# 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.]
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1 . Ins. by Act 55 of 1963, s. 12 (w.e.f. 1-2-1964).
BUSINESS OF BANKING COMPANIES
17
Reserve Fund18
Cash reserve19
Restriction on nature of subsidiary companies20
Restrictions on loans and advances21
Power of Reserve Bank to control advances by banking companies21A
Rates of interest charged by banking companies not to be subject to scrutiny by courts22
Licensing of banking companies
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