Banking Regulation Act India
THE BANKING REGULATION ACT, 1949 (Act No. 10 of 1949) [10th March, 1949] PREAMBLE PART I: PRELIMINARY Sections 1. 2. 3 4. 5. 5A. Short title, extent and commencement Application of other laws not barred Act to apply to co-operative societies in certain cases. Power to suspend operation of Act Interpretation Act to override memorandum, articles, etc.
PART II: BUSINESS OF BANIKNG COMPANIES 6. 7. 8. 9. 10. 10A. 10B 10BB Forms of business in which banking companies may engage Use of words "bank", "banker", "banking" or "banking company" Prohibition of trading Disposal of non-banking assets Prohibition of employment of managing agents and restrictions on certain forms of employment Board of directors to include persons with professional or other experience Ranking company to be managed by whole-time chairman Power of Reserve Bank to appoint Chairman of the Board of directors appointed on a whole-time basis r a managing director of a banking company Chairman and certain directors not to be required to hold qualification shares Provisions of sections 10A and 10B to override all other laws, contracts, etc. Requirement as to minimum paid-up capital and reserves Regulation of paid-up capital, subscribed capital and authorized capital and voting rights of shareholders Election of new directors Restriction on commission, brokerage, discount, etc., on sale of shares Prohibition of charge on unpaid capital
10C 10D 11. 12. 12A. 13. 14.
14A 15. 16. 17. 18. 19. 20. 20A. 21. 21A. 22. 22A. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 34A. 35. 35A 35B. 36. 36A.
Prohibition of floating charge on assets Restrictions as to payment of dividend Prohibition of common directors Reserve Fund Cash reserve Restriction on nature of subsidiary companies Restrictions on loans and advances Restrictions on power to remit debts Power of Reserve Bank to control advances by banking companies Rates of interest charged by banking companies not to be subject to scrutiny by courts Licensing
PART II: BUSINESS OF BANIKNG COMPANIES 6. 7. 8. 9. 10. 10A. 10B 10BB Forms of business in which banking companies may engage Use of words "bank", "banker", "banking" or "banking company" Prohibition of trading Disposal of non-banking assets Prohibition of employment of managing agents and restrictions on certain forms of employment Board of directors to include persons with professional or other experience Ranking company to be managed by whole-time chairman Power of Reserve Bank to appoint Chairman of the Board of directors appointed on a whole-time basis r a managing director of a banking company Chairman and certain directors not to be required to hold qualification shares Provisions of sections 10A and 10B to override all other laws, contracts, etc. Requirement as to minimum paid-up capital and reserves Regulation of paid-up capital, subscribed capital and authorized capital and voting rights of shareholders Election of new directors Restriction on commission, brokerage, discount, etc., on sale of shares Prohibition of charge on unpaid capital
10C 10D 11. 12. 12A. 13. 14.
14A 15. 16. 17. 18. 19. 20. 20A. 21. 21A. 22. 22A. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 34A. 35. 35A 35B. 36. 36A.
Prohibition of floating charge on assets Restrictions as to payment of dividend Prohibition of common directors Reserve Fund Cash reserve Restriction on nature of subsidiary companies Restrictions on loans and advances Restrictions on power to remit debts Power of Reserve Bank to control advances by banking companies Rates of interest charged by banking companies not to be subject to scrutiny by courts Licensing