BANKING AFFAIRS

Detailed explanation-1: -Prohibition of trading Trading is prohibited under Section 8 of this Act. No banking company shall directly or indirectly deal in the buying or selling, or bartering of goods except when it is selling the goods kept in its security.

Detailed explanation-2: -Explanation.-For the purposes of this section, “goods” means every kind of movable property, other than actionable claims, stocks, shares, money, bullion and specie, and all instruments referred to in clause (a) of sub-section (1) of section 6.

Detailed explanation-3: -(8) No act or proceeding of the Board of directors of a banking company shall be invalid by reason only of any defect in the composition thereof or on the ground that it is subsequently discovered that any of its members did not fulfil the requirements of this section.]

Detailed explanation-4: -Section 8: Trading is Prohibited This is an exemption if the security is held or given. In addition to this, banking companies cannot involve in any bartering, selling, buying, or trading of goods except if bills of exchange have been received for negotiation or collection.