The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. It came into force from 16 March 1949 and changed to Banking Regulation Act 1949 from 1 March 1966. Initially, the law was applicable only to banking companies. But, in 1965 it was amended to make it applicable to cooperative banks and to introduce other changes. In 2020, it was amended to bring the cooperative banks under the supervision of the Reserve Bank of India. The Act provides a framework under which commercial banking in India is supervised and regulated. The Act supplements the Companies Act, 1956. Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act. The Act gives the Reserve Bank of India (RBI) the power to license banks, have regulation over shareholding and voting rights of shareholders; supervise the appointment of the.
In the United States, banking regulation follows what is known as the dual banking system in which each state or territory of the US charters and supervises. There are several important banking laws in the US, including the National Bank Act of 1864, the Glass-Steagall Act of 1933, the Federal Deposit Insurance Act of 1933, the Bank Holding Company Act of 1956, and the Dodd-Frank Act of 2010.
Bank regulation refers to the formulation and implementation of rules and restrictions by the government or central bank to regulate banking institutions. Regulations not only control the functions of these financial institutions but also provide a framework within which they have to work. Regulations explain how banks are regulated and supervised. A strong financial system keeps the economy healthy.
