Section 49 of The Small Industries Development Bank of India Act, 1989
Nothing contained in the Banking Regulation Act, 1949, except section 34A and section 36AD thereof, shall apply to the Small Industries Bank.
Summary
- The Banking Regulation Act of 1949 generally does not apply to the operations of the Small Industries Bank.
- The Small Industries Bank is exempt from most standard banking regulations because it is a specialized development institution.
- There are exactly two exceptions where the 1949 Act does apply to the Bank.
- The first exception is section 34A of the Banking Regulation Act.
- The second exception is section 36AD of the Banking Regulation Act.
Practical examples
FAQ
1. Does the Small Industries Bank have to follow the Banking Regulation Act of 1949?
For the most part, no. The law specifically exempts the Small Industries Bank from that Act.
2. Are there any parts of the 1949 Act that the Bank must follow?
Yes, only two specific sections apply (section 34A and section 36AD).
3. Why is the Bank exempt from standard banking laws?
The Small Industries Bank is a unique development financial institution created by its own specific Act of Parliament, so it is governed by its own rules rather than general commercial banking regulations.
Test yourself
Q1.Under Section 49 of The Small Industries Development Bank of India Act, 1989, which major piece of legislation is explicitly declared NOT to apply to the Small Industries Bank?
Q2.Under Section 49 of The Small Industries Development Bank of India Act, 1989, how many sections of the Banking Regulation Act, 1949 are kept as exceptions and actually applied to the Bank?
Q3.Under Section 49 of The Small Industries Development Bank of India Act, 1989, which of the following is one of the specific sections of the Banking Regulation Act, 1949 that DOES apply?
Q4.Under Section 49 of The Small Industries Development Bank of India Act, 1989, which of the following is the second specific section of the Banking Regulation Act, 1949 that DOES apply?