Government of India issued RBI directions u/s 7 of the RBI Act for the first time

The Reserve bank of India is neither autonomous nor independent and directors are simple government servant by their appointment.

The government has invoked never-before-used powers under the RBI Act allowing it to issue directions to the central bank governor on matters of public interest. Section 7 of the RBI Act empowers the government to consult and give instructions to the governor to act on certain issues that the government considers serious and in public interest. This Section had never been used in independent India till now. The government and RBI have been at loggerheads over a few issues for some time now. While the government believed that easing of lending rules for the 11banks under the prompt corrective action (PCA) framework could help reduce pressure on micro, small and medium enterprises (MSMEs), the regulator stood its ground arguing that such a move would put the clock back and undo clean-up efforts. Continue reading

Banking Laws Index

Law referencer

Banking  Laws & Regulations

Currency & Coins

Central Banking & Reserve Bank of India-National And Scheduled Banks-Private Banks-Foreign Banks-Commercial Banks-Co-Operative Banking-Development Banks-Export Import Banks-Housing Banks-Non-Banking Financial Institutions-Chit Funds-Bank Loan and Securitisation- Banking Ombudsman Lok Adalats, Lender’s Liability-Bank Guarantee-Financial Analysis of Banks- International Banking Management-Electronic Banking and IT in Banks-Risk Management in Banks-Investment Banking-Money Supply & Price-Gold Control-Deposit banking or money warehousing-National Bank Notes-Bank Audit & Accounting-Foreign Exchange & Forex-Treasury Operation-Bankruptcy and Insolvency-Banking Disputes & Ombudsman-Training in Banking ,Finance & management -Cyber Security,Cyber Incident Response and Investigations- Bank Fraud-Corporate Credit Appraisal

Banking Laws in India

Acts  exclusively administered by Reserve Bank of India

II. Other relevant Acts banking regulation 

  • Negotiable Instruments Act, 1881
  • Bankers’ Books Evidence Act, 1891
  • State Bank of India Act, 1955
  • Companies Act, 1956/ Companies Act, 2013
  • Securities Contract (Regulation) Act, 1956
  • State Bank of India Subsidiary Banks) Act, 1959
  • Deposit Insurance and Credit Guarantee Corporation Act, 1961
  • Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
  • Regional Rural Banks Act, 1976
  • Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
  • National Bank for Agriculture and Rural Development Act, 1981
  • National Housing Bank Act, 1987
  • Recovery of Debts Due to Banks and Financial Institutions Act, 1993
  • Competition Act, 2002
  • Indian Coinage Act, 2011 : Governs currency and coins
  • Banking Secrecy Act
  • The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
  • The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993