Negotiable Instruments Act, 1881:
- Defines Negotiable Instruments such as Promissory Notes, Bills of Exchange, and Cheques, which are transferable and give the transferee a better title than the transferor.
- Some other instruments like Railway Receipts, Bills of Lading, and Warehouse Receipts are also treated as negotiable instruments.
Banking Regulation Act, 1949:
- Section 20: Banks are prohibited from granting loans against their own shares.
- Section 24: Mandates banks to maintain Statutory Liquidity Ratio (SLR) in cash, gold, or approved securities.
- Section 26A: Banks must transfer to the RBI any unclaimed deposits that have been inactive for 10 years.
- Sections 45ZA to 45ZF: Govern the Nomination process in deposits, safe custody, and locker accounts.
Companies Act, 2013:
- All companies, including banking businesses, must be registered under the Companies Act to be considered legal.
- Section 125: Mandates registration of charges on company property, which could include mortgages or equitable charges.

Banker’s Right of Lien:
- The bank has a right of lien over goods and securities in its possession to secure a debt.
- This lien can be exercised on securities for loans or unpaid locker rentals.
- The lien may be specific (for particular debts) or general (for any debt owed to the bank).
Right of Set-Off:
- Banks have the statutory right to set off a customer’s deposit to cover any outstanding debt unless explicitly prohibited by contract.
- A reasonable notice should be given to customers before exercising this right to avoid complications like wrongful dishonor of cheques.

Reserve Bank of India Act, 1934: Provides the regulatory framework for the functioning of the RBI and its role in controlling the monetary system.
Foreign Exchange Management Act (FEMA), 1999: Governs foreign exchange transactions, including the regulation of payments and investments across borders.
Prevention of Money Laundering Act (PMLA), 2002: Sets out provisions for anti-money laundering (AML) practices and reporting suspicious transactions to the authorities.
Insolvency and Bankruptcy Code, 2016: Regulates the resolution of financial insolvencies, including the recovery of dues from defaulting companies.

Garnishee Orders and Attachment Orders:
- Garnishee Orders are issued by a court to a third party (e.g., a bank) holding the debtor’s money to attach funds for debt recovery.
- Attachment Orders are issued by government authorities, like Income Tax or Sales Tax, to recover statutory dues.

Regulatory Compliance:
- Banks must ensure compliance with statutory and regulatory provisions from bodies like RBI, SEBI, and IBC.
- Banks should comply with internal policies, market conduct standards, and codes of practice set by associations like the Indian Banks Association (IBA), FIMMDA, and BCSBI.
Whistleblower Policy:
- Banks have whistleblower mechanisms that encourage employees and directors to report unethical conduct, ensuring transparency and accountability.

Indian Banks Association (IBA): Provides guidelines on banking practices and standards.
Fixed Income Money Market and Derivatives Association of India (FIMMDA): Oversees standards for the trading of debt securities.
Foreign Exchange Dealers Association of India (FEDAI): Regulates the forex market and ensures compliance with foreign exchange regulations.

Legal & statutory provisions affecting indian bankers