ADVERTISEMENTS:Let us make in-depth study of the meaning, licensing, cancellation and area of business of banking company. Meaning:According to Sec. 5 of the Banking Regulation Act, 1949, a banking company means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawn by Cheque, Draft, Order, or otherwise.In short, a banking company means and includes any company which carries on the business or which transacts the business of banking in India.
Therefore, any company which is engaged in trade or manufacture, which accepts deposits of money from the public for the purpose of financing its business only, shall not be deemed to carry on the business of banking. ADVERTISEMENTS:No company can use as part of its name any of the words bank, banker or banking other than a banking company and, at the same time, no company can carry on business of banking in India unless and until it uses at least one of such words as part of its name. Licensing of Banking Companies:According to Sec. 22, no company shall carry on banking business in India unless it holds a license issued by the Reserve Bank of India.If the following conditions are satisfied, the Reserve Bank of India may grant a license:(i) “That the company is or will be in a position to pay its present and future depositors in full as their claims accrue. ADVERTISEMENTS:(ii) That the affairs of the company are not being or are not likely to be conducted in a manner detrimental to the interests of its present or future depositor;(iii) That, in the case of a foreign banking company, the carrying on of a banking business by such company in India will be in the public interest, that the Government or law of the country of its origin does not discriminate against Indian banking companies carrying on business in that country, and that it complies with all the requirements of law applicable to it”.
Cancellation of License:The Reserve Bank of India may cancel a license if:(i) The company ceases to carry on banking business in India. ADVERTISEMENTS:(ii) The company at any time fails to comply with any of the conditions on which the license was granted; or(iii) At any time, any of the conditions, on the satisfaction of which the Reserve Bank of India granted the license, has not been fulfilled.
Area of Business of Banking Companies:Sec. 6 of the Banking Regulation Act, 1949, lays down that the following business may also be carried on by a banking company, in addition to the usual banking business:(a) 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 of a company.
The National Board of Revenue (NBR) is the apex authority for tax administration in Bangladesh. It was established by the father of the nation Bangabandhu Sheikh Mujibur Rahman under President's Order No.
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March 2023
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