Banking Regulations in India#
Key Banking Laws#
| Act | Purpose |
|---|---|
| Banking Regulation Act, 1949 | Regulates banking companies |
| Reserve Bank of India Act, 1934 | Establishes RBI |
| State Bank of India Act | SBI operations |
| Payment and Settlement Systems Act | Payment systems |
RBI Regulatory Powers#
- Licensing of banks
- Branch authorization
- Interest rate determination
- Prudential norms
- Inspections and audits
Basel Norms#
International banking regulations for capital adequacy:
- Basel I: Capital framework
- Basel II: Risk management
- Basel III: Enhanced requirements
- Basel IV: Revised framework
Key Regulatory Requirements#
| Requirement | Description |
|---|---|
| CRR | Cash Reserve Ratio - 4.5% |
| SLR | Statutory Liquidity Ratio - 18% |
| CAR | Capital Adequacy Ratio - 9% (Basel III - 11.5%) |
| Provisioning | NPA classification norms |
Banking Sector Compliance#
- KYC/AML compliance
- Data protection
- Customer grievance handling
- Cyber security
- Financial inclusion