Principles and practices of

Banking
Bharathi Sunagar

Origin of banks
Phase 1: Early phase 1786-1969
Phase 2: Nationalization of Indian
banks up to 1991
Phase 3: New phase of Indian
banking system after 1991

Phase 1

General bank of India set up in 1786

Bank of Hindustan
East India company established
Bank of Bengal- 1809
Bank of Bombay-1840
Bank of Madras-1843 As independent Presidency banks
These 3 banks were amalgamated in 1920 called Imperial
Bank of India with private shareholders
1865- Allahabad Bank by Indians
1894- Punjab National Bank
1906-1913 : Bank of India,Central bank of India, Bank of
Baroda, Canara Bank, Indian Bank & Bank of Mysore
1935: Reserve bank of India

 Growth was slow & failures were

frequent
1100 Banks
According to 1934 RBI Act RBI
constituted as Apex bank under Govt
1949- Banking companies act to
streamline the functioning of banks

Phase 2

After Independence 1955- Nationalized Imperial bank of India SBI Act

SBI under RBI to handle banking transactions of union & state govt
1969- Seven subsidiary banks of SBI were nationalized
14 more private commercial banks were nationalized
Central bank of India
Bank of Maharashtra
Dena Bank
Punjab National bank
Syndicate bank
Canara bank
Indian Bank
Indian overseas bank
Bank of Baroda
Union Bank
Allahabad Bank
United bank of India
UCO Bank
Bank of India

Steps taken to regulate banking

institutions

1949-Banking regulation act

1955- Nationalization of SBI
1959- Nationalization of SBI subsidiaries
1961- Insurance cover extended to deposits
1969- Nationalization of 14 banks
1971- Creation of credit guarantee corporation
1975- creation of RRB
1980- Nationalization of 7 banks with deposits
over Rs 200 cr

Phase 3
Development
More products & facilities
M Narasimham committee for
liberalization of banking practices
Foreign banks
ATMs
Customer service
Phone & net banking

History of Banking in India

Vedas & Manusmriti- Indigenous
banking system
Kautilyas Arthashastra mentions
presence of Bankers during
Chandragupta maurya
Sahukar lended money: interest
charged according to caste ex:
Brahmin-24, shudra-60
British rule was a setback for these
indegenous bankers

Beginning of Accounting Systems

Kautilya, in 330 B.C. recognised the
importance of accounting methods in
economic enterprises. He developed Bookkeeping rules to record and classify
economic data. He also linked the
successful enforcement of rules and
regulations to their clarity, consistency
and completeness. He also emphasised
the role of ethics in the economic
activities.

 RBI was set with Rs 5 cr

recommended by Hilton Young
Commission
Acted an govt funder, and bankers
bank

Classification of banks

Types of banking

Branch banking
Unit banking
Group
Mixed
Chain
Retail
Wholesale

Relationship
Banking
Correspondent
Narrow
Rural
Universal
Social
Virtual

Commercial banking
CB provide banking services to
individuals, small businesses, large
organizations

Commercial
Private
Nationalized
Banking
sector
Scheduled
Non
Public
Scheduled
SBI
RRB
Indian
Foreign
Sector
& Associates
private
banksbanks
banks

Functions
Primary
Secondary
Utility

Primary
Acceptance of deposits
Types of deposits
Fixed
Demand deposits

Granting loans and advances

Cash credit account
Overdraft
Bills discounting
Term loans

Secondary functions
Agency services
Payment and collection of cheques
Bill of exchange and promissory
notes
Executing standing orders
Trustee business

Utility functions

Safe custody
Remittance of funds
Demand draft
Mail transfers
Electronic mode
Issuing letters of credit
Payment of pension
Performance of government transactions

Role of banks in economy

 Trade Development. Commercial banks

provide capital, technical assistance and
other tools to businessmen according to
their need, which helps to develop trade.
Agricultural Development.
Commercial banks finance the most
important sector of developing economics
i.e. agriculture. Short, medium and longterm loans are provided for the purchase
of seeds and fertilizer, the installation of
tube wells, the construction of
warehouses, the purchasing of tractors,
threshers and other equipment, etc.

