Banking Regulation Act, 1949 — back to Table of Contents
Section 49. Special provisions for private banking companies
Private companies ordinarily enjoy a range of exemptions under the Companies Act, 1956 — for example, relating to managerial remuneration, related-party transactions, and certain procedural requirements applicable to public companies. This section switches those exemptions off for a private company that is also a banking company.
In other words, a bank cannot use its private-company status to escape the stricter governance and disclosure standards that would otherwise apply to it as a public company under company law — the specific Companies Act provisions concerned are listed in the section itself.
Note: The specific cross-references to the Companies Act, 1956 in this section have been updated multiple times to track renumbering in that Act (most recently reflecting the transition toward the Companies Act, 2013 framework).
