Section 14A of The Banking Regulation Act

Here we will see Section 14A of The Banking Regulation Act.

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 subsection (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 subsection (3) or of the Reserve Bank where no such appeal has been preferred shall be final.

Please note that our content may include affiliate links. When you make a purchase using these links,we (Advgyan and/or the publisher) may receive a commission,which helps support us.

Note: We're not perfect, but we're trying our best. Please let us know with evidence if you need any corrections to this article or post, and we will be happy to make the necessary corrections.

About Author: I am Varun Kumar Jha, founder and author of this website. I am a passionate writer and researcher with a keen interest in law, technologies and gadgets. I strive to provide informative and engaging content that helps my readers learn and grow. I am always looking for new ways to share my knowledge and insights with others. Important Websites : Law and Justice | Supreme Court of India | TCN

Leave a Reply

Your email address will not be published. Required fields are marked *

fifteen + 16 =