About the Law: State and federal laws regulate banking and financial industries. These laws basically govern securities and other transactions, and regulate taxes. It also imposes reporting requirements for banks and other financial institutions. Often the banking and finance law plays a large role in stock purchases and investments by both individuals and companies, mergers and acquisitions of corporations and tax audits of bank accounts. Banking laws are applicable where state and federal financial institutions are involved in the deposition of money, borrowing, and lending. In addition to traditional banks, many other entities must comply with banking and financing laws. Real Estate Finance, Acquisition Finance and International Banking, are a few examples of specific categories of banking laws.

Finance law applies to both – individuals as well as companies, who invest money in the stock market, also the situations in which an individual or company borrows money to fund a particular project. The Reserve Bank of India (RBI) through the provisions of Banking Regulation Act, 1949, governs the banking system in India.