This document provides definitions and summaries of key terms and sections from the Banking Regulation Act of 1949. It defines what constitutes banking business in India and what activities banks are and are not allowed to conduct. Some key points include: 1. Section 5 defines a banking company as one that transacts banking business in India, which includes accepting deposits that are repayable on demand and allowing withdrawals by cheque. 2. Banking policy refers to policies set by the Reserve Bank of India to ensure minority stability, sound economic growth, and the interests of depositors. 3. The act prohibits banks from carrying out trading activities and holding immovable property for over 7 years. It also restricts the employment of managing agents

1. DEFINATION:
BankingRegulation Sec5(c)DefinesAs“ACompanyWhich
TransactsBusinessOfBankingInIndia”.
SEC 5 (B) OF BRA DEFINES:
“acceptingforthepurposeoflendingand
investmentofdepositofmoneyfrompublic,
repayableondemandorotherwise,and
withdrawalbycheque,draft,order or otherwise”

2. BANKING POLICY
1.“Banking Policy” Means Policy Spreaded By RBI From Time To
Time
2.Banking System
3.Minority Stability
4.Sound Economic Growth
5.Interest Of Depositors
6.Volume Of Deposit And Other Resources Of Bank
7.Efficient Use Of Deposits And Resources Sec 5(CA)

3. Kind Of Business Bank Cannot Do
Bank cannot carry on
trading activities sec(8).
Bank Cannot Hold Any
Immovable Property Except
For Its Own Exceeding 7 Years.
Sec(9).
Prohibition Of Employment
Of Managing Agents And
Restriction On Certain Form
Of Employment Sec.(10).

4. Applicability of the banking regulation act
Nationalized bank
Non-nationalized bank
Co-operate banks

5. CashReserve
Ratio(crr)
Statutory
Liquidity
Ratio(slr)
CRRandSLRunder sec.18r.W.56(i)under bankingregulation act 1949

6. business of banking companies
sec(6)1 and 6(2) r.w. 56(B)
-Borrowing. Raising or taking of money
-Giving advances
-Bills business
-L/C, bank guarantee,indemnity
-Foreign exchange
-Providing save deposit vaults
-Collecting transmitted money
-Managing selling and realising any
property that may comes to bank
satisfaction understanding and
executing trust.

7. Sr.n
o
par
ts
topics section
1 I Preliminary 1 to 5A
2 II Business of banking company 6 to 36A
3 IIA Control over management 36AA to36AC
4 IIB Prohibition of certain activities in relation to
banking companies
36AD
5 IIC Acquisition of undertaking of banking
companies in certain cases.
36AE to36AJ
6 III Suspension of business and winding up of
banking companies.
36B to 45
7 IIIA Speedy proposal for speedy disposal of
winding up proceeding
45A to 45
8 IIIB Provision relating to certain of banking
companies.
45 to 45Z
9 IV Miscellaneous 46 to 55A
10 V Application of act to cooperate banks 56
PROVISION OF BANKING

8. LICENSINGOF
BANKING
COMPANY.
RESTRICTIONON
LOANSAND
ADVANCES.
Licensingandrestrictionunderbankingregulationact1949.