Offences and Punishments under the Banking Regulation Act, 1949
The Act contains several provisions which describe the consequences of violation of the act, including fines and imprisonment of the same. The following is mentioned in Section 46:
- In case a person purposefully presents false information or promotes fraudulent acts, they risk imprisonment of up to three years and a fine of up to one crore rupees.
- In case a person does not share the records or documents or refuses to answer the inquiries of the inspection officer, then a fine of up to twenty lakh rupees, and another fine of fifty thousand rupees in case of continuing offence.
- In case the banking company has received any deposits illegally, all of the directors will be held accountable and charged twice the value of the deposits made with the banking company.
- In case there is a default and it is caused by the banking company, or by directors’ negligence, then the directors or the secretary will be held responsible for the same.
Banking Regulation Act, 1949: Features, Objectives and Provisions
The Banking Regulation Act was passed by the Indian Parliament in 1949. The Banking Regulation Act, 1949 is like a rulebook for banks in India. It sets out the important rules they have to follow to keep things running smoothly. This article explores its key features, objectives, and provisions for a comprehensive understanding.