 Industrial Development. The countries that

concentrated on their industrial sector made
rapid gains economic development. South Korea,
Malaysia, Taiwan, Hong Kong, and Indonesia have
recently developed their industrial sector with the
help of commercial banks.
Capital Formation. Commercial banks help
accelerate the rate of a country's capital. Capital
formation refers to increases in the number of
production units and improvements and
dissemination in technology, plants, and
machinery. Banks finance the projects responsible
for increasing the rate of capital formation.
Development of Foreign Trade. Commercial
banks help traders from two different countries do
business together. Letters of credit are issued by
the importers bank to the exporters to ensure

 Money Transfers. Commercial banks

provide the facility of transferring funds
from one place to another which leads to
the growth of trade.
Higher Productivity. A good banking
system helps increase production in all
sectors of the economy by strengthening
the capital structure and the division of
labor
Transportation. Commercial banks
finance the transportation sector, which
reduces unemployment on one hand and
increases the ease of movement on the
other. Remote areas are linked to main
markets through developed transport

 Safekeeping of Valuables. Businesses and

individuals can confidently deposit surplus money in
banks. Banks also provide them lockers to keep
precious articles and necessary documents safe.
Better Savings Rates. Commercial banks
persuade the people to save more. Different saving
schemes with attractive interest rates are
introduced for this purpose. To that end, the bank
opens branches in urban and rural areas to attract
depositors.
Construction. Commercial banks provide credit for
the purchase or construction of houses.

 Government Loans. By providing funds for

government development programs, commercial
banks help the government ensure economic
stability.
Higher Employment Rates. A countrys
economic prosperity depends on the development
of trade, commerce, industry, agriculture,
transportation, and communication, etc. These
sectors are financed by the commercial banks,
which increases employment opportunities.
Paper Money. Cheques and drafts etc works like
money. So there's no need to make coins out of
precious metals, which could reduce a country's
reserves that could otherwise be used for other,
more important purposes.

 More Credit. Commercial banks are

factories of credit. They do so much with
the money they collect in deposits by
lending it out at interest. Through the
process of credit creation, commercial
banks finance all sectors of the economy,
making them more developed.
Financial Advice. Commercial banks also
give useful financial advices to promote
the business their customers' businesses.
Investment Opportunities. Commercial
banks mobilize people's accumulated
savings. Banks make these savings
farmers, traders and industrialists in the

 Monetary Policy. Under the supervision of a

central bank, all scheduled commercial banks
work toward implementing the objectives of a
country's monetary policy. This concerted
effort makes economic development possible.
Better Technology. The use of modern
technology in less developed countries is only
possible due to commercial banking, who
provides the funding for it. These funds are
utilized for the import of modern technology
from developed countries.

 Export Promotion Cells. In order to boost the exports

of the country, the banks have established export
promotion cells to guide and inform customers.
Economic Prosperity. A country's economic
prosperity depends on a number of factors, including
the a strong commercial banking sector. A sound
banking system promotes economic well-being by
providing them short, medium and long-term loans.
Training Centers. Commercial banks establish many
training centers for their employees so as to modernize
the banking system. In this way the banking experts
improve their abilities and help the country develop.

Credit Creation
Credit creation is also an important function of commercial
Bank.
The process of credit creation automatically performed
when bank accept deposits and provide loans.
In this process, customers deposit their money in bank.
Bank keeps certain amount of deposit as cash reserve and
rest of balance given as loan and advances.
Banks not required to keep the entire deposits in cash.
The amount of loan does not give directly to borrower. The
borrower open a account and then bank deposit money in
that account.
Here, banks lends money and process of credit creation
starts.

 Banks earn through loans and advances. When bank

accept deposit, they collect money from various
customers.
On these deposits, bank gives interest. Now, keeping
some part of their deposits as Statutory Liquidity
Ratio (SLR),as per the guidelines of the RBI, bank can
lend or circulate remaining part to the borrower.
Bank charges interest on these advances which is
higher than the interest rate given on deposits.
This process is called Credit Creation. This
difference between lending interest rates and
borrowing interest rate creates profit for the banks.
By these loans and advances, not only banks are
benefited but customers also get benefited as they
get their need fulfilled through such loans.

Financial Sector - Regulators

RegulatorsReserv

Banking in India
Legal frame work

Central bank
RBI

STRUCTURE AND FUNCTIONS

OF RESERVE BANK OF INDIA

INTRODUCTION
It is the Central Bank of India
Established in 1st April
1935 under the RESERVE
BANK OF INDIA ACT.
Its head quarter is in Mumbai
(Maharashtra). Its present
governor is MR. D
Subbarao.
It has 22 Regional Offices,
most of them in State capitals.

