What are the main provisions of Banking Regulation Act 1949?
1. Important provisions of the RBI ACT- 1934
Section -22 : sole right to issue bank notes.
Section- 31 : Prohibits issue of bearer bills of exchange, promissory notes payableto bearer.
Section – 42(1) : Cash reserve ratio (CRR)
Rbi is regulator of Banks so it is also Banks of bank and Play important role in controlling inflation.
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2. Important provisions of the Banking Regulation Act- 1949
BR Act is just like constitution of all Banks operating in India.
Section – 11 : paid up Capital and Reserves :
For domestic banks: 5 lacs and for foreign banks 15 lacs in case of banking businessat Mumbai/ Calcutta or both
Section – 20 : Restriction on advance against own shares
Section- 21 (A): Interest charged by the banks can not scrutinise by the court.
Section – 23 : Restriction on opening of new branch, extn. Counter etc. except for one month.
Section 24 : Maintenance of SLR
Section 26 : Return of unclaimed Deposit.
Section 45(Y) : Preservation of the bank records.
Section 45 Z : Returns of paid instruments to customer
Section 45 ZA : Nomination in Deposit accounts
Section 45 ZC : Nomination in safe custody accounts
Section 45 ZE : Nomination in lockers
Section 47-A : Violation of KYC: RBI can impose penalty on banks for violation of KYC norms.