Some Regulation Banking Act of India
June 5, 2009
Banking Regulation Act of India, 1949 defines Banking as “accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheques, draft, order or otherwise.”The law governing Banking Activities in India is called as “Negotiable Instruments Act 1881″. Following are the major activities of banks:
# Borrowing or raising of money
# Lending or advancing of money with or without security
# Drawing, accepting, discounting, buying, selling and collecting bills of exchange, hundis, promissory notes, drafts, and other instruments
# Granting and issuing of letters of credit, circulars notes and travelers’ cheques
# Buying and selling of foreign exchange
# Buying and selling of bullion
# Acquiring, holding, underwriting and dealing in stocks, funds, shares, debentures, bonds and investments of all kinds
# Purchasing and selling of bonds and other forms of securities on behalf of customers
# Receiving all kinds of bonds or valuables on deposit or for safe custody
# Collecting and transmitting of money and securities
# Carrying on and transacting all kind of guarantee and indemnity business
# Managing, selling and realizing any property which form the security or part of the security for any loans or advances.
# Acting as an agent for any government or local authority or for any other persons
# Contracting and issuing public or private loans
# Insuring, guaranteeing, underwriting, and participating in managing and carrying out of any issue (shares and Debentures) and lending of money for the purpose of any such issue
# Undertaking and execution of trusts
# Undertaking the administration of estates as executor, trustee etc.
# Establishing and supporting institutions funds, trusts etc.
# Acquiring, constructing and maintaining building for its own purpose
# Selling, exchanging, managing, developing, leasing, mortgaging or disposing its own property
# Performing all such activities that are incidental or favorable for the promotion or advancement of its business
# Performing all other business specified by the Central Government as the lawful business of a banking company
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