Banking Regulation Act, 1949
[Act no. 10 of Year 1949, dated 10th. March,1949]
| Contents | |
| Sections | Particulars |
| Part I | Preliminary |
| 1 | Short title, extent and commencement |
| 2 | Application of other laws not barreds |
| 3 | Act to apply to co-operative societies in certain cases |
| 4 | Power to suspend operation of Act |
| 5 | Interpretation |
| 5A | Act to override memorandum, articles, etc. |
| Part II | Business Of Banking Companies |
| 6 | Form and business in which banking companies may engage |
| 7 | Use of words "bank", "banker", "banking" or "banking company" |
| 8 | Prohibition of trading |
| 9 | Disposal of non-banking assets |
| 10 | Prohibition of employment of Managing Agents and restrictions on certain forms of employment |
| 10A | Board of Directors to include persons with professional or other experience |
| 10B | Banking company to be managed by whole-time Chairman |
| 10BB | Power of Reserve Bank to appoint Chairman of a banking company |
| 10C | Chairman and certain Directors not to be required to hold qualification shares |
| 10D | Provisions of sections 10A and 10B to override all other laws, contracts, etc. |
| 11 | Requirement as to minimum paid-up capital and reserves |
| 12 | Regulation of paid-up capital, subscribed capital and authorized capital and voting rights of shareholders |
| 12A | Election of new Directors |
| 13 | Restriction on commission, brokerage, discount, etc., on sale of shares |
| 14 | Prohibition of charge on unpaid capital |
| 14A | Prohibition of floating charge on assets |
| 15 | Restrictions as to payment of dividend |
| 16 | Prohibition of common Directors |
| 17 | Reserve Fund |
| 18 | Cash reserve |
| 19 | Restriction on nature of subsidiary companies |
| 20 | Restrictions on loans and advances |
| 20A | Restrictions on power to remit debts |
| 21 | Power of Reserve Bank to control advances by banking companies |
| 21A | Rate of interest charged by banking companies not to be subject to scrutiny by courts |
| 22 | Licensing of banking companies |
| 23 | Restrictions on opening of new, and transfer of existing, places of business |
| 24 | Maintenance of a percentage of assets |
| 25 | Assets in India |
| 26 | Return of unclaimed deposits |
| 27 | Monthly returns and power to call for other returns and information |
| 28 | Power to publish information |
| 29 | Accounts and balance-sheet |
| 30 | Audit |
| 31 | Submission of returns |
| 32 | Copies of balance-sheets and accounts to be sent to Registrar |
| 33 | Display of audited balance-sheet by companies incorporated outside India |
| 34 | Accounting provisions of this Act not retrospective |
| 34A | Production of documents of confidential nature |
| 35 | Inspection |
| 35A | Power of the Reserve Bank to give directions |
| 35B | Amendments of provisions relating to appointments of Managing Directors, etc., to be subject to previous approval of the Reserve Bank |
| 36 | Further powers and functions of Reserve Bank |
| 36A | Certain provisions of the Act not to apply to certain banking companies |
| Part IIA | Control Over Management |
| 36AA | Power of Reserve Bank to remove managerial and other persons from office |
| 36AB | Power of Reserve Bank to appoint additional Directors |
| 36AC | Part IIA to override other laws |
| Part IIB | Prohibition Of Certain Activities In Relation To Banking Companies |
| 36AD | Punishments for certain activities in relation to banking companies |
| Part IICA | Cquisition Of The Undertakings Of Banking Companies In Certain Cases |
| 36AE | Power of Central Government to acquire undertakings of banking companies in certain cases |
| 36AF | Power of the Central Government to make scheme |
| 36AG | Compensation to be given to shareholders of the acquired bank |
| 36AH | Constitution of the Tribunal |
| 36AI | Tribunal to have powers of a civil court |
| 36AJ | Procedure of the Tribunal |
| Part III | Suspension Of Business And Winding Up Of Banking Companies |
| 36B | High Court defined |
| 37 | Suspension of business |
| 38 | Winding up by High Court |
| 38A | Court liquidator |
| 39 | Reserve Bank to be official liquidator |
| 39A | Application of Companies Act to liquidators |
| 40 | Stay of proceedings |
| 41 | Preliminary report by official liquidator |
