What is Section 35 of Banking Regulation Act?

What is Section 35 of Banking Regulation Act?

Section 35 in BANKING REGULATION ACT,1949. (b) A copy of the report of the scrutiny shall be furnished to the banking company if the banking company makes a request for the same or if any adverse action is contemplated against the banking company on the basis of the scrutiny.]

What are legal requirements on banking companies?

According to Sec. 24 of the Act, banking companies must maintain sufficient liquid assets in the normal course of business. The section states that every banking company has to maintain in cash, gold or unencumbered approved securities, an amount not less than 20% of its demand and time liabilities in India.

What is banking according to banking regulation act?

(b) “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise; (c) “banking company” means any company which transacts the business of banking 10 [in India].

What business is prohibited for a banking company?

Prohibition on trading (Section 8) A banking company cannot get in directly or indirectly contracts in buying or selling or exchange of goods.

What percentage of directors in a bank should have Specialised knowledge?

The total number of members of the Board of Directors of a banking company should consists of at least fifty-one per cent of persons with special knowledge or practical experience in field of accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law, small-scale industry or any other …

Which bank is Authorised to act as an agent of RBI?

RBI has authorised four private sector banks viz. ICICI Bank Ltd., UTI Bank Ltd., IDBI Bank Ltd. and HDFC Bank Ltd.

What are Section 20 companies?

Section 20 in The Companies Act, 1956. 20. Companies not to be registered with undesirable names. (1) No company shall be registered by a name which, in the opinion of the Central Government, is undesirable.

What is gold under Banking Regulation Act?

(1) After the expiry of two years from the commencement of this Act, every banking company shall maintain [in India] in cash, gold or unencumbered approved securities, valued at a price not exceeding the current market price, an amount which shall not at the close of business on any day be less than 20 per cent of the …

What are the salient features of the Banking Regulation Act?

Salient features of the Act Prescription of minimum capital standards. Limiting the payments of dividends. Inclusion the scope of legislation of banks registered outside the provinces of India. Introduction of comprehensive system of licensing of banks and their branches.

What is Section 17 of the Banking Regulation Act?

(1) Every banking company incorporated in India shall create a reserve fund and 99 [***] shall, out of the balance of profit of each year as disclosed in the profit and loss account prepared under section 29 and before any dividend is declared, transfer to the reserve fund a sum equivalent to not less than twenty per …

What is business of a bank?

Business banking is a company’s financial dealings with an institution that provides business loans, credit, savings accounts, and checking accounts, specifically designed for companies rather than for individuals. Business banking occurs when a bank, or division of a bank, only deals with businesses.

What is the maximum period for which a director in a banking company can hold the office continuously?

(v) Tenure – An elected director shall hold office for three years and shall be eligible for re-election: Provided that no such director shall hold office for a period exceeding six years 3, whether served continuously or intermittently.