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The Banking Regulation Act, 1949
Act ID: 1949
The Banking Regulation Act, 1949
"An Act to consolidate and amend the law relating to banking companies."
Table of Contents
129 Sections
Ch. 1
PRELIMINARY
S.1
Short title, extent and commencement.
S.2
Application of other laws not barred.
S.3
Act not to apply to certain co-operative societies.
S.4
Power to suspend operation of Act.
S.5
Interpretation.
S.5A
Act to override memorandum, articles, etc.
Ch. 2
BUSINESS OF BANKING COMPANIES
S.6
Form of business in which banking companies may engage.
S.7
Use of words "bank", "banker", "banking" or "banking company".
S.8
Prohibition of trading.
S.9
Disposal of non-banking assets.
S.10
Prohibition of employment of managing agents and restrictions on certain forms of employment.
S.10A
Board of directors to include persons with professional or other experience.
S.10B
Banking company to be managed by whole time chairman.
S.10BB
Power 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.
S.10C
Chairman and certain directors not to be required to hold qualification shares.
S.10D
Provisions of sections 10A and 10B to override all other laws, contracts, etc.
S.11
Requirement as to minimum paid-up capital and reserves.
S.12
Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders.
S.12A
Election of new directors.
S.12B
Regulation of acquisition of shares or voting rights.
S.13
Restriction on commission, brokerage, discount, etc., on sale of shares.
S.14
Prohibition of charge on unpaid capital.
S.14A
Prohibition of floating charge on assets.
S.16
Prohibition of common directors.
S.17
Reserve Fund.
S.18
Cash reserve.
S.19
Restriction on nature of subsidiary companies.
S.20
Restrictions on loans and advances.
S.20A
Restrictions on power to remit debts.
S.21
Power of Reserve Bank to control advances by banking companies.
S.21A
Rates of interest charged by banking companies not to be subject to scrutiny by courts.
S.22
Licensing of banking companies.
S.23
Restrictions on opening of new, and transfer of existing, places of business.
S.24
Maintenance of a percentage of assets.
S.25
Assets in India.
S.26
Return of unclaimed deposits.
S.26A
Establishment of Depositor Education and Awareness Fund.
S.27
Monthly returns and power to call for other returns and information.
S.28
Power to publish information.
S.29
Accounts and balance-sheet.
S.29A
Power in respect of associate enterprises.
S.30
Audit.
S.31
Submission of returns.
S.32
Copies of balance-sheets and accounts to be sent to registrar.
S.33
Display of audited balance-sheet by companies incorporated outside India.
S.34
Accounting provision of this Act not retrospective.
S.34A
Production of documents of confidential nature.
S.35
Inspection.
S.35A
Power of the Reserve Bank to give directions.
S.35AA
Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.
S.35AB
Power of Reserve Bank to issue directions in respect of stressed assets.
S.35B
Amendments of provisions relating to appointments of managing directors, etc., to be subject to previous approval of the Reserve Bank.
S.36
Further powers and functions of Reserve Bank.
S.36A
Certain provisions of the Act not to apply to certain banking companies.
Ch. 3
CONTROL OVER MANAGEMENT
S.36AA
Power of Reserve Bank to remove managerial and other persons from office.
S.36AB
Power of Reserve Bank to appoint additional directors.
S.36AC
Part IIA to override other laws.
Ch. 4
SUPERSESSION OF BOARD OF DIRECTORS OF BANKING COMPANY
S.36ACA
Supersession of Board of Directors in certain cases.
Ch. 5
PROHIBITION OF CERTAIN ACTIVITIES IN RELATION TO BANKING COMPANIES
S.36AD
Punishments for certain activities in relation to banking companies.
Ch. 6
ACQUISITION OF THE UNDERTAKINGS OF BANKING COMPANIES IN CERTAIN CASES
S.36AE
Power of Central Government to acquire undertakings of banking companies in certain cases.
