Section List

10/1949 - The Banking Regulation Act, 1949 ▶

Act Number: 10

Act Name: The Banking Regulation Act, 1949

Year: 1949

Enactment Date: 1949-03-10

Long Title: An Act to consolidate and amend the law relating to banking.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section Number	Title	Actions
1	Short title, extent and commencement.
2	Application of other laws not barred.
3	Act not to apply to certain co-operative societies.
4	Power to suspend operation of Act.
5	Interpretation.
5A	Act to override memorandum, articles, etc.
6	Form of 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 the Board of directors appointed on a whole-time basis or a managing director 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 authorised capital and voting rights of shareholders.
12A	Election of new directors.
12B	Regulation of acquisition of shares or voting rights.
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	Rates 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.
26A	Establishment of Depositor Education and Awareness Fund.
27	Monthly returns and power to call for other returns and information.
28	Power to publish information.
29	Accounts and balance-sheet.
29A	Power in respect of associate enterprises.
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 provision 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.
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.
36ACA	Supersession of Board of Directors in certain cases.
36AD	Punishments for certain activities in relation to banking companies.
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.
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	Powers of High Court in voluntary winding up.
44A	Procedure for amalgamation of banking companies.
44B	Restriction on compromise or arrangement between banking company and creditors.
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.
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
45-I	Duty of directors and officers of banking company to assist in the realisation of property.
45J	Special provisions for punishing offences in relation to banking companies being wound up.
45K	Omitted.
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.
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.
46	Penalties
46A	Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code.
47	Cognizance of offences.
47A	Power of 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 a 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
56	Act to apply to co-operative societies subject to modifications.
35AA	Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.
35AB	Power of Reserve Bank to issue directions in respect of stressed assets.
51A	Powers of Reserve Bank not to apply to International Financial Services Centre.