20A.
Restrictions on power to remit debts. —(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.
(2) Any remission made in contravention of the provisions
of sub-section (1) shall be void and of no effect.
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