Section 7 of Banking Regulation Act - Use of words "bank", "banker", "banking" or "banking company

Section 7* of Banking Regulation Act 1949: Use of words "bank", "banker", "banking" or "banking company

(1) No company other than a banking company shall use as part of its name **[or in connection with its business] any of the words "bank", "banker" or "banking" and no company shall carry on the business of banking in India unless it uses as part of its name at least one of such words.

(2) No firm, individual or group of individuals shall, for the purpose of carrying on any business, use as part of its or his name any of the words "bank", "banking" or "banking company".

(3) Nothing in this section shall apply to-

(a) a subsidiary of a banking company formed for one or more of the purposes mentioned in sub-section (1) of section 19, whose name indicates that it is a subsidiary of that banking company;

(b) any association of banks formed for the protection of their mutual interests and registered under section 25 of the Companies Act, 1956 (1 of 1956).]

 

 

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1. Subs. by Act 55 of 1963, s. 7, for section 7 (w.e.f. 1-2-1964).

2. Ins. by Act 1 of 1984, s. 14 (w.e.f. 15-2-1984).