Bare Acts

The Banking Regulation Act, 1949

1949 · In force · synced 07 Jul 2026

1.Short title, extent and commencement 2.Application of other laws not barred 3.Act not to apply to certain co-operative societies 4.Power to suspend operation of Act 5.Interpretation 5A.Act to override memorandum, articles, etc

6.Forms of 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 6[chairman of the Board of directors appointed on a whole-time basis or a managing director] of a banking company 11.Requirement as to minimum paid-up capital and reserves 12.Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders 12A.Election of new directors 12B.Regulation of acquisition of shares or voting rights 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.Rates 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 26A.Establishment of Depositor Education and Awareness Fund 27.Monthly returns and power to call for other returns and information 28.Power to publish information 29.Accounts and balance-sheet 29A.Power in respect of associate enterprises 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.Protection of documents of confidential nature 35.Inspection 35A.Power of the Reserve Bank to give directions 35AA.Power of Central Government to authorise Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process 35AB.Power of Reserve Bank to issue directions in respect of stressed assets 36.Further powers and functions of Reserve Bank 36A.Certain provisions of the Act not to apply to certain banking companies 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 36ACA.Supersession of Board of Directors in certain cases

III

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.Powers 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 2[reconstruction] or amalgamation 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 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 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 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 45ZG.Priority of successive nominations

46.Penalties 46A.Chairman, director, etc., to be public servants for the purposes of Chapter IX of the Indian Penal Code 47.Cognizance of offences 47A.Power of 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 a banking company 49C.Alteration of memorandum of a banking company 50.Certain claims for compensation barred 51.Application on of certain provisions to the State Bank of India and other notified banks 51A.Powers of Reserve Bank not to apply to International Financial Services Centre 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 56.Act to apply to co-operative societies subject to modifications

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