The question (15 marks)
Explain the scheme of licensing of banking companies under the Banking Regulation Act 1949, and consider whether it is an unreasonable restriction on the right to carry on business. (15 marks)
MU Module 2, head 2.1; pack chapter on the Banking Regulation Act.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 2 · The Laws Governing Financial Institutions of Law of Banking and Negotiable Instruments.
Authorities you will need
- Sajjan Bank (Private) Ltd. v. Reserve Bank of India
- Namazi v. Deputy Custodian of Evacuee Property, Madras
- Banking Regulation Act 1949, ss. 22, 23, 35
- Constitution of India, Arts. 19(1)(g) and 226
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.