Unit I · Law of Banking and Negotiable Instruments

Banking Regulation Act, 1949: business of banking

Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Statute sections

Act / instrument	Section	Name
Banking Regulation Act, 1949	5(b)	Banking
Banking Regulation Act, 1949	6	Forms of business in which banking companies may engage
Banking Regulation Act, 1949	21–22	Power to control advances; licensing of banking companies
Banking Regulation Act, 1949	35A	Power of the Reserve Bank to give directions

(2010) 10 SCC 1 · Supreme Court of India

Assignment of debts by a bank is part of the business of banking under section 6; the assignee can recover the loan.

(2007) 6 SCC 236 · Supreme Court of India

Co-operative banks are not 'banking companies' for the RDDBFI Act as then worded; recovery lay before the forum the co-operative law provided.

(1998) 6 SCC 526 · Supreme Court of India

RBI circulars on interest and service charges bind banks in their contractual dealing with customers unless shown to be ultra vires.