S.36AF
Power of the Central Government to make scheme.
S.36AG
Compensation to be given to shareholders of the acquired bank.
S.36AH
Constitution of the Tribunal.
S.36AI
Tribunal to have powers of a civil court.
S.36AJ
Procedure of the Tribunal.
Ch. 7
SUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES
S.36B
High Court defined.
S.37
Suspension of business.
S.38
Winding up by High Court.
S.38A
Court liquidator.
S.39
Reserve Bank to be official liquidator.
S.39A
Application of Companies Act to liquidators.
S.40
Stay of proceedings.
S.41
Preliminary report by official liquidator.
S.41A
Notice to preferential claimants and secured and unsecured creditors.
S.42
Power to dispense with meetings of creditors, etc.
S.43
Booked depositors' credits to be deemed proved.
S.43A
Preferential payments to depositors.
S.44
Powers of High Court in voluntary winding up.
S.44A
Procedure for amalgamation of banking companies.
S.44B
Restriction on compromise or arrangement between banking company and creditors.
S.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.
Ch. 8
SPECIAL PROVISIONS FOR SPEEDY DISPOSAL OF WINDING UP PROCEEDINGS
S.15
-O. Special period of limitation
S.45A
Part IIIA to override other laws.
S.45B
Power of High Court to decide all claims in respect of banking companies.
S.45C
Transfer of pending proceedings.
S.45D
Settlement of list of debtors.
S.45E
Special provisions to make calls on contributories.
S.45F
Documents of banking company to be evidence.
S.45G
Public examination of directors and auditors.
S.45H
Special provisions for assessing damages against delinquent directors, etc
S.45J
Special provisions for punishing offences in relation to banking companies being wound up.
S.45K
Omitted.
S.45L
Public examination of directors and auditors, etc., in respect of a banking company under schemes of arrangement
S.45M
Special provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act.
S.45N
Appeals.
S.45P
Reserve Bank to tender advice in winding up proceedings
S.45Q
Power to Inspect
S.45R
Power to call for returns and information
S.45S
Chief Presidency Magistrate and District Magistrate to assist official liquidator in taking charge of property of banking company being wound up.
S.45T
Enforcement of orders and decisions of High Court.
S.45U
Power of High Court to make rules.
S.45V
References to directors, etc., shall be construed as including references to past directors, etc.
S.45W
Part II not to apply to banking companies being wound up
S.45X
Validation of certain proceedings.
Ch. 9
PROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES
S.45Y
Power of Central Government to make rules for the preservation of records.
S.45Z
Return of paid instruments to customers.
S.45ZA
Nomination for payment of depositors' money.
S.45ZB
Notice of claims of other persons regarding deposits not receivable.
S.45ZC
Nomination for return of articles kept in safe custody with banking company.
S.45ZD
Notice of claims of other persons regarding articles not receivable.
S.45ZE
Release of contents of safety lockers.
S.45ZF
Notice of claims of other persons regarding safety lockers not receivable.
Ch. 10
MISCELLANEOUS
S.46
Penalties
S.46A
Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code.
S.47
Cognizance of offences.
S.47A
Power of Reserve Bank to impose penalty
S.48
Application of fines.
S.49
Special provisions for private banking companies.
S.49A
Restriction on acceptance of deposits withdrawable by cheque.
S.49B
Change of name by a banking company.
S.49C
Alteration of memorandum of a banking company.
S.50
Certain claims for compensation barred
S.51
Application of certain provisions to the State Bank of India and other notified banks.
S.52
Power of Central Government to make rules.
S.53
Power to exempt in certain cases.
S.54
Protection of action taken under Act.
S.55
Amendment of Act 2 of 1934.
S.55A
Power to remove difficulties
Ch. 11
APPLICATION OF THE ACT TO CO-OPERATIVE BANKS
S.56
Act to apply to co-operative societies subject to modifications.