Section 49A: Restriction on acceptance of deposits withdrawable by cheque

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 49A — Restriction on acceptance of deposits withdrawable by cheque. Restricts acceptance of deposits withdrawable by cheque by persons/entities other than those authorised. By the section; the provision protects the banking/payment perimeter.

Official statute linkedProvision-specific anatomyPractical case + evidence file

Official text: DFS consolidated Act

Statutory structure and provision map

This map is a provision-specific explanation, not a substitute for the exact statutory text.

Core statutory rule

Restricts acceptance of deposits withdrawable by cheque by persons/entities other than those authorised by the section.

Condition / limitation

the provision protects the banking/payment perimeter.

Source and effective-date control

Apply the wording of Section 49A that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

State who may accept cheque-withdrawable deposits and the exact notified exceptions.

Working flow

Identify the bank/entity class, event date and the factual trigger for Restriction on acceptance of deposits withdrawable by cheque.

Apply the core Section 49A rule: Restricts acceptance of deposits withdrawable by cheque by persons/entities other than those authorised by the section.

Test the next condition or limitation: the provision protects the banking/payment perimeter.

Reconcile any amount, period, approval, filing or return mentioned in Section 49A 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 49A evidence: board-approved business/product note.
Section 49A evidence: legal classification of the proposed activity.
Section 49A evidence: counterparty and transaction documents.
Section 49A evidence: any RBI approval/direction or sector-law permission relevant to the activity.

Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.

Common mistakes to avoid

For Section 49A, avoid treating commercial convenience as statutory authority to conduct the activity.
For Section 49A, avoid ignoring an express prohibition because the activity is incidental to banking.
For Section 49A, avoid forgetting that a permitted banking activity may still require a separate sector-law licence.

Related sections inside the Act

Use these links to read Section 49A 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 49A 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 49A on the event date.

Professional reading note

Professional reading note — Section 49A should be applied as a sequence, not as an isolated heading. Start with the factual trigger

for restriction on acceptance of deposits withdrawable by cheque, then test the operative proposition: Restricts acceptance of deposits withdrawable by cheque by

persons/entities other than those authorised by the section. Next confirm the limiting or interaction point: the provision protects the banking/payment perimeter. The

working file should be capable of showing why the section applies to the relevant bank or person, which statutory version governs the

event date, and which documentary record proves the conclusion. Useful evidence on this page includes Section 49A evidence: board-approved business/product note and

Section 49A evidence: legal classification of the proposed activity. Read the provision in sequence with Section 48 — Application of fines and

Section 49 — Special provisions for private banking companies. This method keeps the legal answer tied to the provision itself while allowing

RBI directions, rules and later instruments to be layered on only where their own scope actually applies.

Primary official sources

Department of Financial Services — consolidated Banking Regulation Act, 1949

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.