Section 51 of the Banking Regulation Act, 1949: Application to SBI and Other Notified Banks
Updated: September 14, 2026
Section 51 in brief: Section 51 extends specified provisions of the Banking Regulation Act, 1949 to the State Bank of India, corresponding new banks, Regional Rural Banks and subsidiary banks, subject to the qualifications contained in the section. It also explains how references to a "banking company" in related rules or directions are to be read for these institutions.
Meaning and purpose of Section 51
The Banking Regulation Act, 1949 primarily regulates banking companies. Section 51 is an application provision. It makes a defined set of provisions of the Act applicable, so far as may be, to the State Bank of India and the other classes of banks specified in the section, even though those banks may also be governed by separate enactments.
The opening words "without prejudice to" mean that the application of the listed provisions does not displace the State Bank of India Act, 1955 or another applicable enactment. The provisions operate together to the extent permitted by law.
Current text of Section 51
51. Application of certain provisions to the State Bank of India and other notified banks.
(1) Without prejudice to the provisions of the State Bank of India Act, 1955 (23 of 1955), or any other enactment, the provisions of sections 10, 13 to 15, 17, 19 to 21A, 23 to 28, 29 (excluding sub-section (3)), 29A, sub-sections (1B), (1C) and (2) of section 30, section 31, sections 34, 35, 35A, 35AA, 35AB, section 36 (excluding clause (d) of sub-section (1)), sections 45Y to 45ZF, sections 46 to 48, 50, 52 and 53 shall also apply, so far as may be, to and in relation to the State Bank of India or any corresponding new bank or a Regional Rural Bank or any subsidiary bank as they apply to and in relation to banking companies:
Provided that-
(a) nothing contained in clause (c) of sub-section (1) of section 10 shall apply to the chairman of the State Bank of India or to a managing director of any subsidiary bank in so far as the said clause precludes him from being a director of, or holding an office in, any institution approved by the Reserve Bank;
(b) nothing contained in sub-clause (iii) of clause (b) of sub-section (1) of section 20 shall apply to any bank referred to in sub-section (1), insofar as the said sub-clause precludes that bank from entering into any commitment for granting any loan or advance to or on behalf of a company (not being a Government company) in which not less than forty per cent of the paid-up capital is held, whether singly or taken together, by the Central Government or the Reserve Bank or a corporation owned by that bank; and
(c) nothing contained in section 46 or section 47A shall apply to-
(i) an officer of the Central Government or the Reserve Bank, nominated or appointed as director of the State Bank of India or any corresponding new bank or a Regional Rural Bank or any subsidiary bank or a company; or
(ii) an officer of the State Bank of India or a corresponding new bank or a Regional Rural Bank or a subsidiary bank nominated or appointed as director of any of the said banks, not being the bank of which he is an officer, or of a banking company.
(2) References to a banking company in any rule or direction relating to any provision of this Act referred to in sub-section (1) shall, except where such rule or direction provides otherwise, be construed as referring also to the State Bank of India, a corresponding new bank, a Regional Rural Bank and a subsidiary bank.
Which banks are covered?
| Institution | How Section 51 operates |
|---|---|
| State Bank of India | The provisions listed in Section 51(1) apply so far as may be, without prejudice to the State Bank of India Act, 1955 and other applicable enactments. |
| Corresponding new banks | The listed Banking Regulation Act provisions are extended to these banks subject to Section 51 and their governing legislation. |
| Regional Rural Banks | The listed provisions apply to Regional Rural Banks so far as may be, alongside the Regional Rural Banks Act, 1976 and other applicable law. |
| Subsidiary banks | The statutory wording continues to contain this category. Historical restructuring and repeal or merger legislation should be considered where relevant to a particular institution or period. |
Key provisions applied by Section 51
Section 51 incorporates a substantial regulatory framework, including provisions concerning restrictions on employment and management, reserves, subsidiary companies, loans and advances, control of advances, branch regulation, returns, accounts and audit, inspection, Reserve Bank directions, stressed assets, preservation of records, nomination-related provisions, penalties, rule-making and exemption powers.
Examples include Section 35A, under which the Reserve Bank may issue directions in specified circumstances, and Sections 35AA and 35AB, which concern insolvency-resolution directions and stressed assets. The exact application of each incorporated provision must be read with Section 51 and the special law governing the bank concerned.
Effect of Section 51(2)
Sub-section (2) is important for subordinate legislation. Unless the relevant rule or direction states otherwise, a reference to a "banking company" in a rule or direction connected with a provision listed in Section 51(1) is read as also referring to the State Bank of India, corresponding new banks, Regional Rural Banks and subsidiary banks.
2025 banking-law amendments and current position
The Banking Laws (Amendment) Act, 2025 amended several provisions of the Banking Regulation Act, including the nomination framework in Sections 45ZA, 45ZC and 45ZE and inserted Section 45ZG on priority of successive nominations. Those nomination changes came into force from November 1, 2025. The current official India Code listing should always be checked for the latest consolidated text and commencement details.
Amendment history relevant to Section 51
- Section 51 was substituted in 1956 and was later renumbered as sub-section (1).
- The classes of provisions applied through Section 51 were expanded and revised through later banking-law amendments.
- Section 29A was inserted into the Banking Regulation Act in 2013 and appears in the present Section 51 framework.
- Sections 35AA and 35AB, relating to insolvency resolution and stressed assets, were added in 2017 and are included in Section 51.
Official legal resources
Read the consolidated statute on the India Code - Banking Regulation Act, 1949. Regulatory directions, notifications and master directions are available from the Reserve Bank of India.
Frequently asked questions
What is Section 51 of the Banking Regulation Act?
It extends specified provisions of the Banking Regulation Act, 1949 to the State Bank of India and other categories of banks named in the section, subject to the statutory exceptions and qualifications.
Does Section 51 override the State Bank of India Act, 1955?
No. Section 51 expressly operates "without prejudice to" the State Bank of India Act, 1955 and any other enactment. The relevant laws must therefore be read together.
Why is Section 51(2) important?
It generally extends references to a "banking company" in rules and directions made in relation to the listed provisions to the banks covered by Section 51, unless the particular rule or direction provides otherwise.
Where should the latest statutory text be checked?
India Code is the official Central Government source for the consolidated Act. RBI sources should also be checked for current regulatory directions, notifications and implementation requirements.
Disclaimer: This page is for legal information and reference. It is not a substitute for professional legal advice or verification of the latest official statutory text, notifications, commencement provisions and judicial interpretation.