| 41A | Notice to preferential claimants and secured and unsecured creditors |
| 42 | Power to dispense with meetings of creditors, etc. |
| 43 | Booked depositors' credits to be deemed proved |
| 43A | Preferential payments to depositors |
| 44 | Power of High Court in voluntary winding up |
| 44A | Procedure for amalgamation of banking companies |
| 45 | Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation |
| Part IIIA | Special Provisions For Speedy Disposal Of Winding Up Proceedings |
| 45A | Part IIIA to override other laws |
| 45B | Power of High Court to decide all claims in respect of banking companies |
| 45C | Transfer of pending proceedings |
| 45D | Settlement of list of debtors |
| 45E | Special provisions to make calls on contributories |
| 45F | Documents of banking company to be evidence |
| 45G | Public examination of Directors and Auditors |
| 45H | Special provisions for assessing damages against delinquent Directors, etc. |
| 45I | Duty of Directors and Officers of banking company to assist in the realization of property |
| 45J | Special provisions for punishing offences in relation to banking companies being wound up |
| 45K | Power of High Court to enforce schemes of arrangements, etc. |
| 45L | Public examination of Directors and Auditors, etc., in respect of a banking company under schemes of arrangement |
| 45M | Special provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act |
| 45N | Appeals |
| 45-O | Special period of limitation |
| 45P | Reserve Bank to tender advice in winding up proceedings |
| 45Q | Power to inspect |
| 45R | Power to call for returns and information |
| 45S | Chief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up |
| 45T | Enforcement of orders and decisions of High Court |
| 45U | Power of High Court to make rules |
| 45V | References to Directors, etc., shall be construed as including references to past Directors, etc. |
| 45W | Part II not to apply to banking companies being wound up |
| 45X | Validation of certain proceedings |
| Part IIIB | Provisions Relating To Certain Operations Of Banking Companies |
| 45Y | Power of Central Government to make rules for the preservation of records |
| 45Z | Return of paid instruments to customers |
| 45ZA | Nomination for payment of depositors' money |
| 45ZB | Notice of claims of other persons regarding deposits not receivable |
| 45ZC | Nomination for return of articles kept in safe custody with banking company |
| 45ZD | Notice of claims of other persons regarding articles not receivable |
| 45ZE | Release of contents of safety lockers |
| 45ZF | Notice of claims of other persons regarding safety lockers not receivable |
| Part IV | Miscellaneous |
| 46 | Penalties |
| 46A | Chairman, Director, etc., to be public servants for the purposes of Chapter IX to the Indian Penal Code |
| 47 | Cognizance of offences |
| 47A | Power to Reserve Bank to impose penalty |
| 48 | Application of fines |
| 49 | Special provisions for private banking companies |
| 49A | Restriction on acceptance of deposits withdrawable by cheque |
| 49B | Change of name by banking company |
| 49C | Alteration of memorandum of a banking company |
| 50 | Certain claims for compensation barred |
| 51 | Application of certain provisions to the State Bank of India and other notified banks |
| 52 | Power of Central Government to make rules |
| 53 | Power to exempt in certain cases |
| 54 | Protection of action taken under Act |
| 55 | Amendment of Act 2 of 1934 |
| 55A | Power to remove difficulties |
| Part V | Application Of The Act To Co-Operative Banks |
| 56 | Act to apply to Co-operative Societies subject to modifications |
| Schedule III | Form A :- Form Of Balance-Sheet |
| Form B :- Form Of Profit And Loss Account | |
| Schedule I | Amendment |
| Schedule II | [Repealed by the Repealing and the Amending Act, 1957 (36 of 1957) s. 2 and Sch. I.] |
| Schedule III | Form A :- Form of Balance Sheet |
| Form B :- Profit and loss account for the year ended on 31st March (year) | |
| Schedule IV | List Of Debtors |
| Schedule V | Principles Of Compensation |
An Act to consolidate and amend the law relating to banking 1[***]
WHEREAS it is expedient to consolidate and amend the law relating to banking 1[***];
It is hereby enacted as follows:-