Dual Regulation of Co-operative Banks in India: RBI and Registrar of Co-operative Societies
Co-operative banks in India occupy a unique position in the financial system by catering to grassroots-level credit needs, especially in rural and semi-urban areas. However, unlike commercial banks, they function under a dual regulatory framework, which has often raised questions about governance and accountability. The Dual Control Framework The regulation of co-operative banks is shared…
Read article Government’s Regulatory Role in Banking
The government plays a crucial role as a regulator of banks primarily through the central bank and legislative framework. In India, for example, the Reserve Bank of India (RBI) acts as the central bank and chief regulator of the banking sector, empowered by statutory acts such as the Banking Regulation Act of 1949 and the…
Read article
RBI as the Central Bank of India and Regulator of Banks and Non-Banking Financial Institutions (NBFCs)
The Reserve Bank of India (RBI) serves as India’s central bank, established on April 1, 1935, under the RBI Act of 1934, to manage the nation’s currency, credit, and financial system. As the apex institution, the RBI regulates the banking sector, issues currency, and implements monetary policy to ensure monetary stability and economic growth. It…
Read article Reserve Bank of India Act, 1934
The Reserve Bank of India Act, 1934 is the foundational legislation that established the Reserve Bank of India (RBI) and continues to govern its structure, powers, and functions. It provides the legal backbone for India’s monetary policy, currency operations, and banking regulation, making it one of the most important financial laws in the country. Purpose…
Read articleLegal Framework of Banking Regulation in India: Understanding the Business of Banking
Introduction The Indian banking sector is the backbone of the nation’s financial system. It fuels economic growth, supports financial inclusion, and mobilizes capital across industries and households. Because of its systemic importance, the business of banking in India operates under a robust legal and regulatory framework. This framework ensures stability, safeguards depositors’ interests, and aligns…
The important rules of the Banking Regulation Act, 1949?
Updated on 27.08.2025 The Banking Regulation Act, of 1949 is legislation in India that regulates all banking firms in India. Initially, the law applied only to banking companies. But, in 1965 it was amended to make it applicable to cooperative banks. The Banking Regulation (Amendment) Bill, 2020 amends the BR Act to expand RBI’s regulatory…
Read article