Section 20A(1) in The Banking Regulation Act, 1949
(1)Notwithstanding anything to the contrary contained in section 293 of the Companies Act, 1956 (1 of 1956), a banking company shall not, except with the prior approval of the Reserve Bank, remit in whole or in part any debt due to it by-(a)any of its directors, or(b)any firm or company in which any of its directors is interested as director, partner, managing agent or guarantor, or(c)any individual if any of its directors is his partner or guarantor.
