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Indian Banking Law · Act No. 10 of 1949

Banking Regulation Act, 1949

A section-wise guide to the law regulating banking companies in India, including permitted banking business, capital and governance requirements, restrictions, licensing, accounts and audit, Reserve Bank of India powers, winding up, nomination provisions and the application of the Act to co-operative banks.

Current-law update: The Banking Laws (Amendment) Act, 2025 amended the Banking Regulation Act, 1949. Among the changes brought into force from 1 August 2025 were a revised "substantial interest" threshold and governance changes affecting co-operative banks. Nomination-related amendments were brought into force from 1 November 2025 and permit a broader multiple-nomination framework, subject to the applicable statutory provisions and rules.
Banking businessSections 5-9 cover interpretation, permitted forms of business and restrictions on trading and non-banking assets.
Capital & managementSections 10-20A address management, capital, voting rights, dividends, reserves and restrictions on loans and advances.
RBI regulationSections 21-36 and related provisions cover control of advances, licensing, returns, audit, inspection and supervisory powers.
Co-operative banksPart V, principally Section 56, applies the Act to co-operative societies subject to statutory modifications.

Part I - Preliminary

Section 1 - Short title, extent and commencement

(1) This Act may be called the Banking Regulation Act, 1949.

(2) It extends to the whole of India.

(3) It came into force on the date appointed by the Central Government by notification in the Official Gazette.

Section 2 - Application of other laws not barred

The Banking Regulation Act operates in addition to other laws except where the Act expressly provides otherwise. Banking companies are also governed by other applicable corporate and financial laws to the extent those laws are not inconsistent with this special banking legislation.

For authoritative statutory wording and amendment history, use the official legislative sources linked in the right-hand reference panel.

Banking Regulation Act, 1949 - Section-wise Index

Select a section below to read the corresponding provision on this website.

Part I Preliminary

Part Ii Business Of Banking Companies

Part Iia Control Over Management

Part Iiab Supersession Of Board Of Directors Of Banking Company

Part Iib Prohibition Of Certain Activities In Relation To Banking Companies

Part Iic Acquisition Of The Undertakings Of Banking Companies In Certain Cases

Part Iii Suspension Of Business And Winding Up Of Banking Companies

Part Iiia Special Provisions For Speedy Disposal Of Winding Up Proceedings

Part Iiib Provisions Relating To Certain Operations Of Banking Companies

Part Iv Miscellaneous

Part V Application Of The Act To Co-Operative Banks

Legal-reference note: This page is a navigation and reference guide. Statutory text can be amended by Parliament and brought into force on different dates. For court, compliance or transaction work, verify the relevant provision against the current official text and notifications.