The 1933 banking act established 1 the federal deposit insurance corporation fdic. Banking laws reserve bank of india reserve requirement. There are total 61 sections in the rbi act 1934 some important sections are listed below. This act along with the companies act, which was amended in 1936, were meant to provide a framework for the supervision of banking firms in india. However, it was the hilton young committee in 1926 recommended the establishment of a central bank in india. Banking regulation act 1949 important sections in hindi. Important sections in reserve bank of india rbi act 1934.
Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. Short title, extent and commencement 1 this act may be called the banking 3 regulation act, 1949. The key statutes and regulations that govern the banking industry in india are. Reserve bank of india act, 1934 is the legislative act under which the reserve bank of india was formed. In section 5 of the banking regulation act, 1949 hereafter in this chapter referred to as the principal. Though the rbi, as part of its monetary management mandate, had, from the very beginning, been vested with the powers, under the rbi act, 1934, to regulate the volume and. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Initially, the law was applicable only to banking companies. Necessity for regulation as provided in this title seo. In the era of globalization banking sector in india is rapidly changing since 1990s due to technological. Practical banking, with a survey of the federal reserve act 1915. Whereas it is expedient to consolidate and amend the law relating to banking 2. An act relating to contracts and agreements under the agricultural adjustment act. Act, 1934 2 of 1934 or the banking regulation act, 1949 10 of 1949 or the companies act, 1956 1 of 1956 shall have the meanings respectively assigned to them in those acts.
Federal reserve banks the work of the system may be considered first from the point of view of. For the reasons hereinafter enumerated, transactions in securities as commonly conducted upon securities exchanges and overthecounter markets are affected with a national public interest which makes it necessary to. Use of words bank, banker, banking or banking company 8. Reserve bank of india act 1934, rbi act, rbi in hindi. The capital of the bank shall be five crores of rupees. Banking regulation act, 1949 bare acts law library. Banking regulation act, 1949, precluding the court from scrutinising the rate of interest under. Introduction banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. The national bank for agricultural and rural development act, 1981 61 of 1981 67. Monetary gold included all coins and bullion held by individuals and institutions, including the federal reserve. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
It became applicable to jammu and kashmir from 1956. Regulation r implements certain of the broker exceptions for banks from the definition of the term broker under section 3a4 of the securities exchange act of 1934 exchange act, as amended by the grammleachbliley act glba. Parti an overview of rbi act, 1934 and banking regulation act 1949 16 reserve bank of india act, 1934 16 banking regulation act, 1949 16 other important sections of banking regulation act, 1949 17 section 36ab. Federal reserve act as amended to december 24, 1919 1920. Section 42 of rbi act, 1934, liabilities of a bank may be towards banking system or. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Here we have listed the acts related to banking sector. Banking regulation act, 1949 reserve bank of india. The most recent as well as the most important of these is the act approved august 23, 1935.
Under section 19 of banking regulation act 1949, a bank cannot hold shares in a company as a pledgee or mortgagee in excess 30 percent of paid up of that company or 30 percent of banks paid capital and reserves whichever is less. Master circular indian institute of banking and finance. India act, 1934 2 of 1934, the banking regulation act, 1949 10 of 1949, the companies act, 1956 1 of 1956, the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002 54 of 2002, the credit information companies regulation act, 2005. The banking laws amendment act, 1985 81 of 1985 70. The reserve bank of india was established in the year 1935 according to the reserve bank of india act, 1934. An act to consolidate and amend the law relating to banking 2. Short title, extent and commencement 1 this act may be called the banking 3regulation act, 1949. Important sections in reserve bank of india act 1934. Regulation r guidance the grammleachbliley act glba lowered many of the barriers that were erected between the banking and securities industries via the securities and exchange act of 1934 exchange act. Reserve bank of india act, 1934 was enacted on 6 march, 1934 to constitute the reserve bank of india. The composition of central board of reserve bank of india. Defines the scope of securities activities that banks may conduct without registering with the securities exchange commission as a securities broker and implements the most important exceptions from the definition of the term broker for banks under section 3a4 of the securities exchange act of 1934. In this video i will try to cover all of the rbi act in details. Provisions of the banking regulation act, 1949 are not in substitution of other laws applicable.
