Banking laws in India are primarily governed by key legislations such as the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949. These laws regulate banking operations, licensing, capital requirements, and the supervision of banks, with the Reserve Bank of India (RBI) playing a central role in monetary policy and banking regulation.
Other important laws include the Negotiable Instruments Act, 1881, governing cheques and bills of exchange, and the Payment and Settlement Systems Act, 2007, which regulates digital payment systems. The SARFAESI Act, 2002, facilitates the recovery of bad loans, while the Insolvency and Bankruptcy Code, 2016, provides a framework for resolving financial distress.
Regulatory bodies such as the RBI, Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI) oversee various aspects of banking, investments, and insurance products. Additionally, the Prevention of Money Laundering Act (PMLA) ensures compliance with anti-money laundering standards, while the Banking Ombudsman Scheme, 2006, provides a grievance redressal mechanism for customers.
