LOCAL HEAD OFFICE, AHMEDABAD

 

M. L. MEENA, PO-2009 (09408685821) meena86.ml@sbi.co.in

BANKING LAWS & REGULATIONS IN INDIA

SRNOYEAR LIST OF BARE ACT

’s

 

1 1872 INDIAN CONTRACT ACT / INDIAN EVIDENCE ACT2 1875 INDIAN MAJORITY ACT3 1881 NEGOTIABLE INSTRUMENTS (NI) ACT4 1882 TRANSFER OF PROPERTY ACT / INDIAN TRUSTS ACT

(

Private Trusts and Trustees)

 5 1891

BANKER’S BOOKS EVIDENCE ACT

 6 1899 INDIAN STAMP ACT7 1925 INDIAN SUCCESSION ACT8 1930 SALES OF GOODS ACT9 1932 INDIAN PARTNERSHIP ACT10 1934 RESERVE BANK OF INDIA (RBI) ACT11 1949 BANKING REGULATION ACT (BRA)12 1955 STATE BANK OF INDIA ACT13 1956 COMPANIES ACT / HINDU SUCCESSION ACT14 1961 INCOME TAX ACT15 1963 INDIAN LIMITATION ACT16 1969 BANKING COMPANIES (ACQUISITION & TRANSFER OF UNDERTAKING)ACT (ALSO IN 1980)17 1986 CONSUMER PROTECTION ACT (COPRA)18 1993 RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT19 1994 DEBTS RECOVERY APPELLATE TRIBUNAL (PROCEDURE) RULES20 1999 FOREIGN MANAGEMENT REGULATION ACT (FEMA)21 2000 THE

 

INFORMATION TECHNOLOGY (IT) ACT

 

22 2002 SECURITISATION AND RECONSTRUCTION OF FINANCIALASSESTS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT23 2005 RIGHT TO INFORMATION (RTI) ACT24 2006 BANKING OMBUDSMAN SCHEME / MICRO, SMALL AND MEDIUMENTERPRISES DEVELOPMENT (MSMED) ACT25 2008 LIMITED LIABILITY PARTNERSHIP ACT26 2009 COMPANIES BILL

INDIAN CONTRACT ACT 1872

 

 

LOCAL HEAD OFFICE, AHMEDABAD

 

M. L. MEENA, PO-2009 (09408685821) meena86.ml@sbi.co.in

SECTION DESCRIPTION11 Minors, Lunatics etc are incompetent to a contract and any contract with themis void

ab-initio

 25 An agreement/contract must have consideration (promise to pay a debt) otherwise it is void25 (3) An agreement to repay time-barred debt is a valid contract42 All Joint borrowers are jointly and severally liable43 Any one or more of the joint borrowers may be compelled to repay the wholedebt44 If the bank releases one of the joint borrowers to repay debt, this does notdischarge the other joint borrowers61

Appropriation Of Dues On First Come First Served Basis (CLAYTON’S RULE)

 

 –

 Applicable To Demand Loan /Term Loan Only68 In case of advance to minor his/her assets may be liable for the debt but he/shewould not be held personally liable128

Surety’s (guarantor)

liability is co-extensive with that of Principle Debtor, unlessit is otherwise provided by the contract131 In case of death of the guarantor (where there is no contrary contract), theguarantee stands withdrawn/ terminated133 Any change made (without the consent of the guarantor) in the terms of contract discharges him for all subsequent transactions134 The surety is discharged by any contract between the creditor and the principaldebtor, by which the principal debtor is released, or by any act or omission of the creditor, the legal consequence of which is the discharge of the principaldebtor146 Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contract, andwhether with or without the knowledge of each other the co-sureties, in theabsence of any contract to the contrary, are liable to pay each an equal share of the whole debt, or of that part of it which remains unpaid by the principaldebtor151 A bailee(Bank) is bound to take reasonable care of ordinary prudence for thegoods bailed to him165 Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contract, andwhether with or without the knowledge of each other the co-sureties, in theabsence of any contract to the contrary, are liable, as between themselves, topay each an equal share of the whole debt, or of that part of it which remainsunpaid by the principal debtor166 If the bailor has no title to the goods, and the bailee, in good faith, deliversthem back to, or according to the directions of the bailor, the bailee is notresponsible to the owner in respect of such deliver172

PLEDGE

(The bailment of goods as security for payment of a debt orperformance of a promise)

BAILOR = PAWNOR & BAILLEE = PAWNEE (BANK)

 

 

LOCAL HEAD OFFICE, AHMEDABAD

 

M. L. MEENA, PO-2009 (09408685821) meena86.ml@sbi.co.in

173 The pawnee may retain the goods pledged, not only for payment of the debt orthe performance of the promise, but for the interests of the debt, and allnecessary expenses incurred by him in respect to the possession or for thepreservation of the goods pledged176 If the pawnor makes default in payment of the debt, or performance, at thestipulated time, or the promise, in respect of which the goods were pledged,the pawnee may bring as suit against the pawnor upon the debt or promise,and retain the goods pledged as a collateral security; or he may sell the thingpledged, on giving the pawnor reasonable notice of the sale.If the proceeds of such sale are less than the amount due in respect of the debtor promise, the pawnor is still liable to pay the balance. If the proceeds of thesale are greater that the amount so due, the pawnee shall pay over the surplusto the pawnor188 Principal is liable for the acts done by an Agent (

Power Of Attorney Holder 

) (if itis within the delegated powers)196 Where acts are done by one person on behalf of another, but without hisknowledge or authority, he may elect to ratify or to disown such acts. If heratifies them, the same effects will follow as if they had been performed by hisauthority227 When an agent does more than he is authorised to do, and when the part of what he does, which is within his authority, can be separated from the partwhich is beyond his authority, so much only of what he does as is within hisauthority is binding as between him and his principal228 Where an agent does more than he is authorised to do, and what he doesbeyond the scope of his authority cannot be separated from what is within it,the principal is not bound to recognise the transaction

INDIAN EVIDENCE ACT 1872

SECTION DESCRIPTION85 Power of Attorney should be executed in the presence of Notary Public and beverified by it

 

144 Notices sent to borrowers/ guarantors if returned back undelivered, aredeemed to have been notices delivered

 

INDIAN MAJORITY ACT 1875

SECTION DESCRIPTION3 Where guardian has been appointed by a court, the minor will attain majorityat the age of 18 years