The Banking Regulation Act

Form of business in which banking companies may engage

Use of words "bank", "banker", "banking" or "banking company"

Prohibition of trading

Disposal of non-banking assets

Prohibition of employment of managing agents and restrictions on certain forms of  employment

Board of directors to include persons with professional or other experience

Banking company to be managed by whole time chairman

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

Chairman and certain directors not to be required to hold qualification shares

Provisions of sections 10A and 10B to override all other laws, contracts, etc

Requirement as to minimum paid-up capital and reserves

Regulation of paid-up capital, subscribed capital and authorised capital and voting rights of  shareholders

Election of new directors

Regulation of acquisition of shares or voting rights

Restriction on commission, brokerage, discount, etc., on sale of shares

Prohibition of charge on unpaid capital

Prohibition of floating charge on assets

Restrictions as to payment of dividend

Prohibition of common directors

Reserve Fund

Cash reserve

Restriction on nature of subsidiary companies

Restrictions on loans and advances

Restrictions on power to remit debts

Power of Reserve Bank to control advances by banking companies

Rates of interest charged by banking companies not to be subject to scrutiny by courts

Licensing of banking companies

Restrictions on opening of new, and transfer of existing, places of business

Maintenance of a percentage of assets

Assets in India

Return of unclaimed deposits

Establishment of Depositor Education and Awareness Fund

Monthly returns and power to call for other returns and information

Power to publish information

Accounts and balance-sheet

Power in respect of associate enterprises

Audit

Submission of returns

Copies of balance-sheets and accounts to be sent to registrar

Display of audited balance-sheet by companies incorporated outside India

Accounting provision of this Act not retrospective

Production of documents of confidential nature

Inspection

Power of the Reserve Bank to give directions

Power of the Central Government to authorize Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process

Power of Reserve Bank to issue directions in respect of stressed assets

Amendments of provisions relating to appointments of managing directors, etc., to be subject  to previous approval of the Reserve Bank

Further powers and functions of Reserve Bank

Certain provisions of the Act not to apply to certain banking companies


BUSINESS OF BANKING COMPANIES


Nothing in this Act shall apply to the
preparation of accounts by a banking company and the audit and submission thereof in respect of any
accounting year which has expired prior to the commencement of this Act, and notwithstanding the
other provisions of this Act, such accounts shall be prepared, audited and submitted in accordance with
the law in force immediately before the commencement of this Act.

LAWGIST

# 34 Accounting provision of this Act not retrospective