Banking regulation act

Querist : Anonymous (Querist) 25 November 2011 This query is : Resolved
I want to know whether provision of sec 20 of the BR act would apply in following case.

An indian national is appointed as a director of the holding foregn bank which has branches in India. This person has availed loan from this bank in India. will sec20 (b) ii and iii will apply and the advance is prohibited

i request for an early reply

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Guest (Expert) 25 November 2011
You will have to read the provisions of section 20 of BR Act with particular reference to section 77 of the Companies Act, where a banking company in the ordinary course of its business has been allowed to make loans. Unless you give proper background about the case with regard to the provisions of section 77 of the Companies Act, it would be quite difficult to say something with certainty.