Friday, 28 August 2015

MAIN BUSINESS OF THE BANKS


 https://www.bangalore5.com/


BUSINESS OF BANKING COMPANIES :

(a)Section 6 of the Banking Regulation Act provides for the form of business in which banking companies may engage. The relevant provisions of the Banking Regulation Act 1949 read as under: 

(b) “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public repayable on demand or otherwise, and withdrawable by cheque, draft order or otherwise. 


Explanation- Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transfer the business of banking within the meaning of this clause: 

Section 6 deals with the form of business in which banking companies may engage – (1) In addition to the business of banking, a banking company may engage in any one or more of the following forms of business, namely:- 

a. The borrowing, raising, or taking up of money; the lending or advancing of money either upon or without security; the drawing making, accepting discounting, buying, selling, collecting and dealing, in bills of exchange, Hoondeeds, promissory notes, coupons, drafts bills of lading, railway receipts warrants, debentures, certificates, scrips and other instruments, and securities whether transferable or negotiable or not; the granting and issuing of letters of credit, traveller’s cheques and circular notes; the buying selling and dealing in bullion and species the buying and selling of foreign exchange including foreign bank notes; the acquiring, holding, issuing on commission, under writing and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities and investments of all kinds; the purchasing and selling of bonds, scrips or other forms of securities on behalf of constituents or others, the negotiating of loans and advances; the receiving of all kinds of bonds, scrips or valuables on deposit or for safe custody or otherwise; the providing of safe deposit vaults; the collecting and transmitting of money and securities;

b. Acting as agents for any government or local authority or any other person or persons; the carrying on of agency business of any description including the clearing and forwarding of goods, giving of receipts and discharges and otherwise acting as an attorney on behalf of customers, but excluding the business of a managing agent or security and treasurer of a company. 

d. The effecting, insuring, guaranteeing, underwriting, participating in managing and carrying out of any issue, public or private, or State, municipal or other loans or of shares, stock, debentures or debentures stock of any company, corporation or association and the lending of money for the purpose of any such issue. 


f. Managing, selling and realizing any property which may come in to the possession of the company in satisfaction of any of its claims; 

g. Acquiring and holding and generally dealing with any property or any right, title or interest in any such property which may form the security or part of the security for any loans or advances or which may be connected with any such security. 


i. Undertaking the administration estates as executor, trustee or otherwise. 

j. Establishing and supporting or aiding in the establishment and support of associations, institutions, funds, trusts and convenience calculated on benefit employees or ex-employees of the company or the dependents or connections so such persons; granting pensions and allowances and making payments towards insurance subscribing to or guaranteeing money for charitable or benevolent objects or for any exhibition or for any public general or useful object; 


l. Selling, improving, managing, developing, exchanging, leasing mortgaging, disposing of or turning in to account for otherwise dealing with all or any part of the property and rights of the company. 

m. Acquiring and under taking the whole or any part of the business of any person or company, when such business is of a nature enumerated or described in this sub-section; 


o. Any other form of business which the Central Government may, by notification in the official Gazette, specify as a form of business in which it is lawful for a banking company to engage. 

(2) No banking company shall engage in any form of business other than those referred to in sub section (1).

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1 comment:

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