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Chapter 2 of The Banking Regulation Act, 1949 (Act No. 10)
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Business Of Banking Companies
2 (II)
Act Details
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The Banking Regulation Act, 1949
10
10-03-1949
The Banking Regulation Act, 1949
An Act to consolidate and amend the law relating to banking.
Ministry of Finance
Department of Financial Services
Sections from Chapter 2 of The Banking Regulation Act, 1949 (Act No. 10)
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.
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.
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.
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