Banking Regulation Act, 1949

Banking Regulation Act, 1949

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.
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
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
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	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
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
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 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
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	Amendments
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: –