 It was set up on the

recommendations of the Hilton
Young Commission.
It was started as Share-Holders
Bank with a paid up capital of 5
crores.
Initially it was located in Kolkata.
It moved to Mumbai in 1937.
Initially it was Privately Owned.
Since Nationalization in 1949, the
Reserve Bank is fully owned by the
Government of India

PREAMBLE
The Preamble of the Reserve Bank
of India describes the basic functions
of the Reserve Bank as :To regulate the issue of Bank
Notes and keeping of reserves with a
view to securing monetary stability in
India and generally to operate the
currency and credit system of the
country to its advantage."

FUNCTIONS OF RBI

Issue of currency
Development role
Banker to government
Banker to bank
Role of RBI in inflation control
Formulate monetary policy
Manager of foreign reserve
Clearing house functions
Regulations of banking system

Issue of Currency
To ensure adequate quantity of supplies of
currency notes and coins of good quality.
Issues new currency and destroys currency
and coins not fit for circulation.
It has to keep in forms of gold and foreign
securities as per statutory rules against notes
& coins issued.

Developmental Role
To develop the quality of banking system in
India.
Performs a wide range of promotional
functions to support national objectives.
To establish financial institutions of national

Banker to the Government:

Performs all banking function for the
central and the state governments and
also acts as their banker excepting
that of Jammu and Kashmir. It makes
loans and advances to the States and
local authorities. It acts as adviser to
the Government on all monetary and
banking matters.

The Reserve Bank of India also

regulates the trade of gold. Currently
17 Indian banks are involved in the
trade of gold in India.
RBI has invited applications from
more banks for direct import of gold to
curb illegal trade in gold and
increase competition in the market.
Collection and publication of data.
It issues guidelines and directives for

Role of RBI in inflation

control

Inflation
arises
when
the
demand
increases and there is a shortage of supply
There are two policies in the hands of the
RBI.
Monetary Policy: It includes the interest
rates. When the bank increases the
interest rates than there is reduction in the
borrowers and people try to save more as
the rate of interest has increased.
Fiscal Policy: It is related to direct taxes
and government spending. When direct
taxes increased and government spending

Formulate monetary policy

Maintain price stability and
ensuring adequate flow of credit
in the economy.
It formulates implements and
monitors the monetary policy.
Instruments: qualitative &
quantitative.

Quantitative Measures
Quantitative Measures BANK RATE
also called Discount Rate.
It also includes Repo Rate.
Open Market Operations buying and
selling of government securities.
Variable Reserve Ratio it includes
C.R.R and S.L.R

Qualitative Measures

1.
2.
3.
4.

Direct Action
Moral persuasion
Legislation
Publicity

BANK RATE
Its

the interest rate that is charged by a

countrys central bank on loans and
advances to control money supply in the
economy and the banking sector.
This is typically done on a quarterly basis
to control inflation and stabilize the
countrys exchange rates.
A fluctuation in bank rates Triggers a
Ripple-Effect as it impacts every sector of
a countrys economy.
A change in bank rates affects customers

REPO RATE
Whenever the banks have any shortage
of funds they can borrow it from the central
bank. Repo rate is the rate at which our
banks borrow currency from the central
bank.
A reduction in the repo rate will help
banks to get Money at a cheaper rate.
When the repo rate increases borrowing
from the central bank becomes more
expensive.
In order to increse the liquidity in the

REVERSE REPO RATE

Its the rate at which the banks park

surplus funds with reserve bank.

While the Repo rate is the rate at
which the banks borrow from the
central bank.
It is mostly done , when there is
surplus liquidity in the market by the
central bank.
The present reverse repo rate is 7%

CRR (Cash Reserve Ratio)

Cash Reserve Ratio (CRR) is the
amount of Cash(liquid cash like
gold)that the banks have to keep with
RBI.
This Ratio is basically to secure
solvency of the bank and to drain out
the excessive money from the banks.
The present CRR rate is 4.75%.

SLR ( Statutory Liquidity Ratio)

It is the amount a commercial bank
needs to maintain in the form of cash,
or gold or govt. approved securities
(Bonds) before providing credit to its
customers.
SLR
rate
is
determined
and
maintained by the RBI (Reserve Bank
of India) in order to control the
expansion of bank credit.

