Explain the main provision of Banking Regulation Act 1949 ? There are main Provision of Banking Regulation Act 1949 :- Use of words ‘bank’, ‘banker’, ‘banking’ or ‘banking company’ (Sec.7): According to Sec. 7 of the Banking Regulation Act, no company other than a banking company shall use the words ‘bank’, ‘banker’, ‘banking’ or ‘banking company’ and no company shall carry on the business of banking in India, unless it uses the above mentioned words in its name. 2. Prohibition of Trading ( Sec.8): According to Sec. 8 of the Banking Regulation Act, a banking company cannot directly or indirectly deal in buying or selling or bartering of goods. But it may, however, buy, sell or barter the transactions relating to bills of exchange received for collection or negotiation. 3. Disposal of banking assets (Sec.9): According to Sec. 9 “A banking company cannot hold any immovable property, howsoever acquired, except for its own use, for any period excee...
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