COI/ IT LAWS AND PRACTICES Module 3.pptx

COI/IT LAWS AND PRACTICES

1. Module 3 Dr. S. Visalakshi Department of Computer Applications

2. T h e R e s e r v e B ank of I nd i a A c t - Introduction The RBI Act was passed in 1934 and the Reserve Bank of India began operations on April 1, 1935. The Act's primary purpose was to establish the Reserve Bank of India as the central bank , responsible for regulating the issue of banknotes, keeping reserves to secure monetary stability , operating the currency and credit system of India.

3. Cont.. Key Functions under the Act: The RBI is authorized to issue and regulate banknotes . The RBI is responsible for maintaining monetary stability by regulating credit and ensuring an adequate money supply in the economy . The RBI acts as the banker to the Central and State governments , managing their accounts and debt. The Act provides the RBI with powers to regulate the functioning of commercial banks , including licensing , supervision , and ensuring solvency . Through its monetary policy tools (such as the Repo Rate, Reverse Repo Rate, Cash Reserve Ratio, etc.), the RBI aims to control inflation , maintain price stability , and regulate interest rates .

4. Cont.. Sub-section (1): The Central Board of Directors of the RBI is empowered to make regulations with the approval of the Central Government . These regulations can relate to any matter that is necessary for the purpose of giving effect to the provisions of the RBI Act .

5. Cont.. Sub-section (2): The regulations made by the Central Board may cover a wide range of matters , including: The manner in which the business of the RBI is conducted. The duties and powers of officers and employees of the RBI. The procedures for conducting meetings of the Central Board. The custody and disposal of securities and other properties of the RBI.

6. Cont.. The remuneration , allowances , and terms of service for the Bank's staff. The form of annual accounts, balance sheets , and any other financial regulations related to the functioning of the RBI. This section essentially gives the RBI flexibility to manage its operations by allowing it to establish internal rules while ensuring governmental oversight .

7. The Bankers Book Evidence Act, 1891 The Bankers' Books Evidence Act, 1891 is a piece of legislation in India that regulates the use of bank records as evidence in legal proceedings . It simplifies the process of admitting certified copies of bank records as valid evidence , reducing the need for banks to produce original records in court.