Banking Regulation Act, 1949

But, in 1965 it was amended to make it applicable to cooperative banks and to introduce other changes.

[4] Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act.

[2] The Act gives the RBI the power to license banks, have regulation over shareholding and voting rights of shareholders; supervise the appointment of the boards and management; regulate the operations of banks; lay down instructions for audits; control moratorium, mergers and liquidation; issue directives in the interests of public good and on banking policy, and impose penalties.

[2] In 1965, the Act was amended to include cooperative banks under its purview by adding the Section 56.

In 2020, Finance Minister Nirmala Sitaraman introduced a bill to amend the Act.