Banking Regulation Act/ penalties for banking act/ Penalties for Banking Regulation Act/ Best law firm in Coimbatore/ Best advocates in Coimbatore/Best law service in Coimbatore/ Best legal consultation in Coimbatore/ Best legal services in Coimbatore/ Best lawyers in Coimbatore/ Online legal consultation. The Banking Regulation Act, 1949, empowers the Reserve Bank of India (RBI) to regulate and supervise banks' functioning in India. It includes provisions related to the regulation of banking companies, their management, and various aspects of their operations. The act also prescribes penalties for non-compliance with its provisions. Here are some of the penalties prescribed under the Banking Regulation Act: If a banking company commences or carries on banking business without obtaining a valid license from the RBI, it can be penalized up to ₹5 lakh and an additional penalty of up to ₹10, 000 for each day the contravention continues.Banking companies are required to comply with the directions, guidelines, and regulations issued by the RBI. Failure to comply can result in a penalty of up to ₹1 lakh for each contravention. If a banking company, its directors, or officers knowingly make false statements or suppress material information in any report, statement, or other document submitted to the RBI, they can be penalized up to ₹1 lakh for each occurrence.The act empowers the RBI to impose penalties on banking companies that violate any provisions of the act or any regulations issued under it. The penalty can be up to ₹25, 000 for each contravention. Banking companies are required to maintain a certain percentage of their demand and time liabilities as cash reserves with the RBI. If a banking company fails to comply with these reserve requirements, it can be penalized at a rate not exceeding three percent per annum on the deficient amount.The act prescribes penalties for violations of specific provisions, such as those related to secrecy, failure to hold annual general meetings, contravention of restrictions on voting rights, and more. We at Saanvika Legal Associates offer various legal services such as Trust deeds, Financial law, Insurance law, and other laws including Environment, Consumer, Property, Banking, Tax, Cyber Constitutions, Labor, Civil, Criminal, Family, Property, registration, Getting docs, and so on. Also, you can consult all aspects related to Legal notice, documentation, Legal registration, Property organization, forming companies, Family legal consultation, Civil and Criminal legal consultants, and Litigation of finance and property.