Banking Regulation Act 1949 as applicable to co operative societies
THE BANKING REGULATION ACT, 1949
(AS APPLICABLE TO COOPERATIVE SOCIETIES)
Objectives of the Banking Regulation Act broadly are:
1. to safeguard the interest of depositors;
2. to develop banking institutions on sound lines; and
3. to attune the monetary and credit system to the larger interests and priorities of the nation.
The Act was originally in force from 16 March 1949 as the Banking Companies Act, 1949. It was amended and renamed as Banking Regulation Act, 1949 and extended to the cooperative banks from 1 March 1966 as the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) [B R Act, 1949 (AACS)].
Some Definitions
A cooperative bank is
1. a State Cooperative Bank,
2. a Central Cooperative Bank or
3. a Primary Cooperative Bank
Section 5 (cci)
A Primary Cooperative Bank is:
1. a Cooperative Society (other than a Primary Agricultural Cooperative Society);
2. primarily in banking business;
3. with capital and reserves of not less than Rs.1 lakh; &
4. whose byelaws do not permit admission of any other society as a member.
Section 5 (ccv)
Banking is:
1. the accepting,
2. for the purpose of lending or investment,
3. of deposits of money
4. from the public
5. repayable on demand or otherwise and
6. withdrawable by cheque, draft, order or otherwise.
Section 5 (b)
A cooperative society which accepts deposits from the public i.e., members and non-members and utilizes these for lending will be deemed to be transacting banking business.
Secured Loan is: a loan made on the security of assets, the market value of which is not at any time less than the amount of such loan.
Business
The businesses a bank may carry on are summarised into three categories:
1. Main business i.e., Banking i.e., borrowing, taking or lending money, dealing in Bills of Exchange, Bills of lending and Debentures, issuing letters of credit, buying/selling foreign exchange, acquiring or underwriting stocks.
2. Allied business: Acting as agent/trustee/administrator, carrying on
(AS APPLICABLE TO COOPERATIVE SOCIETIES)
Objectives of the Banking Regulation Act broadly are:
1. to safeguard the interest of depositors;
2. to develop banking institutions on sound lines; and
3. to attune the monetary and credit system to the larger interests and priorities of the nation.
The Act was originally in force from 16 March 1949 as the Banking Companies Act, 1949. It was amended and renamed as Banking Regulation Act, 1949 and extended to the cooperative banks from 1 March 1966 as the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) [B R Act, 1949 (AACS)].
Some Definitions
A cooperative bank is
1. a State Cooperative Bank,
2. a Central Cooperative Bank or
3. a Primary Cooperative Bank
Section 5 (cci)
A Primary Cooperative Bank is:
1. a Cooperative Society (other than a Primary Agricultural Cooperative Society);
2. primarily in banking business;
3. with capital and reserves of not less than Rs.1 lakh; &
4. whose byelaws do not permit admission of any other society as a member.
Section 5 (ccv)
Banking is:
1. the accepting,
2. for the purpose of lending or investment,
3. of deposits of money
4. from the public
5. repayable on demand or otherwise and
6. withdrawable by cheque, draft, order or otherwise.
Section 5 (b)
A cooperative society which accepts deposits from the public i.e., members and non-members and utilizes these for lending will be deemed to be transacting banking business.
Secured Loan is: a loan made on the security of assets, the market value of which is not at any time less than the amount of such loan.
Business
The businesses a bank may carry on are summarised into three categories:
1. Main business i.e., Banking i.e., borrowing, taking or lending money, dealing in Bills of Exchange, Bills of lending and Debentures, issuing letters of credit, buying/selling foreign exchange, acquiring or underwriting stocks.
2. Allied business: Acting as agent/trustee/administrator, carrying on