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(2). Without prejudice to the generality of the powers vested under subsection (1) the Bank may give directions to non- banking financial companies generally or to a class of non- banking financial companies or to any nonbanking financial company in particular as to-,

(a). the purpose for which advances or other fund based or non-fund based accommodation may not be made; and

(b). the maximum amount of advances or other financial accommodation or investment in shares and other securities which, having regard to the paid-up capital, reserves and deposits of the non-banking financial company and other relevant considerations, may be made by that nonbanking financial company to any person or a company or to a group of companies.

(a) the purposes for which advances 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 and deposits of a banking company and other 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.

35A. 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







       (b).     to prevent the affairs of any banking company being