Lawgist logo - L! Lawgist.
The Banking Regulation Act

20ARestrictions 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.]

Download our fully-offline, High speed android app.- Click here

1 . Ins. by Act 55 of 1963, s. 12 (w.e.f. 1-2-1964).

BUSINESS OF BANKING COMPANIES

Download the App Now!

Get our Android app for fast and offline Access.

Get it on Google Play
Lawgist is not a law firm and does not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes only and are not intended to be a substitute for professional legal advice. Use of this site is subject to our Terms and Conditions, Disclaimer, and Privacy Policy.About Us Made in ♥ with India, Internet and Lots of Courtroom Dramas