Prohibition Of Certain Activities In Relation To Banking Companies (Section 36AD)

                In the Year,1968 Part-II-B prohibition of certain activities in relation to banking companies is inserted in Banking Regulation Act,1949. The main purpose of this section is to prohibit bank employees from resorting to demonstrations and causing obstruction to the public while agitating for their demands related to their service conditions.  The section in its draft stage proposed to prohibit such a demonstration within a certain distance from the office or place or business of a bank. It is proposed introduction in Act caused widespread opposition by bank employees and it was subjected to much criticism outside and inside the Parliament. Ultimately, it is included in the Act in the present form.

         The demonstration can result in punishment only if it is held within the office or place of business of a bank and order conditions of the section are satisfied.


 Prohibition Of Certain Activities In Relation To Banking Companies (Section 36AD).

 Punishments for certain activities in relation to banking companies -

    (1) No person shall —

               (a) obstruct any person from lawfully entering or leaving any office or place of business of a banking company or from carrying on any business there, or

               (b) hold, within the office or place of business of any banking company, any demonstration which is violent or which prevents, or is calculated to prevent, the transaction of normal business by the banking company, or

               (c) act in any manner calculated to undermine the confidence of the depositors in the banking company.

    (2) Whoever contravenes any provision of sub-section (1) without any reasonable excuse shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

    (3) For the purpose of this section" banking company"  include the Reserve Bank, Development Bank, Exim Bank the reconstruction Bank, the national housing Bank, the National Bank, The small industries Bank, The Bank of India, A corresponding new Bank, regional rural bank and subsidiary Bank.

See also...

Forms of Business of Banking Companies | Banking Law

Inspection (Section 35 )of Banking companies by Reserve Bank of India (RBI)


Audit (Section 30) under the Banking Regulation Act 1949

Commercial Bank: Primary, Secondary and Modern Functions of Commercial Bank

Commercial bank: Agency Functions of Commercial Bank