Here we will see Section 14 of The Banking Regulation Act.
Prohibition of charge on unpaid capital.— No banking company shall create any charge upon any unpaid capital of the company, and any such charge shall be invalid.
14A. Prohibition of floating charge on assets.— (1) Notwithstanding anything contained in section 6, no banking company shall create a floating charge on the undertaking or any property of the company or any part thereof, unless the creation of such floating charge is certified in writing by the Reserve Bank as not being detrimental to the interests of the depositors of such company.
(2) Any such charge created without obtaining the certificate of the Reserve Bank shall be invalid.
(3) Any banking company aggrieved by the refusal of a certificate under sub–section (1) may, within ninety days from the date on which such refusal is communicated to it, appeal to the Central Government.
(4) The decision of the Central Government where an appeal has been perferred to it under sub–section (3) or of the Reserve Bank where no such appeal has been preferred shall be final.