Banking Regulation Act, 1949 — back to Table of Contents
Section 45W. Part II not to apply to banking companies being wound up
Once a banking company is being wound up, none of the provisions of Part II of the Act — which govern the ordinary business of banking, including licensing, capital requirements, restrictions on loans, cash reserves, and similar regulatory conditions for a functioning bank — continue to apply to it.
This reflects the practical reality that a bank in winding up is no longer carrying on banking business in the ordinary sense; its affairs are instead governed by the special winding-up provisions of Part III and Part IIIA of the Act.
Note: Part IIIA was inserted by the Banking Companies (Amendment) Act, 1953.
