The Banking Regulation Act, 1949 defines ‘Banking Company’, as any company which transacts the business of banking in India. The Act provides that any company which is engaged in the manufacture of goods or carries on any trade and which accepts the deposits of money from public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause. Under this Act, ‘Banking’ means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Certain provisions of the Banking Regulation Act also apply to the State Bank of India, any corresponding new bank, a regional rural bank and any subsidiary bank. The Negotiable Instruments Act was enacted in 1881. This Act has defined and amended the law relating to Promissory Notes, Bills of Exchange and Cheques. Banks are governed as companies under the Companies Act, 1956. The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980 governs nationalization of banks. The Bankers' Books Evidence Act, 1891 was legislated to amend the Law of Evidence with respect to Bankers' Books. The Hire-Purchase Act, 1972 has defined and regulated the rights and duties of parties to hire-purchase agreements and for matters connected with or incidental thereto. The Industrial Disputes (Banking and Insurance Companies) Act, 1949 provides for the adjudication of industrial disputes concerning certain banking and insurance companies.
