The Banking Regulation Act, 1949

The Banking Regulation Act, 1949 is an Indian law that provides a regulatory framework for the banking sector in India. The Act defines the powers of the Reserve Bank of India (RBI) as the primary regulator of the banking sector and outlines the requirements for establishing and operating banks in India. The Act sets out the provisions for licensing and regulation of banking companies, regulation of paid-up capital and reserves, management and administration of banks, inspection, inquiry, and control over the affairs of banking companies, and penalties for contravention of the Act. The Act has been amended several times to keep pace with the changing banking landscape in India.