Section 49 of BRA : Section 49: Special Provisions For Private Banking Companies

Explanation using Example

Imagine a private company that is also a banking company wants to give a loan to one of its directors. Under ordinary circumstances, certain private companies might have exemptions under the Companies Act, 1956, which could allow them to provide such loans with fewer restrictions. However, because this company is a banking company, Section 49 of the Banking Regulation Act, 1949, specifically states that the exemptions in the Companies Act do not apply. Therefore, the banking company must follow the stricter regulations that apply to banking institutions when giving loans to its directors, without relying on the exemptions that are normally available to other private companies.