The main customers of small finance banks include micro industries, small and marginal farmers, unorganized sector entities and small business units. Understanding antitrust considerations in banking proposals. Necessity for regulation as provided in this title seo. Extended to dadra and nagar haveli by regulation 6 of 1963, section 2 and schedule i w. Merger act require approval by the board of directors or, as the case may be, the supreme managing or administrative body articles 12 section 1, 36 section 1, 59 section 1 and 70 section 1. For the reasons hereinafter enumerated, transactions in securities as commonly conducted upon securities exchanges and overthecounter markets are affected with a national public interest which makes it necessary to. Whereas it is expedient to consolidate and amend the law relating to banking 2. Bank mergers and antitrust atr department of justice. In this series of study material for bank promotion, these are brief notes on banking regulation act. For the purposes of this clause, industrial activity means any activity specified in subclauses i to xviii of clause c of section 2 of the industrial development bank of india act, 1964 18 of 1964. In india, originally the banking regulation act, 1949 did not contain any. Nothing in this act except section 34a shall apply to the industrial development bank of india, vide act 18 of 1964, section 34. Application of other laws not barred 3 act to apply to cooperative societies in certain cases.
Introduction and summary the last decade has witnessed an unprecedented pace of bank mergers and acquisitions. The regional rural banks rrbs were created under the rrbs act, 1976 and are regulated by the rbi but supervised by the nabard, while the non banking. Glossarybank merger actthe popular name of section 18c of the federal deposit insurance act. State bank of india act, 1955 and the banking regulation act, 1949. It is charged with regulating mergers between two or more entities in a corporate structure. An overview of the us financial regulatory framework. Legal framework of regulation of banks what is banking. An act to consolidate and amend the law relating to banking 2. Impact of independent directors and the regulatory environment on bank merger prices. The fdic is amending its statement of policy on bank merger transactions to reflect changes made pursuant to an internal reorganization. Szymczak, member board of governors of the federal reserve system before the.
Provisions of rbi act 1935, banking regulation act 1949, prevention of money. Parti an overview of rbi act, 1934 and banking regulation act 1949 16 reserve bank of india act, 1934 16 banking regulation act, 1949 16 other important sections of banking regulation act, 1949 17 section 36ab. Companies act, 1956, but both the types of the dfis are regulated and supervised by the rbi under the provisions of the r b i act, 1934. Though the rbi, as part of its monetary management mandate, had, from the very beginning, been vested with the powers, under the rbi act, 1934, to regulate the volume and cost of bank credit in the economy through the instruments of general credit control, it was. Reserve bank of india act, 1934 as modified up to february 28, 2009 disclaimer. Master direction amalgamation of private sector bank. Emergency banking act of 1933 definition investopedia. Merger and acquisition of the undertaking of banking companies in india. Indexdigest of the federal reserve act and amendments board of governors of fed res system 1918.
If the senate approves, most believe the president will sign this bill. In 1934, federal government continued its intervention in the economy with the securities exchange act, also known as the fletcherrayburn bill, which regulated the selling of stocks and limited the amount that could be borrowed through buying on margin. Between 1990 and 1998, the number of bank mergers and acquisitions averaged about 510 per. Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. The bank merger act requires that mergers between depository institutions be subject to the prior approval of the primary federal regulator of the resulting institution 12 usc 1828c. Chapter3 mergers and amalgamations in the banking sector. The nationalbank act as amended, the federal reserve act and other laws relating to national banks 1920. Fdic law, regulations, related acts rules and regulations.
Necessity for regulation as provided in this title. Study material for bank promotion banking regulation act. Banking in india public debt act, 1944 reserve bank of india act, 1934. The emergency banking act of 1933 was a bill passed during the administration of u. These are licensed under section 22 of the banking regulation act, 1949 and are governed by the provisions of rbi act, 1934 and fema. A regulations and compliance legal framework of regulation of banks. Consider interstate banking and branching efficiency act applicability.
