The Banks and Specialized Deposit-Taking Institutions Act seeks to address gaps and inconsistencies in the banking laws and also deepen cooperation with regional counterparts to improve the regulation and supervision of foreign banks that are active in the country.
As India became independent in 1947, RBI's “tryst with nation building” ran parallel to the nation's “tryst with destiny”. The year 1949 also marked the enactment of the Banking Regulation Act which mandated a comprehensive and formal structure of bank regulation and supervision in India. For the first two decades of India's independence, banking was largely concentrated in our cities and major towns.