Section 20A of the Banking Regulation Act, 1949 – Restrictions on power to remit debts

Home › The Banking Regulation Act, 1949 › Part II – Business of banking companies

Section 20A: Restrictions on power to remit debts

1[20A. Restrictions on power to remit debts.–(1) Notwithstanding anything to the contrary contained in section 293 of the Companies Act, 1956, (1 of 1956) a banking company shall not, except with the prior approval of the Reserve Bank, remit in whole or in part any debt due to it by–

  • (a) any of its directors, or
  • (b) any firm or company in which any of its directors is interested as director, partner, managing agent or guarantor, or
  • (c) any individual if any of its directors is his partner or guarantor.
  • (2) Any remission made in contravention of the provisions of sub-section (1) shall be void and of no effect.]

Source: official text of The Banking Regulation Act, 1949 as published on India Code (PDF). All sections of the Banking Regulation Act, 1949.

Related posts:

  1. The Banking Regulation Act, 1949 – All Sections
  2. Section 56 of the Banking Regulation Act, 1949 – Act to apply to co-operative societies subject to modifications
  3. Section 45 of the Banking Regulation Act, 1949 – Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation
  4. Section 10B of the Banking Regulation Act, 1949 – Banking company to be managed by whole time chairman