The central banking, insurance and financial laws of India rest on two pillars from the 1930s — the Reserve Bank of India Act and the Insurance Act — joined by the SEBI Act, the Banking Regulation Act and the modern payment-systems law.
Banking and finance are exclusively central subjects. The RBI governs through the 1934 Act and the Banking Regulation Act; the securities market answers to SEBI; insurance to the IRDAI; and every UPI transfer rides on the Payment and Settlement Systems Act, 2007. Depositor confidence is backstopped by the DICGC.
This page lists the principal central banking, insurance and financial statutes, what each covers, and links to authoritative texts. All acts here are central laws enacted by Parliament.
Contents
Monetary and Banking Framework
| Act | What it covers |
|---|---|
| Reserve Bank of India Act, 1934 (2 of 1934) | The Reserve Bank’s constitution, management and its powers over currency, credit, foreign exchange and supervision of payment systems. |
| Banking Regulation Act, 1949 (10 of 1949) | Licensing, governance, branch expansion, inspection and resolution of banking companies; RBI’s consolidated supervisory power. |
| Payment and Settlement Systems Act, 2007 (51 of 2007) | Regulation and authorisation of payment systems — the UPI, cards and settlement systems operate under it. |
| Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961) | The DICGC: insurance of bank deposits up to ₹5 lakh per depositor per bank. |
Insurance, Markets and Non-Banking
| Act | What it covers |
|---|---|
| Insurance Act, 1938 (4 of 1938) | Registration, governance and investment rules for insurers; policyholder protection provisions. |
| Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) | The IRDAI, its composition and its powers to regulate and develop the insurance market. |
| Securities and Exchange Board of India Act, 1992 (15 of 1992) | SEBI and the regulation of securities markets: listings, intermediaries, investigations and penalties. |
| Chit Funds Act, 1982 (40 of 1982) | Registration and regulation of chit funds and protection of subscribers. |
For insolvency and company law, see our central civil and commercial laws library; for secured-asset enforcement (SARFAESI), the central land and property laws library.
Frequently Asked Questions
Which law protects my bank deposit?
The Deposit Insurance and Credit Guarantee Corporation Act, 1961 insures deposits up to ₹5 lakh per depositor per bank through the DICGC.
Under which law does UPI operate?
The Payment and Settlement Systems Act, 2007 — every payment system in India must be authorised by the RBI under it.
Who regulates the stock market?
The Securities and Exchange Board of India, under the SEBI Act, 1992.
This page is a general library guide published for the Knowledge Centre and is not legal advice. For advice on a specific matter, please contact the firm.