The banking regulation act 1949 is a legislation in india that regulates all banking firms in india.
Use of words bank, banker, banking or banking company 8. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. Securities exchange act of 1934 university of delaware. Important sections in banking regulation act 1949 aspirants zone. Extended to dadra and nagar haveli by regulation 6 of 1963, section 2 and schedule i w. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. Section 20 of the act imposes restrictions on loans and advances to directors, and companies and firms. Rate of interest charged by banks can not be reopened by any court on the ground that the rate of interest charged by banks is excessive.
The provision of the act came into force with effect from 20th february, 1957 vide notification no. Section 21 empowers rbi to issue directives to banks for lending loan policy. General or the directorgeneral, food administration under section 5. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india. A banking company, as defined in section 5c of the banking regulation act is a company which transacts the business of banking. Section 21a of banking regulation act will not operate in states with debt relief act on. If this is done the word affect will be seen to be a compendious term for expressing the longer phrase purporting or operating to. Section 21a in banking regulation act,1949 indian kanoon. Defines repo, reverse repo, derivative, money market instruments and securities. Banking regulation act 1949 section 51 citation 38781. Reserve bank of india act, 1934 is the legislative act under which the reserve bank of india was formed. Exemption for transactions pursuant to section 42 of the securities act of 1933 sec. Section 21 a banking regulation act 1949 order 1, rule 8 of the code of civil procedure. The exportimport bank of india act, 1981 28 of 1981 66.
Return in this form is to be submitted to the reserve bank of india under section 24 of the banking regulation act, 1949 as applicable to cooperative societies by scheduled state cooperative banks and sections 18 and 24 of the act ibid by the other cooperative banks not later than 15 days after the end of the months to which it relates. The whole of the banking regulation act except section 56 applies to all the. The reserve bank of india was established in the year 1935 in accordance with the reserve bank of india act, 1934. The banking regulation act, 1949 reserve bank of india. Section 45 of the 2020 supplement to the general statutes, as 99 amended by section 6 of public act 17237, section 279 of public act 172 100 of the june special session, section 20 of public act 18182 and section 283 101 of public act 19117, is repealed and the following is substituted in lieu.
Federal home loan bank act federal housing finance agency. Home loan protection act chapter 58 article 21a home loan protection section. This document is being furnished to you for your information. Section 10 of the stock act, referred to in subsecs. The banking regulation act, 1949 part i preliminary section 1 short title, extent and commencement section 2 application of other laws not barred section 3 act to apply to cooperative societies in certain cases section 4 power to suspend operation of act section 5 interpretation section 5a act to override memorandum, articles, etc. Other important sections of banking regulation act, 1949. But, 1965 it was amended to make it applicable to cooperative banks. The repeal of section 17 of the federal home loan bank act this section by section 703 of the financial institutions reform, recovery and enforcement act of 1989, the repeal of section 402c of the national housing act 12 u. This act along with the companies act, which was amended in 1936, were meant to provide a framework for the supervision of banking firms in india.
The reserve bank of india is the central bank of india entrusted with the multidimensional role. Banking regulation act 1949 and important sections pdf. Executive summary in november 1988, congress enacted the insider trading and securities fraud enforcement act of 1988 itsfea, designed primarily to prevent, deter, and prosecute insider trading. Based on the delineation and the interpretation that followed it, the court concluded that even though, in pith and substance, the banking regulation act fell within entry 45, list i, insofar as relief of agricultural indebtedness was concerned, section 21a certainly trenched upon entry 30, list ii. Brokerdealer policies and procedures designed to segment. Study material for bank promotion banking regulation act. Section 20 a bank can not grant loan against security of its own shares. Passed as the banking companies act 1949, it came into force from 16 march 1949 and changed to banking regulation act 1949 from 1 march 1966. Banking regulation cooperative societies rules, 1966. The industrial reconstruction bank of india act, 1984 62 of 1984 69. In exercise of the powers conferred by section 30 of the securities contracts regulation act, 1956 42 of 1956, the central government hereby makes the followingrules, the same having been previously published as required by subsection 3 of the said section, namely.
Bank to transact government business of states on agreement. Section 21a rates of interest charged by banking companies not to be subject to. Rate of interest charged by banking companies not to be subject to scrutiny. In so far as the suits instituted after february 15, 1984, are concerned, there is no difficulty and such suits suits instituted after february 15, 1984, are attracted by the provisions of section 21a of the banking regulation act.
In this act, unless the context otherwise requires. Show all sections the banking regulation act, 1949. Act to apply to cooperative societies in certain cases. Introduction banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Section 21 power of reserve bank to control advances by banking companies. Such company may be a company constituted under section 3 of the companies act, 1956 or incorporated under the companies act, 20 or foreign company within the meaning of section 591 us 379 of companies act, 20. An act to consolidate and amend the law relating to banking. Department of banking organization and rules of practice 29 pages article 1, general sec. The national bank for agricultural and rural development act, 1981 61 of 1981 67. The banking regulation act 1949 has 56 sections in total.
Omitted by the competition amendment act, 2007 23 24. Necessity for regulation as provided in this title. Act by the banking laws amendment act, 1983 act no. Section 21a rates of interest charged by banking companies not to be subject to scrutiny by. Under section 21a of the act, the rate of interest on loans and advances contracted between a bank and its customer is not liable to be reopened by a court of law. Banking regulation act 1949 and important sections updated. Section 21a 3 of the principal act is amended by deleting the words one year wherever it appears and substituting the words ninety days. Why banking is not treated as usury and how rbi can in.
There are total 61 sections in the reserve bank of india act 1934. Banking regulation act, 1949 bare acts law library. Banking regulation act deals with a the regulation of business of banking companies b control over management of the banking companies c suspension and winding up of banking business d penalities for violation of provision of b r act a. Central bank of india vs popuri sarangaiah and ors. Nothing in this act except section 34a shall apply to the industrial development bank of india, vide act 18 of 1964, section 34. Section 21b of the principal act is amended a in subsection 1, by i deleting the word bank and substituting the word licensee. It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country. Major provisions of reserve bank of india act 1934 pdf. Section 21a of banking regulation act will not operate in. Omitted by the competition amendment act, 2007 23 26. Initially, the law was applicable only to banking companies. Cash reserves of scheduled banks to be kept with the bank.
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