Want to know more about the Law on finance and banking, we’ve got you covered.
There are several sections and acts related to finance and banking in India that govern the functioning of financial institutions, banking activities, and related transactions. Here are some of the significant sections and acts related to finance and banking in India:
- Reserve Bank of India Act, 1934: The Reserve Bank of India Act, 1934, establishes the Reserve Bank of India (RBI) as the central bank of India and defines its functions and powers. The Act governs the operations of commercial banks, non-banking financial companies, and other financial institutions in India.
- Banking Regulation Act, 1949: The Banking Regulation Act, 1949, regulates the banking industry in India. The Act defines the functions of banks, their licensing, management, operations, and liquidation. It also outlines the RBI’s role in supervising and regulating banks in India.
- Negotiable Instruments Act, 1881: The Negotiable Instruments Act, 1881, deals with various financial instruments, such as promissory notes, bills of exchange, and cheques. It sets out the legal framework for the transfer and negotiation of these instruments and provides remedies in case of their dishonor.
- Companies Act, 2013: The Companies Act, 2013, governs the incorporation, management, and operations of companies in India. It sets out the legal framework for financial reporting, auditing, and compliance by companies.
- Foreign Exchange Management Act, 1999: The Foreign Exchange Management Act, 1999, regulates foreign exchange transactions in India. The Act sets out the legal framework for foreign exchange transactions, such as investments, loans, and remittances, and defines the powers of the RBI in regulating these transactions.
- Securities and Exchange Board of India Act, 1992: The Securities and Exchange Board of India Act, 1992, regulates the securities market in India. The Act establishes the Securities and Exchange Board of India (SEBI) as the regulator of the securities market and outlines its functions and powers.
- Insolvency and Bankruptcy Code, 2016: The Insolvency and Bankruptcy Code, 2016, deals with the insolvency and bankruptcy of companies, individuals, and partnerships in India. The Code sets out the legal framework for the resolution of insolvency and bankruptcy cases and provides for the establishment of the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI).
The Takeaway
In essence, several sections and acts related to finance and banking govern the functioning of financial institutions, banking activities, and related transactions in India. These acts define the legal framework for the functioning of financial institutions, set out the powers and functions of regulatory authorities, and provide remedies for non-compliance with their provisions.
If you are involved in any finance or banking-related transactions or activities, it is recommended to seek the advice of a qualified and experienced lawyer from Vakilsearch to ensure compliance with these legal requirements. Get in touch with our team today!
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