In which year was the Banking Regulation Act passed?

• The Banking Regulation Act was passed in 1949.
• Initially known as the Banking Companies Act, it was changed to the Banking Regulation Act on March 1st, 1949. It outlines a framework for supervision and regulation of Commercial banks in India.
• It consists of 56 sections.
• Under the Act, Reserve Bank was given the authority to license banks, supervise the appointment of boards and management, manage the operation of banks, give instructions for audits, control mergers, liquidation, etc
• The Banking Regulation Act was amended in 1965 to bring the commercial banks under the administration of the Reserve Bank of India. Section 65 was added to the act.
•  Primary agricultural credit societies or cooperative societies whose primary objective was to provide long-term finance for agricultural development were brought under the ambit of this act.
• In 2020, it got amended by Nirmala Sitaraman, which brought 1,482 urban and 58 multi-state cooperative banks under the RBI.

Further Reading:

• Banking Sector Reforms in India
• History of Banking in India

Find more related IAS Questions in the linked article. 

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