Restrictions on opening of new, and transfer of existing, places of business
Section 23 of the Banking Regulation Act, 1949 deals with restrictions on opening of new, and transfer of existing, places of business. Without obtaining the prior permission of the Reserve Bank-- (a) no banking company shall open a new place of business in India or change otherwise than within the same city, town or village, the location of an existing place of business situated in India; The Act came into force on 16 Mar 1949.
1[23. Restrictions on opening of new and transfer of existing, places of business.--(1) Without obtaining the prior permission of the Reserve Bank--
(a) no banking company shall open a new place of business in India or change otherwise than within the same city, town or village, the location of an existing place of business situated in India; and
(b) no banking company incorporated in India shall open a new place of business outside India or change, otherwise than within the same city, town or village in any country or area outside India, the location of an existing place of business situated in that country or area:
Provided that nothing in this sub-section shall apply to the opening for a period not exceeding one month of a temporary place of business within a city, town or village or the environs thereof within which the banking company already has a place of business for the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any other like occasion.
(2) Before granting any permission under this section, the Reserve Bank may require to be satisfied by an inspection under section 35 or otherwise as to the financial condition and history of the company, the general character of its management, the adequacy of its capital structure and earning prospects and that public interest will be served by the opening or, as the case may be, change of location, of the place of business.
(3) The Reserve Bank may grant permission under sub-section (1) subject to such conditions as it may think fit to impose either generally or with reference to any particular case.
(4) Where, in the opinion of the Reserve Bank, a banking company has, at any time, failed to comply with any of the conditions imposed on it under this section, the Reserve Bank may, by order in writing and after affording reasonable opportunity to the banking company for showing cause against the action proposed to be taken against it, revoke any permission granted under this section.
2[(4A) Any regional rural bank requiring the permission of the Reserve Bank under this section shall forward its application to the Reserve Bank through the National Bank which shall give its comments on the merits of the application and send it to the Reserve Bank:
Provided that the regional rural bank shall also send an advance copy of the application directly to the Reserve Bank.]
(5) For the purposes of this section "place of business" includes any sub-office, pay office, sub-pay office and any place of business at which deposits are received, cheques cashed or moneys lent.]
Section 23, The Banking Regulation Act, 1949 (Act 10 of 1949).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 23
What does Section 23 of the Banking Regulation Act deal with?
Section 23 of the Banking Regulation Act is headed "Restrictions on opening of new, and transfer of existing, places of business". [23. Restrictions on opening of new and transfer of existing, places of business.--(1) Without obtaining the prior permission of the Reserve Bank-- (a) no banking company shall open a new place of business in India or change otherwise than within the same city, town or village, the location of an ex
How do I find court cases under Section 23 of the Banking Regulation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Banking Regulation Act 1949 23, section 23 Banking Regulation Act 1949, section 23 of the Banking Regulation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 23 of the Banking Regulation Act, and has it changed?
Its own text turns on section 35 (Inspection), so none of them can safely be read on its own. One instrument names it without being made under it, most recently Banking Regulation (Companies) Rules 1949 (1949).
When did Section 23 of the Banking Regulation Act come into force?
Section 23 of the Banking Regulation Act, cited as Banking Regulation Act 1949 23, came into force on 16 Mar 1949, having been enacted on 10 Mar 1949. It is in force as at the date shown on this page.
Other sections of this Act
- 56. Act to apply to co-operative societies subject to modifications5544 words
- 45. Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation2310 words
- 10B. Banking company to be managed by whole time chairman1171 words
- 5. Interpretation1164 words
- 43A. Preferential payments to depositors1031 words
- 11. Requirement as to minimum paid-up capital and reserves988 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 19 Oct 2026. This page is not a substitute for legal advice.