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Banking Regulation Act, 1949 · Section guide

Section 53: Power to exempt in certain cases

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 53 — Power to exempt in certain cases. Allows the Central Government, on RBI recommendation, to exempt a banking company/class from specified provisions. Subject to conditions; reliance requires the actual Gazette exemption and its effective period.

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

Allows the Central Government, on RBI recommendation, to exempt a banking company/class from specified provisions subject to conditions.

Condition / limitation

reliance requires the actual Gazette exemption and its effective period.

Source and effective-date control

Apply the wording of Section 53 that was in force on the event date; use the official Act and any applicable commencement/amending instrument linked on this page.

Professional application

Explain Central Government exemption powers and recommendations/conditions; contrast cooperative-specific Section 56 adaptation.

Evidence / working-paper checklist

  • Section 53 evidence: the statutory event document.
  • Section 53 evidence: the competent authority record.
  • Section 53 evidence: any rule/notification governing the event.
  • Section 53 evidence: dated conclusion and supporting official source.

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

Common mistakes to avoid

  • For Section 53, avoid relying only on the marginal heading.
  • For Section 53, avoid ignoring an express exception or cross-reference.
  • For Section 53, avoid recording a conclusion without the primary source and event date.

Related sections inside the Act

Section 51A — RBI powers not to apply to International Financial Services CentreSection 52 — Power of Central Government to make rulesSection 54 — Protection of action taken under ActSection 55 — Amendment of Reserve Bank of India Act, 1934Section 56 — contextual cross-reference

Use these links to read Section 53 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 53 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 53 on the event date.

Professional reading note

Professional reading note — Section 53 should be applied as a sequence, not as an isolated heading. Start with the factual trigger

for power to exempt in certain cases, then test the operative proposition: Allows the Central Government, on RBI recommendation, to exempt a

banking company/class from specified provisions subject to conditions. Next confirm the limiting or interaction point: reliance requires the actual Gazette exemption and

its effective period. 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 53 evidence:

the statutory event document and Section 53 evidence: the competent authority record. Read the provision in sequence with Section 51A — RBI

powers not to apply to International Financial Services Centre and Section 52 — Power of Central Government to make rules. 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.

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.