The Banking Regulation Act, 1949

(1) This Act may be called the Banking 1[Regulation]Act, 1949. 2[(2) It extends to the whole of India 3***.] (3) It shall come into force on such date4as the Central Government may, by notification in theOfficial Gazette, appoint in this behalf.

The provisions of this Act shall be in addition to, andnot, save as hereinafter expressly provided, in derogation of the 1[Companies Act, 1956 (1 of 1956)],any other law for the time being in force.

1[3. Act not to apply to certain co-operative societies.--Notwithstanding anything contained inthe National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), this Act shall notapply to-- (a) a primary agricultural credit society; or (b) a co-operative society whose primary object and principal business is providing of longterm finance for agricultural development, if such society does not use as part of its name, or in connection with its business, the words "bank","banker" or "banking" and does not act as drawee of cheques.]

(1) The Central Government, if on a representation madeby the Reserve Bank in this behalf is satisfied that it is expedient so to do, may by notification in theOfficial Gazette, suspend for such period, not exceeding sixty days, as may be specified in thenotification, the operation of all or any of the provisions of this Act, either generally or in relation toany specified banking company. (2) In a case of special emergency, the Governor of the Reserve Bank, or in his absence a DeputyGovernor of the Reserve Bank nominated by him in this behalf may, by order in writing, exercise thepowers of the Central Government under sub-section (1) so however that the period of suspension shallnot exceed thirty days, and where the Governor or the Deputy Governor, as the case may be, does so, heshall report the matter to the Central Government forthwith, and the order shall, as soon as may be, bepublished in the Gazette of India. (3) The Central Government may, by notification in the Official Gazette, extend from time to timethe period of any suspension ordered under sub-section (1) or sub-section (2) for such period, notexceeding sixty days at any one time, as it thinks fit so however that the total period does not exceedone year. (4) A copy of any notification issued under sub-section (3) shall be laid on the tableof 1[Parliament] as soon as may be after it is issued.

1[In this Act], unless there is anything repugnant in the subject or context,-- 2[(a) approved securities means the securities issued by the Central Government or any StateGovernment or such other securities as may be specified by the Reserve Bank from time to time.] (b) banking means the accepting, for the purpose of lending or investment, of deposits ofmoney from the public, repayable on demand or otherwise, and withdrawable by cheque, draft,order or otherwise; (c) banking company means any company which transacts the business of banking3[in India]; Explanation.--Any company which is engaged in the manufacture of goods or carries on anytrade and which accepts deposits of money from the public merely for the purpose of financing itsbusiness as such manufacturer or trader shall not be deemed to transact the business of bankingwithin the meaning of this clause; 4[(ca) banking policy means any policy which is specified from time to time by the ReserveBank in the interest of the banking system or in the interest of monetary stability or sound economicgrowth, having due regard to the interests of the depositors, the volume of deposits and otherresources of the bank and the need for equitable allocation and the efficient use of these depositsand resources;] 5[(cc) branch or branch office, in relation to a banking company, means any branch orbranch office, whether called a pay office or sub-pay office or by any other name, at which depositsare received, cheques cashed or moneys lent, and for the purposes of section 35 includes any placeof business where any other form of business referred to in sub-section (1) of section 6 istransacted;] 6[(d) company means any company as defined in section 3 of the Companies Act, 1956(1 of 1956); and includes foreign company within the meaning of section 591 of that Act;] 7[(da) corresponding new bank means a corresponding new bank constituted under section 3of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), orunder section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980(40 of 1980);] 8* * * * * (f) demand liabilities means liabilities which must be met on demand, and time liabilitiesmeans liabilities which are not demand liabilities; 9[(ff) Deposit Insurance Corporation means the Deposit Insurance Corporation establishedunder section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);] 10-[11* * * * * (ffb) Exim Bank means the Export-Import Bank of India established under section 3 of theExport-Import Bank of India Act, 1981 (28 of 1981);] 12[(ffc) Reconstruction Bank means the Industrial Reconstruction Bank of India establishedunder Section 3 of the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984);] 13[(ffd) National Housing Bank means the National Housing Bank established under section 3of the National Housing Bank Act, 1987 (53 of 1987);] (g) gold includes gold in the form of coin, whether legal tender or not, or in the form ofbullion or ingot, whether refined or not; 14[(gg) managing agent includes,-- (i) secretaries and treasurers, (ii) where the managing agent is a company, any director of such company, and anymember thereof who holds substantial interest in such company, (iii) where the managing agent is a firm, any partner of such firm;] 15[(h) managing director, in relation to a banking company, means a director who, by virtue ofof an agreement with the banking company or of a resolution passed by the banking company ingeneral meeting or by its Board of directors or, by virtue of its memorandum or articles ofassociation, is entrusted with the management of the whole, or substantially the whole of the affairsof the company, and includes a director occupying the position of a managing director, by whatevername called:] 16[Provided that the managing director shall exercise his powers subject to the superintendence,control and direction of the Board of directors.] 17[(ha) National Bank means the National Bank for Agriculture and Rural Developmentestablished under section 3 of the National Bank for Agriculture and Rural Development Act, 1981(61 of 1981);] 18[(hb) National Bank for financing Infrastructure and Development means the Institutionestablished under section 3 of the National Bank for Financing Infrastructure and Development Act,2021; (hc) other development financial institution means a development financial institutionlicensed under section 29 of the National Bank for Financing Infrastructure and Development Act,2021;] 19* * * * * (j) prescribed means prescribed by rules made under this Act; 17[(ja) regional rural bank means a regional rural bank established under section 3 of theRegional Rural Banks Act, 1976 (21 of 1976);] 20* * * * * 21[(l) Reserve Bank means the Reserve Bank of India constituted under section 3 of theReserve Bank of India Act, 1934 (2 of 1934):] 20* * * * * (n) secured loan or advance means a loan or advance made on the security of assets themarket value of which is not at any time less than the amount of such loan or advance; andunsecured loan or advance means a loan or advance not so secured; 22[(ni) Small Industries Bank means the Small Industries Development Bank of Indiaestablished under section 3 of the Small Industries Development Bank of India Act, 1989(39 of 1989);] 23[(na) small-scale industrial concern mean an industrial concern in which the investment inplant and machinery is not in excess of seven and a half lakhs of rupees or such higher amount, notexceeding twenty lakhs of rupees, as the Central Government may, by notification in the OfficialGazette, specify in this behalf, having regard to the trends in industrial development and otherrelevant factors; 24[(nb) Sponsor Bank has the meaning assigned to it in the Regional Rural Banks Act, 1976(21 of 1976) : (nc) State Bank of India means the State Bank of India constituted under section 3 of theState Bank of India Act, 1955 (23 of 1955);] 25[(nd)] subsidiary bank has the meaning assigned to it in the State Bank of India (SubsidiaryBanks) Act, 1959 (38 of 1959); 26[(ne)] substantial interest,-- (i) in relation to a company, means the holding of a beneficial interest by an individual orhis spouse or minor child, whether singly or taken together in the shares thereof, the amountpaid-up on which exceeds five lakhs of rupees or ten per cent. of the paid-up capital of thecompany, whichever is less; (ii) in relation to a firm, means the beneficial interest held therein by an individual or hisspouse or minor child, whether singly or taken together, which represents more than tenper cent. of the total capital subscribed by all the partners of the said firm;] 27[(o) all other words and expressions used herein but not defined and defined in the CompaniesAct, 1956 (1 of 1956), shall have the meanings respectively assigned to them in that Act.] 28* * * * *