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The Banking Regulation Act 1949 is a legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes.

There are total 55 Sections in the Banking Regulation Act, 1949. Some important sections are listed below:

*Section 10BB*: Power of Reserve Bank to appoint [chairman of the Board of directors appointed on a whole-time basis or a managing director] of a banking company.

*Section 11*: Requirement as to minimum paid-up capital and reserves

*Section 12* :  Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of shareholders

*Section 21*: Power of Reserve Bank to control advances by banking companies

*Section 21A*: Rates of interest charged by banking companies

*Section 22(1)*: Licensing of banking companies

*Section 23*: Restrictions on opening of new, and transfer of existing, places of business

*Section 29*: Accounts and balance-sheet

*Section 36AE* : Power of Central Government to acquire undertakings of banking companies in certain cases

*Section 44A*: Procedure for amalgamation of banking companies.


Amalgamation of two banking companies is under the provisions of Section 44A of the Banking Regulation Act, 1949.Amalgamation of a banking company with a non-banking company is governed by sections 391 to 394 of the Companies Act, 1956.

*Section 47A*: Power of Reserve Bank to impose penalty

*Section 49A*: Restriction on acceptance of deposits withdrawable by cheque.

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