Banking Regulation Act, 1949 — back to Table of Contents
Section 53. Power to exempt in certain cases
On the Reserve Bank’s recommendation, the Central Government may, by notification in the Official Gazette, declare that any or all provisions of the Act do not apply to a particular banking company or institution, or to a class of banking companies — either generally, or for a specified period.
This is the Act’s general exemption power, giving the Central Government flexibility (on RBI advice) to relieve specific banks or categories of banks from provisions that might not fit their circumstances, without needing a further legislative amendment.
Note: This power has been used, for instance, to grant time-limited or conditional exemptions to particular categories of banks under RBI-recommended notifications.
