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Banking Regulation Act, 1949

[Act no. 10 of Year 1949, dated 10th. March,1949]

Sections Particulars
Part I Preliminary
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.
Part II Business Of Banking Companies
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
Part IIA Control Over Management
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
Part IIB Prohibition Of Certain Activities In Relation To Banking Companies
36AD Punishments for certain activities in relation to banking companies
Part IICA Cquisition Of The Undertakings Of Banking Companies In Certain Cases
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
Part III Suspension Of Business And Winding Up Of Banking Companies
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
Part IIIA Special Provisions For Speedy Disposal Of Winding Up Proceedings
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
Part IIIB Provisions Relating To Certain Operations Of Banking Companies
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
Part IV Miscellaneous
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
Part V Application Of The Act To Co-Operative Banks
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 Amendment
Schedule II [Repealed by the Repealing and the Amending Act, 1957 (36 of 1957) s. 2 and Sch. I.]
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:-

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