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.
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.