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The Banking Regulation Act, 1949

Central

An Act to consolidate and amend the law relating to banking.

Act number
10 of 1949
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
10 Mar 1949

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

133 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Application of other laws not barred.
  3. Section 3Act not to apply to certain co-operative societies.
  4. Section 4Power to suspend operation of Act.
  5. Section 5Interpretation.
  6. Section 5AAct to override memorandum, articles, etc.
  7. Section 6Form of business in which banking companies may engage.
  8. Section 7Use of words "bank", "banker", "banking" or "banking company".
  9. Section 8Prohibition of trading.
  10. Section 9Disposal of non-banking assets.
  11. Section 10Prohibition of employment of managing agents and restrictions on certain forms of employment.
  12. Section 10ABoard of directors to include persons with professional or other experience.
  13. Section 10BBanking company to be managed by whole time chairman.
  14. Section 10BBPower 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.
  15. Section 10CChairman and certain directors not to be required to hold qualification shares.
  16. Section 10DProvisions of sections 10A and 10B to override all other laws, contracts, etc.
  17. Section 11Requirement as to minimum paid-up capital and reserves.
  18. Section 12Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders.
  19. Section 12AElection of new directors.
  20. Section 12BRegulation of acquisition of shares or voting rights.
  21. Section 13Restriction on commission, brokerage, discount, etc., on sale of shares.
  22. Section 14Prohibition of charge on unpaid capital.
  23. Section 14AProhibition of floating charge on assets.
  24. Section 15Restrictions as to payment of dividend.
  25. Section 16Prohibition of common directors.
  26. Section 17Reserve Fund.
  27. Section 18Cash reserve.
  28. Section 19Restriction on nature of subsidiary companies.
  29. Section 20Restrictions on loans and advances.
  30. Section 20ARestrictions on power to remit debts.
  31. Section 21Power of Reserve Bank to control advances by banking companies.
  32. Section 21ARates of interest charged by banking companies not to be subject to scrutiny by courts.
  33. Section 22Licensing of banking companies.
  34. Section 23Restrictions on opening of new, and transfer of existing, places of business.
  35. Section 24Maintenance of a percentage of assets.
  36. Section 25Assets in India.
  37. Section 26Return of unclaimed deposits.
  38. Section 26AEstablishment of Depositor Education and Awareness Fund.
  39. Section 27Monthly returns and power to call for other returns and information.
  40. Section 28Power to publish information.
  41. Section 29Accounts and balance-sheet.
  42. Section 29APower in respect of associate enterprises.
  43. Section 30Audit.
  44. Section 31Submission of returns.
  45. Section 32Copies of balance-sheets and accounts to be sent to registrar.
  46. Section 33Display of audited balance-sheet by companies incorporated outside India.
  47. Section 34Accounting provision of this Act not retrospective.
  48. Section 34AProduction of documents of confidential nature.
  49. Section 35Inspection.
  50. Section 35APower of the Reserve Bank to give directions.
  51. Section 35AAPower of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.
  52. Section 35ABPower of Reserve Bank to issue directions in respect of stressed assets.
  53. Section 35BAmendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank.
  54. Section 36Further powers and functions of Reserve Bank.
  55. Section 36ACertain provisions of the Act not to apply to certain banking companies.
  56. Section 36AAPower of Reserve Bank to remove managerial and other persons from office.
  57. Section 36ABPower of Reserve Bank to appoint additional directors.
  58. Section 36ACPart IIA to override other laws.
  59. Section 36ACASupersession of Board of Directors in certain cases.
  60. Section 36ADPunishments for certain activities in relation to banking companies.
  61. Section 36AEPower of Central Government to acquire undertakings of banking companies in certain cases.
  62. Section 36AFPower of the Central Government to make scheme.
  63. Section 36AGCompensation to be given to shareholders of the acquired bank.
  64. Section 36AHConstitution of the Tribunal.
