Banking Regulation Act, 1949 · Section guide
Section 14A: Prohibition of floating charge on assets
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 14A — Prohibition of floating charge on assets. Prohibits a floating charge on the undertaking/property unless RBI certifies in writing that it is not detrimental to depositors; a charge without the certificate is invalid; refusal can be appealed to the Central Government within 90 days of communication.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Prohibits a floating charge on the undertaking/property unless RBI certifies in writing that it is not detrimental to depositors.
Condition / limitation
a charge without the certificate is invalid.
Timing / amount / process
Condition / limitationrefusal can be appealed to the Central Government within 90 days of communication.
Professional application
Map RBI certification, exceptions and appeal process; retain the 90-day anchor with its exact trigger.
Working flow
Identify the bank/entity class, event date and the factual trigger for Prohibition of floating charge on assets.
Apply the core Section 14A rule: Prohibits a floating charge on the undertaking/property unless RBI certifies in writing that it is not detrimental to depositors.
Test the next condition or limitation: a charge without the certificate is invalid.
Reconcile any amount, period, approval, filing or return mentioned in Section 14A with the supporting record.
Record the conclusion, official source used, effective date and evidence that proves the statutory condition was met or not met.
Evidence / working-paper checklist
- Section 14A evidence: current cap table and voting-rights register.
- Section 14A evidence: issue/acquisition/charge transaction documents.
- Section 14A evidence: RBI approval and conditions where required.
- Section 14A evidence: calculation file for capital, ownership, commission, reserve or voting limits.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 14A, avoid testing a threshold on one holder while ignoring connected/acting-in-concert holdings.
- For Section 14A, avoid using face value where the statute uses issue price or another base.
- For Section 14A, avoid treating corporate-law approval as a substitute for RBI approval.
Linked Rules, RBI directions, notifications and forms
Linked instruments keep their own legal basis; they are not attributed to Section 14A unless the official instrument says so.
Related sections inside the Act
Use these links to read Section 14A in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 14A is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 14A on the event date.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.