QUALITATIVE MEASURES
1. Direct Action: The central bank may take
direct action against commercial banks
that violate the rules, orders or advice of
the central bank. This punishment is very
severe of a commercial bank.
2. Moral persuasion: It is another method
by which central bank may get credit
supply expanded or contracted. By moral
pressure it may prohibit or dissuade
commercial banks to deal in speculative
business.

 3. Legislation:
The central bank may also adopt
necessary legislation for expanding or
contracting credit money in the market.
4. Publicity:
The central bank may resort to massive
advertising campaign in the news papers,
magazines and journals depicting the poor
economic conditions of the country
suggesting commercial banks and other
financial institutions to control credit either
by expansion or by contraction.

Manager of Foreign Exchange

To facilitate external trade and
payment
and
promote
orderly
development and maintenance of
foreign exchange market in India.
It acts as a custodian and Manages
the
Foreign
Exchange
Management Act,(FEMA) 1999.
RBI buys and sells foreign currency
to maintain the exchange rate
ofIndian Rupee v/s foreign currencies
like the US Dollar, Euro, Pound and

Clearing House Functions

The RBI operates
clearing houses to
settle banking
transactions. The RBI
manages 14 major
clearing houses of the
country situated in
different major cities.
The State Bank of India
and its associates look
after clearing houses
function in other parts

Regulation of Banking System

The prime duty of the reserve Bank is to
regulate the banking system of our
country in such a way that the people of
the country can trust in the banking Up to
perform its duty.
The Reserve Bank has following powers in
this regard:
Licensing:
According to the section 22 of the
Banking Regulation Act, every bank has
to obtain license from the Reserve Bank.
The Reserve Bank issues such license
only to those banks which fulfill condition

 Management:
Section 10 of the Banking Regulation Act
embowered the Reserve Bank to change
manager or director of any bank if it considers it
necessary or desirable.
Branch Expansion:
Section 23 requires every bank to take prior
permission from Reserve Bank to open new
places of business in India.
Power of inspection of Bank:
Under Section 35, the Reserve Bank may inspect
any bank and its books and accounts either at its
own initiative or at the instance of the Central
Government.

Role of RBI in Economic

Development
RBI is known to formulate, implement and
keep tabs on the monetary policy and it
also has to make certain the sufficient
flow of credit to productive sectors.
After
decades
of
resistance
to
international economic integration, India
has recently made significant progress in
liberalizing trade and access to foreign
investment, beginning in 1991.

THE BANKING REGULATION ACT,1949

Preamble of regulatory Act

Introduction

The Banking companies act, presently known as banking regulation act

Definition of banks

In India, the definition of the business of banking has been given in the

Applicability of the Banking Regulation Act, 1949

This Act applies to following categories of Banks:

Different provisions of Banking regulations Act

S.
No.

Parts Topics

Sections
covered

1.

Preliminary

1 to 5A

2.

II

Business of Banking Companies

6 to 36 A

3.

IIA

Control over management

36AA to 36AC

4.

IIB

Prohibition of certain activities in relation

to banking Companies

36AD

5.

IIC

Acquisition of the undertakings of Banking

Companies in certain cases

36AE to 36AJ

6.

III

Suspension of business and winding up of

Banking Companies

36B to 45

7.

IIIA

Speedy provision for speedy disposal of

winding up proceedings

45A to 45X

8.

IIIB

Provision relating to certain operation of

Banking Companies

45Y to 45ZF

9.

IV

Miscellaneous

46 to 55A

10.

Application of the Act to cooperative

56

Business of banking Companies

Continued

Collecting and transmitting money

Managing, selling and realizing any property that
may come into the possession of the bank in
satisfaction or part satisfaction of any of its dues
Acquiring, holding and dealing with any property
or any right, title or interest in any such property
that may form the security or part of the security
for any loans or advances or which may be
connected with such security
Undertaking and executing trusts

Continued
Acquiring, constructing, maintaining and altering of any
building for the purpose of the bank
Acquiring and undertaking the whole or part of the
business of any person or bank / company if its nature of
business is as per the allowed business for the bank
Doing all such other things as are incidental or conducive
to the promotion or advancement of the business of the
bank
Any other business the Central Govt. may by notification
specify as a allowed business
Banks are prohibited to do any other business

