Key Differences of Banking Regulation Act, 1949 vs. RBI Act, 1934

 Key Differences of Banking Regulation Act, 1949 vs. RBI Act, 1934

Key Differences:

1. Scope of Regulation:

   • Banking Regulation Act, 1949 is focused on banks and their functioning.

   • RBI Act, 1934 defines RBI's role and monetary policy at a macroeconomic level.

2. Powers Over Banking Operations:

   • Banking Regulation Act gives RBI direct control over individual banks, including licensing, supervision, and management.

   • RBI Act gives RBI control over national monetary policy, foreign exchange, and currency issuance.

3. Monetary Policy Control:

   • RBI Act focuses on macroeconomic functions such as managing interest rates, inflation, and economic stability.

   • Banking Regulation Act ensures that banks function soundly at the micro level.