Banking Regulation Act

The Banking Regulation Act is a law in India that oversees and controls banks to ensure their stability, safety, and sound management. It sets rules for licensing, maintaining reserves, and conducting banking activities. The Reserve Bank of India (RBI) enforces this act, helping to protect depositors’ money, prevent bank failures, and maintain confidence in the financial system. Essentially, it provides a legal framework that ensures banks operate responsibly, transparently, and in a way that supports the broader economy.