Use of words bank, banker, banking or banking company

(b) a
(1)
(2)
(3)
(a)
No
Nothing
any
subsidiary
company
firm,
association
in
individual
this
of
other
section
aofbanking
banks
or
than
group
shall
aformed
company
banking
of
apply
individuals
for
tocompany
formed
the protection
shall,
for
shall
one
foruse
or
of
themore
their
as part
of
of its
purpose
the
mutual
purposes
name
interests
of carrying
15[or,
mentioned
and
inon
connection
registered
any
in sub-section
business,
under
with its
use
section
(1)
business]
asofpart
section
25 of
ofany
its
the
19,
of
or whose
the
his
words indicates
name
Companies
any
bank,
ofAct,
banker
thethat
1956
words
or
it(1
is
banking
bank,
of
a subsidiary
1956).]
banking
and noofor
company
that
banking
banking
shall
company.
company;
carry on
the business of banking in India unless it uses as part of its name
at least one of such words.

Applicability against other laws

Provisions of the Banking regulation Act,

1949 are not in substitution of other laws
applicable, unless otherwise expressly
said (Section 2 sub 56 (b)
Act is not applicable to
1 Primary Agricultural Society
2 Co-operative Land Mortgage Bank
3 Any other co-operative society except as
provided by Sec. 56(Section 3)

Banking Policy

Banking

Cash Reserve (CRR)

Every bank is required to keep cash reserve, with itself or by way of bal

SLR

Restrictions on loans and advances

(1) Notwithstanding anything to the contrary contained in section 77

of the Companies Act, 1956 (1 of 1956), no banking company shall,
(a) grant any loans or advances on the security of its own shares, or
(b) enter into any commitment for granting any loan or advance to or
on behalf of
(i) any of its directors,
(ii) any firm in which any of its directors is interested as partner,
manager, employee or guarantor, or
(iii) any company [not being a subsidiary of the banking company or a
company registered under section 25 of the Companies Act, 1956 (1 of
1956), or a Government company] of which 61[or the subsidiary or the
holding company of which] any of the directors of the banking company
is a director, managing agent, manager, employee or guarantor or in
which he holds substantial interest, or
(iv) any individual in respect of whom any of its directors is a partner or
guarantor.

Licensing of banking companies

Power to publish information

The Reserve Bank or the National Bank, or both, if they consider it in th

Power of the Reserve Bank to give directions

(1) Where the Reserve Bank is satisfied that

Continued.

(2) The Reserve Bank may, on representation made to it or on its own m

Amendments of provisions relating to appointments of

managing directors, etc., to be subject to previous
approval of the Reserve Bank.

no amendment of any provision relating to the maximum

permissible number of directors .
no appointment or re-appointment or termination of appointment
of a chairman.
Further powers and functions of Reserve Banks.
1.(a) caution or prohibit banking companies or any banking
company in particular against entering into any particular
transaction or class of transactions, and generally give advice to
any banking company;
(b) on a request by the companies concerned and subject to the
provision of section 149[44A], assist, as intermediary or otherwise,
in proposals for the amalgamation of such banking companies;
(c) give assistance to any banking company by means of the grant
of a loan or advance to it underclause (3) of sub-section (1) of
section 18 of the Reserve Bank of India Act, 1934 (2 of 1934);

(2) The Reserve Bank shall make an annual report to the Central Gover

Certain provisions of the Act not to apply to certain

banking companies.

(1) The provisions of section II, sub-section (1) of section 12, and sectio

Cont
(2) Where the Reserve Bank is satisfied that any such
banking company as is referred to in sub-section (1)
has repaid, or has made adequate provision for
repaying all deposits accepted by the banking
company, either in full or to the maximum extent
possible, the Reserve Bank may, by notice published in
the Official Gazette, notify that the banking company
has ceased to be a banking company within the
meaning of this Act, and thereupon all the provisions
of this Act applicable to such banking company shall
cease to apply to it, except as respects things done or
omitted to be done before such notice.]

Different provisions of Banking regulations Act

S.
No.

Parts Topics

Sections
covered

1.

Preliminary

1 to 5A

2.

II

Business of Banking Companies

6 to 36 A

3.

IIA

Control over management

36AA to 36AC

4.

IIB

Prohibition of certain activities in relation

to banking Companies

36AD

5.

