system in India works under the constraints that go with social control and public ownership. Nationalization, for instance, was a structural change in the functioning of commercial banks which was considered essential to better serve the needs of development of the economy in conformation with national policy and objectives.
The Indian financial system comprises a large number of commercial and cooperative banks, specialized developmental banks for industry, agriculture, external trade and housing, social security institutions, collective investment institutions, etc. The banking system is at the heart of the financial system and is governed and/ or impacted by a number of laws including:
- Negotiable Instrument Act, 1881
- The Bankers’ Books Evidence Act, 1891
- The Reserve Bank of India Act, 1934
- The Banking Regulation(Companies) Rules, 1949
- The Banking Regulation Act, 1949
Both partners of Bonum Lex have extensive and intensive knowledge of banking law and practice having been bankers themselves for several years.