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(a) the purposes for which advance may or may not be made,

(b) the margins to be maintained in respect of secured advances,

(c) the maximum amount of advances or other financial accommodation which, having regard to the paid-up capital, reserves any deposits of a banking company and relevant considerations, may be made by that banking company, to any one company, firm, association of persons or individual,

(d) the maximum amount up to which, having regard to the considerations referred to in Clause (c), guarantees may be given by a banking company on behalf of any one company, firm, association of persons or individual, and

(e) the rate of interest and other terms and conditions on which advances or other financial accommodation may be made or guarantees may be given.

(3) Every banking company shall be bound to comply with any directions given to it under this section.

x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 35-A. Power of the Reserve Bank to give directions. - (1) Where the Reserve Bank is satisfied that-

(a) in the public interest; or (aa) in the interest of banking policy; or

(2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any directions issued under Sub-section (1) and in so modifying or cancelling any direction may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.

15. A perusal of the aforementioned statutory provisions, would show that the Reserve Bank of India wherever satisfied may determine a policy in relation to advances which is to be followed by the banking companies generally or by any banking company or by any group of banking companies or the banking company concerned. Such policy by the Reserve Bank of India is determined by keeping in view the public interest or the interest of the depositors and has been made binding on all concerned. Sub-section (2) of Section 21 of the Act envisages determination of rate of interest and other terms/conditions on which advances or other financial accommodation may be made or guarantees may be given.