IIC

Acquisition of the undertakings of Banking

Companies in certain cases

36AE to 36AJ

6.

III

Suspension of business and winding up of

Banking Companies

36B to 45

7.

IIIA

Speedy provision for speedy disposal of

winding up proceedings

45A to 45X

8.

IIIB

Provision relating to certain operation of

Banking Companies

45Y to 45ZF

9.

IV

Miscellaneous

46 to 55A

10.

Application of the Act to cooperative

56

CONTROL OVER MANAGEMENT

36AA. Power of Reserve Bank to remove managerial and other

36AB. Power of Reserve Bank to appoint additional directors

Part II B Prohibition of certain activities

in relation to banking Companies
Section 36AD - Punishments for
certain activities in relation to
banking companies

PART IIC
ACQUISITION OF THE UNDERTAKINGS
OF BANKING COMPANIES IN CERTAIN
CASES

Section 36AE - Power of Central Government to

acquire undertakings of banking companies in
certain cases
Section 36AF - Power of the Central Government
to make scheme
Section 36AG - Compensation to be given to
shareholders of the acquired bank
Section 36AH - Constitution of the Tribunal
Section 36AI - Tribunal to have powers of a civil
court
Section 36AJ - Procedure of the Tribunal

SUSPENSION OF BUSINESS AND WINDING

UP OF BANKING COMPANIES

Section 37 - Suspension of business

Section 38 - Winding up by High Court
Section 38A - Court liquidator
Section 39 - Reserve Bank to be official liquidator
Section 39A - Application of Companies Act to liquidators
Section 40 - Stay of proceedings
Section 41- Preliminary report by official liquidator
Section 41A - Notice to preferential claimants and secured and unsecured
creditors
Section 42 - Power to dispense with meetings of creditors, etc
Section 43 - Booked depositors' credits to be deemed proved
Section 43A - Preferential payments to depositors
Section 44 - Powers of High Court in voluntary winding up
Section 44A - Procedure for amalgamation of banking companies
Section 44B - Restriction on compromise or arrangement between banking
company and creditors
Section 45 - Power of Reserve Bank to apply to Central Government for
suspension of business by a banking company and to prepare scheme of
reconstitution or amalgamation

PART IIIA
SPECIAL PROVISIONS FOR SPEEDY
DISPOSAL OF WINDING UP
PROCEEDINGS

Section 45A - Part III A to override other laws

Section 45B - Power of High Court to decide all claims in
respect of banking companies
Section 45D - Settlement of list of debtors
Section 45E - Special provisions to make calls on
contributories
Section 45F - Documents of banking company to be
evidence
Section 45G - Public examination of Directors and
auditors
Section 45H - Special provisions for assessing damages
against delinquent Directors, etc
Section 45I - Duty of Directors and officers of banking

PART IIIB
PROVISIONS RELATING TO CERTAIN
OPERATIONS OF BANKING COMPANIES
Section 45Y - Power of Central Government to make rules for
the preservation of records
Section 45Z - Return of paid instruments to customers
Section 45ZA - Nomination for payment of depositors' money
Section 45ZB - Notice of claims of other persons regarding
deposits not receivable
Section 45ZC - Nomination for return of articles kept in safe
custody with banking company
Section 45ZD - Notice of claims of other persons regarding
articles not receivable
Section 45ZE - Release of contents of safety lockers
Section 45ZF - Notice of claims of other persons regarding
safety lockers not receivable

PART IV
MISCELLANEOUS

Section 46 - Penalties
Section 46A - Chairman, Director, etc., to be public servants for the purposes
of Chapter IX of the Indian Penal Code
Section 47 - Cognizance of offences
Section 47A - Power of Reserve Bank to impose penalty
Section 48 - Application of fines
Section 49 - Special provisions for private banking companies
Section 49A - Restriction on acceptance of deposits withdrawable by cheque
Section 49B - Change of name by a banking company
Section 49C - Alteration of memorandum of a banking company
Section 50 - Certain claims for compensation barred
Section 51 - Application of certain provisions to the State Bank of India and
other notified banks
Section 52 - Power of Central Government to make rules
Section 53 - Power to exempt in certain cases
Section 54 - Protection of action taken under the Act
Section 55 - Amendment of Act 2 of 1934
Section 55A - Power to remove difficulties