Are you willing to know about the Banking Regulation Act? Here is our article which provides you the clean and clear information about the Banking Regulation Act. As per Section 5(b) of the Banking Regulation Act, 1949, "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.
There were some of the Important Facts, they are:-
- Initially, this act was passed as Banking Companies, 1949 and it was applicable to the whole of India Expect Jammu & Kashmir. It was changed to Banking Regulation Act, from 01-Mar-1949 and it became applicable to Jammu and Kashmir from 1956.
- Initially, it has covered only commercial banks and in 1965 amendment made it applicable to cooperative banks.
- These banks cover commercial banks as well as cooperative banks. However, the primary Agricultural Credit Society and Cooperative land Mortgage banks are Excluded from it.
Power of RBI:-
This act empowers the RBI to grant a license to banks; regulation over their shareholding and voting rights of shareholders; supervise the appointment of the boards and management; regulate the operations of banks; lay down instructions for audits; control moratorium, mergers, and liquidation; issue directives in the interests of public good and on banking policy, and impose penalties.
