Banking Regulation Act, 1949 · Section guide
Section 43A: Preferential payments to depositors
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 43A — Preferential payments to depositors. Creates preferential-payment mechanics for depositors in banking-company winding up and must be read with deposit insurance/other priority laws where applicable.
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
Creates preferential-payment mechanics for depositors in banking-company winding up and must be read with deposit insurance/other priority laws where applicable.
Condition / limitation
How to read the provisionSection 43A: read the operative proposition with its defined terms and cross-references in the official Act.
Timing / amount / process
Boundary of the ruleDo not expand Section 43A by analogy; distinguish statutory text from stricter policy or later RBI requirements.
Professional application
preferential-payment categories, statutory limits and interactions with deposit insurance; verify current overlays before publishing numbers.
Evidence / working-paper checklist
- Section 43A evidence: High Court/Central Government/RBI order initiating the process.
- Section 43A evidence: liquidator/scheme records and creditor/debtor lists.
- Section 43A evidence: service/publication and statutory-timeline evidence.
- Section 43A evidence: orders settling claims, calls, transfers, moratorium or amalgamation.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 43A, avoid applying ordinary Companies Act procedure without the banking-specific override.
- For Section 43A, avoid missing the special limitation or accelerated filing period.
- For Section 43A, avoid treating a private scheme as effective before the statutory sanction/order.
Related sections inside the Act
Use these links to read Section 43A 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 43A 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 43A 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.