India act, 1934 or as used in commercial parlance, as the case may be. Impact of independent directors and the regulatory. April 14, 2015 dear all welcome to the refurbished site of the reserve bank of india. Banking sector is the most extensively regulated sector in indian financial market. The federal reserve board of governors in washington dc. This act may be cited as the securities exchange act of 1934. Later in 1949, the banking regulation act was passed which brought rbi under government control. Congress enacted the hartscottrodino act, requiring premerger notification as the ecs attempts to apply articles 101 and 102 to mergers illuminated their shortcomings. This interagency bank merger act application will be deemed to constitute an application pursuant to section 9 of the federal reserve act 12 u. Auburn state bank auburn bank, auburn, nebraska, a state member bank, has requested the boards approval under section 18c of the federal deposit insurance act 1 bank merger act to merge with the carson national bank of auburn carson bank, auburn, nebraska. Review impacts on how the surviving institution will be evaluated. The federal reserve system and the banking act of 1935. These guidelines shall cover the undernoted situations. The three banks merged in 1925 to form the imperial bank of.
Provisions of the banking regulation act, 1949 are not in substitution of other laws applicable, unless otherwise expressly said section 2 sub 56 b act is not applicable to 1 primary agricultural society 2 cooperative land mortgage bank 3 any other cooperative society except as provided by sec. Provide safety in the interest of depositors prevent misuse of powers by managers of banks 1 this act does not supersede but supplement to companies act, 19562 initially named banking companies act, 1949 but from march 1, 1966, the name of the act was changed to banking regulation act, 1949. Deals with power of reserve bank to appoint additional directors 17 prevention of money laundering act, 2002 pmla 17. The rbi was authorized to control and supervise the commercial banks. Bank of india act, 1934 confers powers to the reserve bank to regulate the non. A successful merger results in an integration of systems encompassing risk management, information technology, bank secrecy act antimoney laundering, and compliance with consumer protection laws and the community reinvestment act. Read the underlined words carefully as they are important part of definition on which questions may be based. Practical banking, with a survey of the federal reserve act 1915. This also applies to transfers of assets and liabilities irrespective of the size of. Provided further that in the case of a primary credit society which becomes a primary cooperative bank after the commencement of clause iii of section 42 of the banking laws amendment act, 1983, the period of seven years shall commence from the day it so becomes a primary cooperative bank. Banking in india types of banks banking classification. This institution has jurisdiction over concentrations that might or might not impede competition. One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise. Act, as amended by the banking act of 1935, contains a new provision which directs the board of directors of the federal deposit insurance corporation to prohibit by regulation the payment of interest on demand deposits in insured nonmember banks for that purpose the directors may define the term demand deposits, but.
European union merger law is a part of the law of the european union. Among other things, the bank merger act requires the. The procedures that a bank must follow while merging is given in the section44a. The european commission ec did not obtain merger control authority, however, until 1989. Mergers of public sector banks corporate law reporter.
Orders issued under the bank merger act, federal deposit insurance act, federal reserve act, and international banking act, 2011. An act to consolidate and amend the law relating to banking 1 whereas it is expedient to consolidate and amend the law relating to banking 2. The banking regulation act, 1949 is a legislation in india that regulates all banking firms in. The wording of the antitrust sections in these acts is similar and incorporates the standards set out in the sherman antitrust act and the clayton act. Passed as the banking companies act 1949, it came into force from 16 march 1949 and changed to banking regulation act 1949 from 1 march 1966. Merger transactions between insured banks that are chartered in different states are subject to the regulations of section 44 of the fdi act 12 u. Rbi, the sole regulator has the responsibility of regulating, supervising and assisting the banking companies in carrying out their fundamental activities and meets their liabilities as and when they accrue. Defines the scope of securities activities that banks may conduct without registering with the securities exchange commission as a securities broker and implements the most important exceptions from the definition of the term broker for banks under section 3a4 of the securities exchange act of 1934.
1290 868 528 870 474 260 761 1237 1302 938 46 1282 856 43 931 1086 1165 1495 829 371 660 1236 480 1021 888 1266 1283 1490 615 1223 1451 1109 339 901 1396 1074 1087 298 1289 1462 426 1303 1063 583 873 1486 1001