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Legal Framework of Banks in India
Legal Framework of Banks in India
with cash, domestic and foreign, and to receive the deposits of money and to loan those monies to third-parties.
system in 2000B.C. but the foundation of modern banking was laid in 17cenutry. First bank was established is Bank of Holland -1608 Bank of Hambury (Germany) in 1619 Bank of England in 1694.
Government appointed in 1929 a Central Banking Enquiry Committee to trace the reasons for the failure of banks.
The Reserve Bank of India Act was passed in 1934 and the
RBI came into existence in 1935 and RBI was nationalised in 1949
In 1955 State Bank of India became the successor to the
1976.
In 1980 six more commercial banks were nationalised, with a
Banks
Insurance Companies
LEGAL FRAMEWORK
RBI Act, 1934 Banking Regulation Act, 1949 State Bank of India (SBI) Act, 1955,
powers to RBI as regards to establishment of new banks/mergers and amalgamation of banks, opening of new branches, etc
BR Act,1949 gave RBI powers to regulate, supervise
India RBI Act deals with the constitution, powers and functions of RBI RBI Act deals with: incorporation, capital ,management and business of banks, central banking functions financial supervision of banks and financial institutions management of forex/reserves control functions bank rate, audit, accounts penalties' for violation
SRFAESI Act,2002
- Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act (SRFAESI) was enacted in 2002 It empowers Banks/Financial Institutions to recover their non-performing assets without the intervention of the Court. The provisions of this Act are applicable only for NPA loans with outstanding above Rs.1.00 lac. NPA loan accounts where the amount is less than 20% of the principal and interest are not eligible to be dealt with under this Act.
to Nationalisation of Banks
Bankers Book Evidence Act Banking Society Act Negotiable Instrument Act1881 are some of the Acts governs Banking system in India
financial system
to provide integrated services to customers from all
segments
to leverage on technology and human resources,
TARGET(2020)
Ranking- 11th to 4th among 207 countries given in the