How does the separation of powers function in different countries, such as the United States compared to a parliamentary system?
Key laws governing Indian banking: 1. Reserve Bank of India Act, 1934: Allows RBI to set up RBI control over the direction of a monetary policy, exercises powers to supervising the direction of banks and keep aproper check on monetary operation hence making it a central authority. 2. Banking RegulatRead more
Key laws governing Indian banking:
1. Reserve Bank of India Act, 1934:
Allows RBI to set up RBI control over the direction of a monetary policy, exercises powers to supervising the direction of banks and keep aproper check on monetary operation hence making it a central authority.
2. Banking Regulation Act 1949:
It provides direction on issues to do with licensing of banks, capital, structure and management and operations, including aspects on mergers and acquisitions.
3. Prevention of Money Laundering Act, 2002:
The Act strictly compels banks to adhere to AML and KYC standards besides closely observing transactions which they find suspicious;vi and reporting such transactions to the Financial Intelligence Unit-India (FIU-IND).
4. Basel III Norms:
The implementation of international standards is achieved when RBI asks the banks to maintain specific capital and liquidity ratio that would eventually minimize the probability of the spread of systemic risk and boost resilience.
5. Insolvency and Bankruptcy Code (IBC), 2016:
There has been also clear working out of mechanism for recovery of credits which also help in default resolution of banks and has also ensured strict compliance of credit discipline of the borrowers.
6. Negotiable Instruments Act, 1881:
Deals with safe, transparent and courteous way at the back office management of financial instruments such as cheque, bearer cheque, bill and bearer bill and helps to ensure integrity of electronic transactions.
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The separation of powers is a principle where the government is divided into separate branches, each with distinct functions and powers, to prevent any one branch from becoming too powerful. This concept functions differently in various countries, such as in the United States and parliamentary systeRead more
The separation of powers is a principle where the government is divided into separate branches, each with distinct functions and powers, to prevent any one branch from becoming too powerful. This concept functions differently in various countries, such as in the United States and parliamentary systems like the United Kingdom.
**United States:**
In the U.S., the separation of powers divides the government into three branches:
1. **Legislative Branch (Congress)**: Makes laws.
2. **Executive Branch (President)**: Enforces laws.
3. **Judicial Branch (Supreme Court)**: Interprets laws.
Each branch operates independently and has checks and balances over the others. For example, Congress can pass laws, but the President can veto them. The Supreme Court can declare laws unconstitutional, checking both Congress and the President.
**Parliamentary System (e.g., United Kingdom):**
In a parliamentary system, the separation of powers is less distinct:
1. **Legislative Branch (Parliament)**: Makes laws.
2. **Executive Branch (Prime Minister and Cabinet)**: Enforces laws, and is part of Parliament.
3. **Judicial Branch**: Operates independently but is traditionally less involved in checking the other branches compared to the U.S.
The executive is drawn from the legislature, meaning the Prime Minister and Cabinet are members of Parliament. This fusion allows for more direct control and cooperation between the legislative and executive branches, but it also means less separation compared to the U.S.
- while the U.S. emphasizes a clear division and checks between branches, parliamentary systems integrate the executive and legislative functions, leading to different dynamics in governance and oversight.
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