Banking Regulation Act, 1949 · Section guide
Section 3: Act not to apply to certain co-operative societies
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 3 — Act not to apply to certain co-operative societies. Carves specified co-operative credit bodies out of the Act while Part V separately. Applies the Act, with modifications, to co-operative banks; classification of the co-operative entity is therefore the first legal step.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Carves specified co-operative credit bodies out of the Act while Part V separately applies the Act, with modifications, to co-operative banks.
Condition / limitation
classification of the co-operative entity is therefore the first legal step.
Source and effective-date control
Apply the wording of Section 3 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.
Professional application
List the complete cooperative exclusions and their conditions; connect to Section 56 without treating all societies as banks.
Evidence / working-paper checklist
- Section 3 evidence: entity constitution/classification records.
- Section 3 evidence: the event date and applicable statutory version.
- Section 3 evidence: the other law said to apply alongside or override this Act.
- Section 3 evidence: the Gazette/notification relied on for any suspension or commencement point.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 3, avoid assuming that RBI regulation automatically displaces another statute.
- For Section 3, avoid using a current definition for an event governed by older wording.
- For Section 3, avoid treating a notification-based exception as permanent or entity-wide without reading its conditions.
Related sections inside the Act
Use these links to read Section 3 in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 3 is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 3 on the event date.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.