The Banking Regulation Act, 1949 regulates all banking business in India.
The Act provides a framework under which commercial banking in India is supervised and regulated. The Act supplements the Companies Act, 1956.
Features
The Act gives the Reserve Bank of India (RBI) the power to license banks, have regulation over 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.
Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act.
