Banking Regulation Act, 1949

You walk into a branch near CBD Belapur station and open a savings account, sure that the bank is safe. Nobody asked the bank to prove that to you; the law did. A company cannot call itself a bank, take deposits that you can withdraw by cheque, or even hold a flat it does not use, unless the Banking Regulation Act 1949 lets it. Who decides which companies get to be banks, and what may they do with your money once they are?

In two minutes

The Banking Regulation Act 1949 makes banking a licensed, supervised business: only a licensed company may accept public deposits withdrawable by cheque, and the Reserve Bank controls what a bank may do, whom it may lend to and how it is run.

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