What are the main provisions of Banking Regulation Act, 1949?

They are: (1) Prohibition of Trading (2) Non-Banking Assets (3) Management (4) Minimum Capital and Reserves (5) Capital Structure (6) Payment of Commission, Brokerage etc. (7) Reserve Fund/Statutory Reserve (8) Cash Reserve (9) Liquidity Norms (10) Restrictions on Loans and Advances and (11) Accounts and Audit .

What is Section 35 A of BR Act?

Section 35A of the Banking Regulation Act, 1949 vests power in the RBI to give directions to banks and can take action, “to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company”.

How many sections are in the BR Act?

56 sections
Important sections of Banking Regulation Act, 1949 The act has 56 sections.

What activities are permitted and not permitted by banks as per BR Act?

The main features of the banking regulation act are as follows: Prohibition of trading (Section 8): According to Section 8 of the Banking Regulation Act, a bank cannot directly or indirectly deal with buying or selling or bartering of goods.

What does banking means under BR Act?

(b) “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise; (c) “banking company” means any company which transacts the business of banking 10 [in India].

What is Section 17 of the banking regulation act?

In terms of section 17 (1) and 11 (1)(b) (ii) of the Banking Regulation Act, 1949 banks are required to transfer, out of the balance of profit as disclosed in the profit and loss account, a sum equivalent to not less than 20 per cent of such profit to Reserve Fund.

What is Section 25 of Banking Regulation Act?

(1) The assets in India of every banking company at the close of business on the last Friday of every quarter or, if that Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881), at the close of the business on the preceding working day, shall not be less than seventy-five per cent.

What is KYC act?

KYC Norms were made compulsory, aiming to restrict money laundering and to stop terrorist financing. RBI issues guidelines for KYC, through Banking Regulation Act, 1949 Section 35A along with Prevention of Money Laundering (Maintenance of Records) Rules, 2005.

Which banks are not covered under Banking Regulation Act, 1949?

Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act.

What are 3 functions of a bank?

Utility Functions of Bank

  • Issuing letters of credit, traveller’s cheque, etc.
  • Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers.
  • Providing customers with facilities of foreign exchange dealings.
  • Underwriting of shares and debentures.

What are types of banks?

Daily Current Affairs

  • Central Bank.
  • Cooperative Banks.
  • Commercial Banks.
  • Regional Rural Banks (RRB)
  • Local Area Banks (LAB)
  • Specialized Banks.
  • Small Finance Banks.
  • Payments Banks.

Which of the following falls under Section 11 of Banking Regulation Act, 1949?

Under the provisions of Section 11 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), no primary (urban) cooperative bank can commence or carry on banking business if the real or exchangeable value of its paid-up capital and reserves is less than Rs. one lakh.

What are the rules 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 following rules, namely:- 1. Short title, extent and commencement .- (1) These rules may be called The [Banking Regulation (Companies) Rules], 1949.

What are section 45F and 45g of the Banking Act?

Section 45F – Documents of banking company to be evidence Section 45G – Public examination of Directors and auditors Section 45H – Special provisions for assessing damages against delinquent Directors, etc Section 45I – Duty of Directors and officers of banking company to assist in the realisation of property

What are the section 18 and 19 of the RBI Act?

Section 18 – Cash reserve Section 19 – Restriction on nature of subsidiary companies Section 20 – Restrictions on loans and advances Section 20A – Restrictions on power to remit debts Section 21 – Power of Reserve Bank to control advances by banking companies

What are the contents of Section 29A of the Companies Act?

Section 29 – Accounts and balance-sheet Section 29A – Power in respect of associate enterprises Section 30 – Audit Section 31 – Submission of returns Section 32 – Copies of balance-sheets and accounts to be sent to registrar Section 33 – Display of audited balance-sheet by companies incorporated outside India