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REGULATION ACT
1949
PRESENTED BY
BHAVYA GUPTA (1695)
MBI SEM 3
BANKING DEFINED :
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
DIFFERENT PROVISIONS
Sec-23 OPENING OF
BRANCHES
To obtain permission from the RBI for
opening up branches both in domestic
and foreign
Exceptions
A change of location within same
city,town or village
A temporary business service offered
by a banking company
(mela,conference)
Sec-27 RETURNS
Every banking company required
to submit a monthly statement
in a prescribed format by RBI
showing its assets and liability
position in the last Friday of the
month.
Sec-35 INSPECTION
RBI possess the right to call for
an inspection of any banking
company and its books and
accounts
To safeguard the interests of the
depositors or its shareholders
Sec-20 RESTRICTION ON
LOANS & ADVANCES
No banking company shall:Grant loans and advances on the
security of its own shares ,or
Enter into any commitment for granting
any loan/advance to or on behalf of
i)Any of its directors
ii)Directors interested as
partner,manager,employee or guarantor
iii)Any individual in respect of whom any
of its directors is a partner/guarantor
Sec-10 MANAGEMENT OF
BANKING COMPANIES
Prohibited employment of managing
agents
Section 10A:51% of directors in every board of directors
of banking companies shall satisfy the
following:
shall have knowledge/practical experience
in respect of one or more of the following
matters namelyaccountancy,banking,agriculture & rural
economy,co-operation,law,finance,ssi
be proprietors of any
trading,commercial or industrial
concern,not being a small scale
industrial concern
Shall not have substantial interest
in,or be connected with,whether as
employee,manager or managing
agent
Directors/chairman appointed
under sec-10A and 10B by RBI
can hold office of more than one
banking company
CONCLUSION
The Banking Regulation Act has been
able to ensure effective supervision of
banking in our country to a large extent
Failures of banks though small in
number in the last decade point to the
need for further strengthening of
regulatory frame work
Ongoing globalization provides
opportunities and challenges for the
growth of banking industry in India
THANK
YOU