Banking regulation companies rules, 1949 rules law. Free access to the fulltext for the rule, banking regulation companies rules, 1949. Nomination rules under section 45qb of rbi act for nbfc. The key statutes and regulations that govern the banking industry in india are. This prescribes different forms, depending on the nature.
Passed as the banking companies act 1949, it came into force. Financial company means a nonbanking company which is a financial institution within the meaning of clause c of section 45i. The deposit insurance and credit guarantee corporation act, 1961 insurance corporation. Regulation act, 1949 along with present banking structure and its related issues. In exercise of the powers conferred by clause 31 of section 2, section 73 and section 76 read with subsections 1 and 2 of section 469 of the companies act, 20 18 of 20, and in supersession of the companies acceptance of deposits rules, 1975 or any other rules prescribed under the companies act, 1956 1 of 1956 on matters. Form of business in which banking companies may engage. Prohibition to commence or carry on business of credit information. The form of application is set out in the banking regulation companies rules, 1949. The carec first capital market regulators forum, organized by secp from 29 to 30 august, provides a platform for development leaders and industry experts to discuss solutions to global challenges faced by capital market regulators for better capital markets development in the carec region, which include the use of technology. What are the important rules of banking regulation act, 1949.
Free access to the fulltext for the rule, banking regulation companies rules, 1949 and passed by the indian parliament is listed here. In exercise of the powers conferred by section 52 of the banking regulation act, 1949 10 of 1949, and after consultation with the reserve bank. Company secretaries in the banking companies formed either under the companies act 1956 or any other legislations and having banking licence from rbi under the banking regulation act 1949, have to discharge onerous responsibility not only to ensure compliance with the various statutory provisions as a principal officer. Forms of business in which banking companies may engage. 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. Banking law and practice company secretaries have a pivot role to play in the banking and financial sector. Section 2 in the banking regulation companies rules, 1949. Unit five also helps in knowing the provisions of banking regulation act, 1949 which informs about the forms of business in which banking companies may engage and power of reserve bank to control advances by banking companies. The prudential norms are regulations of rbi which are not applicable for the payment banks as they do not have the provision to provide loans and provide advances. In exercise of the powers conferred by section 92 of the banking companies ordinance, 1962 lvii of 1962, the federal government after consultation with the state bank, is pleased to make the following rules, namely. Regulation of paidup capital, subscribed capital and authorised capital, and voting rights of share holders. Banking regulation c ompanies rules, 1949 in exercise of.
Banking regulation act 1949 and important sections pdf. Companies a cceptance of deposits rules, 1975 preamble. Scheduled banks comprise commercial banks and the cooperative banks. Act to apply to cooperative societies in certain cases. Banking regulation c ompanies rules, 1949 notification. The reserve bank of india today released on its website, the guidelines for licensing of new banks in the private sector. Its purposes, implementation, and effects not only reflects these objectives, but reaffirms our intentions to bring about a greater understanding of the u. Dear sir, some companies are sending out letters to deposit holders stating that as per the present notification in companies acceptance of deposit rules, 2014 non banking non financial companies should not accept deposits from 1. The banking regulation companies rules, 1949 1 the banking regulation companies rules, 1949 11. This prescribes different forms, depending on the nature of the applicant and whether it is a domestic or foreign company. Initially, the law was applicable only to banking companies. Use of words bank, banker, banking or banking company.
Prohibition of employment of managing agents and restrictions on. The rbi act was enacted to establish and set out the. The central government may, after consultation with the reserve bank, make rules see the banking companies rules, 1949, ministry of finance notification no. A company desiring to have a licence under section 22 of the act shall apply to the principal office of the reserve bank in a form specified below, namely. The indian banking industry, which is governed by the banking regulation act of india, 1949 can be broadly classified into two major categories, nonscheduled banks and scheduled banks. Companies act, 1956 1 of 1956, or in any other law for the time being in force. Some of the important sections of banking regulation acts 1949 are as under. Reference of other laws section 45f of the companiesact,20 provides that the directorsresponsibility statement shall state that the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. The financial system in india includes commercial banks, regional rural banks, local area banks, cooperative banks, financial institutions including development financial institutions dfis and nonbanking financial companies. Prohibition of employment of managing agents and restrictions on certain forms of employment. We hereby apply for a license to commence banking business in terms of section 22 of the banking companies act, 1949. Accordingly, depositors of nbfcs are permitted to nominate one person to whom the nbfc can return the deposit in the event of the death of the depositors. Companies restriction on number of layers rules, 2017.
The updating and uploading of rules, regulations, notifications, etc. Banking regulation companies rules, 1949 notification. Nonbanking financial companies have been advised to adopt the banking companies nomination rules, 1985 made under section 45za of the banking regulation act, 1949. 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. Entities groups in the private sector, entities in public sector and nonbanking financial companies nbfcs shall be eligible to set up a bank through a whollyowned nonoperative financial holding company. But, 1965 it was amended to make it applicable to cooperative banks. Read this article to learn about the following important principal provisions of banking regulation act, 1949 i. Nonbanking finance companies and notified entities. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in india.
We give below the necessary information in the form prescribed for the purpose. Principal provisions of banking regulation act, 1949. In exercise of the powers conferred by section 52 of the banking regulation act, 1949 10 of 1949, and after consultation with the reserve bank, the central government is pleased to make the. The banking regulation act, 1949 contents introduction. Banking regulation act 1949, prevention of money laundering act, 2002. Banking companies period of preservation of records. Section 10 prohibition of employment of managing agents and restrictions on certain. In exercise of the powers conferred by section 52 of the banking regulation act, 1949 10 of 1949, and after consultation with the reserve bank, the central government is pleased to make the following rules, namely. Rbi derives its regulating powers for indian banking system from the provisions of the banking regulation act 1949. The banking regulation act, 1949 is legislation in india that regulates all banking firms in india. In exercise of the powers conferred by section 52 of the. The banking regulation act, 1949 reserve bank of india.
360 912 472 90 886 1416 57 1116 282 779 655 710 1126 1427 727 528 763 285 1559 416 839 830 1288 1348 8 1270 1624 470 551 1091 1430 319 857 856 623 700 694 1079 833 315 1255 1099 85