Banking Regulation Act, 1949 — back to Table of Contents
Section 51. Application of certain provisions to the State Bank of India and other notified banks
(1) Without prejudice to the State Bank of India Act, 1955 or any other enactment, a specified list of provisions of this Act — including sections 10, 13–15, 17, 19–21A, 23–28, 29 (excluding sub-section (3)), 29A, certain sub-sections of section 30, section 31, 34, 35, 35A, 35AA, 35AB, 36 (excluding clause (d) of sub-section (1)), 45Y to 45ZG, 46 to 48, 50, 52 and 53 — also apply, so far as possible, to the State Bank of India, any corresponding new bank, any Regional Rural Bank, or any subsidiary bank, in the same way they apply to ordinary banking companies.
Certain exceptions and modifications are carved out by proviso — for example, the restriction on a director also holding office elsewhere (section 10(1)(c)) does not prevent the Chairman of the State Bank of India, or a managing director of a subsidiary bank, from also being a director of or holding office in an institution approved by the Reserve Bank; and the restriction on loans to companies connected with directors (section 20(1)(b)(iii)) does not prevent lending to companies substantially owned by the Central Government or the Reserve Bank.
In essence, this section extends the operational and regulatory discipline of the Act to the public-sector banking family — the State Bank, its subsidiaries, the nationalised (“corresponding new”) banks, and Regional Rural Banks — even though they are separately constituted under their own statutes rather than incorporated as ordinary banking companies.
Note: The list of applied sections has been extended repeatedly as new provisions were inserted elsewhere in the Act (most recently to include the Part IIIB nomination sections 45Y–45ZG).
