What is Section 19 of banking Act?
Section 19(2) in BANKING REGULATION ACT,1949. (2) Save as provided in sub-section (1), no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent. of the paid-up share capital of that company or thirty per cent.
What are the activities permitted by the Banking Regulation Act 1949 to be taken up by banker?
The Section 6 of the banking regulation act comprises of the permitted business of banks. The act consists of the following points: Banking for borrowing, raising or taking up of money, selling, collecting and dealing in the bills of exchange, promissory notes, railway receipts.
What is known as lender of last resort?
As a Banker to Banks, the Reserve Bank also acts as the ‘lender of the last resort’. It can come to the rescue of a bank that is solvent but faces temporary liquidity problems by supplying it with much needed liquidity when no one else is willing to extend credit to that bank.
What is Section 35A?
Article 35A of the Indian Constitution was an article that empowered the Jammu and Kashmir state’s legislature to define “permanent residents” of the state and provide special rights and privileges to them. Non-permanent residents of the state, even if Indian citizens, were not entitled to these ‘privileges’.
What are the regulations in banking?
Banking regulations are a form of government regulation which subjects banks to certain requirements, restrictions and guidelines. In general, banking regulations seek to uphold the soundness and integrity of the financial system.
What is the importance of the Banking Regulation Act?
The Banking regulation Act was enacted to consolidate and provide for a suitable framework for regulating the banking companies. The act deals with regulation, control,suspension and winding up of business of banking companies. The act also provides for penalities in case of violation of the provisions of the act.
What is Banking Regulation Act?
Answer Wiki. The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes.
Which section of Banking Regulation Act,?
Section 44A of the Banking Regulation act, 1949 provides the easiest and cost effective procedure for voluntary amalgamation of two bank entities. The scheme states the terms of amalgamation is to be approved by a majority in number representing 2/3rd the value of the shareholders in a general meeting.