comparison of the Banking Regulation Act, 1949 with the Reserve Bank of India (RBI) Act, 1934

 comparison of the Banking Regulation Act, 1949 with the Reserve Bank of India (RBI) Act, 1934 along with a diagram summarizing the powers of RBI under the Banking Regulation Act, 1949:

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🏛️ Comparison: Banking Regulation Act, 1949 vs. RBI Act, 1934

Aspect	Banking Regulation Act, 1949	Reserve Bank of India (RBI) Act, 1934
Purpose	Regulates the functioning and operations of banking companies in India, including commercial and co-operative banks.	Establishes the RBI as the central bank, providing it with powers for monetary policy and financial regulation.
Primary Regulator	Regulates the banks and financial institutions in India.	Establishes RBI as the regulator and supervisor of the Indian banking system and central monetary authority.
Licensing Powers	RBI grants licenses to banks to operate and sets their capital requirements (Section 22).	RBI regulates currency issue, monetary policy, and the banking system through powers under this Act.
Supervisory Powers	RBI has powers to inspect and supervise banks (Section 35).	RBI oversees monetary stability and credit control (including managing CRR, SLR, and repo rates).
Capital Adequacy	Prescribes minimum capital and reserve requirements for banks (Sections 11 & 18).	RBI controls monetary aspects like money supply, interest rates, and overall economic stability.
Management of Banks	RBI can remove bank management and appoint administrators (Section 10).	RBI doesn't directly intervene in bank management but oversees banking operations.
Moratorium and Reconstruction	RBI has the authority to impose a moratorium and help with bank reconstruction (Section 45).	RBI has limited powers for bank restructuring under certain economic conditions.
Functioning of Co-operative Banks	Urban co-operative banks are regulated under this Act.	RBI oversees the monetary policy concerning co-operative banks, but they are also governed by state laws.
Reserve Requirements	Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are defined (Section 24).	RBI determines monetary policy, including repo rates and reverse repo rates.