BANKING LAW
Rapid Revision Sheet
Definitions • Acts • sections • cases
KSLU • BR Act 1949 • RBI Act 1934 • NI Act 1881
How to use Skim before the exam. Quote Act + section; cases (Foley, Tournier) and NI Act sections (85, 128, 131) earn marks. |
UNIT I — NATURE & DEVELOPMENT
Term / Section | In one line |
|---|---|
Banking (S.5(b) BR Act) | Accepting deposits for lending/investment, repayable on demand, withdrawable by cheque. |
Development | Indigenous bankers → Presidency Banks → Imperial Bank (1921) → RBI (1935) → SBI (1955) → nationalisation (1969, 1980). |
Commercial bank functions | Primary: deposits, loans, credit creation. Secondary: agency & utility services. |
Govt controls | Licensing (S.22), capital/reserves (11-12), inspection (35), suspension (37), winding up (38-44). |
UNIT II — BR ACT, RBI & DEPOSIT INSURANCE
Term / Section | In one line |
|---|---|
BR Act 1949 features | Licensing, CRR/SLR (S.24), control of management & lending, RBI directions (35A), winding up. |
RBI (1934, nationalised 1949) | Note issue; banker to govt; banker's bank; credit control; forex custodian; supervision. |
Credit control | Quantitative: bank rate, CRR, SLR, OMO, repo. Qualitative: margins, moral suasion, directives. |
DICGC Act 1961 | Compulsory deposit insurance; premium paid by bank; cover ₹5 lakh/depositor/bank. |