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SYNOPSIS ON

BANAKING REGULATION ACT 1949

Subhranil datta 23IUT 0160011

SUMIT DEBNATH 23IUT 0160009

ANKIT DEBARMA 23IUT0160089

MELODY KAIPENG 23IUT0160076

JOYDEEP GHOSH
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SYNOPSIS
NAME OF THE TOPIC: - Banking Regulation Act 1949

ABSTRACT: - The Banking Regulation Act, enacted in 1949, serves as the cornerstone of
India's regulatory framework for banking institutions. This act empowers the Reserve Bank of
India (RBI) to oversee and govern the operations of all banks, fostering a secure and stable
financial environment.

INTRODUCTION: - The banking companies act presently known as Banking regulation

Act 1949. Was enacted owing to safeguard interest of the depositors, control abuse of power by
some bank personal controlling the banks in particular and to interest of Indian economy in
general. The banking regulation act was passed as the banking companies act 1949 and came into
force in 16th march 1949.

RESEARCH METHODOLOGY:- Secondary Data, Data from various websites, information’s

from various books.

SCOPE OF THE TOPIC:- The Banking Regulation Act, 1949 (BR Act) has a wide scope,
encompassing various aspects of banking operations in India.

Institutions Covered:

 All commercial banks

 Cooperative banks (since 1965)

Key Areas of Regulation:

 Licensing and Establishment: The RBI grants licenses to banks and regulates the opening and
closure of branches.
 Ownership and Control: The Banking Regulation Act sets rules for shareholding patterns, voting
rights, and appointments within banks.

RECOMENDTION: - 1) T he role of the Reserve Bank of India (RBI) in regulating banks.

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2) Impact of the Act on a specific type of bank

3) The Act's effectiveness in protecting depositors

 CONCLUSION:-

Stronger Banking System: The Act established a framework for a well-regulated and
controlled banking environment. This fosters public trust and encourages deposits, leading to a
more robust financial system.

Depositor Protection: By empowering the RBI to oversee banks, the Act prioritizes depositor
safety. Banks are held accountable for sound financial practices, minimizing risks for individuals
who entrust their savings to them.

Balanced Growth: The Act doesn't just regulate; it also promotes balanced growth. The RBI can
guide banks towards lending practices that benefit the overall economy, not just short-term
profits.