What is Section 6 of Banking Regulation Act?
What is Section 6 of Banking Regulation Act?
Business allowed for a banking company (Section 6) Lending/Borrowing of money with/ without security, issuing travellers’ cheque, buying & selling foreign exchange notes, deposits vaults, collecting & transmitting of money & securities, buying bonds and other securities on the behalf of customers.
How long can a bank hold immovable property?
—Notwithstanding anything contained in section 6, no banking company shall hold any immovable property howsoever acquired, except such as is required for its own use, for any period exceeding seven years from the acquisition thereof or from the commencement of this Act, whichever is later or any extension of such …
What is Section 7 of Banking Regulation Act?
(1) No company other than a banking company shall use as part of its name 41 [or in connection with its business] any of the words “bank”, “banker” or “banking” and no company shall carry on the business of banking in India unless it uses as part of its name at least one of such words.
What is banking company under banking regulations 1949?
(iii) A “banking company” means a company which carries on the business of banking, no matter, if the same is not carried on for some time; Kalipada Sinha v.
What are the powers of RBI?
Powers of RBI
| S.no | Power | Section |
|---|---|---|
| 1 | Power of direct discount. | 18 |
| 2 | Power to require returns from co-operative banks. | 44 |
| 3 | Power to collect credit information. | 45B |
| 4 | Power to call for returns containing credit information | 45C |
What can a bank not do under the Banking Regulation Act?
Prohibition of charge on unpaid capital. —No banking company shall create any charge upon any unpaid capital of the company, and any such charge shall be invalid..
What is Section 51 of Banking Regulation Act?
Section 51 in BANKING REGULATION ACT,1949. (ii) an officer of the State Bank of India or a corresponding new bank or a Regional Rural Bank or a subsidiary bank nominated or appointed as director of any of the said banks (not being the bank of which he is an officer) or of a banking company.]]
How many sections are there in banking Regulations Act 1949?
56 sections
Important sections of Banking Regulation Act, 1949 The act has 56 sections.
What is the role of RBI under the Banking Regulation Act of 1949?
The Act gives the Reserve Bank of India (RBI) the power to license banks, have regulation over shareholding and voting rights of shareholders; supervise the appointment of the boards and management; regulate the operations of banks; lay down instructions for audits; control moratorium, mergers and liquidation; issue …
What are the main objects of Banking Regulation Act 1949?
The objective of Banking Regulation Act, 1949 is to: Provide specific legislation containing comprehensive provisions, particularly to the business of banking in India. Prevent such bank failures by prescribing minimum capital requirements. Ensure the balanced development of banking companies.
What was Section 6 of the Banking Regulation Act, 1949?
A reference is invited to Section 6 (1) (f) of the Banking Regulation Act (B.R. Act), 1949 (AACS), in terms of which banks may also engage in managing, selling and realizing any property which may come into its possession in satisfaction, or part satisfaction, of any of its claims.
What was Section 9 of the AACS Act 1949?
The Reserve Bank hereby directs UCBs not to acquire any property which is not meant for their own identifiable / justifiable use. Further, non-banking assets acquired by UCBs in satisfaction of claims are to be disposed of within the period stipulated under Section 9 of the B.R. Act, 1949 (AACS).
What was the Indian Banking Company Act 1913?
The provision of the Indian Companies Act 1913 was found inadequate and unsatisfactory to regulate banking companies in India. Therefore a need was felt to have a specific legislation having comprehensive coverage on banking business in India.
What does Section 14a ( 3 ) of the Banking Act mean?
Section 14A (3): Any banking company aggrieved by the refusal of certificate may, within 90 days from the date on which such refusal is communicated to it, appeal to CG. Section 14A (4): The decision of CG on an appeal filed under sub-section (3) shall be final. 9.
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