Restrictions on Power to Remit Debts
Section 20A of the Banking Regulation Act, 1949 stipulates that notwithstanding anything to the contrary contained in Section 180 of the Companies Act, 2013, 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-
any of its directors, or
any firm or company in which any of its directors is interested as director, partner, managing agent or guarantor, or
any individual, if any of its directors is his partner or guarantor.
Any tremission made in contravention of the provisions stated above shall be void and have no effect.