Section 51 of The Banking Regulation Act, 1949 View Chapter 4

Application of certain provisions to the State Bank of India and other notified banks.


   1[51.  Application on of certain provisions to the State Bank of India and other notified banks.-- 2[(1)]  Without prejudice to the provisions of the State Bank of India Act, 1955 (23 of 1955), or or any other enactment, the provisions of sections 10, 13 to 15, 17, 3[19 to 21A, 23 to 28, 29 [excluding sub-section (3)], 4[29A] 5[sub-sections (1B), (1C) and (2) of section 30, 31], 34, 35, 35A, 6[35AA, 35AB,] 36 [excluding [excluding clause (d) of sub-section (1)], 45Y to 45ZF, 46 to 48] 50, 52 and 53 shall also apply, so far as may be, to and in relation to the State Bank of India 7[or any corresponding new bank or a Regional Rural Bank or any subsidiary bank] as they apply to and in relation to banking companies:

   8[Provided that--

       (a)  nothing contained in clause (c) of sub-section (1) of section 10 shall apply to the chairman of the State Bank of India or to a 9[managing director] of any subsidiary bank in so far as the said clause precludes him from being a director of, or holding an office in, any institution approved by the Reserve Bank;

       10[(b)  nothing contained in sub-clause (iii) of clause (b) of sub-section (1) of section 20 shall apply to any bank referred to in sub-section (1), insofar as the said sub-clause (iii) of clause (b) precludes that bank from entering into any commitment for granting any loan or advance to or on behalf of a company (not being a Government company) in which not less than forty per cent. of the paid-up capital is held (whether singly or taken together) by the Central Government or the Reserve Bank or a corporation owned by that bank; and

       (c)  nothing contained in section 46 or in section 47A shall apply to,--

         (i)  an officer of the Central Government or the Reserve Bank, nominated or appointed as director of the State Bank of India or any corresponding new bank or a Regional Rural Bank or any subsidiary bank or a company; or

         (ii)  an officer of the State Bank of India or a corresponding new bank or a Regional Rural Bank or a subsidiary bank nominated or appointed as director of any of the said banks (not being the bank of which he is an officer) or of a banking company.]

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   12[(2)  References to a banking company in any rule or direction relating to any provision of this Act referred to in sub-section (1) shall, except where such rule or direction provides otherwise, be construed as referring also to the State Bank of India, a corresponding new bank, a Regional Rural Bank and a subsidiary bank.]

1Subs. by Act 79 of 1956, s. 43 and the Second Schedule, for section 51 (w.e.f. 22-10-1956).

2Section 51 renumbered as sub-section (1) thereof by Act 1 of 1984, s. 40 (w.e.f. 15-2-1984).

3Subs. by s. 40, ibid., for certain words (w.e.f. 15-2-1984).

4Ins. by Act 4 of 2013, s. 13 (w.e.f. 18-1-2013).

5Subs. by Act 66 of 1988, s. 10, for "31" (w.e.f. 30-12-1988).

6Ins. by Act 30 of 2017, s. 3, (w.e.f. 4-5-2017).

7Subs. by Act 1 of 1984, s. 40, for certain words (w.e.f. 15-2-1984).

8Subs. by Act 38 of 1959, s. 64 and the Third Schedule, for the former proviso (w.e.f. 10-9-1959).

9Subs. by Act 1 of 1984, s. 40, for "general manager" (w.e.f. 15-2-1984).

10Subs. by Act 1 of 1984, s. 40, for clauses (b) and (c) (w.e.f. 15-2-1984).

11Explanation omitted by Act 58 of 1968, s. 18 (w.e.f. 1-2-1969).

12Ins. by Act 1 of 1984, s. 40 (w.e.f. 15-2-1984).