Reserve Bank may issue directions to baking companies under Section 21 of Banking Regulation Act on

Under Section 21 of Banking Regulation Act, power of Reserve Bank to control advances by banking companies where the Reserve Bank is satisfied that it is necessary or expedient in the public interest or in the interests of depositors or banking policy so to do, it may determine the policy in relation to advances to be followed by banking companies generally or by any banking companies or the banking company concerned, as the case may be, shall be bound to follow the policy as so determined.