  65. Section 36AITribunal to have powers of a civil court.
  66. Section 36AJProcedure of the Tribunal.
  67. Section 36BHigh Court defined.
  68. Section 37Suspension of business.
  69. Section 38Winding up by High Court.
  70. Section 38ACourt liquidator.
  71. Section 39Reserve Bank to be official liquidator.
  72. Section 39AApplication of Companies Act to liquidators.
  73. Section 40Stay of proceedings.
  74. Section 41Preliminary report by official liquidator.
  75. Section 41ANotice to preferential claimants and secured and unsecured creditors.
  76. Section 42Power to dispense with meetings of creditors, etc.
  77. Section 43Booked depositors' credits to be deemed proved.
  78. Section 43APreferential payments to depositors.
  79. Section 44Powers of High Court in voluntary winding up.
  80. Section 44AProcedure for amalgamation of banking companies.
  81. Section 44BRestriction on compromise or arrangement between banking company and creditors.
  82. Section 45Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation.
  83. Section 45APart IIIA to override other laws.
  84. Section 45BPower of High Court to decide all claims in respect of banking companies.
  85. Section 45CTransfer of pending proceedings.
  86. Section 45DSettlement of list of debtors.
  87. Section 45ESpecial provisions to make calls on contributories.
  88. Section 45FDocuments of banking company to be evidence.
  89. Section 45GPublic examination of directors and auditors.
  90. Section 45HSpecial provisions for assessing damages against delinquent directors, etc
  91. Section 45-IDuty of directors and officers of banking company to assist in the realisation of property.
  92. Section 45JSpecial provisions for punishing offences in relation to banking companies being wound up.
  93. Section 45KOmitted.
  94. Section 45LPublic examination of directors and auditors, etc., in respect of a banking company under schemes of arrangement
  95. Section 45MSpecial provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act.
  96. Section 45NAppeals.
  97. Section 45-OSpecial period of limitation
  98. Section 45PReserve Bank to tender advice in winding up proceedings
  99. Section 45QPower to Inspect
  100. Section 45RPower to call for returns and information
  101. Section 45SChief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up.
  102. Section 45TEnforcement of orders and decisions of High Court.
  103. Section 45UPower of High Court to make rules.
  104. Section 45VReferences to directors, etc., shall be construed as including references to past directors, etc.
  105. Section 45WPart II not to apply to banking companies being wound up
  106. Section 45XValidation of certain proceedings.
  107. Section 45YPower of Central Government to make rules for the preservation of records.
  108. Section 45ZReturn of paid instruments to customers.
  109. Section 45ZANomination for payment of depositors' money.
  110. Section 45ZBNotice of claims of other persons regarding deposits not receivable.
  111. Section 45ZCNomination for return of articles kept in safe custody with banking company.
  112. Section 45ZDNotice of claims of other persons regarding articles not receivable.
  113. Section 45ZERelease of contents of safety lockers.
  114. Section 45ZFNotice of claims of other persons regarding safety lockers not receivable.
  115. Section 45ZGPriority of successive nominations.
  116. Section 46Penalties
  117. Section 46AChairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code.
  118. Section 47Cognizance of offences.
  119. Section 47APower of Reserve Bank to impose penalty
  120. Section 48Application of fines.
  121. Section 49Special provisions for private banking companies.
  122. Section 49ARestriction on acceptance of deposits withdrawable by cheque.
  123. Section 49BChange of name by a banking company.
  124. Section 49CAlteration of memorandum of a banking company.
  125. Section 50Certain claims for compensation barred
  126. Section 51Application of certain provisions to the State Bank of India and other notified banks.
  127. Section 51APowers of Reserve Bank not to apply to International Financial Services Centre.
  128. Section 52Power of Central Government to make rules.
  129. Section 53Power to exempt in certain cases.
  130. Section 54Protection of action taken under Act.
  131. Section 55Amendment of Act 2 of 1934.
  132. Section 55APower to remove difficulties
  133. Section 56Act to apply to co-operative societies subject to modifications.