Sections 49A, 49B and 49C of the Banking Regulation Act, 1949
Last reviewed: 14 September 2026
Sections 49A, 49B and 49C form part of the miscellaneous provisions of the Banking Regulation Act, 1949. They deal respectively with who may accept public deposits withdrawable by cheque, the requirement of Reserve Bank of India clearance for a banking company's change of name, and Reserve Bank clearance for alteration of a banking company's memorandum.
Section 49A - Restriction on acceptance of deposits withdrawable by cheque
What the provision does: Section 49A restricts acceptance from the public of deposits of money that are withdrawable by cheque. Such deposits may be accepted only by the categories specifically permitted by the section.
Statutory text:
No person other than a banking company, the Reserve Bank, the State Bank of India or any other banking institution, firm or other person notified by the Central Government in this behalf on the recommendation of the Reserve Bank shall accept from the public deposits of money withdrawable by cheque:
Provided that nothing contained in this section shall apply to any savings bank scheme run by the Government.
Meaning and effect of Section 49A
The provision protects the regulated banking function associated with cheque-withdrawable public deposits. A person or entity outside the permitted categories cannot lawfully accept such deposits merely by describing the arrangement as a deposit scheme. The exception expressly preserved by the proviso is a savings bank scheme run by the Government.
Legislative notes in the official text record that Section 49A was inserted by Act 33 of 1959 with effect from 1 October 1959, and that the relevant category of notified institutions, firms or persons was substituted by Act 55 of 1963 with effect from 1 February 1964.
Section 49B - Change of name by a banking company
What the provision does: Section 49B imposes an additional banking-law safeguard when a banking company seeks to change its name. Reserve Bank of India no-objection certification is required before the competent Central Government approval contemplated by the section can be given.
Statutory text:
Notwithstanding anything contained in section 21 of the Companies Act, 1956 (1 of 1956), the Central Government shall not signify its approval to the change of name of any banking company unless the Reserve Bank certifies in writing that it has no objection to such change.
Current-law note: The official Banking Regulation Act text continues to reproduce the historical reference to section 21 of the Companies Act, 1956. The Companies Act, 1956 has since been replaced by the Companies Act, 2013. Under the present companies-law framework, alteration of a company's memorandum, including matters concerning its name, is governed principally by section 13 of the Companies Act, 2013. For a banking company, the special RBI no-objection requirement in Section 49B of the Banking Regulation Act must still be read as an additional banking-law requirement.
Section 49C - Alteration of memorandum of a banking company
What the provision does: Section 49C makes RBI clearance a condition for an application concerning confirmation of an alteration of the memorandum of a banking company.
Statutory text:
Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), no application for the confirmation of the alteration of the memorandum of a banking company shall be maintainable unless the Reserve Bank certifies that there is no objection to such alteration.
Meaning and effect of Section 49C
A banking company cannot treat alteration of its memorandum as an ordinary corporate amendment alone. Section 49C places RBI's no-objection certification at the threshold. The provision reflects the supervisory role of the Reserve Bank over changes that may affect the constitution, objects or regulated identity of a banking company.
How Sections 49B and 49C fit with the Companies Act, 2013
The bare text of Sections 49B and 49C still contains references to the Companies Act, 1956. For current corporate procedure, readers should also consult the Companies Act, 2013, particularly section 13 on alteration of the memorandum. The Banking Regulation Act provisions remain important because they impose sector-specific RBI clearance requirements on banking companies.
Practical distinction: Companies law supplies the general corporate procedure; Sections 49B and 49C supply additional banking regulation requirements. A banking company should therefore consider both regimes when changing its name or altering its memorandum.
Official legal sources
For the latest consolidated statutory text and legislative status, verify the provision on India Code and consult the Reserve Bank of India for applicable banking regulation directions, approvals and regulatory guidance.
India Code - Banking Regulation Act, 1949