Chapter 1 addresses the question of why banks are regulated in order to establish the basic purposes, rationale, and goals for bank ing regulation, and to provide a framework for evaluating bank regulations. Out of these four schedules, third and fourth schedule is. Banking laws amendment act, 2012 department of financial. The gold reserve act of 1934 was the culmination of this program. Under the exchange act of 1934, regulation sho requires that before any equity security either listed or unlisted can be sold short, the member firm must affirmatively determine that the security can be. Gk, general studies, optional notes for upsc, ias, banking, civil services. Powers of rbi under reserve bank of india act, 1934.
Congress fundamentally reformed banking with the glasssteagall act. President roosevelt signed the act on january 30, 1934. Although glba repealed the blanket exception that prevented banks from having to register as brokers, it provided conditional exceptions. Major provisions of reserve bank of india act, 1934 gktoday. This act may be cited as the securities exchange act of 1934. The act provides for the constitution management and functions of the rbi. The nationalbank act as amended, the federal reserve act and other laws relating to national banks 1920. Reserve bank of india act, 1934 16 banking regulation act, 1949 16 setting up of a new bank 18 branch licensing 19 branch authorisation policy for commercial banks 19 new bank licensing policy, 20 20 banks share holders and their rights 23 cash reserve ratio 24 statutory liquidity ratio slr 26 currency chests 28 currency printing and.
Act to apply to cooperative societies in certain cases. The industrial reconstruction bank of india act, 1984 62 of 1984 69. The banking laws miscellaneous provisions act, 1963 55 of 1963. There are total 61 sections in the reserve bank of india act 1934. Necessity for regulation as provided in this title. It is the central bank of india which has various roles. Section 2 of the act transferred ownership of all monetary gold in the united states to the us treasury. Establishment of offices, branches and agencies section 8. Form and business in which banking companies may engage.
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 2. An act to protect the currency system of the united states, to provide for the better use of the monetary gold stock of the united states, and for other purposes. As per definition us 5 b of banking regulation act 1934, which of the following is not correct in the context banking business. Reserve bank of india act 1934 is the legislative act under which the reserve bank of india was formed. Powers, history, functions of the reserve bank of india rbi.
One provision of the act, named regulation q, placed limits on the interest rates banks could offer on deposits. Passed as the banking companies act 1949, it came into force from 16 march 1949 and changed to banking regulation act 1949 from 1 march 1966. The act is divided into 61 sections and four schedules. Regulation act, 1949 as applicable to cooperative societies br act. Therefore, it took 7 years to pass the rbi act 1934 as a shareholders banks. Negotiable instrument act1881 the bankersbooks evidence act1891 the reservebank of india act1934 the industrial finance corporation of india act1948 the banking companies legal practitioner clients accounts act1949 the industrial disputes banking and insurance companies act1949.
It also empowers it to exercise control and regulations, over the commercial banks, the nonbanking finance companies and the financial institutions. Banking regulation act, 1949 was enacted on 10 march 1949 and came to effect on 16 march 1949. Provisions of the banking regulation act, 1949 are not in substitution of other laws applicable, unless otherwise expressly said section 2 sub 56 b act is not applicable to 1 primary agricultural society 2 cooperative land mortgage bank 3 any other cooperative society except as provided by sec. Major provisions of reserve bank of india act 1934 pdf. Indexdigest of the federal reserve act and amendments board of governors of fed res system 1918. Short title, extent and commencement 1 this act may be called the banking 2regulation act, 1949. The federal reserve system and the banking act of 1935. Form a return for crr under section 422 of the reserve bank of india rbi act, 1934 and form viii return for slr under section 24 of the banking regulation act, 1949. The exportimport bank of india act, 1981 28 of 1981 66.
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