Section 13   [ View Judgements ]

Amendment of section 21


In section 21 of the principal Act,-



(a) in sub-section (1), after the words "public interest", the words "or in the interests of depositors" shall be inserted;



(b) in sub-section (2), for the words beginning with "as to the purposes" and ending with "directions as so given.", the following shall be substituted, namely:-



"as to-



(a) the purposes for which advances may or may not be made,



(b) the margins to be maintained in respect of secured advances,



(c) the maximum amount of advances or other financial accommodation which, having regard to the paid-up capital, reserves and deposits of a banking company and other relevant considerations, may be made by that banking company to any one company, firm, association of persons or individual,



(d) the maximum amount up to which, having regard to the consideration referred to in clause (c), guarantees may be given by a banking company on behalf of any one company, firm, association of persons or individual, and



(e) the rate of interest and other terms and conditions of which advances or other financial accommodation may be made or guarantees may be given.";



(c) after sub-section (2), the following sub-section shall be inserted, namely:-



"(3) Every banking company shall be bound to comply with any directions given to it under this section.".

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